Borrowers Complaining about Appraisal

Discussion in 'General Appraisal Discussion' started by Hugh Hill, Jul 20, 2011.

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  1. Hugh Hill

    Hugh Hill New Member

    0
    Apr 21, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Alabama
    Hey Guys,

    I've been appraising a long time but more recently I'm having more and more
    borrowers calling and complaining about the values and giving me the sad story.

    Just curious.... I'm trying to come up with way to maybe cut down on the calls if possible. Its getting old. Had 3 just the past 2 days.

    Do you explain at the appointment that your not allowed to talk values with the borrower?
    Do you give the borrowers anything stating that?

    Any suggestions? I'm just trying to come up with something. Also, this discussion maybe it will help others in the process.

    Thanks for your help and suggestions.

    Hugh
     
  2. Terrel L. Shields

    Terrel L. Shields Elite Member

    62
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    You might try a little postcard sized handout

     
  3. Noreen

    Noreen Senior Member

    3
    Feb 5, 2011
    Professional Status:
    Certified Residential Appraiser
    State:
    New Hampshire
    Do not personally get sucked into this, all communication must be through your lender. PLEASE REMEMBER THE LENDER IS YOUR CLIENT!!! You do not want to put yourself in this position.
     
  4. Don Clark

    Don Clark Elite Member

    2
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia
    Very nice:clapping:

    I try to avoid having the buyer at the property when I do my appraisal inspection. I also try to avoid having the seller there or the realty agent if possible.
     
  5. Mary Tiernan

    Mary Tiernan Senior Member

    0
    Dec 16, 2003
    Professional Status:
    Retired Appraiser
    State:
    Michigan
    My last commentary to the borrower includes a summary of their rights to have a copy of the appraisal, and that they must obtain that from their lender. I go into a limited summary of the appraisal rules as adopted by my state and typical lender requirement that they be the named client on the report, and that I am bound to a client confidentiality.

    I then state that it is now back to my office, where the real work begins.

    Have had very few problems since adopting this strategy.
     
  6. Smokey Bear

    Smokey Bear Elite Member

    0
    Dec 8, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Yes to both. My notification also states that they shouldn't rely on the cost approach for their insurable value, etc. AND I have them sign a copy saying they have received and read it.
     
  7. Hugh Hill

    Hugh Hill New Member

    0
    Apr 21, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Alabama
    Thanks guys for all the response.

    If I get this straight.... Some of you guys have letter that you give to the borrower at the time of inspection stating what their rights are and what it takes to get a copy of the appraisal.

    Does anyone mind sharing a copy or copy and paste something here.

    Hugh
     
  8. Smokey Bear

    Smokey Bear Elite Member

    0
    Dec 8, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Start with this:
    I just grabbed this from other forms I have, but it's a good start.
     
  9. BOCK FOLKEN

    BOCK FOLKEN Member

    0
    Jun 22, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Most of these "after the fact" value complaints are people whining about the market. Unfortunately many of them blame us.

    I typically tell the borrower that my appraisal is "AN OPINION" of value, based on my knowledge of the market and research of recent local sales and listings. My OPINION is not the only opinion available nor is it absolute. Depending on the situation, I sometimes throw in that appraisers make mistakes just like eveyone else. Then I tell them if they feel I have made an error of fact or analysis that could change my OPINION, they should indicate same to their lender and request a reconsideration of value based on the specific items they question.

    That stops about 95% of the complaints dead in their tracks...mainly because they have no basis upon which to complain except they don't like the value opinion.
     
    Last edited: Jul 20, 2011
  10. Oh No Not Him

    Oh No Not Him Junior Member

    1
    Jun 21, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Maine

    VOICEMAIL.
     
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