We can tell you if the appraisal you have is valid.
Banks, wholesale lenders and attorney's need to know if the appraisal they have is true and accurate - American Home Appraisals can answer that question.
"Richard Hagar - is one of the best Review Appraiser's I know.
His ability to uncover problems and real estate fraud
is incredible."
When is a Review Appraiser needed?
Challenging the accuracy of another appraiser in a divorce case or legal matter;
Determining the accuracy of your tax assessment;
When appraisal or mortgage fraud is possible;
Most appraisals provided to a lender, by a mortgage broker, require some level of review prior to the lenders acceptance;
Required portfolio or asset review for lenders and public companies;
Possible disciplinary actions by Government agencies;
...and many others.
Review Appraisals for:
Wholesale lenders;
Banks;
Credit Unions;
FNMA / FHLMaC / FHA;
Private lenders;
Government agencies;
Attorneys;
Superior Courts of Washington and Colorado;
Insurance Companies;
... and individuals like yourself.
What Type of Reviews?
Conformance with the Uniform Standards of Professional Appraisal Practice (USPAP);
Conformance with the Interagency Appraisal Guidelines;
Conformance with Fannie Mae and Freddie MAc's Appraisal Guidelines;
Accuracy of the data;
Accuracy of the value conclusion.
How Detailed do You need the review to be?
Summary report on a Fannie Mae form?
Summary report on a Fannie Mae form, with or without an alternative value conclusion?
Extensive narrative review (for legal purposes);
Drive by the subject and comparables or sit at our desk?
Summary of our conclusions or, if appropriate, rip the other appraisal apart?
View resume HERE.
"Thank you for your dedication to service and quality.
Of the 8,237 (nationwide) appraisers, you are rated in the top 3%! You are one of the select few who hold this distinguished designation.
Our personnel contact you first when an assignment appears."
John Noonan, Appraiser Department Manager, PHH Mortgage
If your are going to have an appraisal reviewed, you want it reviewed
by someone with these credentials!
- Certified (Licensed) Residential Real Estate Appraiser - Residential/120
- SRA designation with the Appraisal Institute
- SRA review appraiser for the Appraisal Institute
- Past, Secretary for the Appraisal Institute (Seattle Chapter)
- Regional Member (past), Ethics & Counseling Panel for the Appraisal Institute
- Educational Chair for the Appraisal Institute
- On the approved lender list with more than 75 different lenders.
- Involved with the appraisal of 10,000± homes through out King, Pierce, and Snohomish Counties.
- State of Washington approved class instructor for: • Real Estate Appraising • Sales • Market trends • Principles & Practices • Construction and Land Use • Business Opportunities, and • Use of Computers and other Technologies.
- Creator of educational class for SRA and MAI members of the Appraisal Institute, licensed appraisers and agents.
- Teacher at Seattle Community College, classes in: real estate appraisal and investment. Real Estate Division
- 25+ years experience as a real estate appraiser and consultant.
- 20+ years experience as a review appraiser - reviewing work for lenders plus directly overseeing work for six+ appraisers.
- 23+ years as owner of American Home Appraisals.
- Provider of appraisals, concerning complex properties, lending purposes, court testimony and insurance companies
- Provider of expert witness testimony instruction and case study for law students at the University of Washington
- Expert witness, Federal Court, Washington's Western District. U.S. Courts
- Expert witness, Superior Court for the States of Washington and Colorado.
- Testified before Washington State's Senate and House concerning appraisal, AMC and, the mortgage industry 1992, 94, 97, 2005, 08, 10.
- Advisory panel, State of Washington Mortgage Broker's Commission, 1992-1994 and 2004
- One of the authors of Washington State's Mortgage Brokerage Practices Act. (RCW 19.140)
- Helped write the draft version of the federal Secure and Fair Enforcement for Mortgage Licensing Act (SAFE ACT). (12 USC/Chapter 51)
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- Advisory panel, State of Washington Appraisal Commission, 2008-2012
- Advisory panel, State of Washington Appraisal Management Laws, 2009-2010.
