Order Says To "Stop And Call" If C5 Or C6

[alebrewer]

The whole point of it is that they are trying to avoid paying the whole appraisal fee and that is ****ty.

Perche?

No different than any other service where results can be tallied prior to the work being completed. Off the top of my head - auto mechanic, feasibility survey, consulting services. Why should a borrower have to subsidize the appraiser's income with unnecessary payments?

 

[ucbruin]

What he seems to be saying is that the request makes him feel pressured to not call properties C5 or C6. That is the appraisers problem if that is the case but it might influence some in borderline situations.

But anyway I agree with the poster that they should wait until the report is complete to see what the rating is. The whole point of it is that they are trying to avoid paying the whole appraisal fee and that is ****ty. My clients don't have such rules.

All clients have various requirements....

 

[Fernando]

There is no issue regarding appraiser independence here. If you accept the assignment, you accept those terms. Simple as that. My issue with those elements is whether or not I will be paid for the time I have invested to the point I make that call. Most want to pay $50 for a trip fee. I have more time invested than that before I leave for the inspection, and typically inspect and photograph comps in the same trip so expect to be paid for all time invested.

The choices are accept, reject, or renegotiate the terms of the assignment. I usually try to estimate the condition of the property from available sources to guess which way it might go, then respond accordingly. Either raise my price or clarify cancellation terms, etc.

Business Decision. Don't blame on USPAP.

 

[Joe Flacco]

Perche?

No different than any other service where results can be tallied prior to the work being completed. Off the top of my head - auto mechanic, feasibility survey, consulting services. Why should a borrower have to subsidize the appraiser's income with unnecessary payments?

If you have a $500 fee and you do the front end and spent a good amount amount of research before the appointment and then they want to pay $100 (vehicle costs) then that ****ing sucks.

If they said send us an invoice for work completed (which is the way my clients deal with orders cancelled after engagement), then that works.

But only ****ty clients trying to pay you Pennies for your time do stuff like stop the order if it is a C5 or C6. Appraisal fees are low as it is. We are not talking about a $2000-$5000 car repair or some major project. It's just nickel and diming on a $500 fee.

 

[alebrewer]

If you have a $500 fee and you do the front end and spent a good amount amount of research before the appointment and then they want to pay $100 (vehicle costs) then that ****ing sucks.
If they said send us an invoice for work completed (which is the way my clients deal with orders cancelled after engagement), then that works.

I, too, tend to front load the work. Usually by the time I do the inspection, most of the work is done. I get that it sux, but I've always considered it a cost of business. If I'm a borrower, and I don't get ANYTHING (i.e. the order is cancelled prior to completion of the report), I'd be pizzed about having to pay the full fee. Those kinds of situations are just never going to be equitable to both sides.

 

[Fernando]

If you have a $500 fee and you do the front end and spent a good amount amount of research before the appointment and then they want to pay $100 (vehicle costs) then that ****ing sucks.
If they said send us an invoice for work completed (which is the way my clients deal with orders cancelled after engagement), then that works.

If after inspection and I see it's C5, I immediately contact client of the condition and ask if they want me to continue finishing the report.
I wait to hear a response.
If not to do the report, I at least get a small inspection fee for going there. It's a business loss which fortunately doesn't occur often.

 

[alebrewer]

Which is the primary reason I cut clients who cancel orders too often. Some folks just aren't worth working with.

 

[ucbruin]

Which is the primary reason I cut clients who cancel orders too often. Some folks just aren't worth working with.

You're a lucky dude to have enough clients/volume to cull your client list....

 

[Fernando]

Which is the primary reason I cut clients who cancel orders too often. Some folks just aren't worth working with.

C5 reports with too much follow ups and conditions from Client. The initial fee doesn't compensate for the time.
I prefer to take the small fee and cut my losses. Business decision.

 

[alebrewer]

You're a lucky dude to have enough clients/volume to cull your client list....

Meh - gotta weigh the costs and bene's.