A WaMu Newsflash---that old conflict of interest

[Jo Ann Meyer Stratton]

Since that does happen, if there is any reason I don't think an exterior 2055 will be very accurate, I call the client and try to convince them an interior 2055 would be more appropriate. Most of the time they agree, but sometimes the owner has a free and clear $100,000 home and only wants to borrow $10,000 for example, so then they will stay with the exterior 2055, so it doesn't matter the value comes in at $70,000 to $80,000 maybe based on the exterior. And my own policy has been for sales, first insisting on a copy of the sales contract, if in my opinion the exterior only, either based on market research or knowledge of the property, will indicate a problem with the price in sales contract, I call the client and recommend strongly that a 2055 interior be completed instead. And again typically the client will okay a 2055 interior. By upgrading to an interior 2055 It prevents complaints from the seller/buyer/realtor to the lender (and me) that the appraiser didn't realize how wonderful the property is based on a view from the street only. If there will be a problem ($140,000 sales price in a neighborhood with the highest sale of $90,00) and the client will not upgrade to an interior, then I refuse the assignment.

 

[Leon Stewart]

Leon,
First, how did you get on the topic of an Update, this thread is about appraisals performed on an exterior inspection basis.
Second, "drive by" (exterior inspection only) appraisals should be done under the extraordinary assumption that the subject property is in Average (average for the market) condition. This assumption must be made unless the appraiser has other credible information as to the subject's condition.
Therefore if the drive by, performed under this extraordinary assumption, produces a lower than expected value and the subject is in fact above "Average" condition AND the appraiser has the oppourtunity to get primary data as to the condition THEN the "New" value (new because the scope of work has changed i.e interior inspection) will be higher.

The socpe of the work has changed because someone wants a higher. The Appraiser has made one value estimate based on an Average Rating, but someone else has made a determination that the Rating maybe is or should be above average. It seems as if someone is trying to alter the process to get the value they need. If the Appraisal involves a sale/purchase a drive-by shouldn't be used anyway. What happens when the buyer moves in and nothing works and the Roof caves in?

leon

 

[Leon Stewart]

Or could be lower after seeing the actual condition of the interior!! The owner's home is a highly upgraded castle according to them. After all that built in ironing board makes it a custom home, more valuable than any other house in the neighborhood. So the upgrade from an exterior 2055 to an interior 2055 could go either way!

I doubt if it's intended to go either way. This system is designed to increase the value to what the Sale/Contract Price is, not something less.

leon

 

[Frederick R. Ruffell]

Leon,
You are just plain wrong. I have on many occasions kept the initial Average rating, and on other occasions changed the rating to below Average with out so much as phone call from WAMU.
Leon I challenge you to call wamu and get the facts from the horses mouth. You can e-mail me or send me a private message and I will supply you with the names and numbers for the Wamu SW appraisal resource center. Hey who knows maybe you will get yourself a dream client!

 

[Blue1]

You guys got it all wrong! Look, they already KNOW what the home is worth! YOU are supposed to support their already determined value! :twisted: If you don't "come in" at a certain pre-determined value (pre-determined by them) then the loan "falls through".......and we can't have THAT now can we? :twisted: For those who STILL don't get it.....You are a BAD appraiser if you "come in" under their pre-determined value. You are a GOOD appraiser if you "come in" at or over their pre-determined value. Simple......NO? :lol:

 

[larryhaskell]

Not so Blue. I have failed to support the sale price on numerous occasions and never so much as a phone call or e-mail as long as I did an interior inspection and talked to one or both of the realtors involved. There has been no decrease in work from WaMu. As Frederick & Randy have both stated, WaMu doesn't hassle us, they just want us to do an interior inspection when we believe it necessary. In most cases I do upgrade to an interior inspection and again, no problem with WaMu. WaMu also pays in a timely fashion. With all of the complaing on this forum about deadbeat lenders and AMCs, it would seem to me that some of you might want to consider WaMu as a client. There are three of us telling you what WaMu is like to work with regardless of what you might receive in a fax.

 

[Tim Hicks (Texas)]

I agree with Larry and Frederick, but I have learned not to discuss WAMU on this forum, since there are too many detractors out there who won't speak from experience and certainly won't accept any good testimonials about WAMU. They are far and away my best client and I always get paid. Yes, they will have to listen to the selling or listing agent and follow up with the appraiser, but what mortgage company will not do that. After all, appraisers are not perfect, are they? In the end, they support you. Anyway, keep hating them, it just keeps me busier.

 

[Frederick R. Ruffell]

Tim,
Ooooops,

The rest of you are right WAMU is wrong!!!!! Refuse to work for them untill they staighten out and fly right.

 

[Elliott]

Is this not anologous to a doctor asking for more tests?

"This assumption must be made unless the appraiser has other credible information as to the subject's condition.
Therefore if the drive by, performed under this extraordinary assumption, produces a lower than expected value and the subject is in fact above "Average" condition AND the appraiser has the oppourtunity to get primary data as to the condition THEN the "New" value (new because the scope of work has changed i.e interior inspection) will be higher."


Let me get this right....so I've been asked to guess on interior
condition, but I can't guess high or low unless I was invited to
a cocktail party at the house the week before?

There messing with my mind, man.

elliott LOL

 

[Blue1]

larryhaskell,

When do you deem it necessary to do an interior inspection on a purchase? For me it would be 100% of the time. I wanna know what the interior is like because I am representing the buyer. I see no need to do an initial drive-by. However, if I did do an initial drive-by I'd charge my regular fee for it. Then, if I had to do an inteiror inspection, I'd charge even more. My total fee would exceed the price I would have charged for a full appraisal in the first place.

You can make all the "extraordinary assumptions" you want but, when it comes right down to it, you didn't see the interior. If there's a big problem, guess who they (the buyers) are going to go after? You'll probably not get into trouble (if your ethical) but you'll end up paying money and spending time for your defense.

Bottom line.....I am the appraiser, I choose the type of appraisal I will do.......after all, I'm the one with the license. I'm the valuation professional......RIGHT?