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Useful Websites Links To Help You With Information on Your Appraisals

• Assessor Links:

•  http://www.ugotpal.com/UserLogin.asp,  

• ISBSA LIST OF ONLINE ASSESORS, 

• CITY OF DETROIT MASTER PLAN - CAN FIND ALOT OF INFO FOR AREAS IN THE CITY OF DETROIT

• City, Township / Municap Information: 

• http://www.city-data.com/city/Michigan.html, 

• COMMUNITY INFORMATION, 

• INFOMI, 

• WIKIPEDIA, 

• COUNTY WEBSITE LISTING    

• ANOTHER COUNTY LISTING WEBSITE   

•  MICHIGAN TOWNSHIP WEBSITE  

• NORTHWEST MICHIGAN COUNTIES, 

• MUNICODE

• GENESEE COUNTY EQUALIZATION DEPARTMENTS (Townships and Cities)

•  

• Maps & Plat Maps (Flood, etc.) :

•  MICHIGAN TOWNSHIP MAP - ZOOM IN AND LOOK, 

• CENSUS,

• FEMA FLOOD MAPS,  

•  ACREAGE CALCULATOR, 

• SUBDIVISION PLAT MAPS IN MICHIGAN  

• MLS / General: 

• REDFERN, LUCIA & ASSOCIATES, LLC, COUNTIES COVERED MAP & MLS LINKS
     
  
  

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• State License Info

• VERIFY YOUR LICENSE WITH THE STATE
  CONTINUING EDUCATION INFORMATION
  HOURLY LOG LINK
  

• Appraisal Governing Body Links

• THE APPRAISAL SUBCOMMITTEE
  THE APPRAISAL FOUNDATION
  USPAP INFO
  

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• Profession Links

• APPRAISERS FORUM - YOU CAN FIND ALOT IF INFORMATION ABOUT THE PROFESSION ON HERE
  HERE IS WHAT UNDERWRITERS AND AUDITORS LOOK FOR
  MARSHALL & SWIFT
  LIST OF LOCAL LENDERS - POSSIBLE NEW WORK

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Click on the County to Go to Their Web Site

HELPFUL INFORMATION & GENERAL DISCUSSION SECTION

IF YOU HAVE SOMETHING THAT YOU FEEL SHOULD BE ADDED, PLEASE EMAIL IT TO LUCIAPROPERTIES@AOL.COM

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REASON WHY LENDERS WANT MORE EXTRA COMPS
The gross adjustments of any comparable is over 10%
Differing styles 1 story vs 2 story, etc.
Differing ages or unclear ages...100 years old vs new..etc. they typically dont accept age ranges.
Interior Bedroom/Bath counts vary substantially 2 bedroom vs 3 bedroom, etc.
Over 1/2 mile in Urban areas
Over 3 miles in suburban areas

It is always good to have Four Comparables on EVERY Appraisal!

Importing Files (Real Easy Appraisals)

HELPFUL APPRAISAL EXPLANATIONS

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WHY HOMES SELL FOR MORE OR LESS THAN APPRAISED PRICE
The motivations of the Purchaser and Seller of the subject property are never completely revealed to the Appraiser. As such, the appraisers duty is not to be sagacious regarding the parties involved in the transaction as to their motivations, but to observe the market reactions or typical buyers and sellers and take into consideration the condition of the subject property in accordance with typical market reactions to said condition. This observation will lead to a fair and unbiased Estimate of Market Value that may or may not be at, above, near or below the sales price

EXTRA DISTANCE AND UNIQUE AMENITIES
I have considered relevant competitive listings or contract offerings in the performance of this appraisal and in the information reported in this section. One must understand that the Appraisals of properties like the subject don't meet the normal "templated" criteria as an Appraisal Reviewer or AVM's cursory look at the average market data would indicate due to the unique amenities of the subject such as a larger parcel sizes and larger than typical GLA or Specialized Amenities (such as indoor pool, or Lake Frontage). As such, the appraiser has spent extra time searching for comparables within the subjects competitive market that have the most similar amenities to the subject.

