Owner/Borrower/Listing Agent requesting desired valuation and AIR

[Zoe]

I don't agree. If that were the case, appraisers would have turn back multiple orders.

I;ve had people tell me over the years they need X $ or it "should appraiser out for X$, no problem " and similar statements. I inform each and every one of them that I will be doing an independent valuation and do not appraise to a pre determined number. Most of them shut up after that, if they make another repeat statement, then I simply repeat my statement and then they shut up. I stay calm and polite and nonargumentative. I'll often walk away to take a photo to give them the message this conversation is over.

I have never had a problem ignoring what they said and doing my appraisal with my independent opinion.

The few times these encounters were overly aggressive or manipulative and I felt comprised were the times when I did return an order to the client because of it.

There is nothing wrong with asking a homeowner what they would ask for their property if they were going to put it on the market. There is no violation anywhere. At that point in time, they are simply a market participant. Just like an agent listing a property.

That is the way this comes across to me. I don't know what all this owner/agent supplied to the appraiser on their explanation.

The owner and or agent are always biased.

 

[Zoe]

It would surprise you JGrant how many times I come in over what owner and or agent think on listing/contract price. Sometimes it is majorly over contract and or listing price or what owner thinks they would ask for their property if they were going to put it on the market. Sometimes it is majorly under both.

You are in a unique situation. You have no personal interest in the subject property. You are in an unbiased situation to where you want all parties involved to benefit from the appraisal.

You can act as an appraiser in consulting and be biased. Just don't put a value on it. Then it becomes an appraisal.

 

[J Grant]

T

There is nothing wrong with asking a homeowner what they would ask for their property if they were going to put it on the market. There is no violation anywhere. At that point in time, they are simply a market participant. Just like an agent listing a property.

That is the way this comes across to me. I don't know what all this owner/agent supplied to the appraiser on their explanation.

The owner and or agent are always biased.

I do not ask a homeowner what they would ask for their property if they were going to put on the market - the only time that is appropriate is if the owner is the client and it is a listing purpose appraisal

When the owner is not the client and especially for a lending appraisal, no way I would ever ask them that or what they think it is worth. That indicates to a homeowner a willingness on the appariser's part to reach that number. If an owner volunteers that info I am not happy about it but taht is different than me asking them for it.

No, they are not simply a market participant they are the owner seller or borrowers and need to be treated as such.

An owner or agent is allowed to be biased. We appraisers are not. "allowed" to be biased.

 

[sputnam]

Been there. Got an assignment to appraise the residence of the highest producing loan officer in the region. The Client was from the Lender the loan officer worked for. When I arrived at the property, both the loan officer and her spouse were there to make sure that I knew how much work they had done to the house... and... how much it was worth. They told me several times. When I returned to my office, I called the Client, told them what happened, and withdrew from the assignment.

It really depends on the exact situation and on how insistent they are. If all that has happened is they have told you what they think the value is... or that they really need it to come in at $zzz. Not a big deal. If they pressed to the point that you doubt that you can continue to be objective.. or you felt threatened then, withdraw from the assignment and move on. One appraisal fee is not worth the possibility of being accused of skewing a value. Just withdraw from the assignment and move on.

 

[Zoe]

T

I do not ask a homeowner what they would ask for their property if they were going to put on the market - the only time that is appropriate is if the owner is the client and it is a listing purpose appraisal

When the owner is not the client and especially for a lending appraisal, no way I would ever ask them that or what they think it is worth. That indicates to a homeowner a willingness on the appariser's part to reach that number. If an owner volunteers that info I am not happy about it but taht is different than me asking them for it.

No, they are not simply a market participant they are the owner seller or borrowers and need to be treated as such.

An owner or agent is allowed to be biased. We appraisers are not. "allowed" to be biased.

I don't ask what they think it is worth. That would be meaningless. They are simply a market participant since they own the home.

I set the market value opinion on it or whatever other value definition. I ask what they would ask for the property if they were going to put in on the market like today.

That is all preliminary analysis on the subject property.

I hurt many feelings and make many feelings happy. Not in the business of feelings.

 

[Zoe]

Many times homeowners are excellent sources of information on preliminary analysis. I don't appraise feelings. I appraise real property and motivations and feelings come into play.

 

[J Grant]

I don't ask what they think it is worth. That would be meaningless. They are simply a market participant since they own the home.

I set the market value opinion on it or whatever other value definition. I ask what they would ask for the property if they were going to put in on the market like today.

That is all preliminary analysis on the subject property.

I hurt many feelings and make many feelings happy. Not in the business of feelings.

If you are asking them what they would ask for the property, if they were going to put in on the market like today you are asking them what they think it is worth, just with a different set of words

terrible advice iimo.

 

[Zoe]

If you are asking them what they would ask for the property, if they were going to put in on the market like today you are asking them what they think it is worth, just with a different set of words

terrible advice iimo.

No, they are not appraisers. If they are that is even better.

 

[Zoe]

The market value definition is pre-written in FNMA’s appraisal forms.​

Here is the market value definition:​

DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale.​

 

[Zoe]

Notice motivations of market participants (buyers and sellers) are noted in the definition. Is the homeowner a participant? Are they biased? Absolutely. Are they wrong many times? Absolutely.

Remember they get a copy of my report. I am not scared.