- One of the authors of Washington State's Appraisal Management Company Registration and Regulation Act. (RCW 18.310)
Versions were adapted in 4 additional states.
- Created and successfully implemented a business and action plan for the assemblage and profitable sale of a real estate portfolio.
- Managed a multi-million dollar real estate portfolio that included single family homes, condominiums, vacant land and office building.
- Consultant to residential portfolio managers throughout the Pacific Northwest.
- Wrote the Real Estate-Advisor. Portions of the book are being individually sold on the Internet.
- Wrote the book Real Estate Investesting, which is the text for the real estate program at Seattle Community College.
- Personally involved with legal actions and lawsuits against Government Agency's regarding The Shore Line Management Act, Building Codes, Code Interpretations, Stop Work Orders, and Private Property Rights (Constitutional).
- Lobbied Government Agency's concerning the field of Property Rights, appraisal and Bonding requirements for Sub-Contractors and Third Party Providers of services.
- 35+ years experience as a licensed real estate agent.
- Million+ dollar sales agent 1979 through 1982. Involved with more than 63 sales transactions per year, in successive years.
- Rated in the top 5% of all residential real estate agents in the Western United States.
- Primary focus was selling homes to first time home buyers.
- Plat manager (670 and 89 lot subdivisions) selling new construction in North Bend and Redmond.
- Directly involved with the subdivision of properties between 10,000sf and 21,000 acres.
- 4 years as a principle with a general contracting firm building single family residences in King County
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Should you have any questions or need for our services in the future, please do not hesitate to contact our review appraisers at:
206-236-3037 or admin@americanappraisals.com
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Below is a sample of the issues that must be considered when providing a review on an appraisal for
conformance with Freddie Mac requirements
With respect to each conventional Mortgage delivered to Freddie Mac, the Seller represents and warrants that the appraisal was obtained in a manner consistent with the requirements of Freddie Mac (Exhibit 35), Appraiser Independence Requirements (“Appraiser Independence Requirements”). The appraisal report must be completed in a manner that correctly depicts or describes the neighborhood, site and improvements. Use the following list of reminders as a tool when underwriting the appraisal report. For complete information on appraisal requirements, refer to Guide Chapter 44.
Subject property
The property address and legal description match the loan application, sales contract, and title documents.
All identifying spaces are completed (borrower, client, occupant, lender, etc.).
Purchases: Owner on Public Record matches property seller on contract and title documents.
Refinances: Owner on Public Record matches borrower on loan application and title documents.
Occupancy matches transaction (e.g., Owner matches occupant for refinance of Primary Residence).
Data sources used to verify the listing and sale price information are provided.
There are no For Rent or For Sale signs in photo of subject property on owner-occupant refinance application.
Lender/client is the originator or Seller.
Appraisal ordered by lender rather than another party (buyer, property seller, Realtor) to the transaction.
Contract
Appraisal was ordered after sales contract was written.
Appraiser analyzed contract and the analysis is consistent with the rest of the report.
Appraiser noted any gifts and other financial assistance paid by any other party on behalf of the borrower.
Neighborhood
Property values are increasing or stable. If declining, appraiser has addressed in comments and comments
are consistent with other appraisal information.
Appraiser has not indicated appreciation in a known stable or declining area.
Demand/supply is in balance. If shortage or over supply, appraiser has addressed in comments and
comments are consistent with other appraisal information.
Marketing time is under 3 months or 3 -6 months. If over 6 months, appraiser has addressed in comments
and comments are consistent with other appraisal information.
The subject property is within the neighborhood price and age. If not, appraiser has addressed in
comments and choice of comparable sales; lender must ensure that comparable sales support marketability.
The Form 71, Market Conditions Addendum to the Appraisal Report, supports the appraiser's determination of market trends and conditions prevalent in the subject neighborhood.
Site
Zoning compliance is legal, legal nonconforming, or no zoning. If the subject property is an attached condominium unit and zoning compliance is legal nonconforming, loan file must indicate that the subject property can be rebuilt to current density if severely damaged or destroyed.
