100% Guaranteed Appraisal Acceptance?

[Jill Kinnaird]

True life advertisement for a company located in a western state for appraisals in Ohio:

"Statewide Coverage! All property types including Residential, Commercial, FHA, VA, Land, and all other. Free Comps Nationwide. 100% Guaranteed Appraisal Acceptance by insurers and lenders. Call us at 1-888-zzz-XXXX."

Does anyone else find this disturbing?

 

[Elliott]

Call them up, get your free comp check, turn them into the state
to see if they have a work file that meets USPAP.

 

[Peacemaker]

There is a company in AZ that has a similar pitch. (All Line Appraisals out of Scottsdale). However, turning them in for doing a comp check won't result in any action against them, since no one who works there is actually an appraiser.

 

[Zero]

There is a company in AZ that has a similar pitch. (All Line Appraisals out of Scottsdale). However, turning them in for doing a comp check won't result in any action against them, since no one who works there is actually an appraiser.

Providing real estate appraisals (yes, a comp check is an appraisal) without a license is illegal in Maryland.

 

[Mike Kennedy]

OHIO Title 47 - Chapter 63

Section 4763.12

General Assembly: 121.

Bill Number: Amended House Bill 304

Effective Date: 03/05/96

(B) No certificate holder or licensee shall accept a fee for an appraisal assignment that is contingent, in whole or in part, upon the reporting of a predetermined estimate, analysis, or opinion or upon the opinion, conclusion, or valuation reached, or upon consequences resulting from the appraisal assignment. A certificate holder or licensee who enters into an agreement to provide specialized services may charge a fixed fee or a fee that is contingent upon the results achieved by the specialized services, provided that this fact is clearly stated in each oral report rendered pursuant to the agreement and the existence of the contingent fee arrangement is clearly stated in a prominent place on each written report and in each letter of transmittal and certification statement made by the certificate holder or licensee within that report.

 

[Tudor]

Wendy,

The Az Board is trying to close down Zillow for the same thing.

 

[The Warrior Monk]

True life advertisement for a company located in a western state for appraisals in Ohio:

"Statewide Coverage! All property types including Residential, Commercial, FHA, VA, Land, and all other. Free Comps Nationwide. 100% Guaranteed Appraisal Acceptance by insurers and lenders. Call us at 1-888-zzz-XXXX."

Does anyone else find this disturbing?

The way the ad is written, it is not guaranteeing value. It is guaranteeing third party acceptance, which I would recommending not doing, since the appraiser has little control to no control over that. Even if the appraiser writes the perfect report and MAI's bow at his feet, the appraiser puts themself in the position of having to refund the fee. I'm no legal expert, but it seems to me that the client could demand their money back and win, since the issue does not relate to value

 

[Peacemaker]

Wendy,

The Az Board is trying to close down Zillow for the same thing.

Yes I have followed that saga. Be interesting to see how it plays out. I can't figure out the current status of the bill that got everyone all worked up a few weeks ago, looks like it is in a rules committee. A lot depends on the language included in the final version obviously, and I imagine that could change.

 

[Zero]

I give away free comps, too...but you gotta pay me to report 'em to you.