Appraisers' Free Forum

Bad appraisals hurting sales and costing consumers

Two years ago, Florida regulators permanently revoked the license of Clearwater appraiser Larry Holzer because he had approved a home appraisal that contained glaring errors:

It said the house was on an asphalt road when it was really on a dirt road. It said the house had public water and sewer when in fact it had a well and septic tank. It said the property was in an area 75 percent developed, not the actual 25 to 50 percent.

The license revocation barred Holzer from appraising property in Florida. But it hasn't kept him out of the appraisal business.

Last year, Holzer started Global Appraisal Solutions, one of a growing number of "appraisal management companies'' that hire appraisers to determine market values. Though the appraisers are licensed, the management companies are totally unregulated. And they are at the heart of a controversy over a new federal policy that critics say is costing borrowers more money and resulting in rushed, poor-quality appraisals that can thwart home sales as the market struggles to recover.

Otis wrote:We knew some of the ones who lost their appraisal license would move to this approach. I had heard of an appraiser in Florida who lost his license and then started an AMC - maybe this is him.

TC wrote:I helped in getting an appraiser's license revoked only to find out 2 years later he's doing QC work for an AMC.

What a country.

In another recent instance, Global Appraisal Solutions e-mailed an appraiser in Colorado with this request: "We need you to take a look and see if an additional $5,000 in value is justified.''

Holzer says there is nothing improper about his business practices.

"The reality is that many appraisers are not competent, and many are undervaluing properties to the detriment of consumers,'' he says. "The job of the appraisal manager is to hold appraisers accountable.''

Holzer also says that problems in his background are irrelevant to his current work. He has a long arrest history that includes convictions for marijuana possession, harassing phone calls, obstructing an officer without violence and violating a domestic violence protection injunction.

"Because I had a successful appraisal company, the state of Florida wanted to crucify me,'' he says. "They see if you're successful at what you do and they crucify you.''