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Just wanted to get some feedback.

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MATTELLENBURG

Thread Starter
Freshman Member
Joined
Apr 8, 2002
Feedback wanted,

I have noted a large increase in the number of calls that I am receiving after turning in my appraisal reports. The calls are mostly from home owners wanting to argue...discuss...fuss...yell or otherwise go over the report that I turned in to the lender on their properties. Of course, the only time I get these calls are when the magic numbers do not work. I typically tell the homeowner that I can only discuss the report with the client and they typically will continue to take verbal shots. Am I alone on this? I've been tinkering with a small broshure that I can give to the homeowner when I am on site. The brochure would explain a bit about the appraisers job and would relay the facts that we can not give a value or discuss the report with anyone other than the client. I don't mind defending my report to any client because I do my best to be accurate and honest but I just wish there was a way to avoid so much conflict with the property owners. The property owners tend to have the same grips when the value is short.... you didn't stay at my property long enough, you didn't compare my 40 year old mill home to the new 2,000 sf homes across the freeway and the ever famous, I have a previous appraisal from last year that is for $20,000 - $80,000 more than your report and I know that report is correct. I do also tend to make some Realtors angry but that is a whole other story. Sorry to be so long winded but any feedback concerning a broshure would be great.
:) :)
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
The "off" button on the telephone works EVERY time!
 

vargasteve

Junior Member
Joined
Jan 21, 2002
Professional Status
Certified Residential Appraiser
State
California
First of all - haven't really seen a change on amount of calls. Assuming that your borrower has a copy of the report, and has reviewed your report I would answer questions about the content of the report. I feel my report should stand up against the owners questions or concerns, so I welcome any feedback. :?

Normally when getting feedback people / realtors just complain and don't offer any (comparable data). First I ask the party to stick to offering alternative data (recent) that I may have omitted in error. Normally there is none, or if any is offered its out of guidelines. Our reports are inpart based on data - no opinions. It is also possible that I have missed data somehow and if so I stand prepaired to change my report which is only right (normally never happens - but if it should so the better). On the other hand you have to ask them to stop comparing the home with superior data - that's the deal.

Also, take the curse off the call. The borrower must understand that the report is wrong 364 days a year. The value estimate 'they like' may have been correct 5 months ago, or perhaps next week - they no doubt are expecting you to be right for a longer period than 1 day. That doesn't cut it either, they can ask you for a new report in a month at a discount if conditions improve.

Guidelines are important to explain also. Normally, borrower / brokers want the appraiser to 'hit that #' however at the SAME TIME they are talking out the other side of thier face saying - don't event give me a report that involks reviews or worse yet gets thrown out in the review process. So what the really want is to have their cake & eat it too. Cant do both - Get with it customer!

Down that same line of thought while explaining guidelines it helps to explain to the party about the 'EYES' of the end user. In the final analysis your prepariing the appraiser for the READER & the PURPOSE of the report. They should expect you to prepare it for the purpose. This is often what is not understood by the party - they think the report is for them - however they don't relialize that they asked you to prepare the report for (Specific purpose). Often times this report is for LENDING PURPOSES - not how much a realtor should list the property for ( unless ofcourse that was the purpose of the appraisal) Get real!

One of the most interesting aspects of specifically realtors who are not happy with results is the way which the expect you to always make it happen for them. Its like they never even heard about renegotiating a contract. SAVING THE CUSTOMER $ could be a result!!!!! Doing a 1st & small second. Being honest with the customer. Asking the customer to put more down as alternatives. NO NO everyone wants to get another appraiser / one who hits the #. Dose anyone have any ethic's? 8O Ask them if they have the customers best interest in mind!! :!:

Typically, people who call me part as friends and feel well taken care of.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Ask them if they have the customers best interest in mind!!
Just remember that most of the time, agents work for the seller thought the MLS co-broker relationship. It is their job to call and complain, to see if they can get more $$. If they are a buyer broker, they should be thanking you for saving their client $$. Either way, I draw the line at coercion. I don't mind talking about market data, or teaching someone about my job and the appraisal process. But I will not stay on the phone and tolerate yelling and general complaining directed at me.
 

MATTELLENBURG

Thread Starter
Freshman Member
Joined
Apr 8, 2002
I don't feel like the Lone Ranger now. Thanks for the feedback. Here are some short quotes from my Realtor bouts...keep in mind, I am also a licensed broker.....
"What do you mean that the property won't make the contract price... I have never had a value that didn't work"...my reply was, I guess that there is a first time for everything.

