Anyone Charge for BS Addendums???

[Warren Sumner]

Just got a "reconsideration" request from a lender. Borrowers feel their house should come in for 7K more than I appraised it for. Borrowers supplied 7 comps for my consideration, two of which I used in my report. My subject was a split-level and I used the only split level sale in the hood as well as an active listing (Still active, just checked.) Used a ranch comp and a 2 story and adjusted. ALL THREE COMPS AND LISTING IN SUBJECT DEVELOPMENT.

5 of these supplied "comps" are of course from other n'hoods and none are splits. Now the lender wants me to write an addendum and "reconsider." My question to you guys is, "Why should I do this for free??" Like I have time to explain the appraisal process to someone who cares only for the bottom line number.

Yes, this is from an AMC, but its one I like working with. But I don't have the time for this S&*$! Its hard enough meeting turnaround times as it is...PLUS 'ER' is on tonight?? How do you guys handle these situations??? I don't want to put the AMC in bad straights, or have them resent me or not give me work. But there's no way in hell I should ever even have SEEN this addendum request. :evil:

 

[Jeff Horton]

My suggestion would be to write a one paragraph statement using some of your own words:

Borrowers supplied 7 comps for my consideration, two of which I used in my report. My subject was a split-level and I used the only split level sale in the hood as well as an active listing ALL THREE COMPS AND LISTING IN SUBJECT DEVELOPMENT 5 of these supplied "comps" are from other n'hoods and none are splits.

See you allready did the addedum

To answer your question no I don't charge but I don't waste any time with lengthy answers either.

Jeff <*><

 

[Warren Sumner]

But I don't have any problem venting in this forum. I don't mind writing here. The addendum is WORK. That's much more tiring on the fingers and taxing on the mind!!! :wink:

 

[Verne Hebert]

Just reviewed Jeff's response-I like it. In a very tactful way he just said " I have already done my job ". And the truth is, if you have done your job you have two options; do the brief letter or get rid of the client. But to answer the question, I openly ask the requester if I can bill for the further review. I have just recently realized, one can charge for this type of review and consideration on all "relos"-and I do!

Good luck,

Verne Hebert

 

[rtubbs]

Sorta makes you want to respond with: "if you wanted the borrower to do the appraisal, why did you need me in the first place?". Jeff's response is more tactful. I, personally, would not charge for the additional addendum.

Ron in Alabama

 

[Ray Ohler]

changing a value. I do not want anyone to "read" into this anymore than to take what I am writing at face value. And, I am NOT saying that it is impossible for an otherwise "astute" appraiser to miss something or err once in a while. It happens. Hopefully, not too many times. Hopefully, not by much.
Now, that said, here goes. An appraiser (supposedly a real estate expert) performed an appraisal. He knew, or should have known EVERYTHING about the subject and its market. Granted, in an erratic market, some are tougher to call than others. The appraiser developed an opinion of market value. Value is "appealed". You have to do a whole lot of work (I know appraisers who just get new comps, change the value, sometimes by a LARGE amount and TRUST that their client sends them the original page 2 and DIDN'T photocopy it for their file) before you even THINK about changing the value opinion YOU already provided. Complete explanation of why you DIDN'T find those "comps" (which may or may not be comps), and provide details of your first report in the reconciliation. Nine out of ten lenders (especially mortgage brokers) will not like it. However, if something goes wrong (loan defaults, divorce, whatever) don't be totally surprised if your "first" page 2 rises from the ashes and "someone" yells "incompetence" OR worse yet FRAUD. Just CONSIDER the above. Just food for thought and nothing else.

 

[Jeff Horton]

But I don't have any problem venting in this forum. I don't mind writing here. The addendum is WORK. That's much more tiring on the fingers and taxing on the mind!!! :wink:

Yup! And is easier for me to tell you how to do than to do it myself!

 

[Anonymous]

Aw, heck! The best way to do that is to save the very best comp back. Give 'em # 2, 3, & 4. Then when they call you, just say, "you know, I was just saving the best one for last!" Oh, they won't appreciate the humor of that, you say?

I simply state something to the effect that I have added several comps to the sales grid as comps #4,5,6, whatever, and give them no weight whatsoever and do so only at the insistence of the client. Unless, of course, I really did miss something, which i eat mucho humble pie. Its been a while since humble pie has been on the menu over missing a nearby or better comparable.

Ter

 

[Ross (CO)]

I just dealt with a "reconsideration" request where 3 very old sales were offered and the gap that was attempted to be bridged was about 50 to 60K. Your $7K request is equally ludicrous, and yet considering the prices of average homes today, just may be an amount which falls well within the "underwriters prerogative" to augment, and they do NOT need you to monkey with the existing conclusions of your report ! (What % of your final value is this $7K ?) It is simply easier for you to accept the risk of $7K more, rather than them. They also have all their AVM data to use to support their exercizing of that prerogative. So, where did these comps come from ? Were these sales suggested to you over the phone ? Did your client print them up at their home office, because they ALSO have access to your MLS database, and then faxed them to you ? It really does let you get some insight into how lots of other traditional appraising assignments are not going out to you, or another appraiser, for that matter. Have you noticed lately that the assignments you are getting have complexities in subject house, greater physical distance between comps, greater spread in sale dates in the expanded market area of the subject, greater discrepancy in last sale price (or first sale price, as new) of subject and the "target" expectation of where it might be today ? Like Ray said, your first Page 2 still exists out there. You will never really have any control over re-assembling your report pages as any such amendment to data analysis would warrant. What I had to do in my recent scenario, and apparently understood by the review person in my client's office, was to briefly explain how the additional offered comps for re-consideration were not appropriate -- verbally -- not in any attempt to re-grid. Did it help? I do not really know. Did the client's client understand ? I do not know. Does it help me stay on their list of preferred appraisers ? Likely not.

 

[Mountain Man]

"Why should I do this for free??"

You answered your own question. :mrgreen:

Yes, this is from an AMC, but its one I like working with.

I like Jeff's answer, and be nice. The AMC is just providing a service, like you are. We are in the service bizniz. :wink: However, venting is good, otherwise you would be whistling all day like a pressure cooker. 8) Nuttin but fun! :lol:

Mell.