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USPAP and HVCC question

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Timothy Fierek, Oct 15, 2009.

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  1. Timothy Fierek

    Timothy Fierek Sophomore Member

    0
    Apr 24, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin
    Went to a property and found it to be between a gas station, super market, and other business. It was ordered as a single family residential appraisal. The assignment was too complex for me to complete. AMC says they don't have to pay me anything unless I complete the assignment (per USPAP) and I want them to pay for the trip fee (which entailed the trip, appraisal inspection, and preliminary data pull). I indicated that per USPAP that if at anytime during the appraisal process I find that I am not competent enough to complete the assignment that I am required to decline it. Is not indicating that they will not pay anything unless the assignment is completed a violation of HVCC?
     
  2. Denis DeSaix

    Denis DeSaix Elite Member

    234
    May 16, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    From what you describe, this does not sound like an HVCC issue to me. And collecting fees is not a USPAP issue (although declining the assignment as you did is a USPAP issue and the correct decision to make in your case!).

    It does sound like an assignment-engagement issue. Did you sign a general engagement agreement with the AMC? Does it stipulate anything regarding partial fees?
     
  3. Timothy Fierek

    Timothy Fierek Sophomore Member

    0
    Apr 24, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin
    I only do work for this particular AMC on a per assignment quote basis. They call and ask if I will accept an order and I give them my fee and turn time. My fault I guess.
     
  4. Timothy Fierek

    Timothy Fierek Sophomore Member

    0
    Apr 24, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin
    Oh well, lesson learned.
     
  5. Denis DeSaix

    Denis DeSaix Elite Member

    234
    May 16, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    I don't think the lack of a specific agreement reflects badly on you (per se); I think it is indicative of the overall low-level of professional business standards we appraisers demand for ourselves.
     
  6. Workbox

    Workbox Elite Member

    2
    Mar 2, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Tim, when you view many dwelling for many years, you become acquainted to the many characteristics of certain markets. When I get calls from either an AMC or others, I ask what is the address, subdivision, district, and so on. Generally I can tell right off once the tell me more specifics, what kind of assignment it is going to be. You should get accustom to asking questions and if possible while talking to them pull up your MLS and see if their is any MLS history or other. At the same time pull up some maps, both Google/MSN/others and get an idea of the general subdivision characteristics. Too many times I see a great photo on MLS, but sides to commercial property one side and manufactured house on the other.

    This is just part of the learning curve. Good luck and Cheers.
     
  7. DMZwerg

    DMZwerg Senior Member

    0
    Mar 25, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
    You declined the assignment, they didn't cancel it out from under you. Trip fee generally occurs if borrower is not home & misses assignment, appraisal is cancelled by client after the inspection, etc, not for you declining an assignment.

    I go with Workbox on this one, it is best practice to look on aerial/GIS prior to making the trip. Unless the ZONING is not residential the rest is just view and you may be able to bracket it. If land zoning is commercial then you missed another "hint" it may have been complex before the inspection. More pre-appt research is one suggestion suggestion for the future as is more research prior to accepting assignment. (check zoning, # BRs, size, # dwellings, waterfrontage, aerial, etc before quoting fee)
     
  8. Tom Woolford

    Tom Woolford Elite Member

    50
    Nov 20, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    I had a similar one last week. An SFR, zoned commercial, and surrounded by other commercial uses including a pest control company, a janitor supply company and the County EMS. Properties highest and best use obviously commercial. I turned it down on the basis of my Residential Certification, and HBU of commercial. It took 10 Min, and minimal cost to document the immediate area, client was happy, and minimal cost incurred. Its not an HVCC issue, but a USPAP one: competence.
     
  9. Riick

    Riick Elite Member

    41
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    You can tell how long someone's been in the biz by the deals he turns DOWN.
     
  10. PropertyEconomics

    PropertyEconomics Elite Member

    1
    Jun 19, 2007
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico
    Some of the best jobs I have ever had were the ones I walked away from. In the long run not doing them and not getting paid made me money. Some jobs are both time and money drains not to mention all the heartache you get after.

    Be happy you turned it down and write off the trip to an experience.
     
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