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2 For 1 Appraisal?

Discussion in 'General Appraisal Discussion' started by Ariba, Sep 21, 2004.

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  1. Ariba

    Ariba Senior Member

    2
    Feb 8, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Loan Officer contacted me today that they wanted to order an appraiser, he needed the appraisal in two different mortgage lender names. Apparently, this is a 100% mortgage loan. The first is an 80% loan and a second for the remaining 20% by another mortgage company. I know in the scope you can name both mortgage companies with no problem. However, he wants individual appraisals in the different mortgage company name. Is this two appraisals for the price of one? Is this getting pretty common in your area?

    Ron
    http://www.AppraiserPlus.com
     
  2. Jerry Bone Jr

    Jerry Bone Jr Senior Member

    0
    Feb 23, 2004
    Professional Status:
    Licensed Appraiser
    State:
    Oregon
    Disclose both lenders names in both reports. One appraisal, two reports. Don't get too greedy.
     
  3. Ariba

    Ariba Senior Member

    2
    Feb 8, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Jerry,

    Read the post. The point is he does not want both names on the appraisal. He want separate appraisals.

    Ron
     
  4. Elliott

    Elliott Elite Member

    122
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    Ron,
    This is similar but different than the situation I just
    incountered . I get a request from Chase to do an
    appraisal, 1004, on 20 acres, estimated value
    $180,000. House turns out to be small, powerline
    runs through the property. I appraise it for $140K.
    Done with the assignment.

    One week later I get a request from Homefield
    to do the same property as a drive-by 2055.
    And they've already told me my fee is $350.
    That sounds reasonable to me. Estimated value
    is $180K and again I appraise it for $140K.

    I guess I could have called Homefield and told them
    I'd previous done the property, but that would be
    all I could tell them.

    What'd you think, should I had done something
    differently? USPAP guru's are welcomed too!

    elliott
     
  5. Steve Wyrick

    Steve Wyrick Member

    0
    Aug 15, 2003
    Professional Status:
    Certified General Appraiser
    State:
    California
    Ron

    Two lenders, two liabilities, two appraisals, two fees. What you charge is your business, but me I would charge each the same, only fair. Can you say BINGO, JACKPOT. :dance: :dance: :banana: :banana:

    Jerry Bone - I would think that the disclosure of a clients name in another clients report is a violation of confidentiality. I look at it this way; Accepted the assignment for lender A, working for lender A, when the report is done, then I am no longer working for Lender A. Lender B orders report, fine now I am working for Lender B, he has no reason nor right to know if I worked for Lender A.
     
  6. Richard Carlsen

    Richard Carlsen Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Michigan
    They are indeed trying to get 2 for 1. The lenders also do not want it disclosed that they are doing piggy-back lending. They want one loan to look like a full refi and the other to look like an equity second loan.

    If the LO will not let you name all of the lenders in the report, then your only recourse is to do the first one and consider the second as an update of that report. The effective date is the same but it would seem to me that it has to be considered a new assignment. Charge what you will but you must remember that you have specific liability to each client in this situation and not because of your own choosing. It is the LO who has forced you into a 2 assignment situation. Personally, I would charge at least 50% of the full fee for the simultaneous update.
     
  7. Ray Miller

    Ray Miller Elite Member

    0
    Feb 20, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin
    Just remember the LO could be collecting two commissions of which are many dollars higher then your fee.

    Two Appraisals, double the risk, double the price. Then go find a pack of doublemint gum.
     
  8. Ross (CO)

    Ross (CO) Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Ron, .....You answered your own quandry.....when you said he "want(s) separate appraisals". What seems a little odd is that one person, Client 1, is making arrangements for your provision of the report for a Client 2, yes ? Why not assure Client 1 that HIS order is understood, with completion to follow. Ask #1 for name and contact phone for Client 2. Call that person, and clarify if he also needs to order an appraisal for same address. Get a clear and defined order for the purposes of #2, and then provide that report. Client #1 appears to be the ringleader here, and no doubt the 2-for-1 negotiation will get a little tangled up when you approach the fee issue. Two clients, two purposes, two uses, two reports, two liabilities......two fees coming from different sources. What you charge, and how and when you receive that, IS up to you. Get what you deserve.

    Clients basically hate it when they know that an appraiser is making "easy" money from such a situation like you pose here. They probably feel that the "gift" of the order from #1 warrants a freebie for #2. Any bets these two guys have a secret money-under-the-table deal between themselves if you were to do that ? !
     
  9. Anthem

    Anthem Senior Member

    0
    Mar 10, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Our office charges a $50 admin fee for the second lenders report
     
  10. Ann O'Rourke

    Ann O'Rourke Junior Member

    2
    Jan 16, 2002
    Professional Status:
    Certified General Appraiser
    State:
    California
    I love the new USPAP Advisory Opinions!

    A few months ago I appraised the same small commercial property three times - once for the owner, and twice for two different banks. When the second bank placed the order I did not disclose that I had already done an appraisal for the first bank as I considered it confidental information that the owners could disclose if they wanted. (They were shopping the loan.)

    Each appraisal was slightly different, depending on client requirements. Since the owners were paying all the appraisal fees, I gave them a discount of 50% on the second two appraisals. The total fees were $8,000.

    For residential, if you charge the same fee to do the same appraisal over again with a new report date and the same date of inspection (effective date), why not charge the full fee? The client would just have to pay the full fee to a new appraiser. You have already done the appraisal and they usually have a copy so they know what's in it.
     
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