homeowner is calling me

[Mike Boyd]

Recently did an appraisal for LO and now I am getting phone calls from the homeowners of this appraisal about how low, low, low the value is, and that they have some information I forgot. One being some land sold close by and bought by the state for hunting, etc. (I later looked for this land sold, nothing, I haven't checked with assessor's office yet- just out of curiosity). This was not exposed to the market by MLS. My question is? being they were not the intended users (USPAP) of this assignment, how do you deal with phone calls of this type?? Input please.

Refer them back to the LO. Note: land purchased by a government entity will not appear on the tax rolls as it is tax exempt.

 

[Smokey Bear]

This should be handled at the inspection: Give them a receipt, with info on it, that they sign. It includes the statement that you cannot give them a copy, cannot discuss the appraisal with them, and that they are paying on behalf of the client, the lender yada yada. I also include a comment on the cost approach not being usable for insurable value, and the US code that tells them how to get a copy of the appraisal from their lender. Solves the problem right up front.

 

[Elliott]

rescom said, After all your responses, the homeowner then says, "but I paid for it, so it is my appraisal".

And guess what? A court or your state board will see it that way too. So without
talking about information that is deemed to be confidential, its probably easier to
talk about the appraisal, in general terms, with the HO.

 

[Webbed Feet]

rescom said, After all your responses, the homeowner then says, "but I paid for it, so it is my appraisal".

And guess what? A court or your state board will see it that way too. So without
talking about information that is deemed to be confidential, its probably easier to
talk about the appraisal, in general terms, with the HO.

Not after you have them sign a contract during the inspection that they agree, understand, and accept that it is not "their" appraisal, they are not the client, the appraiser (you) are not working for them, and you are only accepting payment on behalf of their lender / MBer. Works for me anyway.

I agree in going easy on the borrower at this point as it is understandable they are just hoping for something or really think they have information they would like to present. Personally, I'd just let them know for them to ask their lender / MBer to send me over a release allowing me to discuss things with them if the lender / MBer so wishes. I've never minded a little of my time if it is reasonable and all involved try to also remain reasonable.

 

[c w d]

Recently did an appraisal for LO and now I am getting phone calls from the homeowners of this appraisal about how low, low, low the value is, and that they have some information I forgot. One being some land sold close by and bought by the state for hunting, etc. (I later looked for this land sold, nothing, I haven't checked with assessor's office yet- just out of curiosity). This was not exposed to the market by MLS. My question is? being they were not the intended users (USPAP) of this assignment, how do you deal with phone calls of this type?? Input please.

You tell them "I'll be happy to do an appraisal retrospective to the effective date of the appraisal I did for your MB. And oh.....btw.....that'll be $300. After the appraisal is completed......in about 30 minutes......and I receive your payment.......cash.......I'll be happy to discuss these issues with you at length. Until then I am bound by confidentiality with my client, such and such MB, and cannot discuss this with you. Thanks and have a fine day."

 

[Mike Phillips]

Recently did an appraisal for LO and now I am getting phone calls from the homeowners of this appraisal about how low, low, low the value is, and that they have some information I forgot. One being some land sold close by and bought by the state for hunting, etc. (I later looked for this land sold, nothing, I haven't checked with assessor's office yet- just out of curiosity). This was not exposed to the market by MLS. My question is? being they were not the intended users (USPAP) of this assignment, how do you deal with phone calls of this type?? Input please.

How do I deal with it was your question. Personally, I've never felt ignoring a borrower was the smart play.

First of all, you need permission from the client to discuss the appraisal with the borrower. If I can "convert" the borrower I will try. Conversion means listening to their concerns, explaining why data they provided is not relevant if that is the case, and/or demonstrating a willingness to make a change if one is warranted. I'm not going to be pushed but I will listen.

I don't have many problems these days with borrowers as there is usually sufficient market data in the form of current listings to convince borrowers what their properties are not worth.

In your case I would simply explain that whatever is going on in the subject market it should already be reflected in the sale prices of comparable homes. Anticipation about future events is already reflected in the prices knowledgable buyers and sellers agree upon.

Sure, you can just tell the borrower to take a hike if you do it politely. I'm not sure if that is a win-win approach. The way I see it if I can "convert" the borrower I've protected that client's relationship with the borrower and my own reputation as well.

Make a friend if you can. It is just plain stupid to cut yourself off from the borrower public. Who knows if that borrower will be in the position to recommend you to do an appraisal for an estate, or a divorce or a tax appeal? Right now that borrower might want what he wants. Tomorrow he might want an honest appraisal completed by someone who is going to tell it like it is, like when their spouse is trying to screw them or their siblings are fighting over the estate.

