More On Free Comp Checks

[AzaleaAA]

Well, if you allow the lender's to pay at closing they can rack up quite a balance in a short period of time. The NC Banking Commission doesn't get involved unless you have followed their collection guidelines and do nothing untill after 90 days, even though their own law says an appraiser should be paid in 30 days. ALSO, allowing lenders to pay at closing is a really bad idea and actually not allowed by USPAP as payment at closing is considered to be a condition for performance. SO, collect up front, or make the fee due upon delivery and past due in 30 days. Tell your lenders you do not wait till closing of the loan. If they say that is their policy, ask them what happens if the loan doesn't close. Tell them you can't do an appraisal contingent on closing and that they can't pay you at closing.

 

[MarcMangan]

If they want to pay out of closing that is fine. I am going to collect a check from the borrower anyway. If I am paid within 30 days of doing the appraisal, then I can either send the check back or shred it.

This is how I handle new clients.

Then if you don't get paid and the check bounces you can go after the borrower for a hot check.

No point in loosing business over getting paid when there is an easy solution. Much easier to get money out of a person than a large lender.

 

[Mike Kennedy]

um........what's a comp check?:new_smile-l::laugh:

 

[Samshile]

For those that do not do free comp checks: After you explain why you can't / won't do a free comp check to see if the value they want is possible, how often do you actually get the appraisal order that's NOT based on a "free comp check, pre-determined" value?

How often do you actually get an appraisal order if they want a free comp check and you won't do that?

Pam I dont relate to these type of Comp checks. I get a different type. I have regular clients. They give me 95% of their work. They ask for me to check every property. My fee is not contigent on the value. If the value is way off the Sales price then they renegoiate or move on. Or they base the sales price on the value I arrive at. Why would this type of comp check conflict with ethics? My fee or getting an order or not connected. I get the orders because I am their guy.

 

[C Alexander]

Desktop w/location map?

RELS is now requesting a VTEVALLOCAL07 (desktop with location map) and paying $45 for what used to be a 'comp check." It still is a 'comp check' looking for value, but it isn't free. Once the full 1004 is ordered RELS deducts the original $45 paid. Is anyone providing this product to Wells Fargo/RELS?

 

[PropertyEconomics]

I hope those of you doing "comp checks" (Samshine) and those contemplating doing a VTEVALLOCAL07 (C Alexander) realize that a "comp check" is in fact an appraisal. Ethically and in accordance with USPAP the minimum standards MUST be met no matter how good the client is or how minimal the reporting on a form is ... appraisers are bound by USPAP and must adhere to the standards on every "comp check" (appraisal) you do.

There is nothing wrong with doing them .. as long as the appraiser realizes their obligations under USPAP ... its highly doubtful what your client is asking for is USPAP compliant thus it is up to you to produce a USPAP compliant report for your work file.

 

[JSmith43]

. its highly doubtful what your client is asking for is USPAP compliant thus it is up to you to produce a USPAP compliant report for your work file.

An appraiser showed me a so called "consulting assignment" request, perhaps from that same lender, because he was concerned about the USPAP problems it might entail & wanted a second opinion.

The lender claim is that it was a USPAP compliant assignment (whatever the heck that means, coming from them and in advance) and does not constitute an appraisal review or formation of a value opinion.

Nevertheless, the appraiser is to look at the grid from an existing appraisal and provide 2 additional comparable closed sales and 2 active listings. The mere act of doing so sounds like filtering to me. The argument certainly could be made that this was a review assignment. I couldn't see the form on line, but I bet there is not much of an option to add information, clarify or communicate limitations to the use of information provided.

Their engagement terms don't sound like a get out of USPAP jail card to me I would expect the appraiser will be put in a similar box, perhaps accidentally, with the desk top assignment scenario mentioned above. A $45 box at that. The appraiser was offered $75 to do the so called "consulting" assignment.

The shame of it all is that, IMO, the lender's employees apparently didn't know how to design the assignment in a way that it could be performed safely by competent appraisers. Yet, I see the potential merit in such assignments and my hat is off to them for their attempts at creativity harnessing contract appraisers to provide review functions and restricted use desk top appraisals. I assume they are restricted use

 

[PropertyEconomics]

<snip> Yet, I see the potential merit in such assignments and my hat is off to them for their attempts at creativity harnessing contract appraisers to provide review functions and restricted use desk top appraisals. I assume they are restricted use

Mentor you and I are in agreement .. they are in fact appraisals and thus subject to USPAP compliance. I belive that is the responsibility of the appraiser.

 

[Pamela Crowley (Florida)]

Excuse me, I feel nauseated...

 

[Webbed Feet]

Pam I dont relate to these type of Comp checks. I get a different type. I have regular clients. They give me 95% of their work. They ask for me to check every property. My fee is not contigent on the value. If the value is way off the Sales price then they renegoiate or move on. Or they base the sales price on the value I arrive at. Why would this type of comp check conflict with ethics? My fee or getting an order or not connected. I get the orders because I am their guy.

I have a great idea. Why don't you present about the last thirty of so of these you have done to your state appraisal board and ask them?