Client Asking For Response To Rebuttal To Be Placed In Original Report

[BlueMoose]

Realtor is disputing value and has provided comps that are over 45% larger in sf along with comps from higher end neighborhoods. I have completely review them and have determined they are not good comps. I responded in detail back to the client on my determination and why with an invitation for them to provide better comparables. The client wants me to include this verbiage in my original report and resubmit it. Is that really necessary since the report remains the same?

Please someone out there..................... would you redo your report to convey this?

 

[The Warrior Monk]

I have no issue with discussing market data (sales, listings, etc.) in a report. That market data could certainly include sales that aren't "comparable," because they can still be used to set value parameters.

I do have an issue with placing discussions with other parties regarding disagreements in value in the report itself. We're licensed professionals, and our appraisal report should stand on its own. I find it more professional to address such issues in separate letter.

 

[Meandering]

This is common AMC garbage.
You can add an addenda to your existing report, but now you must keep both reports in your workfile. Next time, charge them for any other sales they want you to research after you have completed your report. Try and get Realtor CMAs up front, so that you can address all of that in your original report the first time. That way they can't come back after the fact and present more information to you, if you've opened the door to them at the onset, and told them the door will be closed to "new" info once your report is finished.

 

[BlueMoose]

I have no issue with discussing market data (sales, listings, etc.) in a report. That market data could certainly include sales that aren't "comparable," because they can still be used to set value parameters.

I do have an issue with placing discussions with other parties regarding disagreements in value in the report itself. We're licensed professionals, and our appraisal report should stand on its own. I find it more professional to address such issues in separate letter.

Thank you, That is what I did, I uploaded a pdf letter with my response.

 

[J Grant]

Realtor is disputing value and has provided comps that are over 45% larger in sf along with comps from higher end neighborhoods. I have completely review them and have determined they are not good comps. I responded in detail back to the client on my determination and why with an invitation for them to provide better comparables. The client wants me to include this verbiage in my original report and resubmit it. Is that really necessary since the report remains the same?

Please someone out there..................... would you redo your report to convey this?

Most clients want rebutal in the report ( addendum). ...why would you invite them to provide better comps...just finish with it ...it makes it easier to rebut when the RE agent comps are so flagrantly terrible ( 45% larger) I hate that we have to do this ans spend as little time as possible , 1 brief line to address each ridiculous "comp" they send ( if the properties are not similar to subject they are not comps, they are sales)

You don't have to re do the report, just copy and paste in the addendum note date it was added...

I assume the client forwarded these sales from the RE agent to you as part of a reconsideration of value? (I hope that is what happened, not that RE agent just sent you sales and you answered them)

 

[hastalavista]

As a reviewer, I prefer it when/if I or the client has a question, and the report addresses it specifically in an addendum with a new report date; especially if the report concludes that whatever is requested does not warrant any change, etc.

However, depending on the issue, I can appreciate if the appraiser does not want to go into great detail, etc., etc., etc.

In your case, I would have no problem addressing the request in the report.

Here is what I say:
1. We are obligated to take a look at data presented by the client. That "obligation" (IMO) is not without its limits, but a reconsideration within a reasonable time frame would fall under this category.
2. When I say "obligated" I mean we have a responsibility to look at the data and determine if there is anything in it that warrants a change. That is the function of the reconsideration; not "changing" anything but determining if the data warrants any changes.
3. Once we make are decision, we should communicate back to the client what that decision is. Obviously, if it warrants a change in the original analysis, that communication will be presented in a revised report. In your case, the reconsideration determined no change was warranted (for the reasons you cite). You did this in the email so you fulfilled your obligation as I would interpret it.
4. What the client is asking is if you can put that communication in the report. As a lender, I would prefer it to be in the report because I'm going to use the report as part of my lending decision and the report documents that the reconsideration has been considered.

IMO, Steps #1-3 are what we should do and you've done that.
Step #4 is a business decision, but one I would complete if it were me.

Good luck!

 

[hastalavista]

I have no issue with discussing market data (sales, listings, etc.) in a report. That market data could certainly include sales that aren't "comparable," because they can still be used to set value parameters.

I do have an issue with placing discussions with other parties regarding disagreements in value in the report itself. We're licensed professionals, and our appraisal report should stand on its own. I find it more professional to address such issues in separate letter.

(my bold)

I'll disagree with David (as I understand his post): I don't see a request from my client (the lender) as engaging in disagreements in value with other parties. The request is coming from my client (it doesn't matter if it were originated by some other party) and I am fine (in nearly all cases, and especially yours as you have outlined it) with addressing it in the report where the client is the intended user.

Good luck!

 

[TRESinc]

i agree with denis, again. marion says to charge but that is a business decision you have to make. all my clients are long standing and good. i have established with them that i will address up to 3 sales in this type of situation. starting with the 4th address there is a $75 per property charge. i have only had one instance where a client has paid me to review more than 3 sales in 20+ years.

 

[A K]

I had a revision request last year to consider property A, B and C. These three properties were comparables 1, 2, and 4 in my report. I emailed them and told them they are already in the report and they said they would like the response documented in the report.

They should just print out the email thread to PDF and throw it in the file. I don't know what is going on with some of these banks and their AMC's.

 

[The Warrior Monk]

(my bold)

I'll disagree with David (as I understand his post): I don't see a request from my client (the lender) as engaging in disagreements in value with other parties. The request is coming from my client (it doesn't matter if it were originated by some other party) and I am fine (in nearly all cases, and especially yours as you have outlined it) with addressing it in the report where the client is the intended user.

Good luck!

I used to do review work also for a major residential lending client. But it was always strictly a review of their report. Issues needing to be changed would be typically limited to deficiencies in the report itself.

In the case at hand, we have a sales agent, who is an obviously biased party that is not the client, being the cause of the change. Imagine a loan officer in the bank pressing for a higher number and requiring the appraiser to do such a thing. Nobody would allow it, so why should someone also getting a commission on the deal be able to do such a thing?

I do occasionally have this occur, and none of my clients ask me to include this information in the reports; a separate letter/email is always sufficient.