MANUFACTURED VS MODULAR (Taken from the Society of Manufactured Home Builders)
Many wonder what the difference is between manufactured homes and modular/state pre-manufactured homes. Although both can be placed on land-leased or private property, the difference is in how they are built and the different building codes. Manufactured and modular/state pre-manufactured homes are both rigorously inspected throughout the construction process in the factory and receive either a state or federal seal of approval before leaving the factory. Manufactured homes are constructed to the federal Manufactured Home Construction Safety Standards enforced by the Department of Housing and Urban Development (HUD). HUD regulates the home's design and construction, strength and durability, transportability, fire resistance, energy efficiency and quality control. It also sets tough performance standards for heating, plumbing, air-conditioning, thermal and electrical systems. Modular/state pre-manufactured homes are built to the State of Michigan Residential Building Code, the same code used to regulate site-built homes. Modular/state pre-manufactured homes are often referred to as BOCA Code homes, but this is an outdated term. Manufactured homes are predominantly single-story and are delivered to the home site in one, two or three sections. Flooring, cabinetry, fixtures, appliances and plumbing have been installed at the factory. If the home has multiple sections, the sections are joined at the site, with minimal finish work completed by an installer, such as the joining of carpet and the connection of utilities. Modular/state pre-manufactured homes can be one- or two-story dwellings and are delivered to the home site in two or more sections, sometimes as the shell of a home. Part of the interior work is accomplished at the factory, but most of the interior and exterior finish work is completed by the builder at the home site. The interior amenities installed at the home site are governed by local codes.

SITE CONDOS IN MICHIGAN
SITE CONDOMINIUMS IN MICHIGAN: They have become a popular part of Michigan's Real Estate Development, because they allow developers to cut expensive government red tape and subdivision costs of the 1967 Michigan Subdivision Control Act. You own your real estate lot and building, but usually things like parks or roadways are in common ownership by the condominium pooled ownership feature and they may or may not have monthly costs associated with them (they usually do not), that are the shared ownership items and the cost of their upkeep and finally what control over the common elements or private sections is empowered, but mainly it is a way to control the style and quality of housing within the various "Site Condo" Communities. Until the "plat act" is revised you can expect site condominium popularity to grow. In fact many new developments are " site condos " to the point that the local home buying market has become familiar with the term and accepting of the price benefits. Site Condominiums are Owned by Fee Simple Ownership and should not be confused with Other Condominium developments that have common Home Owner Associations and Common Elements. It is most appropriate to compare them with Subdivided, parceled and condominium lots.

TWO LANE ROADS VS NEIGHBORHOOD ROADS
It was not found that the Two Lane Nature of Mt. Morris Road has no effect on the potential marketability of the subject property. This was ascertained by viewing the trend in sales on 2 lane roads in  (THE CITIES NAME) such as (NAMES OF SIMILAR ROADS), etc. The access of properties on 2 lane vs. neighborhood roads is a personal preference issue that is difficult to measure, however through empirical experience, the Appraiser has found the differences so small as to be nominal and immeasurable.

OLDER HOMES IN NEED OF UPDATING
The subject has an older kitchen with few appliances and could use interior paint and general updating, but this should not effect general marketability due to any potential new owners have differing, parallel personal preferences.

EFFECTIVE AGE 

Building’s age based on its condition and use

The effective age of a building is not its actual age. Effective age takes into account any minor or major renovation made on the building and how it has been maintained. Appraisers, professionals who estimate the value of a property, will use the effective age to calculate accrued depreciation, a value that is used for tax purposes and equal to the difference between the cost to replace the building and its current value. 

