• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Client wants more information

Status
Not open for further replies.

Dennis J. Black ASA IFAS

Senior Member
Joined
Mar 5, 2002
Professional Status
Certified General Appraiser
State
Florida
Every time I read a post complaining about how a client/UW wants more sales I always wonder about the neighborhood description. If there are a limited number of sales in an area the appraiser should be writing a more comprehensive neighborhood and market conditions section of the report.

Some of the markets I have seen described in this forum I would assume would come with a 2 or 3 page neighborhood and market condition. If that was done the appraiser could then just respond by saying “read the addendum” If there are a limited number of sales give the number of sales and write about EVERY ONE of them. Clearly the reader is not being convinced by the report that the appraiser has fully and completely researched the market.

Strong report (persuasive) writing skills are just as important as good research skills.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Dennis....It seems to me that you are suggesting a narrative report rather than the summary most lender clients want. The first page of the 1004 report is ALL about the market. If a reader cannot interpret this then the form is all wrong or the interpretors lack the skills necessary for their job. Granted: many appraisers do not do a good job even in filling out the report. Maybe more training (CE)classes should be designed or created to stress the importance of this page.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
Dennis....It seems to me that you are suggesting a narrative report rather than the summary most lender clients want. The first page of the 1004 report is ALL about the market. If a reader cannot interpret this then the form is all wrong or the interpretors lack the skills necessary for their job. Granted: many appraisers do not do a good job even in filling out the report. Maybe more training (CE)classes should be designed or created to stress the importance of this page.


Mr Boyd you bring up an interesting point, however, it is also noted that the top of the second page of the report identifies the number of COMPARABLE sales from within the subject neighborhood as well as the number of COMPETITIVE listings. I agree that the reader has some responsibility in reading the data as well.
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
I believe the purpose of the new form, when it came out, was to allow the appraiser to provide more narrative instead of checking boxes.

My market conditions fill out the box on page one of the URAR for market, take up about 2/3 of the space in the "Comments" section on page 3 of 6, and then about 1/2 to 2/3 of an addendum page are filled up with market condition comments on every report.

The neighborhood section is concise but inclusive, unique for each report.

Knock on wood but I have had only one request for an additional comp in the past 3 years or so, and that was about 6 months ago. I'm in one of the more difficult markets too, so I think Dennis may have a good point.
 

Vernon Martin

Senior Member
Joined
Jun 8, 2005
Professional Status
Certified General Appraiser
State
California
I think this is one of the issues which separates those appraisers who care about their clients from those appraisers who don't care about their clients.
 

Chris Colston

Elite Member
Joined
Jul 24, 2003
Professional Status
Certified Residential Appraiser
State
Florida
What I have found is that appraisers, recently trained, do not know the definition of the word EXPLAIN. I was trained that any adjustment made above the GLA box had to have an explanation and had to be well supported.

Many reports I see just have numbers in the boxes with no explanation. Or, at best "these were the best I could find". Never mind that the GLA is over 25% different or the high sale, on the grid, is $450,000, the low sale sale is $135,000 and inbetween there is a sale for $210,000. Net and gross adjustment of 35% and 65% (the highest I've seen so far was a gross adjustment of 95%!!), with no explanations except these were the best I had. I just shake my head. :shrug: Please tell me how the sales are comparable. EXPLAIN!! With a good explanation, there would be no need for "provide 2 additional comps that the support the value".
 

DTB

Elite Member
Joined
Jun 11, 2004
Professional Status
Certified Residential Appraiser
State
Illinois
I think this is one of the issues which separates those appraisers who care about their clients from those appraisers who don't care about their clients.


Oh my, where to begin.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
I think this is one of the issues which separates those appraisers who care about their clients from those appraisers who don't care about their clients.


And those, Vernon, that think when they are paid $150 for a job they only have to do $150 worth of work, not realizing that in all appraisals, no matter the fee, the report must be credible, not misleading and must comply with all USPAP guidelines for a summary report. I dont know how many times I have heard, well they only wanted to pay $150 bucks ... my answer is always the same ... you still must do a $500 job. It was your business decision to accept the less than full fee for your full appraisal.
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Every time I read a post complaining about how a client/UW wants more sales I always wonder about the neighborhood description. If there are a limited number of sales in an area the appraiser should be writing a more comprehensive neighborhood and market conditions section of the report.

Some of the markets I have seen described in this forum I would assume would come with a 2 or 3 page neighborhood and market condition. If that was done the appraiser could then just respond by saying “read the addendum” If there are a limited number of sales give the number of sales and write about EVERY ONE of them. Clearly the reader is not being convinced by the report that the appraiser has fully and completely researched the market.

Strong report (persuasive) writing skills are just as important as good research skills.


Though I "paint with a broad brush", I agree!

More often than not, when I do question a report of an appraisal it is due to the appraiser's unwillingness (inability?) to properly communicate the appraisal.
 

Tudor

Member
Joined
Aug 15, 2006
Professional Status
Certified Residential Appraiser
State
Arizona
I agree with the OP, this will deffinately lessen the number of questions asked. Won't stop all of them, because some just never read the report.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks