Revision Request

[The Bob]

The better question is
what part of recognized appraisal methodology states that after an appraisal is complete,
the appraiser researches additional sales provided by an interested party?

Sounds like that's an entirely new assignment, requesting an entirely new opinion of value.

Hopefully those creating these second, more exciting reports, are commenting to their prior service of opining a value for the same property and clients within the past 3 years, and utilized the revised market value definition.

The most probable price that a property should sell for, when all agents, borrowers and brokers are happy.

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In my experience, the appraisal is a "draft" until the lender/client accepts it. Requests for "clarifications" or ROV's are just an extension of the request. And even though USPAP doesn't directly address this (at least as far as I can tell), in effect it's a "draft" until the client says it isn't.

If it walks like a duck and quacks like a duck, it's a duck.

 

[BRCJR]

In my experience, the appraisal is a "draft" until the lender/client accepts it. Requests for "clarifications" or ROV's are just an extension of the request. And even though USPAP doesn't directly address this (at least as far as I can tell), in effect it's a "draft" until the client says it isn't.

If it walks like a duck and quacks like a duck, it's a duck.

If what they want added or deleted from my "draft" is not relevant they got them an "appraisal" they may call a draft.

An appraisal is an appraisal if it walks like one......

 

[residentialguy]

In my experience, the appraisal is a "draft" until the lender/client accepts it. Requests for "clarifications" or ROV's are just an extension of the request. And even though USPAP doesn't directly address this (at least as far as I can tell), in effect it's a "draft" until the client says it isn't.

If it walks like a duck and quacks like a duck, it's a duck.

Tell that to the judge.

Oh, that signed report is just a "draft".

 

[jturner01]

Exactly. You can say the same with doing a Review. If you find that that there is a flaw in the value, then you have to expand your SOW and do your own appraisal, which you'd need to charge them way more for that. This whole "you're violating the USPAP because the results are contingent" is bull.

Got a question, but how do you determine that there is a flaw without completing an appraisal? I charge nearly full fee for review work because I automatically complete all of the work outside of filling out all of the forms. You are fully responsible for their work and if it goes to the state or litigation and you sign off on it.... you have to have a complete work-file, adjustments, and have reviewed all of his report, including H&BU, etc.

 

[residentialguy]

Got a question, but how do you determine that there is a flaw without completing an appraisal? I charge nearly full fee for review work because I automatically complete all of the work outside of filling out all of the forms. You are fully responsible for their work and if it goes to the state or litigation and you sign off on it.... you have to have a complete work-file, adjustments, and have reviewed all of his report, including H&BU, etc.

By indicators. If it appears that they have made mistakes that affected the value, then you have to do a full field review, with subject and comps. Much more labor intensive. If they didn't make that kind of mistake and you only have to check off page one on your office chair, you're going to charge them $900 like you would on a full field review? Now THAT would influence an appraiser to rubber stamp a review.

 

[Meandering]

Yup,
you can't certify to a draft

 

[jturner01]

By indicators. If it appears that they have made mistakes that affected the value, then you have to do a full field review, with subject and comps. Much more labor intensive. If they didn't make that kind of mistake and you only have to check off page one on your office chair, you're going to charge them $900 like you would on a full field review? Now THAT would influence an appraiser to rubber stamp a review.

So, how do you decide the fee without getting into the pre-determined results? I am honestly curious, because I did a lot of review work to cut my teeth and do not do as much now... Probably because there are a lot of guys who charge a lot less than me.

 

[BRCJR]

So, how do you decide the fee without getting into the pre-determined results? I am honestly curious, because I did a lot of review work to cut my teeth and do not do as much now... Probably because there are a lot of guys who charge a lot less than me.

You agree to a certain SOW, if that changes the fee is renegotiated.

 

[residentialguy]

So, how do you decide the fee without getting into the pre-determined results? I am honestly curious, because I did a lot of review work to cut my teeth and do not do as much now... Probably because there are a lot of guys who charge a lot less than me.

What BRCJR said. You let them know that the minimum is for example, $350 for page 1. If it becomes necessary to do a field review, then the fee will be $850.

 

[timd354]

So, am I violating the Management section when I agree to a "rush" fee that is contingent on me turning in a report at a certain date? What if I miss the due date and tell the lender they don't have to pay me the rush fee?

Not a violation since the due date does not affect the results of the appraisal