Borrower offering prior appraisal. How do you handle it?

[gorillakimchi]

Hi everyone


I received a refi appraisal order (1004), and during scheduling, the borrower mentioned that the property was appraised just one week ago with a value over $2.1M


Based on the situation and the price range, it appears this may be a second appraisal request from the same lender.


The borrower offered to send me a copy of the prior appraisal report.


In this situation, would you accept and review the prior report, or decline to look at it to avoid any potential bias?


If you do review it, how do you typically handle it to remain USPAP compliant and maintain independence?


Curious to hear how others approach this in practice.


Thanks in advance.

 

[Trihard]

Hi everyone


I received a refi appraisal order (1004), and during scheduling, the borrower mentioned that the property was appraised just one week ago with a value over $2.1M


Based on the situation and the price range, it appears this may be a second appraisal request from the same lender.


The borrower offered to send me a copy of the prior appraisal report.


In this situation, would you accept and review the prior report, or decline to look at it to avoid any potential bias?


If you do review it, how do you typically handle it to remain USPAP compliant and maintain independence?


Curious to hear how others approach this in practice.


Thanks in advance.

Its typical for loans that high to have 2 appraisals done. If you feel that the borrower influenced you by telling you the value of the 1st appraisal you need to contact your client and tell them you are withdrawing from the appraisal.

 

[Zoe]

Hi everyone


I received a refi appraisal order (1004), and during scheduling, the borrower mentioned that the property was appraised just one week ago with a value over $2.1M


Based on the situation and the price range, it appears this may be a second appraisal request from the same lender.


The borrower offered to send me a copy of the prior appraisal report.


In this situation, would you accept and review the prior report, or decline to look at it to avoid any potential bias?


If you do review it, how do you typically handle it to remain USPAP compliant and maintain independence?


Curious to hear how others approach this in practice.


Thanks in advance.

With borrower offering, absolutely I would take it. If borrower offers it, I take it. I don't do an appraisal review per USPAP. I just review a little in the report. I will absorb anything the borrower says about a prior appraisal.

You have to remember the lender is required to give copy of YOUR appraisal to borrower and the borrower can do as they wish with the appraisal.

 

[gorillakimchi]

With borrower offering, absolutely I would take it. If borrower offers it, I take it. I don't do an appraisal review per USPAP. I just review a little in the report. I will absorb anything the borrower says about a prior appraisal.

You have to remember the lender is required to give copy of YOUR appraisal to borrower and the borrower can do as they wish with the appraisal.

Thanks, I appreciate your perspective. That makes sense, especially the distinction of not treating it as a review assignment under USPAP. I’m leaning toward accepting it as a reference only and making sure my analysis and conclusions remain fully independent. I may also wait until after I’ve developed my comps and value to minimize any potential bias. Appreciate you sharing your approach.

 

[Zoe]

Thanks, I appreciate your perspective. That makes sense, especially the distinction of not treating it as a review assignment under USPAP. I’m leaning toward accepting it as a reference only and making sure my analysis and conclusions remain fully independent. I may also wait until after I’ve developed my comps and value to minimize any potential bias. Appreciate you sharing your approach.

That's fine..............I ask borrowers what they would ask for their property if they were going to put it on the market today? No USPAP violation. I make many happy coming over and many unhappy coming under. The borrower might share something on prior appraisal that would help you.

You have to remember the borrower is a market participant. You can remind them they are not your client unless they are. If lender is my client, I don't mind sharing GLA or many questions a borrower may have. I never disclose things to the borrower like appraised value. Confidential information is between the borrower and their lender and my client.

If borrower is my client, I would disclose anything to them.

 

[George Hatch]

I'm in the appraisal business. In my view there is no such thing as too much information in my line of work. I aspire to keep an open mind on every assignment right up until the moment I send my report out. I'm not refusing any information, regardless of its source. In my process, everyone gets their say and I make the decision what info does or doesn't make sense to me.

 

[shrubberyvaluation]

Say thank you and take it.

 

[gorillakimchi]

I'm in the appraisal business. In my view there is no such thing as too much information in my line of work. I aspire to keep an open mind on every assignment right up until the moment I send my report out. I'm not refusing any information, regardless of its source. In my process, everyone gets their say and I make the decision what info does or doesn't make sense to me.

That makes sense. Appreciate the perspective.

 

[sputnam]

I'm in the appraisal business. In my view there is no such thing as too much information in my line of work. I aspire to keep an open mind on every assignment right up until the moment I send my report out. I'm not refusing any information, regardless of its source. In my process, everyone gets their say and I make the decision what info does or doesn't make sense to me.

Agree. Also agree that you say 'Thank you!' and keep moving. Just because you have been given a copy of a previous appraisal report, there is nothing that makes you use anything that's in it... or even look at it.

 

[alebrewer]

The prohibition of providing information that might influence an appraiser's opinion applies to the folks providing the info - not the appraiser. More info is better than less. If nothing else, having that appraisal will help prepare you for any questions regarding differences in opinion or reporting.