The Appraisal below was delivered to me on Monday, May 17,2021. It was done by "Appraiser X", working for "Property Rate LLC".

The subject property is 627 S. Paca St, Baltimore MD 21230

1. The Subject Property is located on an extremely desirable, private and relatively unknown 2 block section of S. Paca St.that runs east to west as compared to the rest of S. Paca that runs north and south. This two block section of S. Paca St is not a through street making it very private and even difficult to find. It is disconnected from the rest of South Paca St.

2. Properties on these two blocks as well as others one block north represent the entirety of the south side of this small neighborhood. The properties on the south side of this neighborhood command a premium over all other properties in their neighborhood and their immediate surroundings due to size, privacy, the volume of properties with off street parking, a community parking lot that further decreases parking density, two large green spaces, stadium views and more...

3. Any appraiser who properly categorizes the property as being a “custom home” with “unique details” and searches for truly comparable properties within a 0.30 mile radius of the subject can use 20 years of historical data to realize there have been 19 sales in this neighborhood that could have only appraised out with the use of comps from the East side of Camden Yards.

4. A further review of high sales would show that 90% of those are urban lot style designs, indicating a premium is allocated by buyers for such designs.

5. I have four appraisals (2005, 2006, 2017 and 2021) that support the use of comps East of Camden Yards for this type of property and any appraiser who was "Geographically Competent" and/or not seeking to make a quick buck knows how these properties need to be handled.

Subject Property: 627 S. Paca St, Baltimore MD 21230

Comp 1: 625 S. Paca St, Baltimore MD 21230

• Included in position one but discredited as "outlier"

• Included in position one and aggressively adjusted with Based on Property Facts that do not exist

• Not considered in range of values as stated in his notes

Comp 2: 801 McHenry St, Baltimore MD 21230

• This is a 15 year old new construction town home on the West side of MLK

• He indicates the 0.30 radius extends beyond neighborhood boundaries but indicates nothing was taken outside the radius. He fails however to indicate this is on the other side of MLK were values are known to be $50-100k less if/when like style homes are considered.

Comp 3: 688 Washington Blvd

• This is a 12' wide row home on a busy, one way through street with no back yard and no off street parking

• This home has been upated, but not in an industrial loft design. The rooms are smaller and generic for an updated row home.

Appraiser X claims one home does not make a market, then pegged my value to the adjusted value he created for 688 Washington Blvd, the only home in the comps in my neighborhood he used and gave credit for in his Grid.

Appraiser X appears to have spent less than 1 hour producing this appraisal. That is all the time it would have taken to do this. Appraiser X indicates on his website he'll give Appraisal Management company's a "free rush appraisal for adding him to his panel.

1. Geographical Competency - The appraiser either has no geographical competency in this part of Baltimore or he pretended not to in order to complete an appraisal quickly. He has only been licensed in MD currently for 2 years.

2. Omission of Material Facts - Location Related - 1) The Appraiser presented his 0.30 property radius as if it was filled with enough relevant sales to provide a good pool for comparable selection, which it does not. 2) The appraiser ignored a recent sale on the same street/block for $665k which then allowed a claim of “outlier sale” to be made about comp 1 out of context. 3) The appraiser failed to acknowledge the historical pricing premium homes garnered by homes in this block and in the southern portion as compared to all others in his 0.30 property radius. 4) The appraiser used a comp from the West Side of MLK without noting a standard differentiation in pricing when crossing that main road. 5) The appraiser failed to use comps from the East Side of Camden yards which has been normal and customary for these homes since at least 2005 if not prior (I have appraisals from 2005, 2006, 2017 and 2020 which show this)

3. Omission of Material Facts - Comp 1 related - 1) The appraiser claimed comp 1 was an “outlier” without noting this was the second transfer of the property within 4 years within 5% of the prior transfer price 2) The appraiser claimed there was no current or historical information to support a pricing premium for urban loft style housing in the neighborhood, which there is. 3) The appraiser failed to apply the terms “custom home” or “unique features” to justify the pricing on this home. 4) The appraiser included this property in the position of comp 1 while labeling it as an “outlier” and assessing no comparative value to it in his final analysis. That’s fully illogical. Presumably this was done to fit a narrative which allowed him to do a very fast appraisal.

4. Fabrication of Material Facts - Comp 1 related - 1) The appraiser fabricated material facts related to the a) basement and b) off street parking for comparable 1 to create a false sense of differentiation in value between subject property and comparable 1. Presumably this was done to fit a narrative which allowed him to do a very fast appraisal.

5. Fabrication of Material Facts - Subject Property Related - 1) The appraiser claimed the home was in the same condition when listed in 2017 when in fact it was not. It's had $30k of significant upgrades which broadened the product appeal. He would have known that had he asked. 2) The appraiser claimed the property was an AirBnB style Rental. That's false. It was that from 2006 to September 2020 at which point it became a lease based rental. He was informed of the leases prior to the appraisal but did not ask for copies prior to making these claims.

6. Excessive Adjustment(s) for Garage(s) and Inconsistent Handling of Stacked Parking - 1) The appraiser inflated adjustments for a garage to devalue the subject property to fit a narrative which allowed him to do a very fast appraisal. 2) The appraiser gave credit for stacked parking in two situations while ignoring the stacked parking at the subject property. Presumably this was done to fit a narrative which allowed him to do a very fast appraisal.

7. Improper and Incomplete Rental Market Assessment - The appraiser claimed the rental market value of the home was $2000/mo without providing any justification. That value is 35% to 50% below a reasonable market rental value and over 60% below my current lease based rents. This marker is one of the more telling that indicates he spent no time on this appraisal. Ask him for the comps he used for this...

8. Improper Initial Communication - The appraiser failed to reach out to the borrower, known to be a real estate professional, to ask a few simple questions about questionable information related to a prior listing history which any appraiser should have sought more information about in order to do a proper appraisal.

9. Improper Reconsideration Communication - 1) The appraiser was asked to correct the adjustments related to comp 1 for the basement and the parking. He ignored the basement request and while he changed the notation for parking, he made no financial adjustments while claiming a 12’ wide garage could in fact fit two cards side by side, although not functional. 2) The appraiser was asked to consider three sales on the East Side of Camden yards and he indicated those could not be considered due to a differentiation in value when crossing a main road, while not making the same distinction with his comp 2. 3) The appraiser claimed the comp on the same block was not a good indication of value, in part due to the homes configuration with 4 bedrooms above grade, when in fact, his comps 2 and 3 fit that description.

10. Misrepresentation of Professional Experience - The appraiser claims to have 15 years of experience on his website. A review of his licensing reveals he was first licensed in 2007, which is 13.5 years ago, not 15 years ago, but that’s only part of the concern…
    Current Licenses

• Virginia - 1/11/2012 to present (9 years)

• Washington DC - 2/15/2012 to present (9 years)

• Maryland - 12/13/2018 to present (2.5 years)

He appears to have tried to get going earlier...

• Virginia - 2007 to 2009 then inactive

• Washington DC - 2007- 2010 then inactive

• Maryland - 2009 to 2012 then inactive

• Pennsylvania - 2016-2019 then inactive
  
  How can anyone expect to gain Geographical Competency when covering such a large area?
  His website indicates he has a second office in Washington DC that focuses exclusively on Washington DC and Northern VA. Is that just his DC cell phone operating now from a new home in a Baltimore Suberb?
  

11. Ethics issues with the MD DLLR - In 2013 Appraiser X was fined $2000 and assigned to a 15 hour remedial course for issues related to Continuing Education. An appraiser friend of mine indicates that was most likely applied due to making false claims about continuing education credits.

12. Other Business Ventures - He had and/or has at least one other unrelated business venture that may or may not cause conflicts of interest as an appraiser.

Comments for his 5/14/2021 notes

• The upper two bedrooms suites are 13x29 with a sleeping room, second room and a half bath each. These suites are divided into a sleeping room that is 13x12 and a den/dressing room/office that is 13x19. To only consider these as 1 room each grossly mischaracterizes a bedroom comparison with another typical property.

• The appraiser never asked for leases. He was told I had them in an intro document. My leases have a 60-90 day initial term that converts to month to month. I currently have two tenants I'm expecting to have for more than a year and a third is signing an 11 month lease with option to extend now. These are not AirBnB rental. It was an AirBnB style rental from 2006 to September 2020 and during that time the average rents were $4000-5000/month vs the $3400/month now...

Comments for his 5/26/2021 notes

• 625 S. Paca St Garage - He corrected his claims that 625 had both a driveway and a garage. The garage is only 12' wide on the inside, yet he trys to claim it could accommodate two cars. HE goes on to claim a garage is worthy of a $13k adjustment, which is not the norm in Baltimore City. HE adjusts parking vs no parking at $6k but then adjusts garage vs no garage at $13k? He also gives no credit for two car parking at 627. FOR CLARITY: 627 (subject) offers 2 off street spots behind the home. 625 offers a 1 car garage and the adjustment was made against 627 for $13k...

• 625 S. Paca St Basement - The appraiser was asked to correct the 5k adjustment for room count. The basements between 625 and 627 are identical. He claimed one had one more room although that information is no where on MLS or anywhere else. HE ignored the adjustment request. FOR CLARITY: The basements are identical in room count and function, yet there is a mysterious 5k adjustment for a phantom room now still persisting on the appraisal

• 551 S. Paca St - Adjustments can be made for Condition. Four bedrooms above grade vs 2 bedrooms above grade 1 below and two dens on the same block is far more comparable than a 15 year old new construction town home in a town home community across MLK (comp 2)? NOTE the Inconsistency: Both comp 2 and comp 3 have all bedrooms above grade and as indicated , comp 2 is older new construction...

• 3 Comps East of Camden Yards - He claims these are not good indicators of value due to neighborhood, yet his comp 2 was on the other side of MLK with no adjustments for location? These three properties are the properties used to Appraise 625 S. Paca St and as indicate, I have appraisals from 2005, 2006, 2017 and 2020 that show conscientious appraisers using comps from the East Side of Camden yards for proper valuations. Of course, he may not be familiar with any of this given this was all transpiring before he got his first appraiser's license in MD and then again, before he was able to get his second license in MD just 2.5 years ago...

Geographic Competency is a MUST, as is "reasonable" and "factual" adjustments...

Oh.. and if you don't want something like this to happen, be sure to reach out to your clients prior to delivering a knuckle ball.

This appraiser sent out a request to schedule via email and text.
I replied immediately to both and never heard back.
I called him 48 hours after no response to schedule.
I had to ask him if he got my email with a 4 page summary of my property.
Then?
He never reached out to me again to ask for any more information or clarification on anything.

Fair Communication Etiquette is also suggested or "surprises" like this can happen...