"I just wanted to give you a call so that you could correct your value, and if you can't find another $70,000 then you just can't appraise in this area because you are obviously not familiar with the market"...of course she had no comps that were usable.

I also had this one two times from two different purchasers..." I don't care if the value is not there, my wife wants this house and I'll just get another appraisal because I am the one that has to live with her".

Sorry to keep on, thanks again to everyone.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
:lol: Yeah, I have gotten some of them as well. I think I will start keeping a book or excuses. Might make some money one day.
 

Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
Matt....You'll get used to it. Some of us have heard it all....including.....The Realtor says you don't like animals around when you're appraising. My dog was in the house and that's why the appraisal came in low......Geeeezz

When I first started appraising 15 or so years ago, my feelings would get hurt and my ego would get bruised....then if that wasn't enough, I worried about losing business. In time, you will learn to let the majority of this run off. You must have confidence in yourself and in the product you produce. It WILL get easier. Like Mell, I will not be a sitting duck on the other end of the phone line waiting to be insulted and lambasted. I politely tell them so and hang up. I hold a real estate license also. Real estate salespeople turn crude when they have money at stake. They love you when your appraisal helps their deal, but if your next appraisal bombs their deal, they despise you. In other words, stay true to yourself. An old-timer in the business told me years ago..."Around Every Corner Is A Mad Dog, Waiting to Chew You Up"

Charlotte
 

vargasteve

Junior Member
Joined
Jan 21, 2002
Professional Status
Certified Residential Appraiser
State
California
This month (for a client that comprises 10 - 20% of my income on any given month) I appraised a home with 8 offers all of them over the list price in multiple overbidding - here we are with 7 extreamly motivated buyers overbidding on a home that was aggressively overpriced in the first place. Along with myself, I'll try to be open minded on sales especially when the market is a seller/demand market - always try to make a "Market Sale" if the data exists. So in the final analysis the agent has 7 lower offers than the clients, along with "his" appraiser saying the price is over the data. The bottom line is this agent is not trained, he very well may not be representing his customers best interest.

M Legget said "It is their job to call and complain, to see if they can get more $$."

Actually, it seems that the default reaction for the realtor should not be trying to get more $$ out of the appraiser, or getting another appraiser to hit the #. I believe a professional realtor at every step of the process goes to the buyer and after describing the situation goes over the options.

1) Renegotiate - seeing the appraisal as a opportunity, perhaps a chance to save some $. (recently I appraised a home with 8 offers all of them over the list price in multiple overbidding - here we are with 7 extreamly motivated buyers overbidding on a home that was aggressively overpriced in the first place

2) Retructure the loan - more down or a smaller 1st loan along with a second loan.

3) Go with PMI

4) Pass on the deal

5) Try to find another appraiser

If after explaining the process the buyer or refinancer asks the customer what he would like to do, then the professional realtor can document that process and follow the customers request. Do they explain the market & offer up how the appraiser came to that conclusion or DOG the appraiser?Or perhaps they 'lurk in the shadow's far beneath the customers knowledge - trying to push the value behind the scene - simply not professional.

These realtors aren't being trained on the correct process, the fact that its not in the play book is the problem. I REALLY believe that an honest lender/broker/realtor creates his own nightmare. Just like for appraisers, for realtor there is enough good business out there for everyone - and if everyone does good business then who knows perhaps reality will prevail... :wink:

For instance if you are always a number hitter, then that's the kind of work you tend to get. If you plant those seeds with your clients, then don't be surprised if your name often comes up when the other appraiser misses the #. You get what you give - it goes for realtors too.
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A

Anonymous

Guest
IF you really want to change the calls, develop a niche to make your living from. I appraise rural property and work for banks and attorneys. I don't do mortgage brokers, AMC's, etc.....

Almost never get those phone calls. The nature of the clientele is entirely different.

A few weeks ago I appraised an estate. Another appraiser also appraised it independently of me. We were $75,000 apart - 20%, yet when I ran into the executor, he just grinned about the reports. Yes, he was surprised about the difference but when I asked him which one he believed, he said, "oh, we just split the difference." For tax purposes the other report benefited him, but he made it clear he felt my number was closer to its actual value. Can you imagine the ruckus had this happened to you in a lending situation?
 
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