2055 Exterior To 1004 Interior

[Debra]

Hello!

I wonder why they want this now? How much of an increase in fee should I add to the original fee for doing the interior 1004 when I just did the 2055 exterior last week?...Debra

 

[Mountain Man]

Depending on how far away it is, I'd charge about 1/3 to 1/2 of my normal fee. Yeah, you have the sales verified. But you've got to go out to re-inspect the subject, and re-type the report.

 

[Joker]

$1,000 :mrgreen:


Charge for your time. YOUR time. Whatever that is worth TO YOU!

 

[Jim Onderisin]

How do you know that the value opinion will not change once you inspect and measure the subject property and find out the interior amenities and quality? If that property were in my (suburban) area, the only time savings for me would be about 45 minutes to inspect comparables, and that assumes I'd be able to use the same comparables. I'd be inclined to charge for a new appraisal or to give a very small discount.

 

[Ross (CO)]

Only you know how much of a fee (increase) to charge, for only you know the magnitude of the work and assembled data that describe the true nature between these two reports. Did I say "two" reports ? I meant "two" assignments. So, I guess you charge your normal fee for the 2055-Exterior, and then you charge your normal fee for the 1004-Full, and hopefully your client will understand that they have to KNOW what they want, and they have to take RESPONSIBILITY for what they order. You have not revealed the depth and quality of the client relationship that is in place, and this may be the very crux for why there is a quandry about the mis-ordered order, and the fee issue, because there may be an assumption that the appraiser is always supposed to be willing to lose money when fulfilling subtle faux pas by the client. They may also be speaking of much future work in your area, and this element also plays into the overall decision process. I am certain that if you explain your side of the matter clearly, they will realize that you are a fair and reasonable person....and you can have the outcome that you desire without putting a dent in this working relationship.

 

[JSmith43]

A good policy would be to preemptively let your best customers know that a conversion from a 2055 exterior only appraisal may maen a change in value depending upon interior findings & the cost will be .....(2/3 reg fee??-whatever you say). Put it on your services rate sheet (small print).

I wouldn't charge them much to convert a 2055 interior, however, since I would have taken all required notes to do a 1004 in the first place.

Here's the reason requests like this happen so often: DU or LP. Credit report expiring prior to closing? New credit pull, different results. A customer decides to raise or even lower the loan amount or the LO's assistant had to re-input items requiring a redecisioning. DU & LP run again & call for a different appraisal product!

At WF, simply the difference of time mattered. I was told that is because the available AVM data is linked to the redecisioning & we all know that changes with time. They used LP with their own custom shell. There can be different flavors of LP & DU the big boys play with....or, are saddled with I think that directly negotiated where the lender has enough clout.

 

[aprazer]

It is very possible that the owners are contesting the value. I have a client that orders 2055's for 90% of their equity loans. When value is contested they automatically upgrade to a 1004-which is a good idea.

 

[Ross (CO)]

roger, .....Your 3rd and 4th paragraphs introduce the very complexities of the entire loan decision and underwriting process that are OUTSIDE of the appraiser's direct realm.......Two orders, two assignments, two reports, and let them decide. In another long and winding posting thread we appraisers were invited to consider how we might "consult" with the lender and "solve their problems".

aprazer, ..... Does this client allow the SAME appraiser to receive the follow-up 1004 assignment ?, or are they obligated to assign to another in their registry ? Such it is with one of my clients ?

 

[aprazer]

Ross-

They leave that decision to the appraisal firm. It mainly depends on the appraiser. If it is a newer appraiser it will probably be re-assigned to someone with more experience or someone who does a greater degree of work in that particular town. When owners dispute value the first thing they usually question is the appraiser's competence.