Phased assignment

[MNRural]

Anyone do phased assignments for bank clients?

Lender wants restricted report to see if borrower is 'in the right ballpark' to refinance (does not want to pay full fee).

Will turn out as a full fee summary report assignment (depending on the results).

To me, it looks like there is pressure to arrive at a predetermined conclusion in order to ensure a higher fee.

Am I right or can this be ethically done?

 

[RSW]

You are opening up a can of worms by this question.

 

[BRCJR]

I am an employee of a lender and we do not want any look/sees. We just want an appraisal.

I do not see residential "staged" assignments as practical. That is just me, others may see the benefit, I do not.

 

[Terrel L. Shields]

Anyone do phased assignments for bank clients?

No

Lender wants restricted report to see if borrower is 'in the right ballpark' to refinance (does not want to pay full fee).

cheapskates

Will turn out as a full fee summary report assignment (depending on the results).

If you get the assignment, it was based upon the contingency of the "ballpark" being a hit..

To me, it looks like there is pressure to arrive at a predetermined conclusion in order to ensure a higher fee.

And the problem that will exist if the "ballpark" and the "full fee summary" are not one and the same.

Am I right or can this be ethically done?

I am sure that some people think this can be done ethically. I am confident that it is a contingency and therefore, if you do the 'ballpark' someone else should do the "full fee" work...and that makes you money how?

 

[Vernon Martin]

If you proceed on the theory that a restricted report or a summary report should contain the same amount of analysis (the only difference should be the reporting option), then you shouldn't be quoting a significantly smaller fee for the restricted report. Tell them that, too.

 

[PL1957]

Anyone do phased assignments for bank clients?

Lender wants restricted report to see if borrower is 'in the right ballpark' to refinance (does not want to pay full fee).

Will turn out as a full fee summary report assignment (depending on the results).

To me, it looks like there is pressure to arrive at a predetermined conclusion in order to ensure a higher fee.

Am I right or can this be ethically done?

Haven't done them for bank clients, but do them all the time for other clients. Never any pressure to hit a value because the client wants to know what the answer is instead of wanting a report to give him the answer he needs.

 

[PL1957]

If you proceed on the theory that a restricted report or a summary report should contain the same amount of analysis (the only difference should be the reporting option), then you shouldn't be quoting a significantly smaller fee for the restricted report. Tell them that, too.

Differences in scope are fairly common as well ...

 

[Lee Lansford]

Anyone do phased assignments for bank clients?

Lender wants restricted report to see if borrower is 'in the right ballpark' to refinance (does not want to pay full fee).

Will turn out as a full fee summary report assignment (depending on the results).

To me, it looks like there is pressure to arrive at a predetermined conclusion in order to ensure a higher fee.

Am I right or can this be ethically done?

You can do it...but be CERTAIN that you are NOT made aware of what minimum value the client is seeking. When this certainty is guaranteed, be most certain that you have all the correspondence regarding the assignment(s) in written form and maintained in your workfile. You don't want to leave anyone with the impression that you were working with awareness of a "target" value.

Given that opinions of value may differ based upon the degree of inspection of the subject property, it would be advisable to include words in your agreement for these assignments that the results of one assignment do not guarantee the results of further assignments for the same property.

 

[PropertyEconomics]

Not knowing what the "predetermined" value is .. there is no way the restricted appraisal report can be predicated on reaching that value.
I have done many staged assignments, for lenders, clients, and attornies.

The question is what kind of property is this if you dont mind my asking.

 

[BobfromSalem]

Send that client a copy of USPAP, with the Ethics page bookmarked that prohibits us from estimating any predetermined value in advance, including ranges, directions, etc.