Reconsideration of Value: How to respond?

[Mike Garrett RAA]

I usually add an addendum indicating why the sales provided were not comparable and upload the appraisal again. It could also be done by email. Just because a property sold doesn't make it a comp. Can't blame the agent for trying.

 

[SANDY]

If you received the request from the lender in the form of an email, send it back to them in the same format.

If you wish to be more formal, compose a letter in Word with your response in the form of a business letter. Print it to PDF and attach it to your email response.

Don't make this chore any more complicated. You've already written a response (your OP), now just send it to them.

Yep!
Also keep copy in your canned comments software for future reference so that next time response takes less time because it will happen again.

 

[SANDY]

There is no form,

Here you go...no threats.

Dear Client,

These sales are located more than 4-5 miles away in a different county/school district and with different prevailing property values. The design styles and quality of construction are also different. These obviously are not appropriate comparable sales. In future, please note that the requirements of a Reconsideration of Value are very specific in that the appraiser can only be requested to review appropriate comparable sales. Inappropriate sales chosen only because of their higher sale price is nothing more then pressure for a higher value.

Your gittin more better! Almost there-you can do it!

 

[Caterina Platt]

I usually add an addendum indicating why the sales provided were not comparable and upload the appraisal again. It could also be done by email. Just because a property sold doesn't make it a comp. Can't blame the agent for trying.

Exactly, Mike. I don't want to be pressured, nor will I sit still and take it, but we appraisers aren't God either. I've run across some instances where some of my bretheren have been pretty sloppy and chintzy. There needs to be a reasonable means of appeal for the borrower and agents.

 

[DMZwerg]

Your gittin more better! Almost there-you can do it!

Actually, my preference is to handle such with a phone call, stating the obvious like the OP's 1st post. If they state they need it in writing I will warn thenm the result would be much like ResGuy's 1st as it is then CMA time.

 

[residentialguy]

Your gittin more better! Almost there-you can do it!

Sorry, I don't grab my ankles.

 

[residentialguy]

I usually add an addendum indicating why the sales provided were not comparable and upload the appraisal again. It could also be done by email. Just because a property sold doesn't make it a comp. Can't blame the agent for trying.

It's not the agent's fault...it's the lender's fault. They can't become the middleman of pressure. If we don't put our foot down with a professional warning, they won't stop and this BS will continue and will become the same pressure reincarnate of the old days...

 

[Willie]

Exactly, Mike. I don't want to be pressured, nor will I sit still and take it, but we appraisers aren't God either. I've run across some instances where some of my bretheren have been pretty sloppy and chintzy. There needs to be a reasonable means of appeal for the borrower and agents.

There is. They can get another appraisal.:laugh:

 

[Caterina Platt]

There is. They can get another appraisal.:laugh:

Look, I took as many screaming, 'You didn't hit my value!!' calls as anybody prior to the HVCC stuff. I'm honest, straight shooting, and it is what it is. I've also had to answer more than a few ROVs and I think there has only been 1 where my value changed after the fact, and that was only because I was able to finally get in touch with a source for verification that wasn't there when I turned in the report the week prior.

At the same time, I've noted that the former 'Hit 'em High' appraisers that never met a number they couldn't hit have now changed with the times. They couldn't truly appraise in the past, picking the highest three sales and plugging them into the form. Now, they've decided it's en vogue to be a 'conservative' appraiser, although they still don't know how to appraise. They think they're making their client happy. That's all they do know how to accomplish. They now pick the 3-4 low balls and add a couple listings because that's what they've been told to do. Still crappy work, and still inaccurate.

We also have the scenario of the AMC high mileage appraiser that doesn't quite get the nuances of the market they've driven 1 hour plus to get to. Views, differences in restrictive covenants, builder quality, etc. gets past them and besides, it's just too much friction and difficulty to indentify these variables, let alone make adjustments for such.

The general public needs a recourse against this kind of activity.

Would you want to take your chances hiring an appraiser with your attitude in today's market climate? I sure wouldn't.

 

[sputnam]

In a former job, my main function was facilitating appraisal reconsiderations with a large AMC. Just take each of the comparables or issues in turn and explain why it's not relevant or as relevant to the appraisal as what you have already used. Best way to make sure your comments don't get lost in the shuffle is to add them to your report. Make sure you date the additional comments, make sure you change the signature/report date.

Sometimes...rarely...they will turn up a comparable that's a reasonable substitute for the subject and, very rarely, one that's better than yours. Either add it to the report or, if it's pretty good but wouldn't impact value, just say something like that.

Main thing......be professional.