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Million Dollar Plus Driveby's ....... ?

Discussion in 'General Appraisal Discussion' started by Robert Gonsalves, Dec 21, 2004.

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  1. Robert Gonsalves

    Robert Gonsalves Sophomore Member

    0
    Apr 21, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Hello,
    It seems lately I'm getting alot of Million Dollar Plus driveby requests from large lenders/banks.
    Just got a request for a 2055 exterior on a property with an estimated value of
    $4,000,000.00 with a lot of acreage.
    I rejected this request, as others, stating I would accept the order as a full appraisal assignment.
    Does anyone have a differant feeling about these, or am I the only one getting them.

    Thanks for your Thoughts!
    Robert
     
  2. Otis Key

    Otis Key Elite Member

    0
    May 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
  3. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
  4. dobie

    dobie Senior Member

    0
    Oct 26, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New Jersey
    I agree completely. I've had these before and I simply say that the driveby format is unsuitable for this property. They're just trying to avoid a large fee.
     
  5. J Grant

    J Grant Elite Member

    Top Poster Of the Month

    118
    Dec 9, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    One could theoretically charge a high fee for a 2055 driveby too- nothing says a form dictates our fee. A better reason to turn them down is having to make too many assumptions re only seeing the exterior of such an expensive property, that the report would not be credible.
     
  6. larryhaskell

    larryhaskell Senior Member

    0
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Nevada
    I don't understand what the estimated value of the property has to do with the fact that you do a drive by on the property. I could understand if you had concerns about it being a complexity issue. I do lots of field reviews on multi million dollar properties @ Lake Tahoe and never step on the property but I do have a report to look at for some information which can help. I do charge as much or more for a field review on these properties than if I actually did the appraisal due to the time and exposure involved. I have actually upgraded requests to interior inspections for properties that had estimated values well below a million dollars due to complex issues or a lack of acceptable data from the county. I just believe that complexity should determine the report format rather than the complexity. Raise your fee high enough for the drive by so the incentive is there for your client to let you do an interior inspection. That way you don't have to decline work but you just want to receive fair compensation for your services.
     
  7. The Matrix

    The Matrix Senior Member

    0
    Apr 28, 2003
    Professional Status:
    Certified General Appraiser
    State:
    Colorado
    I would not even consider doing a driveby (horse back appraisal) on a $ 1 million + property. Horse back appraisals sometimes work on cookie cutter houses, however, it is absurd to think any degree of reliability could be determined by driving past a large custom residential property. At best a driveby appraisal on a mansion is a WAG. Wild A_ _ Guess. I don't think most appraisers want the cultivate a reputation for preparing WAG's.
     
  8. Randy Beigh

    Randy Beigh Senior Member

    0
    Jan 16, 2002
    I don't agree that the fee is the problem. Turn time and type of loan are probably bigger issues for the lender. They, in all liklihood, already have an appraisal in the file, but they need additional paperwork for whatever reason.

    I do agree this is a difficult situation for the appraiser to do a complex appraisal as a driveby and I wouldn't do it, either. If they gave me a copy of the old appraisal, I might consider it. That is just a thought.

    I like Larry's idea of raising the fee. Telling your customers/clients to go elsewhere is not a sound business practice.

    As a support to the idea that fee is not the issue. These are expensive homes. If the homeowner doesn't have $400 or $500, the lender has bigger problems than the appraisal fee to worry about. :p
     
  9. Ross (CO)

    Ross (CO) Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    I thought the new emerging trend was for the lender to have much LESS concern about the real market value of these $Million++ properties, and to simply lend on the mere power and influence of the other financial assets of the individual and their signature-promise to repay.

    Why even consider the 2055 ?, and a drive-by, at that. Why not just do a 2075 ?

    "Yuppp....there's a big house behind the gate at 11 Excalibur Court, as my photograph shows, and it appears from my roadway observations that there has not been a fire nor meteor impact at this property in the past 24 hours."

    Value ?....who cares ?......lend them whatever amount you feel comfortable giving ! If they stop paying, you might become the new owner of the property, and you will not even have to bother the appraiser in that process.
     
  10. Mountain Man

    Mountain Man Elite Member

    13
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Georgia
    Quote them a fee for an APPRAISAL..... not for the FORM. If they question why the fee is so high for a 2055, tell them it's because of the complexity of the job. And that you will use what ever format or form you.... as the professional appraiser.... determine to be necessary.
     
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