Missed hitting the L.O.'s number

[Liz South]

Just yesterday sent a report to a lender - included 6 comps so that there could be no discussion as to value. Subject is a 70+ year old home that approximately 5 years ago underwent significant renovation. Sold last year for $150,000. Most homes in the neighborhood are smaller 1,200 to 1,600 sq ft capes or ranches, the subject was approx 2,200 sq ft colonial. Missed his target figure by about $16,000. My report is extremely tight, no complaints about the quality of the work. Anyway - the L.O is a neighbor - he called up about the value - said that in the future he would need me to advise if value is not going to be met and if so to just bill him for a trip fee. Just sat there silently. After I got off the phone - pulled USPAP copied part about fees not being able to be contingent on a predetermined value and faxed it to him. Haven't heard from him. Bet I won't hear from him again. Easy come- easy go. I'll even consider giving him the names of the number hitters if he promises to send every single report to me to review - eventually the REAB would get the picture from me.

Not complaining - just the story -
Liz S.
Praying for rain in the southeast.

 

[David S. Roberson]

He needs to call someone with an ace up their sleeve. From what I understand, they will be willing to violate USPAP for him, and do it FAST!

 

[David Mullen]

You won't need to send him the names of the number hitters. Loan Officers and Real Estate Agents all know the name and phone number of every prostitute in this business.

Last week a Real Estate agent said he hadn't done any VA Appraisals for several years and asked me the difference between VA appraisals and all others. I thought a minute and said "the VA Appraisals are honest".

He was silent for a minute and then laughed. Said "I know what you mean, I haven't had a low appraisal in years". He then named the two prostitutes that are "his appraisers (one for FHA and the other for his Conventional work)" and I knew them both.

That reflects the sad state of our trade.

 

[Leon Stewart]

There is no sense in "beating a dead horse", that's how this business functions, and until drastic changes are made (removing the Lender from the Appraisal Process) the Appraiser and the Appraisal Business is in a no- win situation. That's why the Lenders and the Secondary Mortgage People is rapidly moving to an automated value system.

leostew

 

[Restrain]

Just had one that I missed, realtor calls wanting to know why I couldn't meet value on a townhome. Other than the fact that there had not been a sale for this size unit anywhere near the contract price. The realtor should have realized it and warned the seller. Instead, I'm the bad guy. Such is life.

 

[Ross (CO)]

RStrahan, actually, it appears you did "meet value" on that townhome. Too bad it was not priced "at-value" such that your value and the price were close to being the "same". I see more and more examples of how blindly buyers go into purchasing situations without getting any support or assistance (ie. an independant appraisal) to determine if they are paying a fair and appropriate price ! Far too much assumption is blasted all over the place that everything is up-up-up, be it the jargon of the builder / realtor / lender tag-team selling approach, and the buyer accepts all the hype and fails to truly negotiate or investigate the market. Then again, there is something about buying "new" that never fails to hook-em and pull them in. Was your townhome situation one in arena of rapid new construction and a fast-paced selling environment ? ......like the car dealerships with the weekend balloons, and radio d-j's van on the lot, and the free hot dogs in the showroom, and the magician doing tricks for the kids while the salesman was out in the lot getting mom and dad to really like the new mini-vans they just got in ?

 

[Pamela Crowley (Florida)]

Ross,

I totally agree with you!

 

[Bob Henderson]

What kind of an appraiser are you. You only have one job to do and you can't do that. Sheeesh!!! You are paid to make value...oh yeah..we know all about the USPAP mumbo jumbo but we have appraisers who can make that value and do it for half the fee you charge. Just who do you think you are? ..................Hey, someone once said.."Wide is the path that leads to destruction and narrow is the path that leads to salvation." Another wise person wrote..."to thine ownself be true".

 

[Larry Lyke]

Adding to Bob's philosophy --

... "Wide is the path that leads to destruction and narrow is the path that leads to salvation." Another wise person wrote..."to thine ownself be true".

My favorite addition: [paraphrased]

"There is no attitude so real but that it can be firmly imprinted in humans if you begin before the age of five and repeat constantly with sincerity." [Studies in Pessimism...]

So start your appraisers young.

 

[Karl]

Guess about the only good thing about these type of postings is it lets the appraiser's that are TRYING to do it right, realize they are not ALONE I think they are actually the majority. No different than any other business.