FIRREA ?

[Paul Ness MAI]

Jim, please re-read my post. I said nothing close to your accusation. I meant to imply absolutely nothing about appraisers that don't work for big banks.

Further, I don't work for a "big" bank (a holding company with three banks and $2 billion in assets). And contrary to what you and the other Jim might suspect, I do not use MAI's exclusively. In fact, I rarely use MAI's because their fees aren't competitive for most assignments. I use whom I think will do the best job for the best price in the shortest time.

 

[Steve Owen]

...and believe it or not the lenders want well-collateralized loans in their portfolios.

I have found that to be sooo true. I often don't know where the loan is ultimately going when I do a residential appraisal. Sometimes it goes to FannieMae, sometimes to a private investor or second market mortgage company, and sometimes it goes to portfolio. I always try to do the best job I can and try to meet FNMA underwriting rules; my logic is meet the strictest rule and then you won't get an underwriting call regardless of where the loan ends up.

From some of the posts I see from time to time in this forum, I wonder if the posters are living in an entirely different universe from me. I have had clients actually thank me for telling them that a 2055 is not appropriate for a particular property and have also had several different clients tell me that they might use a lot of different appraisers, but I get the hard jobs.

My point is this: if you want to have the best clients and the least hassle in your life then you have to operate by the highest standards.

I am not implying that anyone in this particular thread does not operate by high standards. Rather, I am saying that many posts I have seen seem to take an attitude of "that's all they asked for, so that's all I'll give them." This can be a real problem if it results in less credible opinions of value. And, I believe that if you do truncated reports over and over again, it will eventually lead to less credible value opinions.

 

[Paul Ness MAI]

Think of your appraisal report as the most effective advertising you have. You never know where it will end up. You're only as good as your last appraisal because it takes years to build a good reputation but only one bad report to damage it.

 

[MARKETVALUE]

Paul-

Correction--you are only as good as your worst appraisal.

So true so true. It only takes one miscue to turn your world upside down.

MRM

 

[Mike Garrett RAA]

I am not so sure that a lender who only gives you the "tough assignments" is really doing you a favor. It's sorta like the mentor who assigns all the rural stuff to the new guy. I have had to tell a couple of clients..."Hey, give me one in the City...please!" Seems their staffers pass on tough stuff so then they farm it off on fee appraisers.

 

[Steve Owen]

Mike, if I implied that I don't get any simple ones, then I mis-stated that. What several clients have told me is that I get all the difficult ones; it's not the same thing. I also had one banker tell me to my face that when he needs a "make value" he sometimes uses XYZ, but when he really need to know what it's worth he hires me. Needless to say, I'm able to dictate terms and prices a lot of the time. It's a matter of Marketing 101; those who provide the best service will be the last to leave when all the lights go out.

 

[bradellis]

Paul,

You are quite correct. Your work is absolutely the best advertising you can do.

One of my favorite things to do, when I read a truly well constructed report, is to call the appraiser and thank him or her for doing a professional job. I've received these calls in the past and always liked them. Unfortunately, I do not get enough time to do it frequently, and the occasions do not present themselves all that often- but then that is because I tend to see the problem appraisal and not often the truly good ones.

My bank is about double the size of yours, so we are comparatively small too- at about $4B in assets. When I order a review or new appraisal, I do not hesitate to call an MAI- however, I am aware of both the fee consideration and the fact that some MAIs do not do residential work- or enough of it to make me comfortable. So, when I deal with an MAI, I ask very specific questions about their residential experience.

I tend to choose IFA designees because I know so many of them and know their quality levels. My colleague is an SRA and he tends to choose SRAs. That does not mean that we do not also choose non-designated folks as well, but frankly, those who have earned these and other respected designations "tend" to give us a better level of quality.

So, to those out there reading this string- remember that some of the reviewers out there really do know what they are doing. And, when you go the extra mile to produce a highly credible report- do not be surprised if you get a call offering some praise- it will be because you earned it.

Brad Ellis, IFA, RAA

 

[Paul Ness MAI]

Brad, I work as the holding company's appraisal officer in the loan administration dept, so I only order residential work when it's tied to a commercial deal. I don't get involved at all with the residential mortgage department other than to manage the residential approved list. For most of the commercial work, the MAI's fees are not competitive. But when I have more complex situation such as a CCRC or hotel, I usually will end up with an MAI as they are the only ones willing to tackle them.