Fee For Rebuttal Letters

[Code Jennings]

Scenario....we provided a solid, reliable appraisal to our client that complied with all their assignment conditions such as asking for two listing comps and at least one extra sold comparable. Today we are notified by our client that a review appraiser from ANOTHER STATE who happens to be licensed in our state reduced the value significantly. He did a desk review and only used two comps to determine his value. Both of his supplemental sales were distressed sales that we originally researched. After talking with the agents of both properties and getting the details of the transaction we decided not to use them because they were unreliable. Now our client wants a rebuttal letter from us stating our case and basically disputing the review appraiser's value.

This takes time and effort and is really just a huge pain. My question....do you charge for the rebuttal letter? We shouldn't have to do this but not only do we have to defend our product, we have to defend our reputation that we have worked so hard to develop with all our clients. Frustrating, very frustrating m2:

 

[panappr]

This takes time and effort and is really just a huge pain. My question....do you charge for the rebuttal letter? We shouldn't have to do this but not only do we have to defend our product, we have to defend our reputation that we have worked so hard to develop with all our clients. Frustrating, very frustrating m2:

This is every appraisers worst nightmare!!!! Unfortunately defending your work is apart of your duty. However, there is a rather specious standard, especially these days for a reviewer to automatically decide that the lowest comparables, regardless of their circumstances, as the most reliable indicators, especially if you are in a declining market. While it is not your intention to low ball any assignment, and you're true intention is fair market value, you must always support and stand by your conclusions. Your circumstance does sound a bit like an injustice has been done, so it is in your best interest to complete the rebuttal, show fault in the review and move on. I don't have a rebuttal fee on my price list, but it would be something to consider if the reviewer has been grossly negligent. You might even want to consider filing a complaint with your state board.

Just curious, was the review from an AMC? That might also be a consideration. I do reviews, but not for $50.00

 

[TEL2002]

Definitely respond with a rebuttal. Your professional reputation is at stake. Rebut the data provided...not the reviewer.

If you can get your hands on the entire review you might consider filing a complaint with your state authorities.

edit: Do not charge for the rebuttal.

 

[athome77]

An opinion of value, counter to your opinion, was provided by another licensed professional. Provide the data necessary to further support your value and counter the other professional's opinion. Although you may feel entitled to some sort of compensation, the defense of your professional opinion and resulting reputation is invaluable and should not be quantified..........

unless of course you were just hoping for an extra 50 bucks.

 

[John McDonald]

When I see low distressed sales in the market area that could be compared with the subject I mention them in the appraisal and state why I did not use them in the report. Anticipate questions in advance and you will have fewer call backs.

 

[Mary Tiernan]

Well, you are almost there. Just take what you wrote, and put it in a letter:

Dear Sir:

We are in receipt of the review appraisal completed on the property at XX Street by zzz, Licensed Appraiser. Although no formal review of the Review Report has been completed by our firm, a casual glance at the comparables as utilized in the review does indicate that the revised opinion of value is not substantiated.

The comparables as utilized in the review were considered during the development of the original appraisal and determined not to be relevant to the subject property. Personal interviews with the realtors involved in the transactions revealed that the properties at XX Street and XX Street were in need of repairs and priced aggressively for quick disposition due to foreclosure status.

As such, the original appraisal is considered to be an accurate reflection of the subject's market and the comparables as provided in original appraisal are considered to be the most representative of the subject property.

No change in value is indicated.

Although I appreciate your attempts to guarantee accuracy in your lending decisions, I would suggest that any and all reviews completed for your company in the future be contracted to appraisers who are more familiar with the intricacies of the area.

I am, however, eternally grateful for the opportunity to assist you in your financial decisions and appreciate you providing us with the review report.

A copy of the original appraisal and the review will be sent to the Arizona State Board for further action.

 

[jnordquist]

I vote, "no charge", you have to defend your work reguardless of some idiot reviewer. I feel for you I wrote a 5 page rebuttal about a year ago. Desk Review was completed with 4 crappy foreclosure comps, subject had just been remodeled top to bottom.