Question for the board

[Warren Sumner]

I was just wondering. Every time I get a call to transfer an appraisal from one lender to another's name, it inevitably results in being a pain in my rear end. They want new comps, they want "a recert of value. (really an update); the new lender generally wants a whole new appraisal. Sometimes I wonder if they want me to go back to the borrowers house and clean their gutters!!! And of course they want all this for free!!!

My question is...as an appraiser are we OBLIGATED legally to switch an appraisal from one company to another if requested?? Isn't the appraisal done as a contract between one lender and an appraiser?. I had one borrower switch lenders on me 4 times!!! :evil: Where does the insanity end???
Sorry to vent and any info on this matter would be appreciated.

 

[airphoto]

Warren,

Far as I'm concerned you're not obligated to re-assign an appraisal. Certainly nuttin' is done for free, and if they don't wanna pay for it tell 'em to walk ..

Charge the cheapies for EVERYTHING! ..

 

[Ross (CO)]

Warren, .... The answers to your ?'s would be No, and Yes. The term "recert" is about as dead as Stegasaurus, and the term "update" may have a short future from what I heard recently. Clearly sounds like this client wants and needs a new appraisal, if they are going to make such strong requests for new comps. I suspect this borrower has many hidden financial skeletons in their closet and it is not your report which is a hindrance. Four jumps to a new lender sounds like a record. The "insanity" ends when you put a stop to it. Simply say that you will gladly do a new appraisal for zzz Lending, and the fee will be $YYY, and c.o.d. is preferred. They are always free to ask another appraiser to update your report, and do it for no-charge !

 

[wyecoyote]

We do it but there is a fee for the new comps, update, original copies, and the re type fee. If they request it this gets tacked right on to the bill. After awhile I would expect that you might want to refuse until you have been paid for the service that you rendered.

 

[bobburnitt]

Just say no.

BB

 

[Judy Whitehead (Florida)]

I guess if you start by telling them about getting the releases in writing first and that there is a reasonable charge for a reprint and there will be other charges for additional work (in advance) perhaps it would help make it easier for you.

In my opinion, the only "obligation" would be somewhat of a moral one to help the borrower out so they don't have to pay for a whole new appraisal. But I don't think it is unreasonable for anyone to understand that you are paid for your work. Why should appraisal work be any different than any other profession? In this office we have charges for any additional work and have learned if we don't collect it up front then we never get it.

 

[Verne Hebert]

You are an American. All you have to do is pay taxes.

I did two this morning. Haven't done one for nearly a year. I agree they can be a pain.

Here is how I handle it now. Get the reassignment. Run the retype and deliver COD. The first line in the letter of transmittal explains it is a rewrite with assignment date. The next line states...............any conversation or modification to this appraisal report will be on an additional fee basis.

Now, you have been courteous. Bill 'em hard for any additional work or don't do any. You don't have to do any more if you do not choose.

Just remember. Their option is to get another appraisal. How long will that take and how much will it cost?

 

[Lee SW IL]

You cannot update or recert an appraisal you performed for Lender A to Lender B. USPAP and confidentiallity.

Just accept the order as a NEW assignment, and appraise the property, look for new comps, new tax info if applicable, ect.

Within a reasonable amount of time, I'll give a discount on my appraisal fee. (Depends on how much time is involved).

I don't ask Lender A for a letter of release, it is NOT needed. Accept a new assignment, but dont release condifidential information.

 

[Richard Carlsen]

Your fee should reflect not only your effort put into "updating" the report but the new liability you face for the new report.

If they were willing to reduce your liability to zero, then there would be just an administrative fee involved. But given the liability we continually incur by putting a dollar amount to an opinion of value, I would think that a significant fee up near that of a full report is reasonable.

 

[Don Clark]

8)

Maybe the answer to some of your questions can be found in my new post on this forum "Who owns the Appraisal".

Don Clark, IFA