Typically, a home that has been completely updated or rehabilitated has an effective age of 5-10% of its actual age (for example a 100 year old home that has been gutted and completely redone, will typically have an effective age of 5-10 years, because it much more like a newer home than an older one now) A home that has had major renovations typically has an effective age of 10-20% of its actual age. A home that has been maintained with many minor updated typically has an effective age of 20-40% of its actual age. A home that has been maintained with normal maintenance and some minor updates typically has an effective age of 40-70% of its 
actual age. A home that has been maintained, yet has some deferred maintained and is still in livable condition, typical has an effective age of 70-100% of its actual age.

GLA ADJUSTMENTS

WATERFRONT AND WATER ACCESS ADJUSTMENTS
This is specifically what I am speaking about and I will give you an example. There was an appraisal on a home in Fenton Michigan. It was in a neighborhood (actually on a peninsula, that had mostly lakefront properties and this home had a Private deeded access. Now, the actual fact of having a Private deeded access with docks, etc., The Appraiser ascertained made very little difference in value of homes nearby with no private deeded access, BUT, it had a unobstructed Lake View from across a parcel that was designated for the lake access and this gave it more value. We must be very careful when looking at PRIVATE lake access. The Lender, Broker, HomeOwner and most others will try to tell you it has the same value as lakefront, but in reality, IT DOES NOT! Lake Front is Lake Front..not Deeded Lake Front. In a case like this, I would attempt to find comparables with similar Lake Access (which, by the way is VERY difficult to do) and if I could not find any, I would make a minimal adjustment IF ANY.

HIGHEST AND BEST USE
THE CONCEPT OF HIGHEST AND BEST USE is one of the most important and least understood principles in real estate. The highest and best use of a property, more than anything else, is what determines its value. Highest and best use is defined as that use, from among reasonably probable and adequately supported alternative uses, which is:

legally permissible
physically possible
financially feasible
maximally productive

Property is always valued on the basis of its highest and best use, which may or may not be its present use. Land value is based on the highest and best use of the property as if vacant and ready for development to that use. Improvements are valued according to how they contribute to (or detract from) the value of the land. The highest and best use must occur within the reasonably near future and can’t be remote or speculative. In the real world, very few properties are developed to their highest and best use.

What Is Physically Possible? There's a lot of truth to that old real estate saw about location, location, location. Every site has physical characteristics which determine its highest and best use. Some properties have value-enhancing views and frontages. Other properties are limited by poor access, steep topography or unstable soil. The site may have poor drainage and require an expensive type of septic system. It may be in the path of urban growth or in the middle of nowhere. Sometimes you have to balance the positive and negative attributes. For example, an ocean front property may have geologic problems which require special foundation work, but the value of the ocean frontage may be worth the expense.

What Is Legally Permitted? Legally permissible uses are normally defined by current zoning and other land use regulations. Some types of land use restrictions, such as easements, are relatively permanent. Zoning restrictions, on the other hand, can change depending on who is sitting on the City Council, County Board of Supervisors or State Coastal Commission. The city or county general plan determines overall land use goals and policies. Zoning ordinances and subdivision regulations implement the general plan. In addition, planning commissions, review boards and public agencies often have the authority to attach a wide variety of permit conditions. A thorough title search will reveal any easements or CC&Rs (covenants, conditions and restrictions) which may be recorded with the deed. In Mendocino County, some property owners have been able to divide their land by obtaining Certificates of Compliance for previously-owned substandard parcels. A surveyor may uncover encroachments or boundary line problems which could affect the legal use of the property. On some properties, others may claim prescriptive rights or squatters rights through long-term use or adverse possession.

What Is Financially Feasible? Financial feasibility is based on supply and demand finding out who is the competition and who are the potential buyers, tenants and customers. This often requires extensive market research and the accurate prediction of trends. Franchise operations such as McDonald's and Taco Bell have made a science out of location studies. They know exactly who their customers are. They analyze traffic patterns and study community age and income profiles. Successful businesses even know what side of the street to be on (donut shops on the way to work, liquor stores on the way home). They don’t locate anywhere by accident.

