Avoiding Revisions Requests

[sputnam]

Let's face it. If an appraiser is doing the job, and has been at it for any length of time, they are going to get revision requests. Some of them are nearly unavoidable. However, there are a few simple things an appraiser can do to reduce how many are received.

1- Read the Letter of Engagement. Every word. Use it as a check list. There is no single standard, beyond what's required by USPAP, for the contents of an appraisal report or for Client requirements. Most of the time, I get a copy of the LOE for the appraisals I review. Nearly every day, I have to request revisions because the appraiser did not include something that was requested in the LOE.

2- Spend an hour (probably less) reviewing and updating your report template. If you are seasoned appraiser... or a new one using a pased down template... read it... every word. It's likely that you are transmitting reports with incorrect citations and/or canned comments that are either untrue or not relevant to the current appraisal. It's likely to get you a revision request... and in the worst cases, it could produce a USPAP violation.

3- Come on... really? You can't spare a couple of minutes to run spell check before you deliver the appraisal report? Most of the time an incorrectly spelled word makes no difference. Occasionally, it can impact the credibilty of the appraisal report. As appraisers we may think that the insistence on spelling a borrower's name or the name of the Client correctly is nit picky... but the Client doesn't think so... and it will get you at revision request.

Of course, there are others... and there will never be anyway to prevent ROVs... if you are actually appraising and not simply confirming the sales price or hoped for value. The old saying is true, "If you don't have the time to do it right, where will you find time to do it over?"

 

[Surf Cat]

What? No "all caps" reports yelling at you?

 

[sputnam]

I don't like all caps... but, it doesn't warrant a revision reequest.

 

[Tom D]

Caps on the original green URAR paper only form was easier to read and follow. It stood out, you didn't have to read the green print to understand your comment.

 

[Tom4value]

One of the bad things about working for myself is I don’t have a “second set of eyes” on my report before I send it out. Yes, I review my report before I send it out but I wrote it. I have “conformational bias”. Human nature sucks! I am going to miss something twice!

I will point out one thing. Since we all now use ANSI in measuring and assessors don’t, there is almost never a time where our GLA doesn’t completely match the field card. Lenders now have access to the field card. I generally make a comment if what I measure is “out of whack” with the PRC.

Problem arises when my definition “of whack” differs with the underwriter’s definition. I did one last week where the difference was less than 80 square feet on a 2 story dwelling. I didn’t bother mention it. Underwriter came back with, “GLA as measured was larger than actually is.”. That assumes I was wrong!

After complaining to my wife, to get it out of my system, I responded with, “I measured according to ANSI. Assessor was wrong due to rounding to nearest foot.”

 

[JTip]

Well said sputnam. I think we would get along just fine.

I would add:
4. Each client has specific assignment conditions. Set up a client specific template on your software. I have a client that wants specific pictures, so I have a preset photo page on that template for them. Another one, I copy/paste assignment conditions on Page 3, where each one gets answered, forever present on their own template. Standard purchase, FHA, 2055, each template for each client.

5. Use your software options! Simple things like client name and address. This can be saved and used in the future. Saves 30 seconds. Comp data base is a game changer. Explore your software options, they are there to help.

If you do good, error free work, you will stay busy.

 

[Vermonter]

Problem arises when my definition “of whack” differs with the underwriter’s definition. I did one last week where the difference was less than 80 square feet on a 2 story dwelling. I didn’t bother mention it. Underwriter came back with, “GLA as measured was larger than actually is.”. That assumes I was wrong!

Just got something similar from my local credit union and even tho I have a comment about it, she told me they have to verify anyways. It gets kicked back by the collateral underwriter if your sketch differs from any other sources. That includes prior appraisal reports, public records, MLS listings, etc.

She also said they don't even require further documentation, just a "yes that is what I measured" reply

 

[Dublin ohio]

Well said sputnam. I think we would get along just fine.

I would add:
4. Each client has specific assignment conditions. Set up a client specific template on your software. I have a client that wants specific pictures, so I have a preset photo page on that template for them. Another one, I copy/paste assignment conditions on Page 3, where each one gets answered, forever present on their own template. Standard purchase, FHA, 2055, each template for each client.

5. Use your software options! Simple things like client name and address. This can be saved and used in the future. Saves 30 seconds. Comp data base is a game changer. Explore your software options, they are there to help.

If you do good, error free work, you will stay busy.

I have one client that deals mostly with A-A+ credit. They are strict on the borrower requirements and just as strict on appraisal requirements. I pretty much write all my reports to their standards, which are generally higher than others. Of course a few clients have additional exhibit requirements. But my template for them includes those exhibits. Revisions are rare with any client.

 

[J Grant]

One of the bad things about working for myself is I don’t have a “second set of eyes” on my report before I send it out. Yes, I review my report before I send it out but I wrote it. I have “conformational bias”. Human nature sucks! I am going to miss something twice!

I will point out one thing. Since we all now use ANSI in measuring and assessors don’t, there is almost never a time where our GLA doesn’t completely match the field card. Lenders now have access to the field card. I generally make a comment if what I measure is “out of whack” with the PRC.

Problem arises when my definition “of whack” differs with the underwriter’s definition. I did one last week where the difference was less than 80 square feet on a 2 story dwelling. I didn’t bother mention it. Underwriter came back with, “GLA as measured was larger than actually is.”. That assumes I was wrong!

After complaining to my wife, to get it out of my system, I responded with, “I measured according to ANSI. Assessor was wrong due to rounding to nearest foot.”

I include a similar type to below statement on every report.

"Due to measurement or ANSI requirements in reporting, the sf living area of the subject on the appraisal might differ from public records, MLS listings, or other sources."

 

[TonyB]

One of the bad things about working for myself is I don’t have a “second set of eyes” on my report before I send it out. Yes, I review my report before I send it out but I wrote it. I have “conformational bias”. Human nature sucks! I am going to miss something twice!

I will point out one thing. Since we all now use ANSI in measuring and assessors don’t, there is almost never a time where our GLA doesn’t completely match the field card. Lenders now have access to the field card. I generally make a comment if what I measure is “out of whack” with the PRC.

Problem arises when my definition “of whack” differs with the underwriter’s definition. I did one last week where the difference was less than 80 square feet on a 2 story dwelling. I didn’t bother mention it. Underwriter came back with, “GLA as measured was larger than actually is.”. That assumes I was wrong!

After complaining to my wife, to get it out of my system, I responded with, “I measured according to ANSI. Assessor was wrong due to rounding to nearest foot.”

ANSI Declaration: A DETACHED single-family house with X,zzz above-grade finished square feet and 0 below-grade finished square feet and 0 below-grade unfinished square feet.

The Appraiser measured the subject property using ANSI Z765-2021 standards and guidelines. These measurements resulted in an above grade living area calculation of XXXX sf. County records note an above grade living area of X,zzz sf. The methodology used in that calculation is unknown to the appraiser. Public records notation of the subjects living area is not a data point used this full interior inspection URAR report.