ADDENDUM REQUEST

[Verne Hebert]

I wanted to take a couple of minutes this afternoon to post an interesting topic. I performed a rural appraisal on a log home on acreage. I have done about two hundred in this area. Generally one log sale will be available and construction quality adjusted accordingly on the other included sales. On this assignment I have three great improved log sales and very good land sales. This is a sales transaction and the property values about 5 % light. The next day I get an addendum request as follows:

"please provide additional comps to increase value. Agent has provided these two sales as suggested comparables. Please review and grid to increase value back up to sales price of $ XXXXXX. Thank you!!".

I have seen alot of addendums...none however this explicit. This is not a local mortgage retailer. This is a large firm.

I have this in writing. Any suggestions where I might direct this written request to get the most mileage out of it? I have sent alot to the state and I don't seem to get much mileage from them.

 

[Terrel L. Shields]

I would simply write a pointed letter back saying that I am sorry but it is not only immoral and unethical to inflate an appraisal. It is illegal. And I (the appraiser) ain't gonna do it. I would state my report complies with USPAP and fulfilled the clients original request, therefore, I expect my full compensation, period. End of story, and client.

 

[Blue1]

Unfortunately, they're not suject to the same rules and regulations that we appraiser's are. They can tell us all day long what the price of a property "should be" but it's up to us Appraisers to come up with an unbiased determination.

Maybe a letter back saying somethin like: "I have reviewed the SALES you sent me have rejected them as comparables for the subject property. Moreover, if there were any better sales I would have included them in the report. "

Also, your request to "increase value back up to sales price" is in direct violation of federal guidelines and, as you are a large firm, I'm sure that you don't want to be associated with breaking the law.

I'd send this letter to the CEO.

 

[Farm Gal]

:evil: :evil: :evil: :evil:
No lender pressure, no coersion?

:evil: BAH :evil:

 

[Larry Lyke]

Verne --

Under the circumstances -- and getting no mileage from your state board -- I would incorporate the request by scanning it onto the Addendum which you are preparing and indicate that you have already submitted the best available comparable information, and that submitted by the lender is of little consequence because it doesn't relate in any way to the subject appraisal other than to support a higher price for property of its own kind.

Someting like that.

 

[Bemis Pownall]

the beat goes on
Id review the sales and spend a SMALL amount of time and point out why they are no good. Perhaps they are ok? nah!

Had a large and QUICK mortgage company want me to change tenant to owner...
lets see HO lives in London
management CO handles the home and rent is $1600/mth
Had to arrange and meet management CO at property.
County Records shows HO address in Chicago
according to requester he was "going crazy trying to juggle all of these s refies for this onr homeowner" as he "owns properties all over the place"
And this big QUICK loan company wants me to say "OWNER OCC"
dont think so.
Asked them flat out "you want me to lie"? "Im sorry we dont do that here"
LO; but the guys rate..this deal will die....and this and that..."sorry"

Its raining!

 

[Larry Lyke]

Bemis --

You are smart. Every state has their own homesteading laws. Maybe the guy is lying about cheating on his homestead too. Maybe the LO bought the Homeowner's business by saying he could get loans at the cheaper rate showing he lives in each of these properties.

The only person eligible to get hurt here is the appraiser.

Stand up for youself. Yes, sir. Another man being counted!

 

[Richard Carlsen]

You might try sending something like this:


Dear Mr. UW

I want to thank you and real estate agent John Shifty for the additional sales that you brought to my attention for use in the log home report. As an appraiser, I can never have too much data in order to make my analysis.

I have reviewed the sales you sent. These sales were, in fact considered by me in the original search for comparable sales for the subject property. At that time, and again after the recent review, these sales were not deemed relevant to the sale due to not being log construction.

Your request for “…additional comps to increase value” puts me in a rather difficult position. If I were to provide two comps for raising the value, I would be in direct violation of the USPAP guidelines, subject to disciplinary action by the State with the possible loss or suspension of my license. This is because I would be doing an assignment to reach a predetermined value. This is specifically contrary to USPAP rules. I am sure you did not mean to request me to do something that would have those possible consequences but those are the rules that by which we appraisers must live.

I have gone over the appraisal very carefully and see no areas using what I consider to be the most relevant comps available where there is any justification for changing my opinion of value.

Sincerely


XXXXXX XXXXXXXX
Appraiser

 

[Neil (Texas)]

Richard, you have my vote for that reasoned responsed. Not only does it explain your position, it demonstrates your professionalism.

 

[Randy Beigh]

Verne

There are 3 issues here.

1. The providing of additional sales to consider.

2. The blatantcy that these additional sales would increase the value.

3. Whether you should turn this request over to some governmental agency.

Dealing with 1., is easy for me. I would, if possible, grid and use the sales provided. After the adjustments, the sales should support what you have done, so there is no problem. They may be sales that you would not have used because of whatever, but they can be used. I would also disclose the sales would not have been used by you, but were provided and requested that you use them and little to no weight was given to them.

On 2. I would just support what you have done and go with Richard's suggestion as an explanation. I have never had a problem when a lender or realtor provide additional sales, but they jumped to a conclusion that these sales would increase the value.

For 3, I would love to turn this request over to someone, but I don't know who. The request to raise the value is very unethical. It could be that it was written by someone new and didn't know any better. How about talking with this person's supervisor?