What Will Produce The Highest Rate Of Return? For income property, figuring out the highest rate of return might involve studying several alternatives and design configurations. These kind of studies help determine such things as the optimum number of units in a motel or apartment building and what sort of rents and rates can be charged. Even if you are building or remodeling a house, there are ways to deterime what will produce the highest value. If you over-improve for the neighborhood, you may put more money into the house than you would get if you sold it. If you under-improve, you may not be creating the highest value.

Remodel, Expand, Convert or Demolish With careful research and analysis, it's possible to come up with some idea of the highest and best use for bare land. But for improved property, you often have to decide whether to remodel, expand, convert or demolish. Consider, for example, an older run-down single family house in an area zoned for commercial use. If there is more demand for residential than commercial use, it may pay to remodel the house and rent it out. If the residential demand increases, it may pay even more to expanded the rental to a duplex. As commercial demand increases, you might get more rent money by converting the house into office space. But when the demand for conventional retail buildings becomes high enough, it's time to demolish and rebuild.

Legally Nonconforming Uses and Use Permits Legally nonconforming uses are those which become "grandfathered" when new zoning regulations are adopted. Legally nonconforming uses change the highest and best use and often produce a higher value than what the current zoning ordinance will allow. For example, an automotive repair shop in the middle of a residential neighborhood might be a legally nonconforming use. Most zoning ordinances allow nonconforming uses to continue until they fall out of use for a period of time (usually one year) or are destroyed by fire, disaster or neglect. Sometimes neighboring property owners can bring enough political pressure to abate the nonconforming use, especially if it creates a nuisance or a health hazard. Most zoning ordinances include provisions for granting conditional use permits, which allow the permitting agency to attach conditions to their permits. Use permits can have a significant effect on the highest and best use.

Interim and Ultimate Highest and Best Use Properties often have an interim highest and best use because there may not be a ready market for the ultimate highest and best use. For example, If a 10-acre parcel is zoned R-1 the ultimate highest and best use would be single family homes on one-acre lots. However, there may already be hundreds of one-acre lots on the market and little or no demand for them. Therefore, the only buyers will be those who are willing to speculate on the property’s future worth. And land speculators don’t generally pay top dollar.

Excess Land Excess land is surplus land beyond that which is needed to support the property's highest and best use. Excess land can be dividable or undividable and often has a separate highest and best use. There are several types of excess land. surplus land which is undividable surplus land which could be sold to an adjacent landowner through a boundary line adjustment surplus land which is subdividable under existing planning and zoning regulations surplus land which is subdividable through the county Certificate of Compliance process For example, a house on a 200-acre lot zoned RL-160 (Range Land with 160 acre minimum lot sizes) has excess land. If the land required to support the house, a garage and a few outbuildings is five acres, then the other 195 acres is excess land. The highest and best use of the five-acre portion is residential while the highest and best use of the 95-acre portion is probably agricultural.

Before and After Analysis Earthquakes, floods and storms can inflict major damage on real estate. Properties can also be severely altered through contamination, easements, encroachments and eminent domain acquisitions for roads and utilities. In most of these cases the property loses value, but sometimes it gains value. One way to estimate real estate value loss (and gain) is by conducting a before and after analysis. The first thing to look for is a change in highest and best use, because this often has the most significant effect on value. For example, severe flood damage can change the highest and best use from residential to open space/flood plain, causing a loss in value. However, building a highway next to a property can change the highest and best use from residential to commercial, causing an increase in value.

Public Acquisitions The California rules for the acquisition of properties by public agencies make a number of references to highest and best use. The property must be valued on the basis of its highest and best use, and not necessarily on its present use. The highest and best use must occur within the reasonably near future and can’t be remote or speculative. This includes the reasonable probability of a change in zoning or other land use regulations. If the ultimate highest and best use will not occur within the reasonably near future, then the property must be valued on an interim highest and best use. The property can’t be valued based on its special purpose value to the public agency. The property can’t be valued on the basis of a highest and best use which would trigger a dedication of the part taken, such as a residential subdivision which may require the dedication of an access road. If the part taken could stand alone as a separate parcel, then it should be valued on that basis (with its own highest and best use), rather than as a part of the whole property.

