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AQB - Party To Transaction

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gregb

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http://www.huffingtonpost.com/entry...estate-appraisers_us_58af39ece4b02f3f81e4450b

President of AQB may want to edit the comment that a "party to the transaction" is allowed to communicate with the appraiser...agents, loan officers, buyer, seller seem to be implied as allowed to communicate with the appraiser.


David S. Bunton, Contributor President, The Appraisal Foundation

Communicating with Real Estate Appraisers
02/23/2017 03:21 pm ET
58af43bb280000230099ad09.jpg








Wait, I can actually talk to the appraiser? Many people are surprised to learn they can actually talk to an appraiser who is performing an assignment in a real estate purchase or refinance transaction.

For years, appraisers have been pressured to “hit a number,” or to not disclose certain characteristics of a property that may be perceived in a negative light. Some appraisers even report that some clients threaten to withhold their compensation if the appraisal does not please them. Despite such claims, it might not be accurate to characterize such actions as widespread. However, recent legislation recognizes the potential harm such undue influence could create.

In 2008, appraisal independence became an area of focus for many involved in the profession. Several states subsequently issued laws and regulations prohibiting the undue influence of appraisers. In 2010, national legislation protecting appraisal independence was created for the first time. The intent of these laws was to prohibit improper activities such as coercing or intimidating an appraiser to “play ball” by ensuring the appraised value would be sufficient for the intended transaction. While such actions are relatively rare, it was also a fairly common practice to simply not utilize an appraiser for future assignments if the client was unhappy with the results. These laws were aimed at addressing this problem as well.

Clearly, the intent of appraisal independence laws was to prohibit inappropriate communication with appraisers. However, an unintended consequence of these laws resulted in many real estate lending professionals fearing that any communication with an appraiser could be illegal. One misguided appraiser even responded to a caller (with a legitimate business reason to communicate with the appraiser), “Did you know I can have you arrested for calling me?” However, the legislation anticipated such issues by including exceptions that specifically allow for communication with the appraiser. For example, the laws specifically permit a party to the transaction requesting an appraiser to correct errors in an appraisal report, and to provide additional clarification or explanation for information in an appraisal report. In addition, these laws allow a party to the transaction to request that an appraiser consider additional information about the property, including additional comparable sales information.

In summary, communication with an appraiser is not only permitted, it is truly necessary in many instances. The Uniform Standards of Professional Appraisal Practice (USPAP), a broad set of standards for appraiser ethics and competence, require appraisers to develop a scope of work necessary to produce credible assignment results for the intended use of an appraisal report, and appraisers must also communicate a report that is not misleading and contains enough information for the intended user to understand—none of which can occur without appraisers communicating with their client.
 

AMF13

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Did you know I can have you arrested for calling me?

Well, I do like that line. :leeann2:

I prefer only discussing it with the client. Hopefully they are an at least somewhat sophisticated user. :shrug:
 

jay trotta

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Haven't talked with a "Client" in 10 years; have heard from the "Clients Agent" many times, hmmm

"to produce credible assignment results for the intended use of an appraisal report, and appraisers must also communicate a report that is not misleading and contains enough information for the intended user to understand—none of which can occur without appraisers communicating with their client"

My Bold, so in providing a current 20-38 page report today VS 10-15 pages pre 2008, the intended user is perplexed by the amount of reading they requested ?? I have not read anything yet that states a 10-15 page report produces insufficient information for the intended user to understand.
 

Mike Kennedy

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"For example, the laws specifically permit a party to the transaction requesting an appraiser to correct errors in an appraisal report, and to provide additional clarification or explanation for information in an appraisal report. In addition, these laws allow a party to the transaction to request that an appraiser consider additional information about the property, including additional comparable sales information."

AFTER an appraisal has been completed and delivered to a Client. Hence, a Reconsideration of Value Request.
 

Mike Garrett RAA

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I think it's been a big misconception that parties to the transaction can't talk to the appraiser. What they can't do is trying to influence the appraiser. On the other hand, the appraiser cannot disclose confidential information with anyone other than the client (intended user). In the case of the VA, the SAR is supposed to be the only person the appraiser discusses the appraisal with. Unfortunately, in many cases, the SAR contacts the loan processor who then contacts the appraiser. Would be much better if that was a more direct communication and preferably by phone so that the appraiser and the SAR can resolve any issues quickly and both sides can present their reasoning or logic. It also personalizes the parties which, in my opinion, is better.
 

jay trotta

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"For example, the laws specifically permit a party to the transaction requesting an appraiser to correct errors in an appraisal report, and to provide additional clarification or explanation for information in an appraisal report. In addition, these laws allow a party to the transaction to request that an appraiser consider additional information about the property, including additional comparable sales information."

AFTER an appraisal has been completed and delivered to a Client. Hence, a Reconsideration of Value Request.

Agreed, my Bold, the Question is; Who is Determining what the Comparable Sales Information is ?? I believe that is why we are hired, or why are they hiring us, if they do not believe we meet their due process qualifications in the first place ? Seems to be a wordsmith process to me.
 

Mike Kennedy

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New York
"Wordsmiths" speak out of both sides of mouth - first......undue influence is correctly forbidden; then the Players exerted coercive pressure on the document writers who said "OOPs we'll fix it don't worry"..........and magically Coercion was okie dokie. wink wink. grin. We know, real estate agents know, sellers know, buyers know, lenders know, and regulators know that all sales are not necessarily "COMPARABLE" sales. Requesting Appraiser review, and inclusion, of sales based on their Sold Price to "hit the Bullseye" when they a. have been already researched by the Appraiser and b. are clearly NOT "comparable" is Coercion at it's finest. The B.S. lives on .............

It's always been "their Game", they only let us play as long as we have E&O. Their "Game" lives.
 

DWiley

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Tennessee
Mr. Bunton is NOT the president of the AQB.. I will not repeat my earlier comments about the frequency with which posters refer to the wrong entity/organization. :)

As noted in the byline of the article, he is the president of The Appraisal Foundation, and he is a regular contributor to the HP.
 

residentialguy

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I think it's been a big misconception that parties to the transaction can't talk to the appraiser. What they can't do is trying to influence the appraiser.
Thank you, Mike. That is correct. In fact, we are required to communicate and verify the conditions of the sale with the party of the transaction (buyer/seller and their agent) and we are required to communicate with the client to make sure our SOW is correct.
 
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