Agreements

[Terry Russell]

I am trying to find out what type of agreements various appraisers use when engaging a client. Or if you do not use one at all have you had any problems or success with any particular approach.

Thanks, Terry

 

[Judy Whitehead (Florida)]

I'm not sure what you are asking. It sounds kind of like ....will you have dinner with me. My experience tells me that I get an order for an appraisal, they tell me who my client is, and who is going to pay me and the scope of the appraisal - in other words what is it being used for. Then I ask who is going to pay me and tell them how much and we agree on when/how, etc. Nothing formal. The emphasis (tongue in cheek) on who is going to pay me! I promise to do my best to estimate market value for the time frame stipulated. In other words, in Florida, we do a lot of estate work, which involves market value as of date of death. The client is either the person paying you, or the lender - and there is another whole discussion about this one. I tell even the person paying me that my client is the lender and I'm not allowed to discuss anything except with my client.

 

[rtubbs]

Terry, the Appraisalbuzz (or appraiserbuzz) email newsletter addressed your topic today. email me if you did not receive it and I will forward it to you.

 

[Terry Russell]

Judy, I was asking if it is common to have a written agreement prior to starting the assignment. I keep hearing on this forum how appraisers are not getting paid for their work. I am just wondering if these unpaid appraisers have any kind of recourse to seek relief if they get stiffed.
I am sorry I was a bit vague, but around here if one is too verbose they call it gibberish.

Thanks for your reply, Terry


Ron, Thanks for the tip, I'll see if I can find it. Tery

 

[rtubbs]

Terry, I use a standard acknowledgment for all my appraisal assignments (except maybe those that are for individuals who will pay at the door). It is a faxed document (microsoft fax format) that is captioned:

"thanks for the appraisal assigment"

I then list the following:

We received your request on:
The property inspection is scheduled on:
We plan to have the appraisal report to you by:
Type of appraisal:
Fee:
Comments:

This is just a courtesy doc to let the originator know that I received their request. I believe the lender's request and this acknowledgment could be interpreted to be an engagement. I've never had any problems using this and will say that most of my established clients will call me if I've not responded with the acknowledgment (they think I may not have received their fax). I also use it for non-established clients but have C.O.D. after the fee quote (which is agreed to in advance).

Good luck

 

[Judy Whitehead (Florida)]

Boy are you efficient. I can see where the clients would really like this. I guess I should do something like it, but am tired of working 10-12 hour days as it is. It certainly is good PR to send an acknowledgement.

Actually, I probably only get stiffed about 1-2 times per year. Last year it was for 1/2 appraisal (divorce case- only one attorney paid and the other that didn't pay was appointed as a judge- go figure). I get pretty "verbose" or "verbal" whichever is correct after calling several times. I have even been known to drive to Tampa and walk in the office demanding my check after six months on one of them. Didn't get it by doing that, either, I only got it after threatening them with the BBB and the posting them on the deadbeat list on this forum - that usually works.