Complaint / Real Estate Appraiser

Filed against Dennis Danek

Colorado Board of Real Estate Appraisers
1900 Grant St, #600
Denver, CO 80203
Attn: Enforcement

Re: My file # 4072

This is a complaint filed against Dennis M. Danek, CG01315288
Subject Property: 10225 E 14th Ave, Aurora, CO 80010
Appraisal date: 10/18/03

I have not contacted the appraiser. This matter is not under litigation.

Comments:

The report does not disclose the purpose and/or intended use of the appraisal is to establish an asking price for a HUD REO property. The report does not disclose/explain that it is customary for this appraisal to be used by the prospective buyer to support a mortgage loan.

The appraisal report does not state the identity of the intended users, by name or type -- this is a violation of USPAP Std 2-2(b)(i) and SMT-9. Specifically, the following intended users should have been mentioned in the report: HUD, prospective homebuyer, and prospective homebuyer’s lender in support of a mortgage loan.

The appraisal report does not state the intended use of the appraisal -- this is a violation of USPAP Std 2-2(b)(ii) and SMT-9.

There is no scope of work statement – this is a violation of USPAP Std 2-2(b)(vii)

The report does not address “reasonable exposure time” – this is a violation of USPAP std 1-2(c) comment, SMT-6, AO-7, AO-8, and item (3) in the definition of market value.

Geographic Competence: In the addendum, under the heading “Neighborhood Boundaries”, the report states,

“....the appraiser has utilized County records which indicate Denver as the city. This is an unincorporated area of Arapahoe County, with a Denver mailing address.”

This is factually incorrect. Subject property is not in Denver and does not have a Denver mailing address. The subject is not unincorporated. The report states :

“The subject neighborhood has average market appeal and competes favorably with other neighborhoods in the subject market area.”

These comments suggest the appraiser does not have geographic competence because this neighborhood has below average appeal and does not compete favorably.

Comps: The appraisal report states

“There are no recent sales of similar units in the subject project in the last year”.

This is factually incorrect – there were 2 sales in the same project (copy of MLS listings attached) – and these should have been used as comps because they are clearly more comparable to the subject than comps #1 and #2 in the report.

All 3 of the comps are located in a different county from the subject, i.e., not Arapahoe County. This is not disclosed in the report.

Comps #1 and #2 are so far away as to be not even close to comparable location. Comp #1 is in a different city (Denver).

There is no photo in the MLS listing for comp #2. Appraisal report photo of comp #2 is a picture of the wrong property. Comp #2 address is wrong, should be 17th Pl, not 17th Ave (if you are trying to find this property, it does make a difference). The location map for comp #2 is wrong. My conclusion – the appraiser did not personally inspect the exterior of comp #2, and therefore, he lied on the certification.

Value: Appraised value is $95,000. With the benefit of hindsight, we can see that it should have been $65,000. Per MLS listing history, $95,000 is not even close.

Certification:

I certify that the statements and information supplied by me in this complaint including the attachments are true and correct to the best of my knowledge and belief.

Philip G Rice
11268 E Linvale Dr
Aurora, CO 80014
720-282-3376

Attachments:

Result - dated 03/02/07. Future Davis = 303.894.2362

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