More On Free Comp Checks

[Marcia Langley]

Ken,

I go by this rule of thumb ...

If your intention is to just supply market data and not an appraisal, then don't let them tell you the subject address.

What I mean is, if you consider any attributes of a particular property, including location, then you have probably performed an appraisal.

 

[Joe Booth]

9 times out of 10 I will say that we do not do comp checks.... order an appraisal. Every now and then I find myself checking anyway out of curiousity. Every now and then I will give them the riot act saying things like "shopping for value".

 

[deturner]

I had a LO call me Thursday with the same spill. "I'm in XXXX and have no idea of property values"

She first asked if I do "comp checks". After I told her NO!!!, she asks me if this is a new law in NC because no one she called will do them (Yipeeee!!!!!). I told her it's not new but appraisers are finally learning what they shouldn't do.

I did get the order so we'll see how this goes from here.

DaveT in NC

 

[Christopher Lauver]

No Way, No How!!

Why anyone (sucker) would ever give a "comp check" is beyond me! The basis of our profession is to provide information and just compensation has to be made. I have gotten quite a few requests and I explain that this will not be possible. This is a complete injustice to all of us! As long as some people don't mind working for free they can swing by and I have some yard work for them. I think I'll head to the gas station for a "free" couple of gallons so I can check out how the car likes their brand! I'll be sure to give a heads up when I find the station.

 

[Lobo Fan]

I got a call today from somebody claiming to have 45 loan officers and her first question was Would I do comp checks? Nope, you called the wrong place. I hope she keeps going all day.

 

[Caterina Platt]

Chuck,

I had several of those today too. I just love the insolent ones...'what are you talking about. Every appraiser I work with offers that kind of service.?!' One must wonder why they aren't calling the comp checkers right at this very moment instead of exasperating me. Wasting both our time then, aren't you?

Christopher,

Good taste in business names!

Caterina Platt
Evergreen Appraisals & Realty, Inc.

 

[Jeff Booher]

New to the board, and new to appraising, so bear with me a moment.

I've been reading all the stuff I can find here on comp checks. And I've been reading through the USPAP. I fully and completely understand that doing comp checks, as defined here on this board (and in the minds of LO's, MB's, etc) is unethical and in direct violation of published laws, regulations, and standards.
My dilemma is this: How can a starting-out appraiser actually get any work without doing comp checks, when there are so many appraisers in the market that DO do them?
I want very much to be legal in my actions, and I seriously want to develop a reputation as a fair, knowledgable, ethical, and professional appraiser. This is the only way I could sleep at night with my business practices.
However, when there are so many people giving the milk away for free, how can I expect to sell my cow? I'm just starting out, so I can't afford to absorb clients turning away because I refuse to do comp checks. On the other hand, how can I keep my license if I violate ethics?
Do I have to sacrifice making a living over the issue of comp checks? I want to do things the right way, but I also want to be able to afford staying in the industry. I can see how the bigger shops can afford to take the high ground, but how does an appraiser just starting out do it and stay in business?
I am NOT advocating violating USPAP by any means. I'm just looking for a way to actually stay within guidlines AND stay in business. Or is it actually not possible for a new appraiser to do?

 

[J Grant]

I work with a few loyal clients and have dropped or been dropped by tons of mortgage brokers. But some of them come back anyway. I "train" them that I don't do comp searches. I encourage them to order an appraisal...tell them they have a much better shot at getting a good market value, that sometimes a house has improvements etc and any preliminary value without seeing the house is virtually worthless. Surprisingly, a number agree. But I have no website, used to have an unlisted phone number ( now it's listed cuz I changed it) so I discourage random calls from out of state or odd lenders I probably miss some work but figure it's worth it to avoid the dumb pointless long converstations. Hope i can stay in business, so far it's been working out holding the line.

 

[xm72mhd]

I am NOT advocating violating USPAP by any means. I'm just looking for a way to actually stay within guidlines AND stay in business. Or is it actually not possible for a new appraiser to do?

I believe you have identified one of the most significant anomalies in this profession. There are others, but this one will do for now.

I have struggles with this for years and I don't have good answer for you. I think it is imperative to give polite service to your clients and saying to them that you don't do "comp checks" (incidentally, I have no trouble understanding what you mean by this terminology, others play semantics with this, but not me). It's just not a friendly or interested response and I believe you are dead on having noticed lots and lots of appraisers do them.

I have discovered that most of these kinds of requests come from lenders or mortgage brokers, but not exclusively. These people would not be calling you if they didn't have problem with the value that they have gotten from somebody, and they need to know something in order to their job. In all honesty, I don't think I've ever been given an assignment that the assignor didn't have an idea what the value was already, whether correct or not.

You've got to learn to empathize with the situation these callers are in and somehow convince them you will give them help and that they want honest help. It seems to work occasionally.

Just remember that from the callers perspective this request makes perfect sense and they don't have to follow USPAP or much of anything else. Their job is make loans and make a living, and your problems are not something they want to deal with.

Several appraisers on here have learned to turn "comp checks" into honest appraisals. I have been able to do that a couple of times, and being understanding and helping with in the parameters of my rules seems to help. They just don't want to know what we can't do. Its of no concern to them.

 

[Tina]

I guess its zombie month.... HOWEVER,

They just don't want to know what we can't do. Its of no concern to them.

Its as true now as it was then.....

TB