Can't Make Value, Charge A Trip Fee?

[Bill Wintermyer]

Well thanks to all who have given their humble opions, now a little life lesson will follow...

I have been ceritified since April 2001, I left the appraiser who trained me for reasons that are way to long and indepth for this message board. Starting a New shop and being newly certified I basically followed my training, if an estimated value was on the order form and during the appraisal process it was noted that value was an issue, call the LO and give an estimated value where the property will probably appraise. Well, low and behold this past feburary I get called to the carpet by the appraisal board wanting an appraisal and my complete work file. I notified the board that I could not send them the appraisal because it was never completed due to a value issue with the client, I refunded the customer (COD) minus a trip charge for field work. I didnt hear anything for months and finally assumed that everthing was ok, wrong, I should have gotten legal counsel and lay ready for the shoe to drop. In my mind I know I wasnt appraising based on a contigent upon making a value because the estimated value was unable to be met so a trip fee was charged and the remainder of the appraisal fee was refunded, due to my trainning. Well I got a letter from the prosecution division this week

Based on Continue ED, and using my head for more than just a hat rack, I stopped that practice of a trip fee shortly after the investigation was started. they determined no charges were going to be filed because they found that my action was not driven by improper motives, WHEW .

Anyway, as stated earlier I seen the light and changed my ways..... So now when I get a LO bringing up the topic of a trip charge i kindly ask them "Suppose you work an 80 hour pay period and 90% through the pay period you develop a complex that you didnt meet his/her quota. Would you go to your employer and kindly tell them that you only want paid for 1/3 of your salary that pay period....?"
usually I hear NO or a gasp of air... and the end of the subject...

This is just a life lesson for all who may be affraid to ask or think they know better and are doing trip fees.. DONT

 

[Pamela Crowley (Florida)]

This is just a life lesson for all who may be affraid to ask or think they know better and are doing trip fees.. DONT

OR doing comp checks!!!!

Thank you so very much for posting this story.

WELCOME to this forum!!!!!

 

[DB]

Abso - friggin' - lutely .... I have sent them invoices and then placed them for collection on trip fees .... I don't do comp checks either .... if they want an idea of the value before they place the order, then call a realtor, or their brother-in-law .... my value opinion will be contained in the report, not over the phone .... It like people who call the auto parts store for advice so they don't have to go to the mechanic, or call the pharmacist so they don't have to go to the doctor .... I am not giving away my time or my gas or my opinion ..... (of value, anyway)

If lenders don't like my trip fees, then Jessie McGee explains it to them .... and they usually see it his way! B)

 

[Bill Wintermyer]

The other thing I have learned Doug is if I collect a personal check COD, I dont release the file to the client til the funds clear in ma account

 

[Chris Colston]

The only trip fee I ever charge is when the contact person is a NO SHOW or the builder tells the lender the house is ready for a final inspection and when I get there it's not.

My policy is, if I get in my car, I'm gonna paid! Fees are never contingent on outcome of the appraisal. They are based on difficulty of the assignment.

On COD orders, the checks are made out to ME not my company, that way I can RUN to their bank and cash 'em before I even finish taking comp photos. My one and only bounced check was one written by the borrower and left at the lender's office, made out to my company. This is on a FHA purchase, hasn't closed yet. My thoughts are if the borrower can't afford to pay me, they have no buisness buying a house. I'm still chasing THAT fee. (and I waited 12 days to release the report...the check was reported to me as bounced on day 15) In another week, it goes to court.

 

[DB]

Bill,
I learned that one the hard way too. Thank God for Jessie! :lol:

There are times when I will do the inspection and go straight to the bank ... if it don't clear, I call the lender and don't even turn on my computer. I then bill the lender for the inspection fee. I do not feel that it is my responsibility to qualify their prospects for them, so if I go, I get paid.

 

[CANative]

Here's some theory, in part, interpreted from the 2002 USPAP, AO19. Tell me what you think.

Since an appraisal is driven by the scope, intended use and intended user, a request for a "comp check" is really a requsest for a limited appraisal and written (or verbally communicated) in a restricted format.

The scope is to research the market to determine whether the market will support a value range relative to the loan amount and to decide which sales are comps and what those comps mean. You are still rendering an opion of value but the intended use is to determine whether or not to proceed further with the mortgage process.

In this limited, restricted use appraisal you make the intended user aware of the risks of this assignment. You have used extraordinay assumptions, and departure. By doing what has been asked a limited appraisal has been performed and the intended user should realize that the conclusions could change if a subsequent complete appraisal is performed and that you have not performed some of the analysis steps that might have been performed in an asignment without the limitation set forth by the intended user.

A nominal fee would be charged for this service, payable in advance (your compensation is not contingent upon the outcome.) The amount of this fee can be credited to the full fee for a complete appraisal, if ordered.

 

[Chris Colston]

Originally posted by Greg Boyd@Dec 14 2003, 12:22 PM
Here's some theory, in part, interpreted from the 2002 USPAP, AO19. Tell me what you think.

Since an appraisal is driven by the scope, intended use and intended user, a request for a "comp check" is really a requsest for a limited appraisal and written (or verbally communicated) in a restricted format.

The scope is to research the market to determine whether the market will support a value range relative to the loan amount and to decide which sales are comps and what those comps mean. You are still rendering an opion of value but the intended use is to determine whether or not to proceed further with the mortgage process.

I think you have just described the "in your pajamas" Desktop appraisal that some clients are paying $50-$60 for.

 

[DB]

I like it! Greg ... with your permission, I am going to print this and put it on my wall .....

Chris ..... will it work just as well in my underwear? I'm not much on pajamas unless my daughter is here ...

 

[Pamela Crowley (Florida)]

OK Greg, (grumble, mutter, grumble), I do think you got it right. Basically an AVM with an appraisers signature for liability. It would be a little better than an AVM depending upon which appraisers are doing these. Things like checking out which potential comps are flips, waterfront, have a pool, etc.

Your assignment is to find out just how much lenders are being charged for an AVM. Whatever that amount is, we need to charge double.

I'm still muttering and grumbling!