Rejecting An Order

[Bobby Bucks]

I’m sure you’ve all seen this type request and probably all have your own ways of dealing with them when you get them. I’ll not waste time or bandwidth with all the vitals. The property was recently listed for $170,00 for 5 months and withdrawn. Appraisal request reads Estimated value $200,000, loan amount $160,000. Does no one like PMI anymore? I have several ways of dealing with these. If they’re from an MB I don’t even reply unless I’ve dealt with them previously and then I simply turn down the order. If it’s a telemarketing MB type, they get no reply at all.

Now I know some of you are gluttons for punishment and when receiving these type requests you always have a hissy and start sending faxes which will never be read and generally make yourself miserable because the rest of the world hasn’t read USPAP. I can achieve an identical sensation far easier by simply dropping large weights on my toes.

This particular order came from an AMC which is reputable to deal with for the most part, however, in this case, the AMC is representing a mortgage broker. I did my usual decline routine and a short while later I got a call from the Buffy the Appraiser Slayer who heads up this particular AMC team. Buffy was curt and to the point.....no valley girl “likes" and "awesome" this time. She demanded a reason for my declining the order and said she needed it in writing.. Hmmmmm, a reason? As an independent I’ve never felt I had to give a reason for declining any order. If it’s a good client I normally give them a real excuse for whatever the case might be. Does the rest of the world give a reason for turning down any assignment? Also do any of you ever put it in writing? I see nothing to be gained by writing or typing a reason for not accepting an assignment in this suit happy world we live in. I prefer to leave no footprint whatsoever on these type orders which in all likelihood if completed to the MB’s satisfaction will constitute something bordering fraud. I realize this is the cocktail hour and I’m one click away from strolling to the bar, but this reason business has me worked up.

 

[Tim Hicks (Texas)]

Here at the Hicks Ranch in PamCrowley, TX, those type requests actually travel about two feet from the fax machine to the trash can. If I get a status call on the request, I certainly don't reply. I have caller ID and "unknown" and "out of area" go directly to voice mail. After all, they will get the idea after two or three weeks.

If it is a broker I know, I politely decline and suggest they obviously faxed it to the wrong appraiser. They usually realize mid-sentence that they actually meant to fax the order to skyhighskippy down the road.

I will never decline an assignment in writing. One of Otis' sue happy clients with lawyers might interpret that as an appraisal and I just don't have the time to fill out that many addenda over a rejection letter.

 

[Jungle Boy]

If the AMC is good at paying ( pays up ), why don't you just accept the appraisal and do it.

You don't have to make the value every time, you know

 

[Ghost Rider]

Since I haven't been around for a couple days, I'll open my big mouth, and take the other side (regardless if I believe in what I'm saying or not)

Why decline the order - Maybe they did extensive updating to the home in the last 5 months which raised the value......Maybe the home was poorly marketed previously.

Honestly, I don't see the reason to decline the order - I understand why you declined it - You saw a problem coming, and declined the order cause you didn't want to deal with it. I understand it, and respect that decision, but hey, go do it COD, appraise it for what it's worth, make your money, and move on to the next order.

 

[CANative]

Bobby... you performed an appraisal, by thinking about the recent listing activity and deciding that the value would not be met and not wanting the headache associated with the assignement.

If there's any conceivable way I can be assured of payment, I just do an appraisal and send it in.

Why didn't you just tell the phone chimp that the assignment would conflict with your podiatrist appointments.

 

[Randy Beigh]

Bobby

I had to think about why they would want the reason in writing.

A. To tell their customer why, in your own words.

B. To paper their file, AKA CYA.

C. All of the above.

I'm going for C. Somehow, it would be an annoying request. No matter, what the answer, the problem is theirs and they are attempting to pass their problem off to you. The only time I have considered a reason is dealing with the complexity of the assignment or the owners.

 

[Caterina Platt]

I'm with Raimo. I've gone ahead and done these. If it's a good client, I'll warn them upfront that there will be a few land mines ie. previous listing, and you may have to rework this with PMI. If it's a Johnny one timer and COD, well they got the honest appraiser to do the job.

 

[Randy Beigh]

I pushed the send button to soon.

What I'm saying is, you don't need a reason.

 

[Richard Carlsen]

Hey Boobie

You seem to be forgetting who you work for. (Must be too much cow chip dust in the air out there at the ranch me thinks)

I got on of these (or I should say a call on one) about 3 weeks ago. Owners estimate of value: $600,000. How much would I charge and how soon could I have it done so they could start throwing $1000 bills at the HO. About 2 weeks says I but since I have experience in that sub, this one has to be considered a complex assignment and my fee will be $500. 4 days later they said go!

Now I had appraised the house across the street last fall and had a good idea where values were but for the LO and his company to find that out, they had to get me inside of the house and pay my fee.

During my investigation of the situation, I found that there had not been a sale over $300,000 in the whole area, the house I appraised last year that had been on the market for over 1.5 years at $795,000 was now listed with a very good local MLS broker for $539,000 and had one showing since last December. In addition, I discovered that the subject had been listed with a non-MLS resort broker for $569,000. (Now where did the HO get $600,000 value if he's trying to sell for $569,000?) But one of the most interesting things I found out was that the property was transfered to a bank in 1999 by a sheriffs deed and the so-called HO is getting the tax bills. Could there be an unrecorded land contract floating around somewhere?

In the final analysis, they paid me $500 to find out that the HO is about $200,000 over priced in the market and I have no idea what they are doing about the loan.

My point is, if I had jumped to conclusions, knowing what I know about this resort, I could have cut that one off by simply telling the LO that there was no way they would get $600,000 in that development. BUT THAT WOULD BE DOING AN APPRAISAL AND GIVING AWAY THAT FOR WHICH PEOPLE PAY GOOD MONEY TO LEARN.

Don't ever reject an order just because of what the LO says the owner says the property is worth or what the HO wants to borrow. That is throwing business out of the window. You do not know what the property will appraise at until you do the report and you cannot do that unless you have the order.

However, if you do wish to reject orders on owners estimate of value or loan amount alone, please do not take up valuable bandwidth by posting how little business you have.

 

[Phyliss Crawford]

Would you guys consider it already doing the appraisal if he said "based on the fact that the property had been on the market for X days at X listing price, it may or may not appraise for homeowner's estimate". At that point you can give the client the option to get somebody else or you can proceed with NO predetermined value. Oh yeah, get the money upfront.