http://www.realestateappraisertips.com/ – Home Appraisers: The Myth Of Geographical Competency! Why Did AMC Hire Appraiser 3 Hours Roundrip?
Today is October 28, 2010. I thought the lessons of HVCC and now Dodd-Frank were supposed to have made a difference! I thought “Geographical Competency” was supposed to be the new buzz word of the year 2010 and that AMC’s (Appraisal Management Companies) were supposed to be hiring appraisers closely located to subject properties, with the most experience!
The map below shows the driving distance of 1.35 hours each way. Round trip, that’s over 3 hours.
I just received a phone call from a mortgage broker with some questions about an appraisal that was recently completed. It wasn’t my appraisal in question. The mortgage broker hired an AMC to procure that 3rd party appraisal. That AMC hired an appraiser located some 89 miles away or 1.35 hours one-way. From the information provided and the broker’s concern, the report failed the geographical competency issue and failed to use more recent 2010 comps located in the subject’s same development and instead used one older 2009 comp. That is an active market with ample sales and listings.
Yes, this happened in latter 2010! And, the fee was between $450 to $500 for the appraisal.
In October 2010, The Myth Of Geographical Competency lives on!