More On Free Comp Checks

[JSmith43]

Mentor,

If you had examples, and completely understood what was being done, I feel you would not be so unabiased yourself over it. Because I don't feel it's any better for the brokerage side than it is the appraiser side.

Webbed.

Broker competition, where they pretend to own appraisers and/or appraisal results, screws me over every day. In spite of that, I feel that restraint of public lynching of someone's particular site and/or business practices is not becoming of a site for professionals.

Lynching non-specific sites and certain types of business practices is OK, IMO

 

[rescom]

I say....."sorry, I don't do free comp searches! Now if you want to fax the request to me I will do some preliminary work and if it looks like the borrower's estimate of value is way out of line I will let you know and just bill you for the research work." :rainfro: Never get the fax

Thinking about starting all conversations with...."this call is being recorded since what you are asking me to do is a violation of The Uniform Standards of Professional Appraisal Practice".

Honestly, I probably get 3 or 4 such calls a day...all from out of state lenders. Last one that did send the request is now refusing to pay "because I told you I had to have $200,000 and you came in at $195,000". From now on....only COD's. I have over $20,000 in accounts receivable which is beginning to upset me.

Correct me if I'm wrong Mike, but if you stop the appraisal process because the estimated value is "unreasonable", then isn't this a USPAP violation?

 

[hastalavista]

Correct me if I'm wrong Mike, but if you stop the appraisal process because the estimated value is "unreasonable", then isn't this a USPAP violation?

Rescom-

I'm not answering for Mike, but I'd answer "no" to your question addressed to him.
I can accept an assignment with a SOW to determine a value based on a benchmark. In Mike's hypothetical (really hypothetical since he never gets an order for this type of assignment! :laugh, if the valuation question to be answered is,
"Is the subject property worth at least $X?",
then the answer can be
"No, that value is not reasonable."
All compliant with USPAP. :new_smile-l:

 

[rescom]

Rescom-

I'm not answering for Mike, but I'd answer "no" to your question addressed to him.
I can accept an assignment with a SOW to determine a value based on a benchmark. In Mike's hypothetical (really hypothetical since he never gets an order for this type of assignment! :laugh, if the valuation question to be answered is,
"Is the subject property worth at least $X?",
then the answer can be
"No, that value is not reasonable."
All compliant with USPAP. :new_smile-l:

I'm not looking for an argument but I strongly disagree. If an appraiser agrees to stop the appraisal process because an estimated value is not reasonable, then this is a violation. Even if the appraiser does not give a specific value or value range. Is he not giving an appraisal by letting the client know that their estimate is not reasonable? By doing this, the appraiser is giving a range of value. That range of value would be "anything less than the estimated value". Right? The appraiser has given a direction or range of value by letting them know that their estimate is not reasonable. The appraiser could not even complete this as a desktop appraisal because a full appraisal was ordered.

 

[hastalavista]

I'm not looking for an argument but I strongly disagree.

No problem- I just hope you base your disagreement on USPAP.:new_smile-l:

If an appraiser agrees to stop the appraisal process because an estimated value is not reasonable, then this is a violation.

The appraiser did not "stop the appraisal process". In my specific, the appraiser completed the appraisal process. The valuation question was based on a benchmark. The benchmark being provided by the client, "is the property worth $X or not?". The appraiser completed the analysis and satisfied the question- yes or no.

Even if the appraiser does not give a specific value or value range. Is he not giving an appraisal by letting the client know that their estimate is not reasonable?

Yes, he or she is. That's what appraisers do; provide opinions of value.:new_smile-l:

By doing this, the appraiser is giving a range of value. That range of value would be "anything less than the estimated value". Right? The appraiser has given a direction or range of value by letting them know that their estimate is not reasonable. The appraiser could not even complete this as a desktop appraisal because a full appraisal was ordered.

Says who? I said

I can accept an assignment with a SOW to determine a value based on a benchmark

That SOW doesn't need to be a "full appraisal" (I'm not sure what a "full appraisal" is?).

If your point is that an appraisal cannot be based on a predetermined value, we are in agreement. However, nothing (and I mean nothing) I said contradicts that.

If your point is that the only way an appraiser can conclude a value is to complete a 1004 form with its explicit SOW, then we will continue to disagree. :new_smile-l:

 

[JSmith43]

OK. I'm going to ask the big question. Say an appraiser gets faxed an assignment & scans his files and databases, draws a preliminary conclusion about the likelihood of the value estimate being anywhere near say, sales price.

He keeps this opinion to himself, calls the ordering financial institution contact via Skype (video call) and asks the latest time the appraisal could be delivered in order to be acceptable. No matter the answer, he says "I'm about 2 weeks further out than that."

Now, when the lender's representative asks in a follow up question if this property is likely to come in at or above sales price and he sees the appraiser clearly roll his eyes, was there a USPAP violation?

 

[Couch Potato]

OK. I'm going to ask the big question. Say an appraiser gets faxed an assignment & scans his files and databases, draws a preliminary conclusion about the likelihood of the value estimate being anywhere near say, sales price.

He keeps this opinion to himself, calls the ordering financial institution contact via Skype (video call) and asks the latest time the appraisal could be delivered in order to be acceptable. No matter the answer, he says "I'm about 2 weeks further out than that."

Now, when the lender's representative asks in a follow up question if this property is likely to come in at or above sales price and he sees the appraiser clearly roll his eyes, was there a USPAP violation?

Only on Tuesdays and Thursdays, but not even then if there is a full moon.

 

[Mike Kennedy]

Now, when the lender's representative asks in a follow up question if this property is likely to come in at or above sales price and he sees the appraiser clearly roll his eyes, was there a USPAP violation?

Maybe, Maybe not. Gee Mr. Rep, why do you ask?:new_smile-l:

 

[Offshore]

Now, when the lender's representative asks in a follow up question if this property is likely to come in at or above sales price and he sees the appraiser clearly roll his eyes, was there a USPAP violation?

Mentor that’s clever; however, in reality the comp check proponents in here would “wink and nod” rather than roll their eyes, and of course the sales price was never an obstacle to them to begin with.

 

[JSmith43]

Mentor that’s clever; however, in reality the comp check proponents in here would “wink and nod” rather than roll their eyes, and of course the sales price was never an obstacle to them to begin with.

The real answer is, not if he keeps a work file and a signed certification for 5 years.:new_all_coholic: