A real estate appraiser who says he valued more than 200 properties for Crisp & Cole real estate can keep his license if he meets a series of conditions, state regulators announced Thursday.
Kirk Mark Newton is the owner of San Joaquin Appraisals. Newton faced a 10-count accusation centered on eight properties that state regulators say were inappropriately valued by Newton or those he supervised.
In their complaint, regulators alleged Newton overstated square footage and compared the homes to much more expensive ones outside the neighborhood to justify a much higher price.
Effective May 3 the Office of Real Estate Appraisers says Newton's license will be suspended for 60 days. After that period Newton's appraiser's license will enter a "probationary" status for five years.
"I don't think it would be appropriate to comment under the circumstances," said OREA director Bob Clark of his order. "I would say the decision speaks for itself."
Clark upheld the recommendations of Administrative Law Judge Samuel Reyes, who noted in his decision "The residential real estate market in the Bakersfield area experienced tremendous valuation growth in 2005 and 2006" when the appraisals occurred. "Investors were bidding the prices of real estate, and properties were typically selling for more than the asking price," Reyes writes.
Newton's lawyer, Ernest E. Price, contends the properties at issue were cherry picked from a much larger body of work.
"We felt there had been a certain sense of hysteria, that he was somehow involved in a conspiracy with Crisp and Cole to perpetrate a fraud," Price said. "We found those allegations easy to make, hard to prove. There was no evidence of malice, fraud or conspiracy."
"We're talking eight properties out of hundreds, maybe thousands, and that is not indicative of his work," he added.
To keep his license, Newton must complete 60 hours of remedial education, submit quarterly logs of his appraisal work and reimburse the OREA for the cost of the administrative hearing against him.
The cost of the investigation and prosecution was $28,577, the OREA reported.
Appraiser Gary Crabtree, who testified against Newton during the hearing, said he was disappointed by the decision.
"In spite of the fact that [Newton] has been appraising for over 16 years, he will be given one year to re-educate himself in the very basics of real estate appraisal," Crabtree said in a prepared statement. "It is my hope that [Newton] will diligently apply himself to his reeducation process and become a credit to the appraisal profession."
Price argued during the hearing Crabtree was a disgruntled competitor who wanted to cut into Newton's business.
"What we have is Mr. Crabtree focusing on particular properties and amplifying them," Price said.
