Appraiser independence

[Pittsburgh Pete]

Hello,
This morning the buyer (CG) sent me a threatening e-mail complaining about the low value.

Was he just angry or were there threats? Or did you just see his aggravation as a threat? Not much to go on here.

 

[Terrel L. Shields]

trongly recommend NOT discussing the appraisal with any party who is NOT your Client. Refer any and all emails, phone calls, letters..etc to the LENDER. Reply to any written communication from your Client/ the Lender - ONLY.

I am not recommending you engage in a dialog. I am saying KEEP THEIR EMAILS and do not talk to them on the phone unless you are recording the conversation legally. Do not interact with them. Should they file a complaint, this is something to give to the board.

 

[Terrel L. Shields]

I almost never know what the borrower does for a living. I just avoid the extra weird properties. Or maybe quote higher if it is just kind of weird.

I can say that about a lot of poultry farmers and dairy farmers I appraised. They certainly were not making a living farming...I guess the little woman had a good job in town. Dairymen were the worst. I cannot remember a single time that a dairy man could answer a single question about how much income they had or how much expenses they had. It was always, "My wife handles that." They milked cows until a check bounced then went and borrowed more money. I suspect that is why there are not more than a handful of dairies left. When I started this business there were probably 100 dairies in a 4 county region.

 

[Econobot]

I don't mean to sound harsh....
But any appraiser afraid to appraise a home because it is owned by an appraiser....

Should probably find a different job....

It proves that they fill in forms with half backed adjustment support and are afraid to be called out.

 

[Econobot]

exactly. they should let us be advocates, state in the report, because there is no misleading in transparency.

Why is it so hard to determine functional utility and HBU. Moreover, how can anyone be an advocate for someone they know nothing about?? You're in the wrong profession and that's fairly obvious at this point.

 

[Tom D]

whenever i do a refi i ask the homeowner what they would sell their house for. found it to be useful. most home owner's are pretty accurate. the one's who weren't i would ask them how they came out with that value. then i would mention some close sales. never, never, a problem with any value.

if you knew he was an appraiser, i would have asked him that question right away. if i though he was wacko i would have called the lender and made a conflict of interest appeal. i know the person, and well, we had a problem once. the lender will happily give it to someone else. if you want to test your appraisal knowledge to the appraisal board, then go ahead, and do every appraisal you get. if there were no potential problems with appraisals, we wouldn't need E&O insurance.

i know, the USPAP perfectionists here don't need E&O insurance.

 

[ucbruin]

"whenever i do a refi i ask the homeowner what they would sell their house for."


"...if you knew he was an appraiser, i would have asked him that question right away. if i though he was wacko i would have called the lender and made a conflict of interest appeal..."

Or the homeowner could call the lender about an appraiser discussing home value....

 

[Tom D]

Or the homeowner could call the lender about an appraiser discussing home value....

no, in my very, very long appraiser career, i have never had that happen, or any complaints. i do get compliments on my business practice from home owner's, and loan officers. but i have heard the usual homeowner complaint, 'oh the appraiser walked thru my house & never said a word'. mentioning nearby sales, or explaining the FNMA super computer, facts if needed, is discussing a home value? well, we all have our own business practices. i have had my clients for a very long time, i guess they don't know what i have been doing wrong.

i'm not arguing against your practice, just mentioning my practice, and the opportunity for someone newer hearing it. God bless me.

 

[ucbruin]

I started appraising when the engagement letter for equity loans included existing mortgage and loan amount for equity. As well as homeowner's estimate of value....

Easy to figure out minimal appraisal value needed to find the loan....

Refi appraisals included homeowner estimate of value....

I'm not judging your appraisal practice....

Personally I don't know how I would feel if an appraiser, appraising my home, asked me what I thought it was worth...

I'd probably say $400.00....

 

[bnmappraisal]

I see no issue with @Tom D asking a homeowner what they think their house is worth. Personally I don't do that, but that's my business decision. He has his

I think it crosses a line if/when an appraiser starts discussing WHY that homeowner's opinion is right/wrong because then you are completing an appraisal - giving an opinion of value

A friend of mine, whom I've known almost 20 yrs, who is an appraiser in MN, does similar to Tom. He and I have had many discussions about this.

Comes down to a business decision and can be a gray area