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

[Dublin ohio]

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.

Residential appraisals deal with more client imposed conditions as well as the fallout of the HVCC. Giving a lender client a "heads up" would be problematic at best and the vast majority of the time would have to be communicated through an AMC. As far as Tidewater goes that is a program unique to the VA. So there is that

 

[Val]

Residential appraisals deal with more client imposed conditions as well as the fallout of the HVCC. Giving a lender client a "heads up" would be problematic at best and the vast majority of the time would have to be communicated through an AMC. As far as Tidewater goes that is a program unique to the VA. So there is that

I totally get that, but you implied that there was some sort of misunderstanding because I clarified that it was for a non-lender client. Do you believe that the head's up call would be ok in that instance?

 

[Zoe]

commercial appraisers do drafts all the time...

I don't know that hound dog. We would overnight them and they would review quick and send draft back overnight mail with corrections they wanted. We would oblige or not oblige. There was big controversy over that several years ago. I never really studied how that controversy got settled. Haven't researched it either.

Tells you how old I am.

 

[Dublin ohio]

I totally get that, but you implied that there was some sort of misunderstanding because I clarified that it was for a non-lender client. Do you believe that the head's up call would be ok in that instance?

Granted you corrected it. But unless I missed it. It was not until post #34. You may have gotten different comments prior to that clarification if it had been made clear in your op. JMO

 

[Zoe]

I see no problem with OP doing either oral or emailing client if they don't think subject will meet contract price.

The oral scares me since they are already planning on sending written appraisal report. I don't want them to get in trouble on who they are communicating with.

How long will that slow the client down? 1 day at most?

 

[Zoe]

When you start communication of value with anybody other than who your client has authorized? You can get in big trouble.

 

[Zoe]

Banks are pretty much set up in four different divisions. You have the lending side, you have the deposit side, you have the internal regulatory side, and you have the investment side of the bank.

That pretty much sums it up. Security and bookkeeping, and cleaning are in those divisions. Any other division falls in one or more of those categories.

It is not rocket science.

 

[Zoe]

If your client is an individual or private investor...........etc? The whole ballgame changes.

 

[Zoe]

USPAP provides for reports that are written or oral. The requirements related to oral appraisal reports are found in SR 2-4 and the Record Keeping Rule.

You answered part of the question well Sir. The question was double sided. Do you know how that draft reports controversy turned out?

I don't even have those reports anymore. However, I would like to know how that controversy turned out.

 

[Tom4value]

You have completed an appraisal when you have gathered all necessary data to form a supported opinion of value. So, as long as you have already gathered your data and reconciled the “number”, you are perfectly fine in telling your client the value before you give them the report. Remember, USPAP allows for verbal reports as well as written reports.

As for your second question, I would not do it for 2 reasons. 1. Even though you “know in your heart” it won’t come in, you haven’t done the data collection and reconciliation yet, so technically you are running afoul of USPAP.

2. What do you think their first question is going to be? “Then how much will it appraise for?” Now you are back to reason 1.

I always wait til I am done. Then, most times I don’t even call them. I let the report tell them. With the reasoning in front of their eyes, there is less chance of argument.