Can I verbally communicate a value the day before the written report is transmitted.

[Zoe]

I've run into this a couple of times, where I have a value, but for one reason or another it will take another day to put together items in the report that are not value sensitive. In the past, I've told the client that I can't give a value until the report is complete. Is this correct? Would the fact that I haven't put together my comparable maps and addenda exhibits or signed the written report yet prohibit me from communicating a value? If I can disclose the value before the written report is complete, am I correct to assume that I would be required to disclose the verbal communication as a previous report when I submit the written report the next day?

On a semi-related note, I've also run into situations where I can tell without a doubt from my comps that the value will not come anywhere close to the purchase price well before completion of the report. Am I allowed to call the client and communicate this fact, without giving a specific value? I'm thinking that the fact that I would say, "you are not going to be anywhere close to the purchase price", makes it an appraisal because the purchase price is a specific number. Is there any way to do this without it being a standards violation?

On telling your client it may not make contract price is fine BEFORE you complete the appraisal and ask the client if they have any information that they would like to give you. This is my tidewater notice when I think the subject may not make the contract price. Just leave the reference to VA out in the request to your client:

Mr. or Ms. XXXXX,

I am working on the above referenced appraisal. Based on preliminary analysis, I need to invoke the Tidewater initiative. Please be advised that the subject property will likely not meet the contract price. In accordance with VA Circular 26-03-11, you are hereby notified and requested to provide any additional information you would like to be considered in the appraisal of the subject property. Please supply any information you would like me to consider within 2 business days as well as a supporting summary and analysis of the information.

Please contact me with any questions you may have.

Thank you,


XXXXXXXX

If you are through with the appraisal, you can do it but I would not. I would rather send them the appraisal and let their underwriters look at it.

 

[Val]

On telling your client it may not make contract price is fine BEFORE you complete the appraisal and ask the client if they have any information that they would like to give you. This is my tidewater notice when I think the subject may not make the contract price. Just leave the reference to VA out in the request to your client:

Mr. or Ms. XXXXX,

I am working on the above referenced appraisal. Based on preliminary analysis, I need to invoke the Tidewater initiative. Please be advised that the subject property will likely not meet the contract price. In accordance with VA Circular 26-03-11, you are hereby notified and requested to provide any additional information you would like to be considered in the appraisal of the subject property. Please supply any information you would like me to consider within 2 business days as well as a supporting summary and analysis of the information.

Please contact me with any questions you may have.

Thank you,


XXXXXXXX

If you are through with the appraisal, you can do it but I would not. I would rather send them the appraisal and let their underwriters look at it.

That's very interesting. I don't do residential work, so I've never heard of that.

 

[Zoe]

Here is another thing. See, there are only certain people that work for the client that you should even consider discussing value with. You could get in trouble there.

 

[Zoe]

That's very interesting. I don't do residential work, so I've never heard of that.

Oh, okay. Yeah. I'm with you now. I probably still would not do it. On commercial, you are not going to speed them up much. If you are already rock solid on your opinion of value. You just need to hunker down and finish the report.

Again, it needs to go to your contact with the client. It don't need to go to just any employee that works for your client.

 

[Zoe]

You may not be old enough to remember. But it was common years ago for commercial appraisals be overnighted to client and stamped "draft".

There was controversy over that. @DWiley may know how that controversy turned out. I don't remember but I do remember me and partner sending draft reports overnight a time or two stamped "DRAFT".

The reports stamped "DRAFT" were not signed reports.

 

[Val]

So any "misunderstanding" is on you

I'm certainly "misunderstanding" the point of your post.

 

[Val]

You may not be old enough to remember. But it was common years ago for commercial appraisals be overnighted to client and stamped "draft".

There was controversy over that. @DWiley may know how that controversy turned out. I don't remember but I do remember me and partner sending draft reports overnight a time or two stamped "DRAFT".

They were not signed reports.

Yeah, I've been around a while. I still have a client that asks for a draft appraisal. I have to tell him every time that it's not possible.

 

[Dublin ohio]

I'm certainly "misunderstanding" the point of your post.

No surprise there. So where in your op did you mention "non lender client".

My edit: Let alone that it is a commercial situation. Whereas the vast majority of appraiser's on this forum do residential

 

[Val]

No surprise there. So where in your op did you mention "non lender client".

My edit: Let alone that it is a commercial situation. Whereas the vast majority of appraiser's on this forum do residential

If you'd like to expand on how the clarification of "non lender client" is relevant to your interpretation of the initial question, please do so. I personally didn't think that it's possible for the "heads up" call whether it was for lending or non-lending purposes, but please confirm if you know otherwise. Now, I have learned something new from Zoe's post about the Tidewater notice, so it may actually be possible in some instances.

 

[djd09]

Yeah, I've been around a while. I still have a client that asks for a draft appraisal. I have to tell him every time that it's not possible.

commercial appraisers do drafts all the time...