The flood zone information is provided and correct.
Utilities and off-site improvements are typical for the market. If not, comparable sales must support marketability with atypical utilities and off-site improvements.
If private well or septic system is shared and/or is off-site, the appraiser provided comparable sales to support marketability.
There are no adverse site conditions or external factors. If there are adverse conditions, the appraiser must provide comparable sales with same adverse conditions to determine amount of adjustments and demonstrate marketability. If there are land-use restrictions, the loan file must indicate that the subject property can be rebuilt if severely damaged or destroyed.
If the subject property is a Manufactured Home, the zoning must be residential.
The appraiser must have also completed the HUD data plate section of Form 70B.
Mixed use properties must be located in a residential neighborhood, be primarily residential in nature, and must be typical for the properties in the market; represent a legal, permissible use of the property under the local zoning requirements; 1-unit Primary Residence; if used commercially, the Borrower is the owner an operator of the business; the dwelling wasn’t modified in a manner that has an adverse impact on marketability; and the commercial use does not have an adverse affect on the safety of the property or site.
Improvements (the buildings)
The subject property is existing construction. If proposed or under construction, the appraisal is subject to completion per plans and specifications, and photos with either an appraisal update or completion certificate are provided. If the subject property has been recently renovated, a detailed description of the renovations is attached and photos are provided.
There is no evidence of infestation, dampness or settlement that would indicate lack of structural integrity (soundness). If there is such evidence, loan file supports inspections and any needed remedy.
There are no conditions that affect the habitability, safety or structural integrity (soundness) of the subject property. If there are such conditions, the appraisal is subject to repairs, and there is appropriate documentation (e.g., completion certificate with photos) in the file to demonstrate that the condition has been remedied.
The subject property generally conforms to the neighborhood. If not, appraiser has addressed in comments and choice of comparable sales. Lender must ensure that comparable sales support marketability.
An energy-efficient property uses cost-effective design, construction, materials, equipment and site orientation to conserve energy, consistent with the climate of the area in which the property is located.
Improvements (the buildings)
Recordation information has been provided for all closed comparables.
Sales history shown on the appraisal report is consistent with the loan application and other file documentation.
The number of comparable properties currently offered and offered for sale in the last 12 months is consistent with the information in the Neighborhood section (e.g., demand/supply), and the sale price/owner¡|s estimate of value is within the prices indicated.
The proximity of the comparable sales is consistent with the neighborhood characteristics and with the number of comparable sales offered for sale.
Distance of comparable sales is consistent with the neighborhood.
Land value is not excessive for area.
At least three of the comparable sales appear to be in the same market area as the subject property. See the location map and Neighborhood Description. Appraiser has supported any use of sales in competing neighborhoods.
The sales prices/gross living area for the comparable sales are consistent with the subject property.
The appraiser noted any concessions. The comparable sales should be at market sales.
At least three of the comparable sales are sales that were closed before the effective date of the appraisal.
Comparable sales are recent. If the sale of a comparable property occurred more than 12 months before the date of the appraisal, the appraiser justified the use of that comparable property in the appraisal report.
The site, view, age and design of the subject property are consistent with the Improvements section, and the comparable sales are similar.
The condition of the comparable sales is similar to that of the subject property. Any use of superior comparable sales is explained and supported by market data.
The comparable sales are similar to the subject property. Any adjustments are supported by market data and additional comparable sales. Large adjustments indicate comparable sales may be inappropriate.
Adjustments are not excessive for area where marketing time is under 6 months.
If the subject property is in a controlled market, there is at least one comparable sale outside the control of the developer, builder or property seller.
If the subject property has unusual features, atypical utilities, etc., the appraiser provided additional comparable sales to support marketability and determined the amount of the adjustments to be made to comparable sales.
If the subject property is a manufactured home, there are at least 2 comparable sales that are also manufactured homes of the same style, quality, and condition, and of a similar age.