Non-Economic Highest and Best Use There is a controversy within the appraisal profession and the conservation movement regarding "non-economic" highest and best uses. So-called non-economic uses include parks, greenbelts, open spaces, wetlands, wildlife habitats and other types of natural lands. Although there is growing support of conservation as a highest and best use, there are no widely-accepted methods for estimating its value. Current appraisal practice still requires that properties be appraised based on their conventional economic use (residential, commercial, industrial, etc.) regardless of their conservation potential

A HOME NEAR SEVERAL BOARDERS  

CONDITION OF HOMES

Common Questions and Helpful Tips

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IS IT THE NEW LAW THAT PICTURES MUST BE TAKEN OF COMPARABLES
This is untrue. The old....and the new law requires us to inspect the exterior of the comparables...within reason. If you look at the certification (Page two) on the new forms under paragraph 8 it states: "I have personally inspected the interior and exterior areas of the subject and the exterior of all properties listed as comparables in the appraisal report...etc. etc. There is NOTHING that I have been made aware of that states we have to take photos of them. There are some lenders, however that prefer or require this. In my opinion, we should drive by all of the comparables anyway to take in the market further, note the condition they are in now on the report and then rely on the MLS picture as to how they were when they sold. It is a dangerous proposition to rely on the current condition and analysis of the comp in question because it might now be a 3 story, in stead of ranch because they added on...you get my point. Or, there might be a deck and some appraisers will add this into their analysis, when they should not because it didn't have a deck at the time of sale...etc. I give you an example of why this is a good idea. We did an appraisal where one of the comps was now boarded up. The lender used that against us to say it was an invalid comparable and we tried to explain to them that the condition its in now, is not what we are basing our analysis on...that is a neighborhood factor...but our analysis is what is was like when it sold. He couldn't argue with that, but it would have saved us some trouble if we would have mentioned it in our reports. So....yes, always drive by and take a look at the comp.

WHAT ARE HUD HOMES
Typically, this is a VA or FHA loan house (Originally the loan was a Federally related transaction), in other words backed by FHA or some other program. FHA insures the loan and when it is foreclosed on, it becomes a HUD home. Typically, they are weak comps because they are only bought on an Auction basis and not considered available to everyone. Technically, everyone can buy them, you just have to do it by Bid through a HUD Licensed Broker (typically the one who is listing the property) and is Hud licensed (Like Us) and the homes are typically (Fixer uppers) and I don't typically use them, but I will mention them in my analysis. If a neighborhood has substantial HUD repos, then I might use them if they show a similar market trend like typical sales.

WHAT ARE THE DIFFERENT FLOOD ZONES
Zone A is the flood insurance rate zone that corresponds to the 1-percent annual chance floodplains that are determined in the Flood Insurance Study by approximate methods of analysis. Because detailed hydraulic analyses are not performed for such areas, no Base Flood Elevations or depths are shown within this zone. Mandatory flood insurance purchase requirements apply.

Zones AE and A1-A30 are the flood insurance rate zones that correspond to the 1-percent annual chance floodplains that are determined in the Flood Insurance Study by detailed methods of analysis. In most instances, Base Flood Elevations derived from the detailed hydraulic analyses are shown at selected intervals within this zone. Mandatory flood insurance purchase requirements apply.

Zone AH is the flood insurance rate zone that corresponds to the areas of 1-percent annual chance shallow flooding with a constant water-surface elevation (usually areas of ponding) where average depths are between 1 and 3 feet. The Base Flood Elevations derived from the detailed hydraulic analyses are shown at selected intervals within this zone. Mandatory flood insurance purchase requirements apply.

Zone AO is the flood insurance rate zone that corresponds to the areas of 1-percent shallow flooding (usually sheet flow on sloping terrain) where average depths are between 1 and 3 feet. Average flood depths derived from the detailed hydraulic analyses are shown within this zone. In addition, alluvial fan flood hazards are shown as Zone AO on the Flood Insurance Rate Map. Mandatory flood insurance purchase requirements apply.

