More On Free Comp Checks

[Mike Kennedy]

I have devised a way to do legal comp checks (for a value) iaw USPAP relatively quickly. They are called "Comp Check Appraisals". I have worked with the system for eighteen months. It reduces Lender pressure to nearly zero. It increases customer loyalty and respect. There is a learning curve. I have had two highly credible USPAP instructors look it over and are satisfied it meets the standards of USPAP. I am a member of NAIFA (candidate). I have published an article on this subject in "The Communicator" and on the NAIFA Web Site. I am a Certified Residential Appraiser with 20 years experience and over 35 years total in the RE business. I believe in open source thinking and am willing to share all my documents (contracts, certification etc.) and experience using this system. It works and works well. I'm turning about 70-80% into full 1004's. The remaining percentage is well made up in referral business. Matt Gloege, OR CR00353

Post it here.

http://communicatormagazine.com/page290.aspx

1. If you are subsequently asked, as I often have been, to do a full appraisal you need to open a second file because of the different intended use/users, and refer back to the comp check appraisal file number for the research.


2 Keep in mind that some time may pass before the full appraisal is ordered. If time passes between the two orders, update your research as part of the subsequent file.


3. "found the perfect comp, just one day old and three doors down, one week after delivering the comp check appraisal. The comp provided an additional $5,000 of supportable value for the subject.


4. As you present the oral report, ask your clients if they have the file in front of them and if they have a pencil. When they have everything in front of them, tell your clients to write the figures down and then ask them to read back to you what they wrote down. If you do not follow this critical step, sooner or later someone will read the full (subsequent) appraisal report, and call you with complaints. Unless you make sure they write it down they might only hear what they want to hear.


[FONT=Verdana, Arial, Helvetica, sans-serif]5. Once you deliver the oral report you can, with renewed authority, ask, “Given the results of the comp check appraisal, what do you want to do?” many of them call back a few days later and say, “I talked with my people and we’ve designed a program that can work for them.”[/FONT]


[FONT=Verdana, Arial, Helvetica, sans-serif]6. The agreement is most properly used with legitimate clients who would never ask you to do something that would compromise your ethics, let alone jeopardize your license. I am still testing the process, so for right now

[FONT=Verdana, Arial, Helvetica, sans-serif]7. I don’t charge, but that doesn’t mean I won’t charge at some time in the future. For now, I want as many lender responses as I can get. The client has a pressing need and has come to me, someone they trust, for urgent answers. Before I developed the comp check appraisal agreement, I felt forced to offer them a lose/lose solution, but now I can offer my clients a solution that meets their needs and protects my ethics.

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[FONT=Verdana, Arial, Helvetica, sans-serif]1. subsequently = contingency "different intended use/users" -not hardly."


2. subsequent = contingent


3. advocacy = "perfect" / incompetency i.e. one week subsequent to delivering the comp check - a "perfect" comp - which should have been included in any appraisal 1 week earlier suddenly appears and the appraiser gleefully communicates the "good news" to client.


4. (subsequent) = if both "assignments" are truly INDEPENDENT of each other {not hardly} - no "clients" will call you with complaints. This comment further supports the SECOND ORDER is clearly interpreted by the END USER / REQUESTOR as BEING contingent upon the first. {but we all knew that, except perhaps the author??}


5. "given the results of the COMP CHECK, WHAT DO YOU WANT TO DO .....["order a real appraisal now?] ??????? ADVOCACY AND CONTINGENCY - UNABASHED, IN BLACK & WHITE.

Thanks for illustrating it!!

6. & 7. "[FONT=Verdana, Arial, Helvetica, sans-serif]I don’t charge, but that doesn’t mean I won’t charge at some time in the future. For now, I want as many lender responses as I can get. The client has a pressing need and has come to me, someone they trust, for urgent answers. Before I developed the comp check appraisal agreement, I felt forced to offer them a lose/lose solution, but now I can offer my clients a solution that meets their needs and protects my ethics. "still testing" .....................my condolences - the "plan" failed the Ethics Test.
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[JSmith43]

1. Subsequently = subsequently

2. Subsequent = subsequent

3. Advocacy = Denying USPAP compliant products of varying scope and purpose exist

4. Subsequent assignment results statistically correlate with reduced scope results.

5. Client finds initial product credible and useful in decision making.

6. AOL used to send out those free disks, but you paid once you were hooked up Business plans vary.

 

[Mike Kennedy]

:new_smile-l: "Business plans vary." ..........As described in the article, not for long.

 

[JSmith43]

:new_smile-l: "Business plans vary." ..........As described in the article, not for long.

Is this a sharpen the pitch fork or lighting the torches moment?

Cases of improper prosecution await the over-exhuberant. Nifong may have christened a new era.

I'll go read the article and help him fine tune the business plan, if necessary

After all, it is open source

 

[CANative]

What's the deal Mr. Kennedy? If he makes an appraisal, prepares a report and keeps a work file it is the definition of what we do as appraisers. If the client wants another appraisal with a different SoW at a later time, it is simply a new assignment.

You're too quick on accusing others of lacking ethics.

 

[Mike Kennedy]

Missed #1 and 5 above??

2 : a contingent event or condition: as a : an event (as an emergency) that may but is not certain to occur <trying to provide for every contingency> b : something liable to happen as an adjunct to or result of something else

 

[CANative]

I still don't see your problem.

The client thinks they know the outcome and orders an appraisal. That's not illegal or immoral.

The appraiser is accepting what is simply a new assignment.

 

[Mike Kennedy]

The "appraiser" in the cited article/recommendation/advisory is soliciting for, and obviously providing, preliminary value opinions ,self-admittedly, with the expressed purpose to solicit "full" assignments for the Same Intended Use, the Same Intended User, and the Same Loan. Confirmed by then verbally soliciting the SECOND appraisal assignment BASED on the "success" of the first. Clear cut Contingent SECOND order. Suggest re-reading the article.

p.s. if you have a disparate definition of Contingency - pls post it. thanks.

here's another one, while commonly utilized, AND LEGAL, in the Investment Arena, the definition illustrates Third Party views of the "integral mechanics" of EXACTLY what the article espouses: i.e. ACCEPTING a "CONTINGENT" second order predicated on the results of the first. Contingency orders are perfectly permissible on Wall Street - not in Licensed Appraiserville USA.

contingency order

Definition

An order that is executed only if one or more specified conditions are met.

 

[Mike Kennedy]

Is this a sharpen the pitch fork or lighting the torches moment?

Cases of improper prosecution await the over-exhuberant. Nifong may have christened a new era.

I'll go read the article and help him fine tune the business plan, if necessary

After all, it is open source

R - feel free to provide the writer with the Definition of Contingency, and refer him to the signed certification in the SECOND report. Thanks.

 

[Pamela Crowley (Florida)]

RUMOR:

Rumor from a CE teacher is that an appraiser came back from lunch to tell the whole class that a State Investigator walked into the office that morning demanding a workfile for a 'comp check' order they had 'filled' a few days earlier. They didn't have a USPAP compliant workfile for that comp check, apparently the investigator had the evidence (rumor was the investigator is the one that ordered the comp check), the appraiser's license was immediately suspended. THIS IS JUST A RUMOR AT THIS POINT, but was told by the CE teacher as just happening last week.

I don't know what State or any other details.