If the Facts are Not "Facts"
Q: " What if the property information I uncover and use in my report turns out to be wrong, inaccurate and/or incomplete?
A: No matter how hard you try, there is a real possibility that some of the property information you uncover might turn out to be wrong, inaccurate and/or incomplete. This is a risk inherent in any report that does not include an interior inspection of the property - and what appraisers are dealing with now due to the COVID-19 virus. If the appraiser did their best to uncover and report accurate information they should not be blamed if this turns out not to be the case.
If the appraisal does not include an interior inspection, the appraiser should confirm that the condition details could not be verified and if it turns out that any of the facts reported are not correct the appraiser assumes no responsibility for this.
These are extraordinary times with respect to having to deal with COVID-19 but appraisers have been asked before to provide an opinion of value even if they did not inspect the subject property.
In recent years, many lenders have been utilizing Hybrid appraisals. In these reports, the appraiser is asked to estimate value using inspection information and photos provided by a third party. The appraiser can base opinions and conclusions on this third-party information; however, the appraiser cannot verify accuracy and should not be held accountable if the condition information reported turns out to be wrong.
Again, restating the obvious, in plain language, is always beneficial to the appraiser and it is highly recommended that such wording be included in every report in the event the appraiser is being blamed for inaccurate information provided by what was deemed to be a reputable source.
Access more COVID-19 Resources for appraisers
Read the Claim Alert and see language examples:
Limiting Liability for Exterior Only and Desktop Appraisals
More "Claudia Says..." Q&A Series