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Here's a good one.........

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Caitlyn Stuart

Thread Starter
Junior Member
Joined
Aug 9, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
A friend of mine recently had their home appraised. The appraiser flat out asked the homeowner what value they needed to get their loan to work. Of course, my friend was happy knowing that the appraised value would be where they need it to be. 8O

How unethical is that? I told them to report the appraiser to the lender. Of course that won't happen - doesn't want to jeopordize the loan. :twisted:

Same appraiser puts CRA after the signature. What's that all about? Aren't we all Certified Residential Appraisers :?:

Cadie S.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
Often the lender will not tell me what the financing is: high equity, low equity, etc. I will often ask the borrower how much they are borrowing. On low equity loans, one must be very careful and well support value. This is where the 4th and 5th comps come in. On a $120,000 property with a $60,000, the client's loan is well covered by the security of the property. On a $120,000 property with a $114,000 loan, there is little room for error on the part of the lender. To assist the UW (and avoid the inevitable requests for additional comps, addendum’s, etc. ) I will go a little further in writing the initial report in support of value, itemize cost-to-cure, etc.

Your friend may have misunderstood the question. But then again maybe she didn't. We'll never know. My preference is however, for the lender to fully disclose to me the type of loan and the amount that my appraisal will be used to assist UW in making the loan decision.
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
There Are a few on here that once they've posted there isn't much sense posting, much other than just letting everyone know U agree with them. Mr Carlsen is "In my opinion" near the top of those who's opinion once posted is of that caliber.
 

graindart

Junior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Montana
I almost always ask how much the homeowner is refinancing. My opinion of value isn't swayed by this information, but it helps to give me an idea of what's going on. Also, you'd be surprised at how many homeowners have no idea how much they're refinancing on a loan; either that, or they just don't want to tell me. Either way it doesn't matter much to me, but just because an appraiser asks a question doesn't mean that they're going to do something unethical with the information they receive.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
I guess I am on the other side of the table. Most of the request I receive do not have an "estimate" or loan amount. If it is a sale, the sales price is disclosed and a copy of the contract is included. On new construction, I get cost and specs. Other than that, it is just an order for an appraisal. I like it that way, and I do not ask the customer about their financial bizniz. I will ask if it has been listed, offered for sale by owner, rented, etc., but not what $$ they need. :roll: If the info is irrelevant, then why ask? D3P!
 

Caitlyn Stuart

Thread Starter
Junior Member
Joined
Aug 9, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I'm glad *someone* is on the same page as myself. I also do not believe its any of my "bizniz" how much the homeowner is borrowing and/or how much they would like the appriased value to come in at.

My opinion is that it makes us look very unprofessional and the homeowner is probably wondering what this appraisal biz is all about.

Just my opnion, of course. :?

Cadie S.
 
B

Bemis Pownall

Guest
I sure would hate to "kill" their deal over a small amount 2-3k. If HO estimate is way out of sight its always good to notifiy the lender upfront rather then surprise them and risk no pay. Id rather get a trip fee then no fee at all. If there is no est of value I will inquire on occasion. I know its frowned on to ask the HO what they think their crib is worth. If they are rational and intelligent people you could tell them how you are going to arrive at value, and comment on their(uneducated approach) to value. Perhaps there is a sale in the immediate neighborhood they know about that isnt in the MLS. Never hurts to ask. Some properties are so unique that a dicussion with the HO may be an education.

just my 2cents
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
I agree with Richard, as usual. However, there is an interesting story I can tell about this.

When I was just getting started on my own, I had a client who would never give me any estimate of value - they did only refi's. Usually on some fairly unusual properties.

One time I came in only about $1,000 below the needed amount on one deal. It caused a great deal of trouble with the homeowner because they thought it should have been a lot higher. I would not change it, and the lender didn't ask me too, but it caused a lot of time and trouble.

From then on, I asked the homeowner directly what they thought it was worth, or at least, how much they were trying to borrow. I figured that if I was going to deliver bad news and have a hassle, it would at least be wise to be as well prepared as possible. However, one time, the lender found out I had asked. After that, I never got any more orders from them.

While, I agree with Richard, I think it is wise to assess the whole situation when a lender does not provide an estimate. There are a few lenders who don't want you to know anyone else's opinion of value.

As an aside, if they do more than give you a homeowner's estimate or a loan amount, if they use wording like "We need $zzz." That could be a USPAP violation. In those cases, I always discuss USPAP and make them sign an agreement that they understand and are not issuing the assignment on a contingency.
 
A

Anonymous

Guest
I always ask the homeowner what they think their house is worth. While some appraisers may not agree with me, I find that it is useful for a couple of reasons:

1) If the homeowner says that they think their home is worth more than it actually is, I usually ask them how they arrived at that value. Maybe they know something I don’t---like a sale or two that I missed in my research. Perhaps a “for sale by owner” has not appeared in the county records yet. I have had some owners give me addresses of recent sales in their area. I can’t always use them as comps but it is nice to have the information.

2) If their estimate of value is really high, I know that I will be getting calls from the loan officer or the homeowner when the appraisal comes in for less than their estimate. It keeps me from getting caught off guard.


I don't have to talk to the homeowner about what I think the value is when I ask the question. If they ask, I tell them that while I have researched some sales in the neighborhood, my research is not complete and that it is way too soon for me to express an opinion of value.
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
Bemis

Crib?????

I've been thinking about that term.... and after listening to my kids talk, I think the next generation of underwriters will not understand Fair, Average and Good for conditon but Beat, Butter and Sweet.................
:roll: :lol: :lol:

Hey, whatever works

What do you think?????

Ben
 
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