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Re-assign prohibition reference

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Carnivore

Thread Starter
Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Capitol Bob,

Thanks for you comment. I know exactly what to do in these situations. I only ask in my original post if my source was the most current.

My issue is and will always be with the QLC(quick, lean and cheap) Crowd on how this will be conducted.

Here is there way:

1. Change the name, its only a few minutes and all my other appraisers do it!

2. No we wont pay you anything for your time. Well OK, how about $20 bucks and will pay you at closing

My way

1. Please send an engagment letter
2. My fee is $X and this is not negotiable and it is Cash before delivery

It really is that easy.
 
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PointerAppraisal

Sophomore Member
Joined
Jul 3, 2007
Professional Status
Certified General Appraiser
State
Ohio
You have a duty of confidentiality to the original client.

That includes the fact that you appraised the property for the client, and non-public personal information.

Also, your original client (lender, broker) may have a duty to the borrower to not disclose their personal information to other parties without their consent. Yet many times they will call mortgage co XYZ and say, we can't originate this loan can you originate it? Then they just give all the borrower information over to the mortgage co XYZ. The borrower may have no idea that this happened.

Our Firm’s Position on privacy:

Our firm regards that non-public personal information as any information not available from public records or right of way viewing. This includes the interior of the property.

Obviously the new client knows that you appraised the property for the original client, because they would not be calling you. They may even have the report in hand.

How we do it:

We get a release from the original client for all information utilized in the original report and a disclaimer that they have the authorization from the borrower to release their non-public personal information to other parties.

After this release is received we can talk to the new client about the old client and their appraisal and subsequent report. A new engagement letter is drafted identifying that original viewing, notes, and other information collected will be utilized. The engagement letter also identifies that the new client has reviewed the scope of work and reporting requirements and they are identical to their needs.

Example:

What if the county tax appraiser called you and said: we know that you performed an appraisal for this person’s mortgage because we saw your truck out front and I saw you there with a clipboard. The homeowner is contesting their assessment; will you appraise the property for us using that viewing?

What would you say?

I would say, there are many reasons I visit houses with a clipboard, the fact of where I was and what I was doing in the course of my business is confidential. I would be happy to provide you a quote for a tax assessment appraisal where the scope of work includes and interior viewing of the subject property and try to set that up with the homeowner.

Appraiser's sell Appraisals:

A reminder, Appraisers do not sell reports, we sell appraisal services. Reports come after the appraisal is complete. A verbal report indicates an appraisal was made. A client and appropriate scope of work is needed to perform an appraisal at the beginning, not after the appraisal is complete.

Until the mindset of those involved in the industry shifts to a single voice of the fact that we provide Real Estate Valuation in line with a scope of work and different levels of reporting, we are doomed to repeat our failures.

If they did not need an appraisal why didn’t they just call a real estate agent for a free “Market Analysis”?

Russell Kitzberger
Pointer Appraisal Services LLC
Northeast Ohio Commercial and Residential Real Estate Appraisal
www.PointerAppraisal.com
 
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davebram1

Freshman Member
Joined
Jul 17, 2008
Professional Status
Certified Residential Appraiser
State
Florida
Readdressing / transfering

There is only one authority when it comes to appraisals, the USPAP.
I refer you to Advisory Opinion (AO) 26. That is all the reference you need. It is on page A-90 in the 2008-2009 edition of USPAP.
I have had lending institutions / loan officers tell me, when I refuse to readdress / transfer, "other appraisers do it". I respond to them, "you have just told me that you deal with unethical appraisers" I am not one.
I refer them to AO 26, but they could give a damn, they just want what they want when they want it.
 

Doug in NC

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
This topic can be very confusing. All we have are written directives from various governmental agencies. Try getting an authority on the phone and it could take you weeks to get an answer.

The scenario I have run into twice now in the past few months involves a changing of lenders in a period of less than one month. It is a given that the lender expects that only a change of lender names is involved. If we tell them a re-inspection is going to be involved, they assume we are just trying to get more money out of the borrower for doing nothing.

I see conflicting results from establishing a new client that wants an appraisal based on the previous appraisal inspection date. First, we are supposed to maintain lender 1 confidentiality. Is revealing the prior inspection date a confidentiality issue? Second, if we change the appraised value so that it is not exactly the same as the first value, now we have 2 reports floating around with different values on them. If we have the same appraised value, PO'd lender 1 could accuse the appraiser of just doing a name change on the appraisal.

I have always done a re-inspection and new effective inspection date for the new client, but I have read comments from this forum where appraisers are maintaining the first appraisal date as the effective date on the new assignment. I would rather re-inspect than try to explain how the new client relationship could be established without a second inspection of the property.
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
It doesn't have to be so confusing. New client = new assignment.

You don't have to force anything to look different and you don't have to force anything to look the same. Start your new client relationship as if you had never had the old one. Everything new.

That said, the only red flag I'd worry about presenting would be having two reports out there on the same property with close effective dates, similar assignment parameters, and different opinions of value.

Notice, I said red flag, not "you can't do that." Every assignment is new. If your second assignment is credibly a different value then so be it. If your first assignment is credible then so be it.

You have to be able to defend your opinions on every assignment. In the rare case where one entity (say the state board) is looking at both reports at once, that would probably be a red flag. If it had been appropriate, you should be able to defend it.

As long as you meet your obligation to handle a new client as a new assignment then everything else flows just as if you had never done the old assignment.
 
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