Enhanced, Comprehensive Desk Review?

[xm39hnu]

Got a call from LSI for a quote on an "Enhanced, Comprehensive Desk Review."

Me: Enhanced, comprehensive desk review? That sounds serious!
Him: (laughs) Well, all it is is a desk review with a couple of extra comps.
Me: Well, a desk review is $250 if no new opinion is required; $400 if I have to develop a new opinion of value.
Him: Well, I can't quote them two fees for the same review.
Me: Okay, then. They wouldn't be sending it to me unless it was seriously questionable in some way, so quote'em $400.
Him: Okay, I'll get back to you.

He hasn't. (Minor celebration going on here.)

I think I messed that up. Should have told him that a desk review is normally $200, with two extra comps $300, and you don't get a new opinion of value at that price. Probably would've been accepted. If it's a good report being reviewed, that should do it.

But if it were a bad report, the review's would findings would be "value opinion not credible. Reviewer's opinion of value outside the agreed scope of work." Then the client raises hell, and wants a new opinion. For which I quote another fee.

Any of you folks run across this new appraisal product yet? What if it's just a comprehensive view, and not enhanced? Or enhanced, but not comprehensive? (Is one which is not comprehensive called "half-a$$ed?") How would you handle such a request?

 

[Chris Colston]

It's really not a NEW product. I've been getting asked to complete ENHANCED desk reviews for years. I would hope ANY review would be comprehensive. My usual response is if they want additional comps the ENHANCED review will have to be upgraded to a FIELD review. Especially since the photos from the original appraisal are mostly BLACK and some white.

 

[xm72mhd]

Have had requests for "enhanced desk" reviews for several years, but the other day heard of a call for an "enhanced field" review the other day and it turned out when the order came in to be a full URAR retroactive to 2003. The price originally offered before negotiation to $400.00 was $215.00. Now I think it may be going back.

The terms "enhanced", "field", "desk" may have meant something to somebody some time, but all are elastic and have meaning only to the person who wants one until you ask him/her what it is. Thenm it has meaning to you. Unfortunately the phone robots think we are supposed to know what they are talking about and they have no idea what they are and they act like I am the dumbest person on the face of the earth for asking, but I just send 'em back to the source to find out what they want beforte we negotiate and that and only that is what goes on the order-that is if we ever get together on price. Any review is worth more than an appraisal is to start with, but somebody is accepting much less if these phone robots are to be believed.

 

[Mister Ed]

Chris,

I guess I am pretty lucky on the desk reviews. I get the full pdf with color photos. That is pretty cool from my point of view. I am like you, though.... if they want extra comps... i gotta see 'em.... time to upgrade to a field review.

-ed-

 

[hastalavista]

I agree with the comments “enhanced”, “comprehensive”, etc., have little meaning if not defined.

I don’t feel a desk review with additional comps is a problem as long as the level of detail/work is clearly outlined in the review SOW. So, they want two comps- no big deal, I’m comping out the original report anyway. If they want two comps from MLS on the gird, I can do it (and charge them appropriately). I can even write my SOW so that the additional comps are independent of my review analysis and state they are included at the client’s request (if I’m so inclined).

Sometimes I think we are to quick to say “NO”. USPAP is fairly flexible in allowing us to customize our product to the client’s needs and intended use. A lender who is requesting a review is (in my review SOW) considered a sophisticated client, knowledgeable and well educated in the real estate market, valuation process and risk analysis. My goal is to provide them with something they are going to find useful for their intended use, while complying with USPAP and reported in a manner that is not misleading.

Having said all that, I would also argue it is a personal decision as to how one wants to complete a review, so I’m not arguing a “right” vs. “wrong” decision; I’m just throwing in my $0.02.

 

[Robert Anderson]

When the client requests an enhanced desk review, do they expect you to provide your own opinion of value?

It was my understanding that an appraiser doing a desk review normally provides an opinion as to the quality of the appraisal under review and recommends that the client accept the appraisal as-is or take some other action.

Bob Anderson

 

[Carnivore]

Robert,

I think the meaning has more to do with the USER. Many times this is cheaper and faster way to get a new opinion so they can loan on it with your signature.

They seem to think that they have shifted risk to you from the other appraiser by using you to review as opposed to using you for a desktop valuation. Two different animals. Its simply not what they think it is, since our opinion is independent of the original reports value conclusion. Do you see it this way at all?

 

[xm72mhd]

Originally posted by Robert Anderson@Sep 16 2005, 08:01 AM
It was my understanding that an appraiser doing a desk review normally provides an opinion as to the quality of the appraisal under review and recommends that the client accept the appraisal as-is or take some other action.

Who knows? That's why we have to ask. Who ever coined these terms desk, field, etc. (Could it have been your friend and mine, Fannie?) forgot to anchor the definition. Our understanding is not sufficient, we have to ask. The phone robots, or their bosses know we don't know. We have to find out. Scope of work thing and its better not to assume as we are learing ever so slowly. Witness the "enhanced field review" or the "comprehensive enhanced desk review". Anybody know what those are? I never heard of 'em until just this week and today.

 

[hastalavista]

The only time I get notices regarding “enhanced” is from unsolicited emails stating what a wonder drug can do for me during non-appraisal hours!

:rofl: :rofl: :rofl: :rainfro:

 

[George Hatch]

They aren't appraisal terms that have standardized meanings. They're client descriptions, and the meanings are going to vary by client.