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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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Why does any appraiser do comp checks? In hopes of getting an order that actually pays? IE: In hopes of getting an appraisal assignment that is based on a pre-determined value or values which IS non-USPAP compliant. If you are doing a comp check as a contingency to get an appraisal assignment how can that be USPAP compliant?

Farther more the only way a comp check can be USPAP compliant is if someones 'orders' a comp check without any intentions of ordering a written report based off what a comp check concludes. When does that ever happen? Never. People dont order comp checks without the intention of possibly ordering an written report if the value is in the range that are looking for via comp checks. It is a forced try it before you buy it scam. Even if it was USPAP compliant, why would you give free appraisals out unless you not in the business to make money.
 
Bruce, you can charge what you want for a comp check. It's up to the appraiser to explain that although the desktop appraisal opinion of value may be a good predictor of MV in a second assignment with a SOW that includes an interior and exterior inspection, it is not a guarantee of results within the range of value of the desktop appraisal assignment.
 
ANY "APPRAISAL" MUST CONFORM TO USPAP whether completed by a real estate agent, broker, or appraiser. Bruce I see that your a CR but are you a broker also? My grand father is a Broker and a CG, my grand mother and mother are agents.

I spoke to my Grand Father about the BPO in his name with me doing the appraisal and in his professional opinion was a bad idea since we work for the same company. Could still be considered a conflict. For now we will continue to not do comp checks of any kind.

I wasn't saying we did comp checks or anything else. I was looking for a way to attempt to turn phone calls into business or atleast give them options as to what can be done for a smaller fee with less work and not leave the phone conversation as an Enemy with a ****ed off loan officer who decides to blacklist you because your rude.

I felt that the ASB statment opened a door for allowing the lender to request certain sales data and if provided as they requested without the appraiser filtering it and allow them to see the sales data for them to make their own determination.

Copy and paste from Trec regulations.

"(c) Except as provided by this section,
appraisals of real property performed in this
state by Texas real estate licensees must be
conducted in accordance with the Uniform
Standards of Professional Appraisal Practice of
the Appraisal Foundation in effect at the time the
appraisal is performed. If a real estate licensee,
for a separate fee, provides an opinion of value
or comparative market analysis which does not
conform with the Uniform Standards of
Professional Appraisal Practice of the Appraisal
Foundation, the licensee shall also provide the
person for whom the opinion or analysis is
prepared with a written statement containing the
following language: "THIS IS AN OPINION OF
VALUE OR COMPARATIVE MARKET ANALYSIS
AND SHOULD NOT BE CONSIDERED AN
APPRAISAL. In making any decision that relies
upon my work, you should know that I have not
followed the guidelines for development of an
appraisal or analysis contained in the Uniform
Standards of Professional Appraisal Practice of
the Appraisal Foundation.""
 
ANY "APPRAISAL" MUST CONFORM TO USPAP whether completed by a real estate agent, broker, or appraiser. Bruce I see that your a CR but are you a broker also? My grand father is a Broker and a CG, my grand mother and mother are agents.

I spoke to my Grand Father about the BPO in his name with me doing the appraisal and in his professional opinion was a bad idea since we work for the same company. Could still be considered a conflict. For now we will continue to not do comp checks of any kind.

I wasn't saying we did comp checks or anything else. I was looking for a way to attempt to turn phone calls into business or atleast give them options as to what can be done for a smaller fee with less work and not leave the phone conversation as an Enemy with a ****ed off loan officer who decides to blacklist you because your rude.

I felt that the ASB statment opened a door for allowing the lender to request certain sales data and if provided as they requested without the appraiser filtering it and allow them to see the sales data for them to make their own determination.

Copy and paste from Trec regulations.

"(c) Except as provided by this section,
appraisals of real property performed in this
state by Texas real estate licensees must be
conducted in accordance with the Uniform
Standards of Professional Appraisal Practice of
the Appraisal Foundation in effect at the time the
appraisal is performed. If a real estate licensee,
for a separate fee, provides an opinion of value
or comparative market analysis which does not
conform with the Uniform Standards of
Professional Appraisal Practice of the Appraisal
Foundation, the licensee shall also provide the
person for whom the opinion or analysis is
prepared with a written statement containing the
following language: "THIS IS AN OPINION OF
VALUE OR COMPARATIVE MARKET ANALYSIS
AND SHOULD NOT BE CONSIDERED AN
APPRAISAL. In making any decision that relies
upon my work, you should know that I have not
followed the guidelines for development of an
appraisal or analysis contained in the Uniform
Standards of Professional Appraisal Practice of
the Appraisal Foundation.""


That stinks .. in our state an opinion of value in which the opiner was compensated is considered an appraisal and USPAP must be followed and the opiner must be licensed / certified to perform such analysis.
 
PE, it sounds like NM & TX & MN have slightly different positions. I really like choices, so I am conflicted, because I really like consistency.
Anyone for rolling back T11 as regards to appraisal regulation?:rof:
 
Farther more the only way a comp check can be USPAP compliant is if someones 'orders' a comp check without any intentions of ordering a written report based off what a comp check concludes. When does that ever happen? Never. People dont order comp checks without the intention of possibly ordering an written report if the value is in the range that are looking for via comp checks. It is a forced try it before you buy it scam. Even if it was USPAP compliant, why would you give free appraisals out unless you not in the business to make money.
This has always been my argument against comp checks. No one offers comp checks as stand alone services. The intended use for a comp check is a magic number. If the magic number is acceptable the apprasier gets the assignment. At best this is questionable appraisal practice.
 
