High end home appraisal

[Fernando]

$3,000 and 2 weeks.

I'll take the order at $3,000 without hesitancy.

 

[Sadie]

I'll take the order at $3,000 without hesitancy.

Offer it up, all they can say is no.

 

[Fernando]

Offer it up, all they can say is no.

You have a good business mind. I would have just moved on.
Kudos to you.

 

[J Grant]

It's usually not about a monetary claim, more likely if review finds a high value appraisal flawed it is a ticket to getting put on a do not use list of a lender or a complaint to state board.

It is common for large jumbo loan amount properties for a lender to order two appraisals, and compare the two - if there are any substantial differences between the two appraisals, be it value or other info, it becomes a real nightmare. . Land values are typically much higher as well so the land valuation and/or cost approach becomes more critical too.

No matter how tempting the fee, only take a very high $ value assignment if feel competent for it - they also can end up being so time consuming that doing 2 or 3 regular orders instead turns out to be a better use of productive time.

 

[J Grant]

I used to do a lot of high $ ones in Palm Beach - not anymore though , client attrition... I don't miss doing them though the houses were interesting - but could have so many bedrooms and baths it could get confusing. The people could be interesting too, if a bit odd sometimes, though I found the wealthier they are, the nicer the people usually were to me... a certain amount of impeccable manners at that level of wealth....if they were there, more often the property manager/resident slave let me in.... kinda hard to know a gorgeous 12 million $ waterfront home was only used a few weeks a year..one owner called their sprawling ocean front house their "little vacation beach cottage". .

 

[Sadie]

It's usually not about a monetary claim, more likely if review finds a high value appraisal flawed it is a ticket to getting put on a do not use list of a lender or a complaint to state board.

It is common for large jumbo loan amount properties for a lender to order two appraisals, and compare the two - if there are any substantial differences between the two appraisals, be it value or other info, it becomes a real nightmare. . Land values are typically much higher as well so the land valuation and/or cost approach becomes more critical too.

No matter how tempting the fee, only take a very high $ value assignment if feel competent for it - they also can end up being so time consuming that doing 2 or 3 regular orders instead turns out to be a better use of productive time.

I have no problem walking away from potential tickets to appraiser jail. I also have no problem quoting a fee that is high enough to make me want to do a difficult assignment. Its all a business decision. Its not all about the money its about your time and expertise. I have had very few reconsiderations, one or two over the previous 15 years. I have had requests for clarification, but few reconsiderations. If you know your stuff, it isn't a problem. Pain in the butt, but not a problem.

 

[James Mpls]

I got this order and not sure if I should take it.
The value is $5 million. My E&O doesn't go that high. It's a super jumbo loan amount.
I forgot if there was a question during renewal asking appraising over certain amount.
I don't like to do high end but the appraisal fee is good about twice fee of my normal appraisal fee. Should I ask more or not take it?

Bid it accordingly based on your estimated time it will take you to competently complete it. If your bid is accepted by the client, take the assignment. Do it correctly, make sure you have a compliant work file with support for your adjustments and then feel confident in your well thought out and well reported report. I always learn something when completing these high dollar and complex assignments. It will make you a better appraiser and you will have been compensated fairly in the end. Just make sure to take whatever your bid was going to be and add another 10-20% on top of that; I sometimes feel I didn’t get paid quite enough when done and find the extra 10-20% policy works well.

 

[Fernando]

It's usually not about a monetary claim, more likely if review finds a high value appraisal flawed it is a ticket to getting put on a do not use list of a lender or a complaint to state board.

It is common for large jumbo loan amount properties for a lender to order two appraisals, and compare the two - if there are any substantial differences between the two appraisals, be it value or other info, it becomes a real nightmare. . Land values are typically much higher as well so the land valuation and/or cost approach becomes more critical too.

No matter how tempting the fee, only take a very high $ value assignment if feel competent for it - they also can end up being so time consuming that doing 2 or 3 regular orders instead turns out to be a better use of productive time.

You're right. I forgot about lenders having 2 appraisals for high end appraisers.
When I use to do high end homes back in old days, mortgage brokers would "slip" the value of the other appraiser.
Sometimes I get a copy of the other appraiser's report and I would use some of the data to be consistent and make my report "better" and more detail so my report looks more credible.

The high end order I declined is in town I haven't appraised in over 20 years. I could do it but will take more time. I hate measuring these 4,000+ sf 2 storied homes.

 

[Russ Kitzberger]

I hate measuring these 4,000+ sf 2 storied homes.

Why does your client want to pay you to do that? I just had a client save themselves a lot of fee by providing the original plans, others by providing the surveyors measurements. It is a waste of time and money to have you do it when the other professions are more accurate.

 

[Fernando]

Why does your client want to pay you to do that? I just had a client save themselves a lot of fee by providing the original plans, others by providing the surveyors measurements. It is a waste of time and money to have you do it when the other professions are more accurate

That's only when you have the original plans.
I had owners giving me prior appraiser's sketch and I still do some measurements to make sure the sketch is correct.
Sometimes the measurements are off by 1 foot there and there and it changes the total gross area.