Zone AR is the flood insurance rate zone used to depict areas protected from flood hazards by flood control structures, such as a levee, that are being restored. FEMA will consider using the Zone AR designation for a community if the flood protection system has been deemed restorable by a Federal agency in consultation with a local project sponsor; a minimum level of flood protection is still provided to the community by the system; and restoration of the flood protection system is scheduled to begin within a designated time period and in accordance with a progress plan negotiated between the community and FEMA. Mandatory purchase requirements for flood insurance will apply in Zone AR, but the rate will not exceed the rate for an unnumbered Zone A if the structure is built in compliance with Zone AR floodplain management regulations. For floodplain management in Zone AR areas, the proper y owner is not required to elevate an existing structure when making improvements to the structure. However, for new construction, the structure must be elevated (or floodproofed for non-residential structures) so that the lowest floor, including basement, is a minimum of 3 feet above the highest adjacent existing grade, if the depth of the Base Flood Elevation (BFE) does not exceed 5 feet at the proposed development site. For infill sites, rehabilitation of existing structures, or redevelopment of previously developed areas, there is a 3-foot elevation requirement regardless of the depth of the BFE at the project site. The Zone AR designation will be removed and the restored flood control system will be shown as providing protection from the 1-percent annual chance flood on the National Flood Insurance Program map upon completion of the restoration project and submittal of all the necessary data to FEMA.

Zone A99 is the flood insurance rate zone that corresponds to areas within the 1-percent annual chance floodplain that will be protected by a Federal flood protection system where construction has reached specified statutory milestones. No Base Flood Elevations or depths are shown within this zone. Mandatory flood insurance purchase requirements apply.

The Zone D designation is used for areas where there are possible but undetermined flood hazards. In areas designated as Zone D, no analysis of flood hazards has been conducted. Mandatory flood insurance purchase requirements do not apply, but coverage is available. The flood insurance rates for properties in Zone D are commensurate with the uncertainty of the flood risk.

Zone V is the flood insurance rate zone that corresponds to areas within the 1-percent annual chance coastal floodplains that have additional hazards associated with storm waves. Because approximate hydraulic analyses are performed for such areas, no Base Flood Elevations are shown within this zone. Mandatory flood insurance purchase requirements apply.

Zone VE is the flood insurance rate zone that corresponds to areas within the 1-percent annual chance coastal floodplain that have additional hazards associated with storm waves. Base Flood Elevations derived from the detailed hydraulic analyses are shown at selected intervals within this zone. Mandatory flood insurance purchase requirements apply.

Zones B, C, and X are the flood insurance rate zones that correspond to areas outside the 1-percent annual chance floodplain, areas of 1-percent annual chance sheet flow flooding where average depths are less than 1 foot, areas of 1-percent annual chance stream flooding where the contributing drainage area is less than 1 square mile, or areas protected from the 1-percent annual chance flood by levees. No Base Flood Elevations or depths are shown within this zone. Insurance purchase is not required in these zones.

ON A PERSONAL NOTE:

WHAT IF AN APPRAISER "PUSHES" THE VALUE HIGHER DUE TO THE LENDERS PRESSURE, ARE WE CULPABLE FOR THIS?

BACKLASH FROM PUSHED VALUES
No one is culpable but the appraiser, in my opinion, in this case.. That's one of the problems and also positives of your industry. The positive is that we are professionals and as such others rely on our opinion from empirical experience and research, much like an attorney, but the problem is when an appraisal is improperly done, especially on the high side, no one involved in the transaction typically cares because it helps get the loan done (The LO Gets Paid) and they all know that if there is any backlash, the Appraiser is the one who is at FULL RISK. The Lender, Underwriter and homeowner are not licensed and as such are not regulated, only the Appraiser is. Its much like a Lender who complained about an Appraiser I know to The State of Michigan, saying They "pushed" value on two appraisals, then turned around and used one of their appraisals to give the loan and obtained another appraisal on the other property (That came in higher than First Appraiser) and they gave a loan on that (they somehow neglected to mention this to the State of Michigan, according to the Appraiser and Loan Officer they spoke with).. They responded to the State and all was well on the Appraisers end, but the Lender has no one to regulate their illicit unethical behavior. The end result is usually that the Appraiser will be put on a Blacklist if another appraiser reviews it (which is their competitor I might add).

