[StBernard] Bitter at adjusters (even though they just do their job)

[Westley Annis]

I must pass on what I have learned over the past week - in the course of
appraising properties of homeowners who received significant, if not total
damage to their homes and are trying to obtain a SBA loan.

I was contacted by an Oak Ridge resident who explained as part of the the
SBA loan procedure, SBA had her home appraised for a "pre-Katrina" value as
that would factor into what kind of loan she could get and the amount of the
loan.  She faxed me a copy of what SBA called "an appraisal" for me to
review based on my experience and certification as a real estate appraiser.
Keep in mind this property is on a nice sized, typical lot and has living
area of over 1,500 square feet, 3 bedrooms, 2 full baths with some nice
amenities, and was in excellent condition prior to the hurricane.

I quickly learned what the SBA called an "appraisal" was really nothing of
the sort.  It was damned near impossible to figure out how this "appraiser"
came up with a value, but it was very evident to me that none of the
methodologies "real" appraisers use were applied in this case.  In the end,
the SBA appraiser said the homeowner's lot had a pre-Katrina value of
$15,000 and the improvements were worth $80,000.  That's right, a total of
only $95,000 for market value.  I'll pause a moment for all Oak Ridge
homeowners to stop laughing.

This guy badly missed the mark - by a good $40,000.  Then I decided to do a
little research.  I learned the person doing this "appraisal" was not an
appraiser at all - not licensed, not certified - anywhere!  I check several
states.  Further research showed me no type of certification or record of
him having a background in contruction or contracting.  And, would you
believe that few, if any, of these so called SBA appraisers are even from
this area or know anything about the real estate property values in this
area!  Yeah, are you really surprised?  What a joke!

Now, at this point in the story let me bring up a phone call I received a
few weeks ago from SBA.  In some recent ads I ran in the St. Bernard News, I
mentioned one of the reasons a homeowner might want to get a pre-Katrina
value of their home was if they were planning to apply for a SBA loan.  A
few days after I ran the ad I got a call from someone with the SBA located
in Baton Rouge telling me I was incorrect and an appraisal wasn't necessary.
I explained to the nice gentleman I didn't say in my ad it was an absolute
necessity, what I suggested in my ad was saying it might be a requirement
based on what the SBA calls "appraising" and "appraised market value."
Still, on my next ad I removed the language in question.

Now, after reviewing this SBA appraisal in Oak Ridge I'm putting it back
into the ad.  This time I'm going to be blunt in my ad and tell homeowners
who are thinking about getting a SBA loan they better get their own
appraisal because the SBA appraisal of their home is going to be
rediculously low - and it could very well affect the amount or outcome of
your loan.  The homeowner in Oak Ridge said it did precisely that!  That's
why she contacted me and will use my appraisal to refute theirs.  And my
appraisal will have detailed data and explaination backing up everything I
say - unlike the SBA appraisal which no one can understand.


>From the looks of what I reviewed, I wouldn't be surprised if all you had

to
do to become a SBA appraiser is attend a one day class - and not require a
background in either construction or real estate.

So if you're going the SBA route - be prepared!    A very Merry Christmas to
all and all the best for the New Year!

John Scurich
Louisian Certified Real Estate Appraiser  no. R1271
Chalmette, LA (now in Lacombe, LA)
985-882-9421 / 504-722-6662
Fax: 985-882-6588
email: scurich at bellsouth.net


----- Original Message -----

>

>

> P.S. Don't hurt the adjsuter too badly, you'll have to live with

> yourself

> later.

>

>

> I'll keep that in mind, but she'll have to live with herself, denying me

> whats due.

> Today I got the daily quote from Winston Churchill

> "If you are going through hell, keep going"

> I like that one.

>

> Gaby

>