Rels Valuation

Initial Business Response /* (1000, 8, 2015/08/10) */
Rels Valuation
***
Bloomington, MN
July 22,
Loan: #***/ Tracking #***
Borrower: *** & *** ***
Address: ***
Bridgewater, NJ
RE: Revdex.com Complaint:
Case #***
Good afternoon:
We are in receipt of the consumer complaint as sent to the Revdex.com of
Minnesota regarding the appraisal completed on the above referenced property on 06/29/
The complainant, *** ***, is the homeownerThe issues brought up in the complaint
center on the disappointing final appraised value and allege that the appraiser inappropriately
asked what value was "needed."
The appraiser, Robert ***, was interviewed as part of this investigation and he recalls no
value discussion with the homeownerHe stated that it is his practice to never discuss value
with the homeowner and Rels Valuation encourages our appraisers to avoid these types of
discussionsWe have had no previous complaints against Mr***
Please understand that the lender is the client of Rels Valuation and Mrand Mrs*** are
customers of the lenderDue to client confidentiality, we are unable to discuss specifics of the appraisal with anyone other than our clientWe would recommend that the ***'s contact their lender with their concerns so the lender may determine the appropriate process for
resolution
The ***'s indicated the following inaccuracies in the report 1) left out washer/dryer 2) interior
flooring listed as carpet & hardwood; however the house is entire red oak hardwood 3) listed as
no updates in the prior yearsThe ***'s indicated in their complaint that they provided the appraiser proof of all additions and alterations in the past years and the appraiser included the list in the report
Please understand that the refrigerator, washer and dryer are personal property and not
considered real estate; therefore they are not included in the final value conclusion
The comparable sales were selected based on similar subject property characteristics and not
on the sales price of the comparable salesThe appraisal assignment was complex and the
sales selected for the purposes of comparison bracket the subject's salient features and were
considered good indicators of value for the subjectThe subject is newer construction located in an established area of older homesThe site size is larger than typical, just over acre and fronts to a busy, arterial traffic streetThe site is approximately one block from the entrance/exit of the limited access US which provides direct access to I-
The first two sales analyzed are single new construction homes located in similar established
neighborhoodsComparable sale #is an older home but has a similar acre lot, comparable
sales and are also older homes but have similar traffic street locationComparable sale #is an older home, but is a very recent sales only 1/mile from the subject
Behind the subject property is a homogeneous subdivision of good quality homes that were built
about years agoThe subject has similar design and utility as the houses in this homogenous subdivisionIt is primarily the aforementioned external factors that separate the subject from the homes in this subdivision; they benefit from the conformity of the neighborhoodThe homes in this subdivision are not considered the best indicators of value or comparable to the subject
The subject sold approximately two years agoThe market trend has been very stable since this
prior salePer on-line websites, the real estate market trend for Bridgewater (08807) states that
sales prices have shown a 0% change over the last five yearsThough some of the sub-markets
have seen appreciation, the overall market trend is stable
In conclusion; there is no evidence of bias in the final appraisal reportAgain, we recommend
that the ***'s contact their lender to discuss their concerns and options for resolution
Thank you for the opportunity to address this matterHopefully our response provides the
necessary information for the ***'s to resolve their concerns with their lender
Respectfully submitted,
Rels Valuation
***
Bloomington, MN
Initial Consumer Rebuttal /* (3000, 10, 2015/08/22) */
(The consumer indicated he/she DID NOT accept the response from the business.)
We do not accept Rels Valuation's response to our complaint, as they clearly have not addressed many of the underlying issues with the initial complaintThey are taking shield based on confidentiality however the items discussed do not require confidentiality based on the merits of the following:
Appraiser lists on page that "The initial comparable sale search focused on sales, listings, and pending sales within the subject's town with transaction dates within the past months, located within mile from the subject, with similar GLA (within sf), similar site size, similar location, similar style, similar market characteristics and similar age (within years)."
