I’m being challenged in my job. I work as an appraiser. We are hired by the bank to estimate the value of a property to ensure that if the borrower defaults on the loan, the bank will be able to get their money back. Often, the developer or property owner has done their research and so their estimate of value is close to ours. Sometimes, though, that is not the case… sometimes their opinion of value is higher than ours. Our job is to keep the bank safe… and sometimes that doesn’t make the developer happy. I’ve been challenged several times, and my reaction is always the same. At first, I think “oh shit, I messed up” and I start to panic. Then I go through my process and make sure that if I had to do it again, I’d do it the same way. Usually the developer’s comments have to do with the comparable sales or rentals used in our reports. This is THEIR work and their money and their life and so they sometimes get nasty and use words like inappropriate and ridiculous and make accusations “did the appraiser even look at the property?” That doesn’t help with the panic… but EVERY SINGLE TIME I’ve been challenged, I’ve gone back through the report and still feel confident in what I did. The developer will then give us comparable sales that they feel are more appropriate. So far, every time this has happened, I’ve been able to shoot each of their comparables down for one reason or another. These challenges are nightmares because of the panic part but without fail, I feel more confident in my work by the time I’m done.
I’m being challenged right now. The worst part is that I’m being challenged by a developer I like. He’s young and successful and I’ve appraised a couple of his other projects. He accused me of using “inappropriate comparable sales” and, as usual, I panicked. The comparable sales I used are similar to the subject in location, size, amenities, view, and number of bedrooms and baths, but inferior in construction quality. This is not inappropriate. It would be inappropriate to use comparable sales that are of similar construction and different in all of the other characteristics.
I’ve been on vacation this week, but the office has forwarded his concerns and accusations to me, and I have read them all week. I have made notes and I’m writing this blog, but I will not respond to him (or the bank) until Monday… part of my taking care of myself resolution. This is my break… this is my vacation. Unfortunately, I’m not good at putting it completely out of my mind, but I need to try. I need to respect my limits. On Monday, I’ll write the letter calmly defending my opinion of value and explaining why I don’t think that the comparable sales he provided are valid or good indicators of value. I’ll question myself and ensure that I still think I’m right, and then I’ll turn it in and move on, more confidently, to the next report.
Wish me luck!
