ComplaintsforCandid Appraisals

• Initial Complaint

  07/17/2023

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  RE: COMPLAINT AGAINST APPRAISER ***********************, LICENSE CERTIFICATION #****** I am writing this letter to lodge a formal complaint against ***************************, an appraiser from your company who recently conducted an appraisal on my property. I am concerned about the speed, accuracy, and professionalism of the appraisal conducted.On 7/13/2023, **************** spent a mere five minutes taking pictures of my property. Subsequently, the appraisal report was returned to me in less than twenty-four hours. This raised my concerns about the level of diligence exercised during this appraisal process as it does not seem sufficient to accurately assess the value of a property.My concerns were further substantiated upon reviewing the report. The value assigned to my property was approximately $40,000 lower than comparable properties in my community. Moreover, **************** used properties as comparables that were dissimilar to mine and located in different communities. The value assigned to my property is a significant deviation from what should be reasonably expected given the current market conditions and comparable properties in my community.The quality and accuracy of this appraisal have caused me substantial harm. The inaccurate valuation of my property resulted in a loss of potential equity of over $90,000. This is a substantial financial impact that could have been avoided had an accurate and diligent appraisal been conducted.I request that you conduct an internal review of this appraisal and take necessary measures to rectify this situation. Additionally, I hope to see steps taken to prevent such inaccuracies in future appraisals.Please do acknowledge receipt of this letter and inform me about the steps you plan to take. I appreciate your prompt attention to this matter and look forward to your response.Thank you for your attention to this matter. Please see actual comparables below Sincerely,********************* cc: ********************* ***********************, License Certification #*********** - ********************************************************************************* 385k - ************************************************************************************************* 345k - **************************************************************************************** - ******************************************************************************************

  

  Business response

  07/19/2023

  We have received your concern and have taken some time to review. This is in addition to the industry standard appraisal reconsideration process that was correctly carried out between our client, this complainant, and the appraiser. There are two issues to address. The first is regards to competency, and second is in regards to value.

  As far as competency:
  Our appraiser has spent thousands of hours, completed the necessary educational requirements, and as a company, we have invested significant capital to streamline the appraisal process in order to supply professional and timely reports. Additionally, we have appraised dozens of homes in the subjects community and in general, consider this project to be straightforward.
  These facts and efforts resulted in appraisal efficiencies that are commonly appreciated in the ***************, not seen as a compromise in terms of quality.

  
  That being said, in regards to the second concern: ********************************* is made up of homes with nearly identical floorplans and the appraiser focused on similar and recent sales in the project in lieu of comparables outside the project, and more dated sales from inside the project. Within the complaint are several sales outside the project,, and several comparables from within the project. Based on the internal argument from the complaint, and supported by sales within the appraisal, sales from the subject project should provide the basis for the valuation.  In that vein, though two of the sales might be considered among the many that sold over the past few months, one sold on the effective date of the appraisal (07/12/2023) and was not recorded at the time of the valuation, and the second is not as recent as sales in the report.

  
  For background information, an appraisal is developed using the principle of substitution. The principle of substitution states that a well-informed buyer is not willing to pay more for a home when other homes of equal quality are available at a lower price. In the case of the subject, though there are many homes that have historically sold at higher price points as of the effective date of the appraisal there are many homes in the subject project that are were listed in the high 200s and low 300s. This information repudiates this contested information, and supports the originally appraised value as included in the appraisal.
  In summary, our client, a bank, who is not the complainant in this report did not feel it necessary to reopen this report, because of any lack of professionalism or negligence on behalf of the appraiser. The complainant in this report is an end user, but not our client. We stand by the originally appraised value.

  Customer response

  07/19/2023

   
  Complaint: 20333099
  
  I am rejecting this response because:

  I have serious concerns regarding Candid Appraisals violations of the ******* Administrative Codes (F.A.C.), which I will detailed below:

  The following codes have been breached during this appraisal:

  F.A.C. 61J1-4.010: Standards of Appraising - **************** spent only five minutes photographing my property and returned his report in less than 24 hours. This falls short of the level of impartiality, objectivity, and independence required by this code. It is reasonable to infer that the quick turnaround time did not allow for a thorough, unbiased assessment. Candid Appraisals has said openly, multiple times that their interest is with the client therefore creating a biased assessment. 
  

  F.A.C. 61J1-6.001: Standards of Professional Practice - This code requires appraisers to avoid practices that *** be considered unethical, such as negligence or carelessness in preparing an appraisal report. The report submitted by **************** significantly undervalued my property by approximately $40,000 compared to similar properties in my neighborhood, suggesting that there *** have been a lack of due diligence in his process.
  

  F.A.C. 61J1-4.010(1)(e): Standards of Appraising - **************** used properties from different communities as comparables, which failed to consider the relevant characteristics of my property. This action contradicts the requirements of this code to accurately identify and consider the relevant characteristics of the property in the appraisal analysis.
  

  These potential violations have resulted in a loss of over $90,000 in potential equity on my property, causing significant financial harm. If this is not handled appropriately further action will be taken. 
  
  Sincerely,
  
  *********************

  

  Business response

  07/27/2023

  We understand you have moved forward with the appraisal from our client (bank). We understand that you *** disagree with the opinion of value, but there is no basis for an accusation as it relates to impartiality, due diligence, objectivity, or independence. **************** provided a solid report and as far as our office is concerned and we have complied with all applicable appraisal guidelines, standards, and practices. As evidence, when this was brought to the attention of your bank, the bank declined to pursue this further. We understand this is not the result you hoped for, but we stand by our work. We wish you the best. 

   

   

  Complaint: 20333099
  
  I am rejecting this response because:
  I have serious concerns regarding Candid Appraisals violations of the ******* Administrative Codes (F.A.C.), which I will detailed below:
  The following codes have been breached during this appraisal:
  F.A.C. 61J1-4.010: Standards of Appraising - **************** spent only five minutes photographing my property and returned his report in less than 24 hours. This falls short of the level of impartiality, objectivity, and independence required by this code. It is reasonable to infer that the quick turnaround time did not allow for a thorough, unbiased assessment. Candid Appraisals has said openly, multiple times that their interest is with the client therefore creating a biased assessment. 
  
  F.A.C. 61J1-6.001: Standards of Professional Practice - This code requires appraisers to avoid practices that *** be considered unethical, such as negligence or carelessness in preparing an appraisal report. The report submitted by **************** significantly undervalued my property by approximately $40,000 compared to similar properties in my neighborhood, suggesting that there *** have been a lack of due diligence in his process.
  
  F.A.C. 61J1-4.010(1)(e): Standards of Appraising - **************** used properties from different communities as comparables, which failed to consider the relevant characteristics of my property. This action contradicts the requirements of this code to accurately identify and consider the relevant characteristics of the property in the appraisal analysis.
  
  These potential violations have resulted in a loss of over $90,000 in potential equity on my property, causing significant financial harm. If this is not handled appropriately further action will be taken. 
  
  Sincerely,
  
  *********************

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