I received a bpo where I think the appraiser must of been smoking something. It is a new company that I haven't done any for yet. They sent me the appraisal to help out. (I found this a little odd)
The appraiser used homes all 15 years newer than subject, 200 sq ft larger with more bedrooms and baths and some 4 miles away. I just pulled quick comps within a mile of subject, same year, same number of bedrooms, same size in similar condition and am coming up with at least $90000 under the appraisal.
You think they get some kinda bonus or something for pushing value?
I don't think they are doing the owners any favors. It's for a refi. What are they going to do if they ever have to sell and they owe so much more than it's worth?

How bout one I sold for $120,000 and the appraiser came in at $248,000 and it was in worse shape at time of appraisal. You think he had his hands in the loan officers wallet/front pocket. I know the borrower had a nice deficiancy agreement.
When I did it I got $109,000. It gets better.......the market was better at time of list than appraisal. WOW!!!
I bet the appraiser is on MLN's blacklist.

I had an appraiser come into my own house a month or so for a refi.

She did not know I am in real estate and asked me if the bank told me what I needed the value to "come in at".

Since I was paying for (and wanted) a REAL appraisal, I said I had no idea.

I have heard from several clients of mine about an appraiser taking a front and back photo, walking into the living room or foyer, asking "How much is the loan for?" and leaving. Same appraiser had done one for clients who were listing their house. Their agent said it should sell for about $125,000, so they ordered an appraisal. It came in at $125,900, and property was listed at that. 6 months later, it expires, we get the listing, they decided they needed to sell so we listed it at $97,500 (with several comps to justify that value). He accepted an offer for $87,500 a few months later. The buyer's bank had that same appraiser do the appraisal for them- it came in at $87,900. This is after it had been painted and some minor things fixed. Insanity!

Hey Margaret it could be this.I just did a bpo where the am company wanted me to use high end comps for the property.Apparently an investor purchased the property rehabbed it,put in cherry cabinets,granite countertops,everything redone.They wanted me to use comps on newer homes with similar amentities for a higher value and sent me the file to show the work was done.
I didn't have a problem with doing the values that way.After all you can't really compare a fully rehabbed house with old homes in the neighborhood as comparable.

As far as appraisers go they will always fluff the numbers if reasonable to come in at a certain price.If it's way out there they risk mortgage fraud,or worse if it's proven there were in collusion together to split the profits.Often time the appraiser and investors will inflate the value,the bank will loan out and then they split the profit 50/50 but it is a dark day in there lives when the government finally catches them.

Super, The home I am doing was built in 1958 and it is obvious. You drive by and say 60s. The appraisal stated average condition etc. If it had been rehabbed or looked much nicer than close comps I would look harder for nicer comps but this is not the case.There were much better comps close to the subject and the appraiser went out. I notified the AM and they told me to carry on with my opinion.

All should know by now that an appraisal not the golden word. At best, it is only an opinion base on 3 forms of valuation, usually replacement cost, comp sales based, and what ever the 3 favorite for an area may happen to be.

Appraisals for initial mortgages are one thing, for Helo or Refi they are totally different. All are for what a lender to determine their risk if a loan were made to a specific borrower... that is where credit score comes into play. While it does not directly effect the basic appraisal, it can effect and generally does effect the guidelines the lender gives the appraiser. Many give guidelines that would place a mortgage up against the extreme ends of conventional loan criteria set by Fannie May, Freddie Mac, VA, and the others. Some probably go over it... but get excused because it is an Opinion.

A good BPO is often a far better estimate of real Market Value than an appraisal when good sold comps and good active comps are selected. BPO's are generally close to real time valuations, while Appraisals will often lag real time valuations in a changing market by several months and when combined with lower activity this can result in significantly higher error in Appraisals that in a BPO for the same property. Also many of us actually have additional knowledge of the comps... we have often been in them or have other detailed information while the appraisers generally only have short access time to the subject.

I don't believe a drive by BPO is more accurate then an appraisal which an appraiser actually inspected the interior. An appraisal is generally a detailed process that gives a value to each amenity in a home. I believe most Realtors dont go into that much detail in determining a value. Just my opinion based on an average of $50 per BPO. I believe that Realtor gives just what the BPO is...an OPINION!

I am a Realtor doing BPO's and an Appraiser.

You're absolutely right, Bob, and we're the first to say "this case needs an appraisal"... but now and then (and lately more often) the appraiser has more incentive to get creative than an agent doing a $40 BPO... and thus you will see creative appraisals more often than creative BPO's (not that we haven't seen a few of those too).

I'm about to pour my coffee and do one myself... a gorgeous custom manufactured home... I saw a previous appraisal, three comps, not one manufactured home in the bunch. I think that appraisal was high, but since I can't adjust every detail (there are lots of details, all positive) I'm thinking I'll come in low.

That case makes your point and mine... the appraisal absolutely is more accurate than my BPO, unless the appraiser was paid to stretch the value.

Must be an incompetent appraiser. If the subject is a manf home, all the comp should be the same.

The following is in the special instruction section of a Clear Capital BPO order: "If the subject property is a CONDO in the DALLAS or HOUSTON markets, please consider carefully your comparable sale selection. Reportedly these markets are currently suffering from above average fraudulent flipping activity. In these metro areas use at least one similar sales comp from outside the subject's development and one from within the complex." I thought you all might find it interesting.

Yaeh Bob, that's what I thought too... though in all fairness it is far superior to most or maybe to any manuf comp... I tyhought a good appraisal would have a mix, one manuf and one from the neighborhood.

I called my company to ask what comps to use and they took the order from me thinking they'll order an appraisal instead. boo hoo... I hate to loose an order, but that's the right thing to do... and this company will be fair with me on a trip fee (which will almost cover my $3.31 gas this week).