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Homeowner Pressure (refi)

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Phil Snyder

Sophomore Member
Joined
Nov 7, 2005
Professional Status
Certified Residential Appraiser
State
Maryland
Interesting one for a local lender that I do quite a bit of business for.

Get to inspection, homeowner has a package of papers including information from a perspective listing agent that she spoke with. First thing she shows me is a "comp" that is literally over 20 miles away. Now, we are what most would consider a rural area, but I had already done a preliminary search that was looking like I had really decent sales within the last 6 months and no further than 3.5 miles (nice and close on GLA, quality, lot size, etc).

Long story short, she says "I'm just going to come out and tell you,...we need $6XX,zzz".


Goes on to tell me how if they can't hit that value they'll need to move, family member needs an operation, so on and so on.

I can tell you without going any further into the report it's very very unlikely I'm going to be at that number. My gut is to just shoot the lender a polite email telling them I will need to decline it. Sucks because I have a very good and long standing relationship with them, they trust the work and usually send great borrowers with nice Real Estate.

Issue is, I have weird feeling about this. It has all the makings of a future State regulatory board complaint. She had both a report from 2013 (means almost nothing to me and browsing over the sketch showed IT was jacked up) and then the Realtor® opinion which I can assure you was complete BS and revolved around what the homeowner wanted to hear/predetermined listing price.

Turn down a report you've inspected, pulled comps and taken all the comp pics for to avoid what you are feeling could be a major thorn in your side?


Thoughts?
 

Non Sequitur

Elite Member
Supporting Member
Joined
Feb 14, 2002
Professional Status
Certified Residential Appraiser
State
Louisiana
Tough call. I would have an off the record conversation with my client then punt. But that's just my opinion. Good luck.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
I would continue with the assignment and turn it in to your lender. Let the chips fall. If your lender is as good as you say they are then you should be able to explain it without serious reprecutions.
 

Non Sequitur

Elite Member
Supporting Member
Joined
Feb 14, 2002
Professional Status
Certified Residential Appraiser
State
Louisiana
I would continue with the assignment and turn it in to your lender. Let the chips fall. If your lender is as good as you say they are then you should be able to explain it without serious reprecutions.
It's not the lender he's worried about.
 

Phil Snyder

Sophomore Member
Joined
Nov 7, 2005
Professional Status
Certified Residential Appraiser
State
Maryland
It's not the lender he's worried about.

No, not at all. Issue here (in Maryland anyway) is, the State all but has neon signs directing consumers on where and how to file complaints on licensed individuals. Matters not if they are founded in fact or have actual basis for a real complaint.

Politely decline, lose the fee and move on with my life.

Do the "right" thing, proceed with my report, deal with an emotional borrower who (before I've even taken and interior pics) "needs" a very specific value?????

The more I think and type about it the more clear the situation is...
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
It's not the lender he's worried about.

That would be my only concern for a complaint. The borrower is trying to defraud his client, the lender. It appears that the last appraisal has serious problems. His appraisal is for the protection of his client, that is why he should complete the assignment.
 

Non Sequitur

Elite Member
Supporting Member
Joined
Feb 14, 2002
Professional Status
Certified Residential Appraiser
State
Louisiana
That would be my only concern for a complaint. The borrower is trying to defraud his client, the lender. It appears that the last appraisal has serious problems. His appraisal is for the protection of his client, that is why he should complete the assignment.
I don't disagree, but in my experience these assignments are never worth the effort. That's why I would have an off the record conversation with my client, submitting an appraisal report may not be in the best interests of the client.
 

Phil Snyder

Sophomore Member
Joined
Nov 7, 2005
Professional Status
Certified Residential Appraiser
State
Maryland
Interesting take (not being smart). I think it's a good possibility the Lender will actually dump them based on this situation, highly unlikely they will just move on to the next Appraiser.

I'd also have to question my sanity to accept a whopping $450 bucks and then have to deal with a problem months from now when I have to "defend" the report in front of my State board. One days lost pay and I will be upside down in this deal.
 

Phil Snyder

Sophomore Member
Joined
Nov 7, 2005
Professional Status
Certified Residential Appraiser
State
Maryland
Showing me the last report (which, I already somewhat disagree with based on the very obviously INCORRECT sketch) is a lot of what has me wanting to run for the hills.

Being honest, I see a LOT of "our last Appraisal was", about 25% of the time they are showing me a report prepared by a guy I trained with for over 2 years and 2400 hours. (this is going back almost ten years now)I pretty much know for a fact the thing is legit based on my knowledge of his work and ethics. Between him, myself and about 4 other local Appraisers, we do a vast vast majority of the (real) local work. I don't mind quickly looking over something a homeowner hands me, and like I said, much of the time it's something I pretty much know is solid work.

To see a report that has a number the homeowner seemed to love, then very obvious issues with the fundamentals of the report (in a whole 1 minute of browsing over it)???


I can see me trying to answer questions about who's wrong on this number/angle and who claimed what regarding Q2 vs Q3........
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
There are consequences for doing the right thing. I have a credit union client that likes my work and respects my opinion. I had one assignment for refi where the borrower was irate because I did not hit his number. The lender was not sympathetic to his reasons and thanked me for a job well done.
 
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