Search was limited to maximum sale price of $600,even though comparables are currently being sold up to $685,(even if you exclude the "homogeneous subdivision of good quality homes")
of the comparables were not within sf GLA (page 4,9,10)
of the comparables were not within mile from the subject property (page 4,9,10)
of the comparables sales were not within months (page 4,9,10)
of the comparables were older than years (page 4,9,10)
Rels Valuation did not comment on any of these items in their responseIn addition, the homes compared to were in a development but fit more of the criteria based on the "initial comparable search." A few items of consideration:
The comparable homes that we used in our value reconsideration form were in fact located as other similar homes during the home value appraisal in
Tax value on the home has increased by 13.5% based on the adjustments and improvements to the home and landThis would value the home at $619,
The items mentioned in the Value Reconsideration Form addendum were all dollar-for-dollar items that any right-minded appraiser or realtor would value as such
US is approximately two blocks away however not one block awayis more than miles away and the comment is unwarranted and has no relevance in the discussion
Furthermore, even IF we were to take into consideration the comparables that Rels Valuation had used in their analysis, the average price per square foot is $213/sqftBased on their own analysis and multiplied by the square footage of the home, sq ft yields $604,We are surprised at such a variance of $35,based on their OWN appraisalIt shows NO consistency in their logic for appraising the subject property at such a value
In summary, the inconsistency of their analysis, disregard of the initial comparable search and variance in average per square foot in their own analysis dictates for an adjustment to at least $604,
Final Business Response /* (1000, 13, 2015/09/17) */
Rels Valuation
***
Bloomington, MN
September 10,
Loan: ***
Borrower: *** & *** ***
Address: ***
Bridgewater, NJ
RE: Revdex.com Complaint: Case #***
Good afternoon:
We are in receipt of the second consumer complaint as sent to the Revdex.com of Minnesota
regarding the appraisal completed on the above referenced property on 06/29/The issues brought
up in the second complaint by *** *** regard the inconsistent dollar per square foot of the
subject and the comparable sales analyzed in the appraisal report and the comments regarding the
search criteria used for comparable sales selection
Please understand that the lender is the client of Rels Valuation and Mrand Mrs*** are customers
of the lenderWe are bound by fiduciary and ethical confidentiality requirements and are unable to
discuss specifics of the appraisal with anyone other than our client
Per the The Uniform Standards of Appraisal Practice: Ethics Rule: Confidentiality: An appraiser must
protect the confidential nature of the appraiserclient relationshipAn appraiser must not disclose: (1)
confidential information; or (2) assignment results to anyone other than:
the client;
persons specifically authorized by the client;
state appraiser regulatory agencies;
third parties as may be authorized by due process of law; or
a duly authorized professional peer review committee except when such disclosure to a
committee would violate applicable law or regulation."
We again recommend that the ***'s contact their lender with all concerns so the lender may
determine the appropriate process for resolution
The Uniform Residential Appraisal Report is a form created by Fannie Mae for use in mortgage
transactions that will be sold to the secondary marketThe definition of market value, the scope of work
and the limiting conditions of the appraisal report are outlined within the appraisal and can be useful to
a reader in determining how the value conclusions are reachedIn the report it is made clear that the
intended use of the appraisal report is for the lender/client to evaluate the property that is the
subject of this appraisal for a mortgage finance transaction and the intended user of this appraisal
report is the lender/clientThe appraiser also certifies that he developed his opinion of the market value
of the real property that is the subject of this report based on the sales comparison approach to value
The sales comparison approach to value does not rely on the price per square foot of sales because the
lender/client does not accept this basis for valuing collateral
The changes to the assessed values in Monmouth County, New Jersey are not based on property
improvements but are a result of a new way of assessing property values, the Assessment
Demonstration Program or ADPThe Monmouth County website has good information regarding the
ADP program which has three basic changes: CHANGE IN VALUATION CYCLE, CHANGE IN INSPECTION
CYCLE, CHANGE IN APPEAL CALENDARWe suggest you contact your local tax assessor in your
Monmouth County municipality or Email: [email protected] Phone: for
additional information
As noted in our prior response: The comparable sales were selected based on property characteristics
and not sales priceComments in the appraisal report state "If the initial search does not yield the
necessary viable comparables, the search parameters will be expanded to transaction dates within the
past months and outside a mile radius from the subject property using the same physical
characteristics." As Mr*** noted, the majority of the sales analyzed in the appraisal did not meet the
initial search criteria but do meet the expanded criteria
Thank you for the opportunity to address this matterWe are hopefully that our response provides the
necessary information for the ***'s to resolve their concerns with their lenderRespectfully
submitted,
Rels Valuation
***
Bloomington, MN
Final Consumer Response /* (3000, 15, 2015/09/24) */
(The consumer indicated he/she DID NOT accept the response from the business.)
We do not accept Rels Valuation response to our concerns about the inaccurate appraisal due to their evasive answers and vague answers not specifically to any of our concerns or questions
Simply stated Robert ***, the appraiser hired by Rels Valuation compared inviable comparables vsthe subject propertyHowever using this logic, the average square foot sale value of the homes listed in the appraisal is $213/sq ftBased on that average, the property value should be $604,
In Rels Valuation's last response, they stated "The appraiser also certifies that he developed his opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value." If that is truly the case, Robert *** and Rels Valuation should have come to the same conclusion regarding the "market value" of the property of $604,
In addition, they mention "The sales comparison approach to value does not rely on the price per square foot of sales because the lender/client does not accept this basis for valuing collateral," however they do not make any mention on what their value of the home was derived from if not the industry standard of comparable home sales in the area
We feel we were cheated of the market value of our home as well as the money paid to Rels Valuation by their unethical practicesYou can Google Rels Valuation and you will see there are hundreds of complaints of their unethical practices as well as law suits for these practicesWe would suggest anyone looking to do an appraisal with Wells Fargo to reconsider and potentially find another appraiser or potentially another lender