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Home | Business | Customer Service 1.) Evade it. Make yourself a less attractive target. 2.) Movement. Transfer the problem to somebody else, such as the seller or the purchaser. 3.) . The justice system is your friend; use it to your benefit. Have an insurance company like Errors and Omissions Insurance from a reputable agency that will defend you with local contract attorneys. 4.) Acceptance. Declare that it exists and insure against it, such as with an E & O insurance. 5.) Ignore it. Assume it never occurred and hope it never will. 6.) Give it up. There are other professions that have more potential than this risky business. The most common reasons for home appraiser complaints and litigation are: 1.) Not able to observe and let somebody know of any development and inconsistency. On purchase appraisals, it’s an excellent idea to get hold of the Seller’s Disclosure forms that were signed when requesting a copy of the purchase agreement. Don’t forget to indicate that you, as the appraiser, have read and reviewed the Seller’s Disclosure Statement. Make sure that you get a copy of the Seller’s Disclosure Statement. During inspection, ask the seller if they are aware of any mold problems. As soon as the inspection is finished, the seller can review, answer, and sign the appraiser’s form. 2.) Wrong estimation of the living area. When performing an assignment, the evaluator should never rely on what’s in the multiple listing system for living area, the previous evaluator’s drawing, an old survey, and the county records mentioning the living area or the set of plans from the architect. The construction plans of the living area should be verified using a CAD program. It will be too late if you will wait for the data gathered after the final inspection. If the subject has an addition to the living area, such as an enclosed carport/garage or veranda, this area should always be separated in the report and in the sketch – even if the area is given equal contributory value. Any changes to the living area even though the computed area is still the same should be indicated separately in the report and on a separate sketch. 3.) Failure to report roof leakage, foundation cracks, wet basements, infestation of termites and mechanical defects. 4.) Making a decision in which the property is overvalued or undervalued. You are likely to cheat if you do not have the required skill and Errors and Omission will not back you up if found guilty. It was stated that approx. 15% of all fraud cases deal with inexperienced appraisers. 5.) You are appraising the wrong house. 6.) You did not verify. Consists of items of the entire 1004 form of the Federal National Mortgage Association such as utility hookups, zoning, lot dimensions, County taxes, correct owner of record, history of the subject (both listing and sales), etc… Evaluations should be loaded with verification. 7.) Insult. A review appraiser can get sued once he or she defames the appraiser rather than the report. As an appraiser you can never fully remove the weight of liability for your appraisals but by being aware of and steering clear of these drawbacks you may be able to prevent any costly litigation. Article Source: http://www.articlewheel.com
This article was written by William Cobb with the assistance of R Chandler Smith. Mr. Cobb owns and operates Accurate Valuations Group and has been licensed as a residential appraiser for 15 years now primarily in the Greater Baton Rouge, LA market. For more information on William Cobb and Accurate Valuations Group, visit Baton Rouge HomeAppraisal. R Chandler Smith is a young and bright real estate expert in the Houston, TX area. He maintains Houston Home Appraisal
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