More On Free Comp Checks

[CANative]

I didn't vote because my category wasn't among the options. I would have said: "I usually get an order despite not doing a free comp check."

When they're absolutely desparate, I let them know I run a large batch of potential comparables before inspecting a property and if it looks like there is a major difference (more than 10 or 15%) I'll will call them and ask if they still want to proceed. Most of the time they're OK with that.

I never give a range of value... just tell them that it looks like there's a large discrepancy. More often than not, they still wish to proceed.

By the time they get a call in this situation, I already have a work file prepared (my staff automatically schedules, annotates a pouch folder, runs public records, parcel maps, prior listings and property characteristics from a phone interview with the homeowner) so most the the preliminary work is done. I think I'm well within the spirit of USPAP as I consider this a verbal, restricted use report of a limited appraisal. I don't bother trying to collect a fee.

Most homeowners are close enough in their estimate (it's their biggest investment after all) so it's rare that an order gets cancelled. I can afford to absorb some preliminary work on a few assignments.

 

[Bearslide]

Free Comp Checks

I guess I am getting beyond irritated these days, so here is how I have started answering the question:

"Oh, you need a comp check? What was your name again and the name of your company?" Yada, yada, yada. "OK, hang on, I'll see if your account is active" to which I instantly get "account? what account?" I then tell them "we charge $50 per hour to research the database, and we require an up-front deposit of $500, from which we deduct your billable hours" CLICK.

I have gotten so SICK of it, you can't talk to them, you can't explain why you can't, all they do is waste my time and find one of the numerous slimeballs in our area anyway. So, doesn't get me any business but sure is fun listening to their reaction.

 

[Lee Lansford]

If the appraiser provides the search parameters for market data and provides a value--or range of values--or a range of "prices--the appraiser has conducted an appraisal.
This service can be conducted in a manner which is USPAP compliant--though I suspect that most are not.

And, no, I don't do "comp checks". My "good" (the only type that I work for!) clients want an appraisal.

 

[Steve Metz]

I tell them I do free comp checks only for my best clients (6-8 orders a month). I then tell them how they can do thier own comp check and save themselves a lot of time. Check out zillow.com or call the county tax assesors office and add 35% to the assesed value. This has actually worked pretty well at this point as they have been faxing the order the next day.
I do not have time to waste on comp checks.

 

[kim grant]

All properties that require a comp check are worth 10 million, minimum.

That's what I say and I ask them if they want to take their chances with that but what I don't do is work for free. The response is hang ups (sometime I am the one to hang up) to hearty laughes. Rarely do I get an order out of that but why not make it fun to refuse the request? I have no intention of working for them so what the heck.

 

[Bill Baughn]

First let me say that business is slow. Got a call today from a lender who had five rentals he wanted me to appraise (you do the math). We talk a little more and he wants me to invoice him (first red flag). Then he ask if I comp the properties before I go out (of course I do, not going to make two trips). He wants to know if I will let him know if his value isn't there. I say that won't be a problem cause you won't be putting any figured down on the request, right? He wants to know how I will know if the homes will appraise to what he needs? I tell him it shouldn't matter as he will get an honest appraisal. Says he needs to talk to his boss and hangs up.

Guess he never heard of getting an honest appraisal before?

 

[Nancy Wyatt]

I didn't vote. We don't do comp checks.

 

[xm72mhd]

Alright!

who answered "I ALWAYS talk them into the order without giving a value first"?????

Sorry, I absolutely DO NOT believe you!

Well, its not me. I just **** everybody off! That's what I do, so I didn't even vote in this poll.

Actually every time I have cooperated with these requests, I've regretted it. So having enough regrets, I just save my energy and ask 'em to call back in couple of days when I'm not up to me neck. They never call back and I don't have to settle down.

Pam,

Look at that thread started by Melissa Somebody on mortgage broker practice. Wherever she is, that needs to go in your pile of egregious behaviors.

 

[Ken Miller]

Don't Jump Me

I have my standard group of LOs who send me "comp checks" and a majority of them turn into orders. I've dropped LOs who would send me comp after comp and never an order.

P.S. Before the USPAP police come and get me, I don't do "comps" in the sense that everyone is thinking. I have a form that I typed up with verbage from USPAP on the comp issue in the document stating that I have not seen the property nor the comparables and that I am merely reporting sales within a predetermined radius and time span as requested by the LO. I have the LO sign the form stating that they understand all of that and if they are requesting a value that I would be performing an appraisal and they need to order an appraisal instead.

 

[Lobo Fan]

That freaking zillow.com has caused me a lot of heartburn lately. They only offer comps for the counties with their databases on-line, so that is my primary market - Albuquerque, Bernalillo County. The poblem is that zillow taxes the assessor's value and hits it with some kind of multipler. the outcome is anywhere from 20-35% higher than the market pretty consistently.

I was lamenting about this with a Realtor buddy, and he confirmed my experience.