I haven't followed this entire thread, but I would be interested in the opinion of the group. Although it is obvious that an appraiser cannot quote an estimated value from a data run (the joke I use is that I can't see that far from here), are there concerns about faxing a half mile data run to a MB and letting them see the data themselves without the appraiser saying a word about anticipated value? This way, they can decide for themselves whether to proceed and you have still done them a favor since they don't subscribe to the data service. Seems like one way to engender good will without breaking any rules. Or am I wrong?

Mike
 
I haven't followed this entire thread, but I would be interested in the opinion of the group. Although it is obvious that an appraiser cannot quote an estimated value from a data run (the joke I use is that I can't see that far from here), are there concerns about faxing a half mile data run to a MB and letting them see the data themselves without the appraiser saying a word about anticipated value? This way, they can decide for themselves whether to proceed and you have still done them a favor since they don't subscribe to the data service. Seems like one way to engender good will without breaking any rules. Or am I wrong?

Mike


If the MB chooses the parameters of the list, you are OK. If the appraiser does any filtering, that could be construed to be opining a range of value, however soft the edges. I believe there is an AO covering this and some USPAP junkie might be nice enough to weigh in with the citation.
 
Mike Siegfried - This is what I have been talking about the last couple pages. Couple pages back someone linked to a ASB answer regarding comp checks. The way I read it if the MB or LO requests sales data and the appraiser does no filtering it is just sales data.

Which means your MB/LO needs to tell you the street name only and if they want sales within a certain distance or if they want sales in the subdivision then all you need is the subdivision name.

I made the same staement couple pages back and even putting in 1/2 mile distance you are filtering and therfore is an appraisal and must meet USPAP.

Another thing we discussed if you have no subject property you have no appraisal so you don't want anything from the MB/LO that clearly defines the subject or more location than just street.

I was considering developing a sales request form that a MB/LO could fill out and I could send a list of sales within their defined criteria. I would not be filtering them and they could look at sales and determine if it's worth it. I can run a list of sales and e-mail it in a couple minutes. So if a couple minutes of my time can get me a full appraisal without having to give them a # upfront I am all for it.
 
Collecting past due appraisal fees & comp checks.

"I have over $20,000 in accounts receivable which is beginning to upset me." I'm currently owed nearly $5,000 from a client I'd once considered a friend. My patience is wearing extremely thin--I'm going to have to pull my pistols in the coming weeks, cause whistling Dixie isn't gettin me my money! I'm out of the appraisal business when it comes to mortgage lending appraising. Request for Free Comp Searches, and not getting paid if I don't "Make Value," are two reasons I say, 'Morgage Lending Appraising Is A Deflationary Business!'-Mike

I had $6000+ past due from last year. I collected all of it except a fee for one cancelled order which I was charging the mtg broker for. I didn't really expect to collect it.

I collected all of this by going back through every unpaid order, making new invoices with late fees, sending them out, calling, faxing, emailing, calling and faxing, emailing, 4 times. This took 1 day every week to do.

The 4th notice had a message that the past due invoice would be turned over to the banking commission or the VA if it wasn't paid in 7 days. Anyone that hadn't responded by then, really woke up. Several overnighted the payments.

I only had one bank that didn't pay the late fee. The response was I should have invoiced them when it wasn't paid in the first month. We have a set percentage that we can charge as a late fee in NC. 1.5% per month.

What I found out through this process was that sometimes the attys had the check, or had given the appraisal fees back to the lender and the lender didn't send it to my office. I have also had checks sent to the wrong appraiser's office and the lender had to send me a new check.

Also, I found out, there are specific departments that have to get the invoices for appraisers to get paid. So now I keep a folder of the department emails for specific clients to send the invoices to when their appraisals are sent out.

AND as of Jan 1, 2009 I send out reminders. One when the NOV is issued by the VA. To regular lenders, one when the appraisal goes out, separate from the appraisal, one when the invoice is approaching 30 days with a note that late fees will apply if not paid immediately, and third when the invoice is over 30 days with the late fee. Thats their third notice of payment due.

My new policy is to send out past due bills with accumulated late fees every month for the 90 days required by the banking commission, then turn it over to them and file in small claims court. So far, I have only had one lender say they were waiting until closing to pay me. I told them they had to pay me in 30 days of delivery of the report, not when the loan closes. That is the NC Banking law.......

I always tell the FREE COMP CHECK" guys that I have to pay for the services that provides that informantion (AKA MLS) and I have desk time involved in the research, and I don't work for free. I charge $50 to be paid up front by paypal. If they "order" the market research, it gets logged as an "order". When I receive the payment, (confirmed and transferred to my bank), I send them a spread sheet of 12 month sales. I call it market research data. It is the same 12 month sales research that I would do if they send me the order so I get $50 up front first, then credit that payment to the order if they actually order an appraisal.

The last time I was asked to do one the mtg broker said the borrower would pay for the research and the order would come to me after the research was completed. So... I did it, sent a copy to the borrower with my bill. The borrower decided not to go through with the refinance, but he did send me a check for my research.
 
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