Comments for Appraiser Liability Law http://www.appraisernegligence.com Berk & Moskowitz, P.C. – Attorneys at Law, Scottsdale, Arizona Sat, 05 Dec 2009 20:19:26 +0000 hourly 1 http://wordpress.org/?v=3.0.1 Comment on Class Action Complaint for Appraisal Fraud Filed Against Giants KB Home and Countrywide by Storm Bradford http://www.appraisernegligence.com/2009/12/class-action-complaint-for-appraisal-fraud-filed-against-giants-kb-home-and-countrywide/comment-page-1/#comment-22 Storm Bradford Sat, 05 Dec 2009 20:19:26 +0000 http://www.appraisernegligence.com/?p=218#comment-22 We provide Forensic Document Examinations to include Forensic Appraisals. We find appraisal fraud in four out of every five audits we perform! We provide Forensic Document Examinations to include Forensic Appraisals. We find appraisal fraud in four out of every five audits we perform!

]]> Comment on Proof by admin http://www.appraisernegligence.com/articles/proof/comment-page-1/#comment-4 admin Sat, 07 Nov 2009 02:17:42 +0000 http://www.appraisernegligence.com/?page_id=162#comment-4 Good points. Berk & Moskowitz, P.C. has handled cases recently where the appraiser simply accepted the representation in the listing that the subject had a new roof and other upgrades without actually verifying that the work was done, let alone that quality work was done. There are a lot of line items where the appraiser can intentionally manipulate the conclusion of value or negligently make mistakes. In my experience, the main ones include condition, view and location. But, there are many others. Kent S. Berk, Esq. http://www.BerkMoskowitz.com Good points. Berk & Moskowitz, P.C. has handled cases recently where the appraiser simply accepted the representation in the listing that the subject had a new roof and other upgrades without actually verifying that the work was done, let alone that quality work was done. There are a lot of line items where the appraiser can intentionally manipulate the conclusion of value or negligently make mistakes. In my experience, the main ones include condition, view and location. But, there are many others.

Kent S. Berk, Esq.
http://www.BerkMoskowitz.com

]]> Comment on Proof by John C. Carlson http://www.appraisernegligence.com/articles/proof/comment-page-1/#comment-3 John C. Carlson Fri, 06 Nov 2009 23:26:54 +0000 http://www.appraisernegligence.com/?page_id=162#comment-3 With most appraisals that I review, it is reasonably easy to impeach the appraiser who prepared the original report. Most mistakes can be identified when such data sources as the MLS Listing for the comparable property is reviewed. There is one line item adjustment in appraisal reports that I find is the most abused, this is the "condition adjustment". I find that this line item is so often used to inflate value that I have given it a new name, I call it the "Bogus Condition Adjustment". The Subject is always in "good" condition and the Comp is always in "average" condition and the appraiser makes a +25,000, +50,000 even +75,000 upward condition. Unfortunately for the appraiser, when I review the MLS Listing for the comp, the Listing Agent has noted comments like: "new roof, new windows, new granite counter tops, new hardwood floors, new, new, new...." The appraiser has totally misrepresented the condition of the Comp. Unbelievably, these appraisers not only note that they have utilized MLS as a Data Source, but they actually include the correct MLS Listing Number on the adjustment grid. Who do they think that they are fooling?? This makes it very easy to impeach them. The Forensic Review part of my practice has exploded this year as more and more appraisers are being sued. This is not going to abate soon! John C. Carlson CA Certified General Real Estate Appraiser Diamond Bar, CA www.jccrea.com With most appraisals that I review, it is reasonably easy to impeach the appraiser who prepared the original report. Most mistakes can be identified when such data sources as the MLS Listing for the comparable property is reviewed.

There is one line item adjustment in appraisal reports that I find is the most abused, this is the “condition adjustment”. I find that this line item is so often used to inflate value that I have given it a new name, I call it the “Bogus Condition Adjustment”.

The Subject is always in “good” condition and the Comp is always in “average” condition and the appraiser makes a +25,000, +50,000 even +75,000 upward condition. Unfortunately for the appraiser, when I review the MLS Listing for the comp, the Listing Agent has noted comments like: “new roof, new windows, new granite counter tops, new hardwood floors, new, new, new….” The appraiser has totally misrepresented the condition of the Comp.

Unbelievably, these appraisers not only note that they have utilized MLS as a Data Source, but they actually include the correct MLS Listing Number on the adjustment grid. Who do they think that they are fooling?? This makes it very easy to impeach them.

The Forensic Review part of my practice has exploded this year as more and more appraisers are being sued. This is not going to abate soon!

John C. Carlson
CA Certified General Real Estate Appraiser
Diamond Bar, CA
http://www.jccrea.com

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