Reviewers - Are you aware that you are providing 2 services?

[P.Johnson]

Does anyone know of a good certification and USPAP addendum for a residential review where we are required to give or concur with the value? After and hour of reading, I now know that I am charging way too little. Per USPAP, the review requires the review, as well as all of the requirements of an appraisal per Standard 3. Anyone still doing reviews for less than the cost of a drive-by probably have not read USPAP. Does anyone know of a good standard form to help comply??

 

[The Bob]

Yep. Its two assignments. You need to cover this in your scope of work and charge accordingly.

 

[jtrotta]

PJ

all my reviews carry a short paragraph which explains why we cannot provide an Estimated Value - when we accept the assignment, we ask if they want the review done in compliance with USPOOP and they always say yes, therefore, when we review we include the caveat.

Too Shay Away :roll:

8)

 

[Tim Hicks (Texas)]

Yes, it is two assignments. I quote a full fee and rarely get turned down. Once I explain the process and the likely work to be done, they usually accept the fee. When I explain that my review must have no "holes" in it and be able to withstand rebuttal and possible State Review, they understand the fee.

I include the drive-by limiting conditions and a separate USPAP/FIRREA addenudum with many disclaimers and scope of work verbage.

It is all too common for me to cover section 6 with a text addendum stating why the comparables used are not the closest, most similar sales available.

It is all too common for me to cover section 9 with the comment, "considering the discussion in section 6 regarding the sales utilized in the report, commenting on idividual adjustments serves no useful purpose."


Section 12 is almost always a text addendum with many disclaimers about "exterior only", "subject property as described in the original appraisal report", "a full inspection is recommended to properly address the value and confirm subject data", etc.

I usually have to grid three comps that are more similar and state a estimated value as instruucted in section 12.


Keep in mind, that I review "dirty" reports 99% of the time. I usually get the retrospective field reviews on foreclosed properties in high foreclosure areas. I rarely get the "rubber stamp" field reviews that many appraisers get. However, don't get the idea that I am a head hunter looking to shoot down appraisers. I did agree with values on two reports last year. The were clean and the comps were actually from the same neighborhood.

 

[Mountain Man]

"Keep in mind, that I review "dirty" reports 99% of the time. "

Same here, if they are calling for a review.....it is not likely to be pretty. I also charge my full fee, it is the same as a drive by appraisal. I even have some clients that order a 2055 drive by instead of a review.

 

[Pamela Crowley (Florida)]

I charge full fee and sometimes more. Do them similar to Tim in TX. I have also had one that I sent back as excellent and a couple of others that there was nothing substantially wrong. The majority are not good at all. I don't get many review orders. I'm horrified by the names of some of the number hitters that are doing a lot of reviews at minimal fees. What a sick joke! I think most of them have never read USPAP and slept through all the CE classes.

 

[Dean House]

I once worked for an appraiser who instructed me to agree with ALL of the reviews we did, no matter what. His theory was that he didnt like it when someone reviewing his work would pick it apart and disagree with value, so we should all sitck together and pretend all is well in the world. And the worrying thing, he was assigned a lot of reviews to perform, partly because he always agreed, and partly for the $150 he would charge.
Now, I charge at least $250, because inevitably, youre going out there to find three new comps!

 

[Tim Hicks (Texas)]

Dean and others, I am not into price fixing or discussing fees, but when I say full fee I mean nothing less than $300. Field reviews take more time, effort and more CYA than any other report. Get paid accordingly! Many appraisers say they will not do reviews because the fees are too low. Well, aren't all fess negotiable? Poor excuse! Also, there are still many, many appraisers doing field reviews with the same attitude as you describe. Rubber Stamping everything that comes across their desk. These are the same appraisers that fail to miss any value, sales price, or wildest dreams value to remove PMI. There are also too many appraisers that want to label field reviewers as head hunters or "mindless idiots". The problem is that the field reviews are done by a segment of an appraisal pool that is wrought with "mindless idiots", "hidden aggendas" (take every other appraiser out), and just plain incompetent. The same pool appraisal assignments lenders are fishing from. There are going to be bad reviewers, just like there are bad appraisers. We have to sort them out, too!