Commercial comp checks?

[Fred]

So - keep it hush hush and let the AI sweep it under the rug?

Kenneth,
I think your post about the blonde driver didn't go far enough to illustrate this.

 

[PL1957]

BTW, the MAI that changed my report got an earful from me. He lectured me like I was a child, said it was perfectly ok for him to change the report if, in his opinion, he didn't agree with me, even though my signature was on the report and he never saw the property. I told him that he was an unethical scumbag and that I'd never work for him again.

If I am signing the report as the MAI, I wouldn't have any hesitation in changing your value. You wouldn't find out by accident - I would tell you what I'm doing and why. If you threw a fit and called me an unethical scumbag, very simply, you would never do work for me again. It's my client, my designation and my reputation on the line. You, as the "junior" appraiser, really don't have a lot to say about it.

 

[George Hatch]

If I am signing the report as the MAI, I wouldn't have any hesitation in changing your value. You wouldn't find out by accident - I would tell you what I'm doing and why. If you threw a fit and called me an unethical scumbag, very simply, you would never do work for me again. It's my client, my designation and my reputation on the line. You, as the "junior" appraiser, really don't have a lot to say about it.

Of course, you'd also make sure that the dissenting appraiser wasn't required to sign the cert for a value conclusion they didn't agree with; and then you'd make sure the certifications and disclosures with respect to personal inspection were consistent with what actually happened.

That being the case, your junior appraiser would have no reason to call your professional ethics into question or call you names.

 

[PL1957]

Of course, you'd also make sure that the dissenting appraiser wasn't required to sign the cert for a value conclusion they didn't agree with; and then you'd make sure the certifications and disclosures with respect to personal inspection were consistent with what actually happened.

That being the case, your junior appraiser would have no reason to call your professional ethics into question or call you names.

I'm constantly amazed when people with limited experience get on their high horse when someone more senior disagrees with their opinions. I really can't see any circumstance where calling someone an "unethical scumbag" would add to a conversation.

If someone feels strongly enough that they don't want to sign, then they don't sign. It's no skin off of my nose. But then again, I really think that such a huge difference of opinion is probably a sign that the parties should go their separate ways.

 

[Brian Weaver]

There is only one USPAP. Love it or hate it.

There is no USPAP for residential appraisers and another secret version for commercial appraisers. Some CGs think that the level of the transaction or the level of sophistication of the client permits some "client service" that exists in some other dimension other than USPAP.

They need to show the Board where this is printed.

Illinois will be dealing with this soon. Come to the ICAP program in July or August. And no...I'm not the one putting on this portion of the program.

 

[PropertyEconomics]

Comp checks and bidding wars are common in some circles of commercial work. CGs and MAIs have been taking on skippy trainees just to get the lowest bids and still make money.

Smokey .. I fear for all you knowledge you are wrong on this one. I know of NO one (CG or MAI) that has done that. The aptitude of a commercial trainee required to do the work is much different than nearly every trainee in the business has. There are exceptions but they are few and far between. No MAI or CG in their right mind would do this, and if so, I would nearly guarantee you its not done on a large scale. There is too much risk and the CG or MAI essentially ends up doing all the work anyway. Sorry ... I just cant agree with this statement.

And if I had ever ripped the MAI I trained under a new one for changing a value ... OH MY ... I would have been shown the door in short order. HE was the MAI not me. I continue not to pretend to know as much as he does .... I would guess this is why you are no longer working there????

 

[George Hatch]

PL

If you read what she said the exchange (allegedly) wasn't limited to a mere difference of professional opinion. In addition to getting the condescending lecture, her boss was apparently intent on retaining her signature and her personal inspection despite her disagreement. If those elements are all accurately reported I cannot imagine you would condone that person's dishonesty, their status notwithstanding.

And yeah, I agree with you - both parties should go their separate ways if they don't see eye to eye on issues involving basic honesty.

 

[Smokey Bear]

If I am signing the report as the MAI, I wouldn't have any hesitation in changing your value. You wouldn't find out by accident - I would tell you what I'm doing and why. If you threw a fit and called me an unethical scumbag, very simply, you would never do work for me again. It's my client, my designation and my reputation on the line. You, as the "junior" appraiser, really don't have a lot to say about it.

If my signature is on the report and you change the report without my authorization, that's fraud. You damn well better tell me you're changing it and I'd better agree to it, or my signature comes OFF the report. Then, of course, you'd have to go inspect yourself, because you live in another state and don't do the inspections, but that's the ethical way to do things.

 

[PropertyEconomics]

If my signature is on the report and you change the report without my authorization, that's fraud. You damn well better tell me you're changing it and I'd better agree to it, or my signature comes OFF the report. Then, of course, you'd have to go inspect yourself, because you live in another state and don't do the inspections, but that's the ethical way to do things.

You had a supervisor living in another state? Sounds like you both had problems ...

As to comp checks, they will become more prevalent in the coming months Im sure as former residential mortgage brokers try to "break in" to the business. I have experienced this a couple of times already, not with comp checks but with fee complaints ... frankly they dont stick around long in the commercial business. They dont understand the business, the clients, or appraisers. Their magic doesnt work in the commercial world and they soon find out how truly inadequate they are.

 

[Smokey Bear]

P.E. - first of all, my experience is from California, land of the mortgage fraud. Caligirl would concur, and she's a CG from NorCal, and was working on designation, before she quit in frustration. It's good to hear that this isn't happening everywhere, but believe me, it is happening.

Second, the issue wasn't value. I've always conferred with my senior appraiser on value, cap rates etc. and we come to an agreement on those issues before I turn the appraisal in. I only insist that they explain why to me so I can learn.

On the other hand, when the senior appraiser didn't go on the inspection and I did, and I have pictures of roof issues, and he deletes them and the comments without letting me know that my signature is now on a misleading report, you can bet I'm going to read the riot act. Integrity isn't a seniority thing, and I have every right to pipe up and call someone a scumbag if they're altering my report without my permission or knowledge and turning into a misleading report.

If more people would stand up to their supervisors on integrity issues, maybe we wouldn't be in this mess. For anyone to think that seniority gives you a free ride on doing whatever you want, without ethics, you're wrong. No one gets a free ride on that one.