Norman Appraisals, Inc.

Dear Sir/Madam:This is in response to complaint in reference to an appraisal performed for the following person and property:Borrower/Purchaser: *** *** ** *** *** Appraiser: Noman ** M*** License No***, ExpDate: 12/31/Subject: ** *** **, Stafford, VA *** File No:
***FHA Case No***Appraisal ProcessThe purpose of the appraisal is to estimate the fair market value. The interest valued is for the fee simple,single family detached (Colonial)The effective date of value is June 27th, 2016.The appraisal development and reporting process included inspection of the subject site and interior of the improvements Information was gathered from the subject's neightborhood and similiar competitive neightborhoods within the county of Stafford, VA Comparable sales and listings gathered were analyzed and applied towards the sales comparison approach All three approaches were considered but more reliance was placed on sales comparison approcach in the final reconciliation of valueAlso note, in order to develop the opinion of value, appraiser performed a complete appraisal process, as defined by the Uniform Standards of Professional Appraisal Practice (US???)Complaint"The final product was off by $28,and not representative of other appraisal results in the same neighborhood."Appraiser's Response: First of all when performing an appraisal for this property as with any other property the objective is not to match the appraisal report with the contract price (Sales Agreement) or list price of the subject propertyOtherwise, it would be biased and not be considered an appraisal would itAppraiser's object is clear and should be to come up with the fair market value for the subject property $28,off or not.In this case, Appraiser has utilized sales comparison approach to reach the final opinion of valueTypical, only three settled sales are sufficient and two listings, total of five comparablesHowever, in this case borrower's agent kept pressuring the Appraiser to increase the appraisal value to match the sales agreementCustomer's agent providing eight sales to appraisal management company (AMC), which were way out of range and beyond 2-miles of radiusHowever, out of eight random sales way out of subject's neighborhoodAppraiser has utilized three sales as comparables 7, & 9, which were really not necessary.Here is the reason why these additional sales were not necessary: Normally, sales are utilized within 1-miles radius from subject's proximityUnless subject is a unique, complex or located in a Rural neighborhood, neither of which is the case with subject propertyThere have been various sales within 1-mile radius from within the subject's neighborhoodThere was actually no need to expand the search to over 1-mile radius.2nd part of this same complaint "not representative of other appraisal results in the same neighborhood."Appraiser's Response: Honestly, what is the customer talking about? Exactly what "other appraisals" I would like to know how many appraisals have been conducted on the subject propertyI myself would love to know their results as well as, I am pretty sure other appraiser are following the same USPAP rules and regulations that I amAlso, I am sure other appraisers are not going to make up their own sales just to match the contract price.I do believe that the customer might be confusing the county assessment values with an individual appraisal reportI doubt if the customer even knows what the difference is between an appraisal value and an assessment valueYet he is keen to criticize the report without even knowing the difference.Typically, lenders only order one appraisal or two appraisals for Jumbo loansIn this case, not the client nor the agent has mentioned anything about the "other appraisal results" to me nor did anybody provided me with any other appraisal reports to support the higher value that customer's agent kept pressuring me aboutCustomer's agent has provided me with random sales that are over 2-miles of radius, which as I have explained earlier is truly not necessary in this case where there are various similar sales available within 1-mile radius within close proximity to subject property.ComplaintCustomer goes on further to complain that when the company owner was approached by the lender they didn't respond and were unprofessional in their responses when did occur.Appraiser's Response: First of all the lender is not directly in contact with Appraisers ever since passing of Home Valuation Code of Conduct (HVCC) in In this case, there is an appraisal management company (AMC) involved, kind of like a middlemanMany of these appraisal management companies hire their own in house appraisers who review other appraiser's work like myselfIn other words, when I sent in my report in questionMy report was reviewed by another appraiser employed by an AMC, which was reviewed and passedAfterward, it was forwarded to the customer's lenderIf my report would have been out of order or suspicious it would not have been passed on to the customer's lenderThe AMC would have rejected my report andasked me to fix whatever the error might have been before forwarding the final report to customer's lender.Finally, I have been professional throughout the appraisal process of this report as with 2,other reports I have conducted in the state of Virginia to dateI have followed USPAP and answered any question and conditions that was provided to me by the AMC for this reporthave provided fair market value to the subject property to the best of my knowledge.Finally, I have no current or prospective interest in the subject propertyI personally do not know the customer nor the customer's agentI do not have any quarrel with the customer nor his agentThe appraisal value provided is fair and unbiased.Sincerely,Noman M***