WHAT IF I GET "BLACKLISTED" FROM A LENDER? DOES THIS EFFECT MY ABILITY TO DO BUSINESS?

This is a major issue in our industry. Although, there are many Appraisers out there that are unscrupulous and are performing fraudulent appraisals, there are more decent Appraisers just trying to do the right thing.

Our industry is regulated by Our STATE GOVERNMENTS and also by the APPRAISAL SUBCOMMITTEE on a NATIONAL Level and as such, THESE TWO GOVERNING BODIES SHOULD BE THE ONLY,  LET ME REPEAT...ONLY Ones to put Restrictions on our ability to perform out work.  

Unfortunately, here is the main issue with lenders that have 'Blacklists":

1.) SELF GOVERNING BODIES: They laugh in the face of the governing bodies by attempting to police Appraisers ability to do business with their companies.  They will say things like "I am not saying you cannot appraise, you just cannot appraise for us." Again, if they have an issue, the should at MOST, Like Wells Fargo, put you on a watch list for the next 3-5 appraisals and if they are ok, you can continue with your business relationship in a normal manner, if they suspect something is amiss, they simiply turn it over to the Governing bodies and let them investigate the Appraiser's practices.

2.) CONFLICT OF INTEREST:  Remember, Mortgage Companies and Especially Underwriters are here for ONE REASON ONLY.  TO MAKE MONEY.  When you start blacklisting appraisers, you are sending a message to the general public that "This set of Appraisers don't meet our needs" What are their needs, well they could be proper, objective appraisals, but they also are meeting certain values and criteria such as fitting the templated appraisals into the lenders lending rules so that the appraisal is "greased right through" the process.     

3.) MISTAKE COVER UP:  Lenders will in some cases, blacklist an appraiser to cover up their mistakes and/or discrimatory practices. For example:  An appraiser does an objective appraisal, but the lender finds out the home is in an all minority neighborhood,.  The lender will turn the applicant down and ban the appraiser, stating "The appraisal was a bad one and we have even banned the appraiser"  They will send a reviewer out to do a  EXTERNAL ONLY appraisal and the review appraiser will tear up the original appraisers work, making various statements such as "there is no way the home could be worth this much in this neighborhood" and using improper comparables that are in lesser condition, or ignoring the market trends, such as a larger percentage of off market sales vs. MLS sales.  The biggest problem is that the "Review Appraiser" hasnt seen the inside of the home and/or has a preconceived skewed perception of what the value should be from the lenders request.  From one experience I have learned about, the lender lent the money to the borrower, who had fradulant paperwork (the lenders client, the appraiser had no previous relationship with them) and the lender found this out, blacklisted the appraiser, using a bogus external only appraisal, but continued their dealings with their client.  The branch manager later informed the appraiser that this is why they were blacklisted and that is why they quit this company, because it was a common practice and they were disgusted by these unethical practices. 

What is recommended in these case is the following:

Recommend to clients or homeowners or brokers in your area ONLY those companies that work in a responsible manner with Appraisers and Governing bodies and GIVE YOUR CURRENT CLIENTS THE BEST SERVICE YOU CAN GIVE, DILIGENT, UNBIASED, QUICK APPRAISAL SERVICE.

It is my belief that companies  that hold "unapproved appraisers and blacklists" will eventually be found Severely Culpable for effectuating improper business practices and in many cases Unconstitutional Business practices. 

In the meantime, go to this link to sign a petition to stop unfair practices by Lenders:         http://www.appraiserspetition.com/index.htm