The photographs are clear and the building sketch indicates that the subject property and comparable sales are consistent with the description of the properties and within the same market.
Photographs match description of property.
Photographs of subject property were not taken from odd angles (e.g., appraiser trying to hide detrimental conditions).
Photographs do not reveal items not disclosed in appraisal (e.g., commercial property next door, railroad tracks, another structure on premises, etc.).
House number in photos matches property address.
Weather conditions in photo of property are appropriate for the date of the appraisal (e.g., July photo does not show snow on the ground for a property in Illinois).
The appraiser researched the sale and transfer history of the subject property (three years from effective date of the appraisal) and comparable sales (one year from last sale date).
All comparable sales verified as recorded (data source MLS, sales office, SREA, CMDC, real estate agent, etc.).
Any prior sales of the subject property are consistent with the loan application and title documents.
The sale prices of any prior sales and listings of the subject property are consistent with the market as reported by the appraiser. Any rapid increase in price, such as with a renovation, is supported with a detailed explanation and appropriate photographs. Any decrease in price is supported by market data, such as in the Property Values section and appraiser comments.
The appraiser provided an analysis of the sales and transfer history of the subject property and comparable sales.
The appraiser provided a summary of the Sales Comparison Approach, and the summary is consistent with the information provided and with other sections of the report.
Additional Comments
The appraiser provided comments to support conclusions made in the report (e.g., any repairs needed are
described and photographs provided); use of older comparable sales or sales outside the market area are
explained and supported.
The appraiser has explained any discrepancy in the property information (e.g., the sale price is below the
sale prices of other properties offered for sale).
Cost Approach
If the subject property is a manufactured home, the cost approach is required and provided.
The cost approach is based on publicly available information (e.g., Marshall & Swift), and adequate detail is provided so that the calculation can be re-created.
Depreciation is reasonable for the age of the subject property and condition.
The indicated value by cost approach supports the sales comparison approach.
Income Approach
If the subject property is a 2- to 4-unit property, the income approach is required and provided.
Appraiser provided unadjusted units of comparison and, for purchases, indicated what factors investors in
the market consider most important.
The indicated value by income approach (and cost approach if provided) support the sales comparison
approach.
Reconciliation
The appraiser has explained any material differences in property information, or information about the
transaction that is not typical for the market.
Use automated valuation models (AVMs) and other tools to objectively measure the accuracy of the
appraisal. Freddie Mac recommends the use of Home Value ExplorerR, Home Value CalibratorR or other
validated and tested AVMs, as well as other collateral valuation tools, to assess the quality and accuracy of
appraisals.
The effective date of the report is within 120 days. If it is more than 120 days, the loan file contains an
appraisal update meeting the requirements of Guide Chapter 44.
Effective date of appraisal is dated after ratification of sales contract.
The appraisal is made as is. If it is made subject to completion or subject to repairs, there is supporting
documentation in the file to indicate that the conditions of the appraisal report have been met.
The appraiser¡|s opinion of market value of the subject property must not include any value assigned to
personal property, including for example, boat docks and boat slips that are not part of the real property that
is securing the mortgage.
It is not acceptable for a Seller to change the appraiser¡|s opinion of market value; any changes to the
opinion of market value may only be made by the appraiser.
Statement of Assumptions and Limiting Conditions and Appraisers Certifications
The appraiser has made no changes to the statement and certification.
The appraiser has signed the report.
The appraiser has a valid state license or certification.
Appraiser has demonstrated knowledge of activity in subject property county.
The supervisory appraiser (if any) inspected the subject property and comparable sales.
The Appraiser does not appear on the Freddie Mac Exclusionary List.
New Exhibit Requirements
Bulletin 2010-23 Effective for Mortgages with Applications dated on or after February 1, 2010, the report of an appraisal with an interior and exterior inspection must also include clear photographs of the following:
The kitchen of the subject property
All bathrooms of the subject property
The main living area of the subject property
Download a version of this information from Freddie Mac
© 1997 - 2023 American Home Appraisals, LLC - All rights reserved.
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