Engagement letter

[sputnam]

A well-written engagement (whether an email or a signed letter) is the best tool I know of for getting appraisal elements agreed upon: intended use and user, EA/HC issues, subject property, etc. And for contractual terms (which USPAP does not deal with): fee, delivery date, assigned appraiser, report format (hard copy or electronic). So much of successful practice management is taking care of the defensive details.

Yes. A lot of the appraisal reports I review have to go back for revisions simply because the appraiser apparently did not bother to read the LOE. I read the LOE before I agree to accept the assignment (and fee), again before setting the inspection, again during before writing the report, and again before delivering the report to the Client. The result... no revision requests. Not telling anyone they need to do what I do. I do it the way I do because, an appraiser elder once asked...'If you don't have time to do it right to begin with, how will you have time to fix it?'

 

[Long Walk]

Yes. A lot of the appraisal reports I review have to go back for revisions simply because the appraiser apparently did not bother to read the LOE. I read the LOE before I agree to accept the assignment (and fee), again before setting the inspection, again during before writing the report, and again before delivering the report to the Client. The result... no revision requests. Not telling anyone they need to do what I do. I do it the way I do because, an appraiser elder once asked...'If you don't have time to do it right to begin with, how will you have time to fix it?'

I don't make any money if the client tells me I missed part of the assignment and have to revise the report. Our bids are based on functionally zero after-delivery consultation. Edits for a typo are withinn acceptable limits. Going back to develop a land value that I missed? Total fail. Scale those hours after delivery out over a year for a staff of say five appraisers. Significant revenue opportunities are lost due to wasted time. Get it right the first time means that I make more money over the long haul.

 

[Tom4value]

Yes. A lot of the appraisal reports I review have to go back for revisions simply because the appraiser apparently did not bother to read the LOE. I read the LOE before I agree to accept the assignment (and fee), again before setting the inspection, again during before writing the report, and again before delivering the report to the Client. The result... no revision requests. Not telling anyone they need to do what I do. I do it the way I do because, an appraiser elder once asked...'If you don't have time to do it right to begin with, how will you have time to fix it?'

On several occasions I have gone over LOEs of long time clients. I found that many stips were put in them from underwriters that have long since moved on and the client no longer requires them.

 

[Tom D]

the requestor is hiring the appraisal company. if they request you, then the requestor is still hiring the company, but asking you to be involved. if you are in an LLC then they could hire a partner, but the company still get the money. a company is a person for whom you work for as a sub person.

 

[Long Walk]

On several occasions I have gone over LOEs of long time clients. I found that many stips were put in them from underwriters that have long since moved on and the client no longer requires them.

Commercial is the same. One lender in MA sends a 12± page letter with no end of requirements. Each page has to be read and understood. I called the lender to see if all the requirements in the letter had to be complied with. Contact didn't know what was in the letter and didn't care to read it to find out. We don't work for them any longer.