Anyone Charge for BS Addendums???

[Larry Lyke]

Warren --

As an experienced appraiser, you ought to be able to handle that condition in 10 mintues flat.

Venting's OK by us, though. Now just write that one paragraph addendum and wait for the check to arrive: [thusly]

'Appraiser has reviewed Lender's request to reconsider opinion of value from the 7 "new" comps forward to me. All comps of which are from superior neighborhoods and in superior condition and substantially larger GLA." [Quit while you're ahead] [Put it right in the center of a legal size addendum page with the signature block]

That's something the Lender can understand. ALSO, keep in mind, this addendum will not reach the UW, BECAUSE it's highly likely that the UW did not initiate it, UNLESS you have the actual condition sheet in writing so you know the LO isns't involved.

I always have the condition sheet faxed to me. And, just to show how careless the lenders are, they fax the condition sheet with the borrower's confidential information on it too.

Good luck.

 

[Ross (CO)]

Larry, if you would please, expound a bit more on this "condition sheet". I might guess it to be the worksheet / check-list which the underwriter uses to read-over and scrutinize our report. If all is fine, then few marks if any would be made. If, however, they find something which requires explanation, or correction, or "reconsideration" then they make their notes to that effect, and next step is a phone call to the L.O. or the faxing of this sheet to the L.O. So, when a request or comment comes back to you, are you requesting (insisting) that they communicate their message more specifically by providing you a fax of this very "condition sheet" ? With it, you know the request is sourced by U/W, and without it, you could guess the request to be coming from the LO/Processor instead ? It has been said often in past Forum postings that "getting it (LO request-post report) in writing" was sometimes a way to put such inane requests to rest immediately. Would it be more helpful and advantageous for us to specifically ask for their "condition sheet" and proceed from there ?

 

[Richard Carlsen]

My policy is that if the client or their customer know of a better comp, I want to know about it also. I will review anything sent to me and if it is relevant, incorporate it into the report with any changes in value, at no charge.

One thing I tell people when they offer additional comps is that this could not only raise the value but additional comps could result in a lowering of value. Are they willing to accept that? Reviews get put in the schedule slot so if they are trying to hit a closing date, it might cause a delay. I cannot know everything about a property or the market and therefore have to keep myself open to new data.

Reviewing is one thing. Writing an addendum that you reviewed sales data given by the borrower is another. To what end is the addendum written. A verbal should be sufficient unless the borrower has some ulterior motive.

But if you have to, follow the suggestions given and keep it simple, clear and concise. Not a big enough deal to loose a good client over.

 

[Ross (CO)]

Richard, it appears that you occasionally are offered additional comps to consider. That has happened to most of us at one time or another. It also appears they may be given or shown to you PRIOR to your completion of the report. Surely, being shown other data to consider at that time, while one is about to go out and photo the comps initially selected, is fine. If one or more which they give us appear good to use, and one missed it in an initial search, and it resultingly pushes subject value down, then so be it. Surely, if my online data search parameter for house size is +/- 250 sq.ft. of my subject, and I get 6 or 7 or 8 reasonable comps to use, then surely I will have missed the one which is 7 sq.ft. larger and outside that range. Of course I would consider it. Then again, I am less willing to review 30 or 40 sales, one by one, to whittle them down to a half-dozen. My reference to the consideration of data presented by the client is ALWAYS AFTER the report has been submitted, and always with the intention that this "other" data will take the subject value higher than what one has already concluded, never a 2-way street to allow the likelihood of a drop in the value. Such other data usually, if not always, presents aspects of the property which an AVM would focus on. Location, yes, and GROSS selling price. Fundamental property aspects which we use as selection criteria; square footage, age of construction, design style, garage spaces, lot size, view, overall appeal form exterior observation.....are summarily overlooked. So long as ANY house in subject proximity sold for more, then that should help to push the subject value UP, at least that is the perception of the market from way across the country.

 

[Tim The Enchanter]

I've had this happen every now and then, and it's hard not to get steamed. :twisted: As others noted, the "comps" from the LO or borrower are selected by price practically every time, and are not as similar as the comps I used. Once in a while it's even a comp I used, and that makes it easy.

Otherwise I look up the comps they sent, and write a brief addendum to shoot them down 1 at a time (tactfully of course) I WISH I could charge for those. :mrgreen:

Had one about a month ago, a "condition" saying "why didn't you use homes of similar age on the same street?" No addresses or anything. :x
Wrote a note, "as stated in the original addendum" there was no such animal :!: :evil: That shut them up for a while, but now another one has come in "Appraised value was $300k. Borrower thinks it's worth $311k or $323k." That's ALL it said :!:

It was all I could do to not respond "So who gives a :evil: :twisted: :x :evil: what they think :!: ."

I suppose that would not be "tactful" or "diplomatic".
Maybe I shouldn't look at these things too early in the day. :?
Just doesn't make for a good start. :twisted:

 

[Richard Carlsen]

We might try adding something like this:

"Neither the homeowners estimate of value of subject nor his borrowing needs has any relationship to value as defined herein nor any relationship to the appraisal process as defined in the Uniform Standards of Professional Appraisal Practice (USPAP)."

That would be fun to do sometime.

 

[Pamela Crowley (Florida)]

Oh Richard! I like that one!!!

 

[graindart]

I just got a request a couple days ago for another stupid addendum. Try this one on for size:

I did the appraisal early December for a loan officer that I no longer do business for (high interest/high risk loan company, didn't want to pay when I couldn't hit the "right number" which was always sky high, didn't think he should have to pay for an appraisal that didn't end with a closed loan, because he only got paid if the loan closed). Anyways, this loan officer call me up a couple of days ago and says that he needs me to change the appraisal report so that it doesn't say that the house is for sale. It took me a few minutes to find the appraisal he was talking about, and looked it over quickly and remarked that the appraisal was done in early December and that the house WAS listed for sale at that time. He said that the owner just pulled it off the market a couple of days before or after the appraisal date, and that after a few failed attempts he's got a company willing to fund the loan, but they won't do it if the house is for sale. Not wanting to be wrong, in case the house had technically been pulled off the market prior to the appraisal, I said that I'd check into it. I called up the listing agent to find out when the actual date was when it was pulled off the market, and she got back to me the next day, telling me that it was finally taken off the market on the 15th of February! I called back the loan officer and informed him that my appraisal was correct, and he says that he needs me to write an addendum stating that the house is no longer up for sale. I asked why he or the home owner couldn't just tell the company that it wasn't for sale, but the LO said that he needed it as an addendum to the appraisal.

I didn't feel like wasting my time, especially for someone who's been a major pain in the butt over the past 6 months, but decided it would hopefully get him to stop calling me, and maybe with some luck, I'll never have to deal with him again. So I typed out a paragraph stating that the listing agent said the property had been withdrawn on Feb. 15th, and that there didn't appear to be any new listing for sale according to the local MLS. Basically a one sentence response, what a waste of time. Oh, by the way, have I mentioned that I still haven't been paid for that appraisal yet.........

 

[airphoto]

Graindart,

I hate to make the obvious remark, but:

"I'll consider providing you with this one-sentence addendum upon receipt of full payment, including late fee of $35.00, for this appraisal as the invoice has now been outstanding for over 90-days .."

 

[graindart]

I thought of that, but I really just wanted to get it out of my mind, and not have to deal with the LO calling me a few more times whining about how he doesn't have the money, things are slow, he can close right away with this note and I'll have my money soon, or whatever other sob stories he'd come up with.