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This Appraisal... WTH?
Reviewing appraisals is supposed to be one of the things we do before funding a loan. But because this was one of Goodhair’s deals, he just looked at the final value given, saw that was enough to support the loan, and said good enough. Branch Manager gave me the appraisal to review after the fact.
The appraisal seems as if much cut-and-pasting was used. The margins and fonts change seemingly at random. Other sections read as if speech-to-text software was used with a severe lack of proofreading. These sections make me feel like the appraiser loves to hear himself speak. He keeps bragging about how much experience he has doing appraisals of this sort and how many hospitals he’s appraised in his career.
He spends an entire page discussing what type of report the appraisal isn’t, but never really says what type of appraisal it is. It’s not a Self-contained, Summary, or Restricted report. So what is it, then?
Multiple places, references “the [CITYB] facility” pop up. The hospital being appraised is in [CITYA]. Did he use an old appraisal and simply swap in information for this hospital without making sure he took out all the references to [CITYB]? For example, he refers to the hospital as a “new facility” and “until the subject facility has had at least one year of stabilized operation, I feel let[sic] it would be misleading to allocated[sic] value is[sic] operation.” But the hospital being appraised has been in operation for over 50 years. The Community Description is also for [CITYB].
The definition of “market value” is listed in at least three places in the appraisal, using almost exactly the same language both times. One of these places immediately follows another. This is a 2-page definition, which granted is a small percentage of the overall appraisal, but really. Is he trying to pad the size of the appraisal?
I’m still having trouble parsing this sentence: “If the hospital and clinic with each housed in its own facility, separating the value of the two properties through the use of the income and market approaches is not part of my engagement.” The comma seems to separate two different thoughts which should not be in the same sentence.
I can’t reject this appraisal, unfortunately. It comes from the lead bank, who has already accepted it without questions. We are participating in this loan (meaning we purchase a portion of it for lending limit reasons). It has already been booked. I doubt this loan will ever be a problem, but I feel like we should hold appraisers to higher standards than we do.
The appraisal seems as if much cut-and-pasting was used. The margins and fonts change seemingly at random. Other sections read as if speech-to-text software was used with a severe lack of proofreading. These sections make me feel like the appraiser loves to hear himself speak. He keeps bragging about how much experience he has doing appraisals of this sort and how many hospitals he’s appraised in his career.
He spends an entire page discussing what type of report the appraisal isn’t, but never really says what type of appraisal it is. It’s not a Self-contained, Summary, or Restricted report. So what is it, then?
Multiple places, references “the [CITYB] facility” pop up. The hospital being appraised is in [CITYA]. Did he use an old appraisal and simply swap in information for this hospital without making sure he took out all the references to [CITYB]? For example, he refers to the hospital as a “new facility” and “until the subject facility has had at least one year of stabilized operation, I feel let[sic] it would be misleading to allocated[sic] value is[sic] operation.” But the hospital being appraised has been in operation for over 50 years. The Community Description is also for [CITYB].
The definition of “market value” is listed in at least three places in the appraisal, using almost exactly the same language both times. One of these places immediately follows another. This is a 2-page definition, which granted is a small percentage of the overall appraisal, but really. Is he trying to pad the size of the appraisal?
I’m still having trouble parsing this sentence: “If the hospital and clinic with each housed in its own facility, separating the value of the two properties through the use of the income and market approaches is not part of my engagement.” The comma seems to separate two different thoughts which should not be in the same sentence.
I can’t reject this appraisal, unfortunately. It comes from the lead bank, who has already accepted it without questions. We are participating in this loan (meaning we purchase a portion of it for lending limit reasons). It has already been booked. I doubt this loan will ever be a problem, but I feel like we should hold appraisers to higher standards than we do.
He is my Black Dragon (and yes, a good one) strong, protective, the guardian. I am his Silver Dragon, always by his side, shining for him, cherishing him.
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