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Jim Massnick

Sophomore Member
Joined
Dec 17, 2002
Professional Status
Licensed Appraiser
State
Michigan
After inspecting a rural, waterfront property, I feel that I need to cancel the appraisal and have it ordered through a different appraiser. I have no idea on how you all feel about this and may get ripped apart for this...but have to ask. The property is very unique with more waterfront than most other homes. I have absolutley no sales to even think about comparing it to. I know all my adjustments are going to exceed guidelines and just dont want to have my name on this report. It is in an area that I do cover, but this is just truly unique and a huge headache. Am I wrong for wanting to cancel and not charge anything for the inspection? Thanks, I appreciate it in advance. Jim
 

Dale Smalley

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Appraisal fees are usally based upon time and effort to do the job properly. So raise the fee to justify what you need do. (and then add some extra on for pain and suffering)
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Or tell the client you have a competency problem, and they need a higher licensed or certified appraiser.

But if you don't accept and tackle the hard ones, how do you learn??
 
Joined
Jan 28, 2003
Professional Status
Certified General Appraiser
State
North Carolina
If it's a good client and it's not a competency issue, do it, but you might want to increase the fee first.

If it's not a good client and you don't want to do it, don't do it, but you might want to try a much higher fee. I don't think charging an inspection fee would be fair, since it appears you accepted the assignment and now will renege.
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
One thing I have learned in this business after about thirty years is that there are always comps... some good, some not so good and some terrible. By taking on the difficult assignments we grow.

Remember that guidelines are just that... guidelines. They are desirable goals that can't always be achieved.

If you give the assignment your best professional effort you will have provided the best data that is available and the lender will have the straight goods. No other appraiser could do any better if there really aren't any good comps.

Adjust your fee for the complexity of the assignment and don't get hung up on the guidelines. The gross and net adjustments on MOST of my appraisals are outside the guidelines simply because of the unique nature of the market I work in. I explain... explain... and explain. UWs don't like the fact I don't have good comps but that is not my fault. Its the market dynamics.

Go for it... for a higher fee.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
If you do not have the competence and background and do not feel competent to give an appraisal, then you have two options. First, get with an appraiser who is familiar with this area/type of property and use the report as a training vehicle. Second, do as you are thinking - ask for the report to be reassigned.

Good luck

Roger
 

Phil Rice

Member
Joined
Apr 22, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
My 3 cents:

I will assume that this is a refi.

Dale says
Appraisal fees are usally based upon time and effort to do the job properly

I disagree. In the world of refi residential appraisals, the fee is ususally a flat fee (say $300). Some are easy, some hard, the fee is usually the same.

Dave says:

No other appraiser could do any better if there really aren't any good comps.

I sort of disagree. If you have the best available comps, no other appraiser will have any better. But, another appraiser may do better at making the right decisions with the "bad" / limited market data, and arrive at a better/more accurate/better supported opinion of value.

My advice:

First -- decide what you want to do. Do you want the challenge and the learning experience? Would you rather do the easy ones and let someone else have the headache? How much do you care about this client? Can you find another appraiser that would take this assignment, or help you do it?

Second -- talk to your client. Explain the sitution. If you had no way of knowing what you were getting into, then you can ask for a small fee for your time so far. Quote them a price to complete the assignment so that if they accept, you will be happy --say $1,000. Just like any house will sell if the price is right, any assignment is attractive if the price is right - with 2 important conditions:

1) You have to be able to do the job right (up to the standard of what a good appraiser in your area would do)

2) you have to be honest and ethical.
 

Patrick Egger

Sophomore Member
Joined
May 29, 2003
Professional Status
Certified General Appraiser
State
Nevada
A while ago I had a similar problem ... difficult location/property with very limited sales ... and it was a rental to boot ...

Initial research ... marginal sales data at best ... almost nothing on MLS for rents, oddball property ... etc. I knew it would take a lot of extra time ... no learning/experience issues ... simply time ... and knowing that my client's underwriter will likely have a field day with the final report ... (haven't heard a thing yet ... knock on wood).

This is a client service issue ... like posted above, you grow with the difficult assignments ... and likely ... so does you status with that client.

The processor called me back ... after I turned in the job ( had told them it would take a week, they were fine with it) ... thanked me for taking care of their client ... and said that several others turned it down on the spot, etc ... I'm getting more calls from my client ... for helping him with his client.
 

Jim Massnick

Sophomore Member
Joined
Dec 17, 2002
Professional Status
Licensed Appraiser
State
Michigan
Thank you all for the comments. I really appreciate the advice. Was really thinking that I might get my head chewed off by some. Pretty much all of the properties that I do are rural, so most of them are somewhat tough. I do have the competency to finish it, but I guess the one thing that I failed to mention is that I am being pushed by the lender to get it done and get it done quick. Oh, well....I guess I'll just focus, type my heart out and explain, explain, explain. Thank you all for your comments. Jim
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
My experience has been that 'super rush' and 'we know it's tough but we GOTTA have it back quick' usually means they're hiding something they hope you'll underlook in the rush ..
 
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