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More On Free Comp Checks

How often do you actually get an appraisal order if they want a free comp check first and you won&#3

  • Never

    Votes: 207 30.8%
  • Maybe 1 out of 100 calls like that

    Votes: 107 15.9%
  • About 1 out of 50 calls like that

    Votes: 94 14.0%
  • About 1 out of 10 calls like that

    Votes: 117 17.4%
  • About 1 out of 5 calls like that

    Votes: 94 14.0%
  • I ALWAYS talk them into the order without giving a value first

    Votes: 53 7.9%

  • Total voters
    671
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In Mass recently a value seeking MB company lost their license within 24 hours after being reported to the DOB. They had broadcast an email with a number they needed and who ever would meet that number would get the order. Another way to catch them would be to have two numbers for the same area and to have two(or more)seperate company listings with waynes site and other sites. Just catch them calling both and asking for comp check would probably be sufficient enough to turn them in. this is a basic concept that needs refining. but we as a group do have the resources to sting them. You record them saying they need a number to make it work you say ok i can do that - send the order over . this after they called the other number and you said you couldnt legally take the order they wanted.
 
Which is EXACTLY what we have now! Doesn't matter if it's a legal 'desktop appraisal' or illegal 'comp check' appraisal - they want it free and it will be a value and fee contingent appraisal order when the Fannie form report is ordered - and a violation of Fannie form Cert #18.

Since desk top appraisals are not likely to include Cert. 18, it is irrelevant, IMO, but if'n yeer skeerd,

Merely clarify condition 18 in case Pam or someone else with a similar interpretation of Cert 18 reviews the report. State that the appraiser from time to time may have appraised the subject property under limited scope and for purposes not specific to mortgage underwriting to Fannie Mae specs. The results of prior assignments stand on their own merits and conditions and do not affect the value estimate by the appraiser herein.

Something like that.....See your attorney, USPAP Certified priest, etc. for the perfect clarification:)
 
Roger - whether the FIRST APPRAISAL is FEE or FREE is irrelevant. The subsequent Contingent 1004 (or any reporting format with its' genus in an ADVANCE/PRELIMINARY appraisal report) MUST include Cert.18 (FANNIE) or a similar certification per USPAP. Whether the "comp check" (in any form) doesn't need to include it - is what is irrelevant.

USPAP
“Appraisal practice” is defined as valuation services performed by an individual acting as an appraiser. Only appraisers may offer services that are considered appraisal practice. Examples include appraisal, appraisal consulting, and collecting market data (acting as an appraiser).

Since USPAP obligations apply to those who are acting as appraisers, USPAP applies to appraisal practice.

It is unethical for an appraiser to accept an assignment, or to have a compensation arrangement for an assignment, that is contingent on any of the following:
  1. a direction in assignment results that favors the cause of the client;
  2. the amount of a value opinion;
  3. the occurrence of a subsequent event directly related to the appraiser’s opinions and specific to the assignment’s purpose.........
I.E. THE SUBSEQUENT "FULL".

FURTHER:

Advertising for or soliciting assignments in a manner that is false, misleading, or exaggerated is unethical.


"SURE, I CAN TELL YOU WHAT THE SUBJECT IS ALMOST WORTH FIRST, THENNNNNNN ......ASK YOU WHAT YOU WANT TO DO - THENNNNNNN - TELL YOU WHAT ITS' REALLY WORTH." :new_sleeping:
 
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Roger - whether the FIRST APPRAISAL is FEE or FREE is irrelevant. The subsequent Contingent 1004 (or any reporting format with its' genus in an ADVANCE/PRELIMINARY appraisal report) that MUST include Cert.18 (FANNIE) or a similar certification per USPAP. Whether the "comp check" (in any form) doesn't need to include it - is what is irrelevant.


“Appraisal practice” is defined as valuation services performed by an individual acting as an appraiser. Only appraisers may offer services that are considered appraisal practice. Examples include appraisal, appraisal consulting, and collecting market data (acting as an appraiser).

Since USPAP obligations apply to those who are acting as appraisers, USPAP applies to appraisal practice.

It is unethical for an appraiser to accept an assignment, or to have a compensation arrangement for an assignment, that is contingent on any of the following:
  1. a direction in assignment results that favors the cause of the client;
  2. the amount of a value opinion;
  3. the occurrence of a subsequent event directly related to the appraiser’s opinions and specific to the assignment’s purpose.........
I.E. THE SUBSEQUENT "FULL".

FURTHER:

Advertising for or soliciting assignments in a manner that is false, misleading, or exaggerated is unethical.

Can you get even one USPAP certified instructor to post here without a fake name and agree with that analysis?

I don't think so.
 
Don't know - go ask em. Also ask them how fast will USPAP be revised striking the "loopholes" in AO-19 and the semantics in the relaxed SOW Rule are stricken after the first suits are supported by the Courts.

Contingent is what Contingent does.
 
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Can you get even one USPAP certified instructor to post here without a fake name and agree with that analysis?

I don't think so.
Another straw man. USPAP instructors teach, state boards giveth and taketh away.
 
Wow, your folks must be dealing with some pretty raunchy clients!! I usually fire them before they get even close to that bad. The people I deal with are highly grateful for the customer service and rarely go outside the process to "shop appraisers". Like, if I hear a lot of loosely related chat in the background I know I've got a phone room and hang up without bothering to spend the energy to say goodbye. Duh.... One must be discerning in choosing their clients if this thing is going to work. Qualify the need for the work and use common sense regarding who you deal with you. Ask some pertinent questions and don't ever put up with attitude. Respect them and they will respect you. These people have been around for a long time just like we have. They already know before they make the call that they are asking you to do something they know is illegal. In this situation they are a thief and, if you cooperate, you become an accomplice. Turn it around. Get it out in the open and give them a professional alternative. They will again become a Client with a legitimate need and you will become a respected vendor. Dump the cynicism - take the high road. REPEAT, I'm turning 70-80% of the business around. The remaining business that I don't get is well made up in referrals. Well made up!! I respect the Appraiser who said emphatically "If its not quantifiable, I don't want to hear about it!" -- good advice. For all the cynicism I read above regarding "shopping appraisers"(most probably well justified) be advised I have been tracking the numbers. It works. Here's a "Fight Back"-- make sure to get the address of the property in the initial contact -- after you dump the call put on your calendar three to four months from now to check the public record for any recent recordings. If things look suspicious do a little research and, if necessary, turn in an alert to your state board. Dirty tricks ............. Matt
 
Roger you can be very annoying, yet at the same time, you’re difficult to dislike. Consider this analogy. A client asks someone to transport a Ruger P95 from Richmond to Baltimore. Forget bypassing DC, you must take I-95 because he says it’s a rush. He instructs you that if anyone in law enforcement questions you en route to simply cite the 2nd amendment and they will have to release you because it’s the law. He wants the first delivery provided free and if there are no problems, he’ll pay you to deliver a truckload next week. Would the peon in question not improve himself by simply ignoring the request and seeking better clients?
 
"Yo, my best new friend appraiser, I need a free pre-appraisal so I can send you a lot of business."[/quote]

Great, first I'll have to have the address so I can look it up in the records three months from now to see if you even sent me this business (which you just promised to do in writing) after I just spent so much time and resources ginning up this "pre appraisal" as you call it. If you don't, and conned some other appraiser into a value I will send your name, the address of the property along with a copy of my certification of the "pre-appraisal" as you call it to the state board.
 
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