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Appraisal upgrades

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Steve Owen

Thread Starter
Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
I've noticed a lot of time recently the lender or investor upgrades the appraisal requirement after you've already done t he original. For example, they order a 2070 and then tell you they need a 2055 exterior. Or, the order a 2055 exterior and then say they need a 2055 interior. This has been happening a lot more often lately, and I wonder if it's not a sign that the investors are starting to be a bit frightened about their AVM values.

Question is, what would you charge for a 2055 interior if you just did it as a 2055 exterior last week?
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Whole new appraisal .. whole new fee .. unrelated .. sowwy!
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
At least 1/2 the full fee for all the time and aggravation of having to go back out again.

That's one of the reasons that I charge full fee for ANYTHING that I have to put a value on. When they order a 2055 interior, I do the 'inspection' as if I'm doing a URAR. When they call back and want it on the URAR now instead of the 2055 - I'm ready (for an additional fee!). If it's a drive-by street observation only and now they want an interior - it's at least $150 for me to go back out. If it turns out to be very different than what the tax rolls say it is, the fee jumps to $200 - #275, depending upon the differences and how much extra time and effort it's now going to take.

Sometimes I think there are UWs out there just waiting for the chance to see how many hoops they can put the appraiser through.

Bottom line: CHARGE FOR YOUR TIME/SERVICES!!!!!
 
Joined
Jan 16, 2002
Steve:

I hear what your saying, but I think you are giving them more credit that they deserve. What's really going on is that they have no idea what they are doing, at least that has been my experience. Try asking them why they order any partculiar type of report format v. any other type - the answers are amazing.
 

TC

Elite Member
Gold Supporting Member
Joined
Jan 31, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I charge the same for a 2055 int/ext as I do for a full URAR. And I do the same inspection and research for every appraisal. Don't be too quick to blame the LO, I know some that are very good. Some times the change is made after they find more debt or the income is verified to be lower than the applicant stated. If its a good client who has been giving me work over the years, I charge nothing.

TC
 

Steven Bonner

Sophomore Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Like Pamela, I charge at least half the full fee. And thats if I know there is little more time and research involved. Often the upgrade is due to a lower value than the LO was told by the client or one that will not fit the deal. Unless the inside turns out to be a great deal different than I expected the first time, it's not gonna change. Most of the time it's a new order, new job, new fee. What we charge for our professional time reflects our indicated value.
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
8)
Pamela,

Speaking of hoops.......................

I did a complete appraisal a couple of years ago on a URAR with interior photos. Charged a full fee plus extra for interior photos. Some stupid questions from UW re a swimming pool that was over half in ground(permanent) and half above ground. I treated it as an in ground pool(real estate---that which is permanently attached to the real estate, or has a place specifically fitted to accomadate it, or intent of the parties), and after finally convincing the UW that it was inground, with additional photos, a month later they asked for it to be converted to a 2055 exterior only. OK says I and the fee is.........another full fee. A month later, another request......we want it on a Freddie Mac 2055 form, not a FNMA 2055 Form...Ok says I, and the fee is.....another full fee. God I loved that property. I treated each request as a new assignment, that is exactly what it was. UW's often have no idea what they want, need, or what the guidelines(Fannie, Freddie, VA, FHA or whatever) actually say. Much of their ..."I want this and that" is the result of pure ignorance on their part, or just intended to make a name for themselves.

Don Clark, IFA
 

Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
Don keep up the good work. Sounds like income property that you don't even have to own. Wish I had some of these. Great tip. Maybe they will want another report.
 
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