 

[BRCJR]

How do I deal with it was your question. Personally, I've never felt ignoring a borrower was the smart play.

First of all, you need permission from the client to discuss the appraisal with the borrower. If I can "convert" the borrower I will try. Conversion means listening to their concerns, explaining why data they provided is not relevant if that is the case, and/or demonstrating a willingness to make a change if one is warranted. I'm not going to be pushed but I will listen.

I don't have many problems these days with borrowers as there is usually sufficient market data in the form of current listings to convince borrowers what their properties are not worth.

In your case I would simply explain that whatever is going on in the subject market it should already be reflected in the sale prices of comparable homes. Anticipation about future events is already reflected in the prices knowledgable buyers and sellers agree upon.

Sure, you can just tell the borrower to take a hike if you do it politely. I'm not sure if that is a win-win approach. The way I see it if I can "convert" the borrower I've protected that client's relationship with the borrower and my own reputation as well.

Make a friend if you can. It is just plain stupid to cut yourself off from the borrower public. Who knows if that borrower be in the position to recommend you to do an appraisal for an estate, or a divorce or a tax appeal. Right now that borrower might want what he wants. Tomorrow he might want an honest appraisal completed by someone who is going to tell it like it is, like when their spouse is trying to screw them or their siblings are fighting over the estate.

I think, if your conversation goes to what the property is "not worth" you could be working in a gray area, as some might consider that to be a verbal appraisal, or actually having discussed the appraisal.

Yes, I agree, do not make an enemy, but do not discuss the appraisal "at all".

What is your next step when the lender calls and says, "Borrower called me and said you said this, that, or the other?

You could be in a not so pleasant situation, IMO.

Be careful.

 

[Bama Bayou]

How do I deal with it was your question. Personally, I've never felt ignoring a borrower was the smart play.

First of all, you need permission from the client to discuss the appraisal with the borrower. If I can "convert" the borrower I will try. Conversion means listening to their concerns, explaining why data they provided is not relevant if that is the case, and/or demonstrating a willingness to make a change if one is warranted. I'm not going to be pushed but I will listen.

I don't have many problems these days with borrowers as there is usually sufficient market data in the form of current listings to convince borrowers what their properties are not worth.

In your case I would simply explain that whatever is going on in the subject market it should already be reflected in the sale prices of comparable homes. Anticipation about future events is already reflected in the prices knowledgable buyers and sellers agree upon.

Sure, you can just tell the borrower to take a hike if you do it politely. I'm not sure if that is a win-win approach. The way I see it if I can "convert" the borrower I've protected that client's relationship with the borrower and my own reputation as well.

Make a friend if you can. It is just plain stupid to cut yourself off from the borrower public. Who knows if that borrower will be in the position to recommend you to do an appraisal for an estate, or a divorce or a tax appeal? Right now that borrower might want what he wants. Tomorrow he might want an honest appraisal completed by someone who is going to tell it like it is, like when their spouse is trying to screw them or their siblings are fighting over the estate.

This is how I deal with it, and how I was trained. I usually tell them that I would be happy to discuss the appraisal with them except for the fact that it is against the law, and that it is no different than the relationship between a doctor/patient, lawyer/client, accountant/client. The appraiser/client relationship has nothing to do with who pays the fee.

They are usually not satisfied but they main thing is to inform them that if they have any concerns or additional information to put it in writing and forward the info to the lender, who will in turn forward it to me.

It is very easy to pick up the phone and complain. They rarely take the time and trouble to put anything in writing.

 

[friendbrook]

Thanks folks for the input -- after many years working in the health care industry I am a firm believer in getting everything in writing. A telephone conversation can end up with he said she said they said -- similar to the tin can on a string approach, this never works! I have generated a letter and sent to the homeowner explaining in layman’s terms the law regarding confidentiality and intended user, therefore, any concerns and/or additional information can be sent to the LO and moreover forwarded to me as so desired. I don't object to reviewing any information forwarded to me for review - IN WRITING, after approval from the intended user, in this case the LO. I haven't even heard from the LO in this case as of this writing -- just the homeowner, with a few "excited" messages. The letter should be in there hands today. I've been including active listings in my report, but many times homeowners don't understand and/or read the entire report and therefore jump to distorted conclusions about what "they" think the value of there home/property “should be”. I certainly can understand the homeowners frustration. Cuz I'm really not a meanie! Thus far this has been a good learning experience for me and the necessary tools have been put in place for any further situations of this kind.

 

[Greg Bell]

Every appraiser needs a good answering machine.Let the machine take the heat...