Purpose of appraisal....FSBO.

[Ross (CO)]

Well, Mike, let's see.....1 pound and 7 ounces at $XX.YY per pound comes to ....... do you want fries with that ?

 

[Dee Dee]

Thanks again for all of your suggestions.
I inspected the home last Friday and mailed the appraisal to the homeowner as I left town for the weekend. They probably recieved it Saturday.
I'll be bowing out of making too any suggestions on how they might market their home when I go over the details with them today. Although it's a couple hundred square feet larger than others in their small neighborhood, it backs to highway traffic (zero comps with traffic influence...wouldn't you know it ). They've done a lot of work and updating to the home, but they are pack rats and all of the clutter would be a huge distraction to any potential buyer. Let's just say that they seem to have gotten used to their surroundings and I don't believe that they realize that in fact their home isn't the diamond they think it is. 8O
I'm glad that I got the check in the bank already....homeowner thought their house should be worth at least $15,000 more than any neighbors. Called the active listings that you can actually see from the subject home and the Realtors say that there has been very little activity...we are in a buyers market that traditionally slows down even more after school starts (only one week from now).
I suspect that the homeowners will be picking my appraisal apart today, but I feel comfortable with the value range that I've come up with and will bow out if they start asking me about the marketing end. These people need a listing agent, the sooner the better.
Will keep you posted.

 

[Dee Dee]

Just thought I'd follow up on my original post.
Did the appraisal for the homeowner, she paid me with a check when I got there for the inspection. Deposited the check immediately afterward and finished the appraisal, she probably got it in the mail on Saturday. I was supposed to discuss the appraisal with her on the phone on Monday (I was gone for the weekend), but she didn't return my phone message to ring me back.
Got a notice from the bank today....her check with a big NSF (Non-sufficient Funds) stamped on it. :evil:
Want to place any bets about whether or not she'll return my phone calls?
I'll be switching to cashier's check or cash only from now on if I do appraisals for individuals.

 

[Devin Wallace]

Dee Dee,

That is why when I do collect deals, I have them write a check to me, or the appraiser that is doing the appraisal, or get cash, and then go to their bank to cash it. If its nsf or stopped, I do no more work until I have cash in hand. That way, my account is not hit with unnecessary fees, and I dont find out a week later that the check was no good.

 

[Mike Garrett RAA]

Had that happen to me last month. The guy called me to say the check was bouncing...had nothing to do with the appraisal. Ran the check thru and it cleared the second time. He even sent me another check for the bank charge to my account. Have faith!

 

[Caterina Platt]

Dee Dee,

On the positive side, it's not stamped STOPPED PAYMENT. I haven't had one of those yet, but have heard stories. Devin is right, I learnt that one the hard way last year. Seems Uncle Sam doesn't let banks cash checks made out to the business so we won't hide $$ from him. :roll: You can go to their bank and have them make out a money order to you when the funds are available.

See if the bank has one of those 'collection' type set ups. You pay a small fee and they run the check thru the account immediately when the funds become available. If not, I just keep calling the automated line and use the 'merchant funds availability' option. Had one just this week from a mortgage broker. People in financial straits can sure spew a line of BS when they need to.

Most times it is just a mistake, and as you mentioned they are in tight $$ situation. Like Mike says, have faith. I know where you're coming from though, as every time I'm bracing myself for the worst and banging my own head for being such a gullable softy.

 

[David E. Coley]

I hold both Appraiser Certification and Real Estate Broker Liscense here in Texas. The Texas Real Estate Commission (TREC) and Texas Appraiser Licensing and Certification Board (TALCB) both hold that I can be one OR the other at any given time. Therefore, as a broker, I write a very simple Opinion Letter for typical homeowners that just want to have an idea of market value.

I have spoken at length with both authorities about this and we even discussed it one time at a ASB meeting in Austin. To the best of my knowledge, Texas is the only state to see it this way.

However, the following paragragh must be quoted verbatim:

This is an opinion of value or a comparative market analysis and should not be considered an appraisal. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development of an appraisal or analysis contained in the UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP) of the Appraisal Foundation."

I have two letterheads; one for appraising and another for brokerage (no mention of appraising in services offered). I also do these Opinion Letters for banks on very low LTV loans where they just want a simple second opinion in file. Usually give a range of value such as "low $80's" or maybe "$70,000 to $75,000" as a estimate. These are "drive-by" type of inspections. I include a front and street photo of subject, but no comp photos, no maps, no plats, no sketches, etc. I charge about one half of a typical appraisal fee.

Have a good 'un,
David

 

[Mike Garrett RAA]

Our state says we are skating on very thin ice doing that....I also hold both licenses.