Owner/Borrower/Listing Agent requesting desired valuation and AIR

[Zoe]

Your starting to scare me ucbruin.

 

[J Grant]

Most lender orders /engagement letters state they do not want the appraiser discussing value with any of the parties.

 

[J Grant]

I didn't mention value. I merely asked what you would ask for your property today?

Get it together. Big difference.

I set SOW.

It is open door question. Homeowners are invaluable many, many times on what they can share.

I can be tough. I don't discuss value with the homeowner or any real estate broker unless they are my client.

I am on preliminary analysis.

I absorb their opinion. I am the professional.

What your property is worth IS A VALUE.

 

[Terrel L. Shields]

, if you will be influenced by anyone to do their value, then get out of the business.

The problem is not whether you ARE influenced. It is the problem of the APPEARANCE of being influenced by others. These are the assignments I happily turn back.

Appraisers were told to cut-off the homeowner/agent/borrower if they started to "mention a value

Which is what should have happened in this case. If they persist, then simply go to your car and leave. Let someone else fall upon that sword.

 

[itmustbeme77]

"The Owner/Borrower/Listing Agent then went on to explain to me why they wanted it valued at $430,000. Smh."

Can you expand on how they explained? I don't really see this being a big deal. What did they explain?

Did they say we have to get $430,000 to get the loan or here is some information that we think supports this value.

Did they say I am going to kill you if you don't come in at $430,000?

You always have see yourself as a professional appraiser as being an independent party and that benefits the owner/agent and the bank if a bank is involved.

You can be biased in certain situations like on consulting assignments. Your definition of value is huge in the equation. You don't need value in many consulting assignments.

After I told the Owner/Borrower/Listing Agent that an appraisal is an independent valuation and that I will not be trying to hit their desired value and that they should not be asking me to hit a desired value, I will be hitting value as the market determines. The Owner/Borrower/Listing Agent went on to explain that they are refinancing because they had purchased the property with a hard money loan a year prior and had to pay that off, and if it appraised for under $430,000 they would have to put up a down payment. This is after the Owner/Borrower/Listing Agent told me that they are hanging onto the property because they bought it for $420,000 and could not sell it for $420,000 right now, but thought that they could sell it for $420,000 if they held onto the property for a year or two.

 

[Zoe]

After I told the Owner/Borrower/Listing Agent that an appraisal is an independent valuation and that I will not be trying to hit their desired value and that they should not be asking me to hit a desired value, I will be hitting value as the market determines. The Owner/Borrower/Listing Agent went on to explain that they are refinancing because they had purchased the property with a hard money loan a year prior and had to pay that off, and if it appraised for under $430,000 they would have to put up a down payment. This is after the Owner/Borrower/Listing Agent told me that they are hanging onto the property because they bought it for $420,000 and could not sell it for $420,000 right now, but thought that they could sell it for $420,000 if they held onto the property for a year or two.

That’s fine. That is time to move forward and complete assignment and get paid

 

[Zoe]

I don’t expect people to be professional appraisers.

 

[Terrel L. Shields]

After I told the Owner/Borrower/Listing Agent that an appraisal is an independent valuation and that I will not be trying to hit their desired value and that they should not be asking me to hit a desired value, I will be hitting value as the market determines. The Owner/Borrower/Listing Agent went on to explain that they are refinancing because they had purchased the property with a hard money loan a year prior and had to pay that off, and if it appraised for under $430,000 they would have to put up a down payment. This is after the Owner/Borrower/Listing Agent told me that they are hanging onto the property because they bought it for $420,000 and could not sell it for $420,000 right now, but thought that they could sell it for $420,000 if they held onto the property for a year or two.

Nacho problemo...

And a year from now...who knows? 2005- I did the appraisal on a house in my town where the agent-builder-owner didn't install the appliances yet. If fell short of her listing. She argued with me. No problem...same issue. "I can sell it for more next year." .... well....the years went by and the empty house was sold ...to the bank in foreclosure. Resold for well under her "asking price."

 

[shrubberyvaluation]

Ok, the situation just happened yesterday. I met the Owner/Borrower/Listing Agent at the property for an appraisal inspection. It is currently vacant and the Owner/Borrower/Listing Agent is doing an investment property refinance and stated that they would be taking it off the market and not selling the property. The Owner/Borrower/Listing Agent stated that they would like me to come in at $430,000 for the appraisal, I told them they should not be saying that to me. I do not come into a requested value, I perform an impartial valuation based on market data, not the Owner/Borrower/Listing Agent requested value. The Owner/Borrower/Listing Agent then went on to explain to me why they wanted it valued at $430,000. Smh.

From my reading of Fannie Mae AIR:

"No employee, director, officer, or agent of the Seller, or any other third party acting as joint venture partner, independent contractor, appraisal company, appraisal management company, or partner on behalf of the Seller, shall influence or attempt to influence the development, reporting, result, or review of an appraisal through coercion, extortion, collusion, compensation, inducement, intimidation, bribery, or in any other manner including but not limited to:"

and

"Requesting that an appraiser provide an estimated, predetermined, or desired valuation in an appraisal report prior to the completion of the appraisal report, or requesting that an appraiser provide estimated values or comparable sales at any time prior to the appraiser’s completion of an appraisal report;"

While the Owner/Borrower/Listing Agent requested that the Appraiser provide a desired valuation, the Owner/Borrower/Listing Agent is not an employee, director, officer, or agent of the Seller, or any other third party acting as joint venture partner, independent contractor, appraisal company, appraisal management company, or partner on behalf of the Seller. The Seller being the lender who is selling the loan to Fannie Mae, by my understanding of AIR.

1st question: Can somebody please confirm that I am looking at this correctly and that AIR has not been violated?

2nd question: How does putting the following statement into the report sound? "The Owner/Borrower/Listing Agent requested that the Appraiser come into a valuation of $430,000, the Appraiser did not consider this request when arriving at the market value determination for the subject property."

Thank you all in advance.

1. I believe AIR is for a lender or agent.

2. I would not put that statement in the report. Make a business decision whether to complete the report or not.

 

[Zoe]

I have family member looking at a subject. Both me and agent the agent representing them are saying no. I am operating in a consulting position. I gave offering price in consultation