The Sheriff
Member
- Joined
- Mar 21, 2007
- Professional Status
- Certified Residential Appraiser
- State
- Arizona
I paid for myself and my employees to take an REO class (just to see how we measured up to our competition). We had pretty good training on REO's prior to leaving our last firm at different times. However, after sitting through this class, I wonder how many people are entertaining REO work with an REO addendum for anything less than around $400. The reason being... Most of my REO work comes from one management company... and like most, they pay pennies on the dollar (but, it has been good supplemental work while I built my main clientele up and FHA rebounded).
Well... what the USPAP certified instructor stated, (who is part of AI, and also was the McKissock instructor) is that we needed to grid out comps that meet each one of our guidelines... from the client imposed "as-is" value, client imposed "repaired value", the "repaired value", and the standard "as-is" value.
She stated as soon as you place a second value on that report, you need a narrative summary of how you reached the value and gridded out comps to support that value. And this is for each value conclusion.
She also stated you need to change the definition of market value for each value, other than the "as-is" value, as the definition of market value has changed from what is on the form for the URAR 1004.
My REO with REO addendum return times to the client has doubled to almost six or seven hours to complete. Unfortunately, as my turn times are decreasing to my client, so will my volume of work from them.
I realize some appraisers utilize the management companies as their sole source of work... However, I've been fortunate not to... but since taking this class... I'm not sure how much more I can take with the standard $50 REO addendum fee that seems industry wide due to a lack of appraiser knowledge on how to complete these addendums correctly (yes, we're there as well).
I called my old boss and discussed this with him... and we both had a similar view point after he made a phone call to his chief appraiser for his firm (an old AI president)... but who is really reviewing the REO work... it's not like a 1004 on a refi or sale... I'm not changing how I write them as I'm more compliant to what the instructor taught us... but I had one the other day that had nine comps just to justify each value.
If this post helps anyone... congrats... if you read it and disregard it, I'm just wondering is there any real recourse with these assignments? I don't have that many in my name floating around before the class... however, one of my employees does and he is kicking himself somewhat.
Sorta like a manufactured home... I took a manufactured class with AI and Richard Hein (I believe that was his name) right before getting licensed... Thank God! Because my manufactured work is a work of art now (not like JoAnne Stratton's work), but damn, I try to get the report to that level.
Matter of fact... with my employees, as a way to protect them, if you haven't taken a class on appraising that type of property through AI or McKissock, I won't give you the assignment (reduces their liabilty and keeps my firm's rep looking good as the report's aren't boiler plated throughout). This forum is helpful... but nothing can top a real class with an instructor who know's their stuff.
Well... what the USPAP certified instructor stated, (who is part of AI, and also was the McKissock instructor) is that we needed to grid out comps that meet each one of our guidelines... from the client imposed "as-is" value, client imposed "repaired value", the "repaired value", and the standard "as-is" value.
She stated as soon as you place a second value on that report, you need a narrative summary of how you reached the value and gridded out comps to support that value. And this is for each value conclusion.
She also stated you need to change the definition of market value for each value, other than the "as-is" value, as the definition of market value has changed from what is on the form for the URAR 1004.
My REO with REO addendum return times to the client has doubled to almost six or seven hours to complete. Unfortunately, as my turn times are decreasing to my client, so will my volume of work from them.
I realize some appraisers utilize the management companies as their sole source of work... However, I've been fortunate not to... but since taking this class... I'm not sure how much more I can take with the standard $50 REO addendum fee that seems industry wide due to a lack of appraiser knowledge on how to complete these addendums correctly (yes, we're there as well).
I called my old boss and discussed this with him... and we both had a similar view point after he made a phone call to his chief appraiser for his firm (an old AI president)... but who is really reviewing the REO work... it's not like a 1004 on a refi or sale... I'm not changing how I write them as I'm more compliant to what the instructor taught us... but I had one the other day that had nine comps just to justify each value.
If this post helps anyone... congrats... if you read it and disregard it, I'm just wondering is there any real recourse with these assignments? I don't have that many in my name floating around before the class... however, one of my employees does and he is kicking himself somewhat.
Sorta like a manufactured home... I took a manufactured class with AI and Richard Hein (I believe that was his name) right before getting licensed... Thank God! Because my manufactured work is a work of art now (not like JoAnne Stratton's work), but damn, I try to get the report to that level.
Matter of fact... with my employees, as a way to protect them, if you haven't taken a class on appraising that type of property through AI or McKissock, I won't give you the assignment (reduces their liabilty and keeps my firm's rep looking good as the report's aren't boiler plated throughout). This forum is helpful... but nothing can top a real class with an instructor who know's their stuff.