Someone gets it!

[Wendy]

I had a very refreshing conversation with a client yesterday.

Did an appraisal for them on a sale and came in much lower than the sales price. It was a bit tricky, but I felt confident in the value I reported. Client thanked me for my honesty and said they were going to tell the borrower to re-negotiate based on my report.

He also asked me if I wanted to see an appraisal that was done a couple of days prior to mine - it was ordered and paid for by the RE agent. Of course I said sure!

Surprise, surprise - the appraisal was right on the contract price. Used waterfront comps (subject was non-water front) and had big adjustments for "quality". Also failed to mention the huge number of dead ants all over the place. O'tay. All this BS was done for well under full fee.

2nd Best part of this whole thing - Client pointed out the fee and said "you get what you pay for". Woohoo!

And the best part - As we talked about all the yes-man appraisers out there the client said something we have all said over and over.....

Making the person ordering the appraisal responsible for the loan performance will assure only honest appraisers are used.

It is as simple as that. There would be no need for any other regulation if that one simple rule could get passed.

I'd love to see what the powers-that-be think about it. So simple - yet it seems to be eluding them all. Wonder why? :dry:

 

[Pamela Crowley (Florida)]

Wonderful!!!

Now, do what you know you need to do with that other appraisal.

 

[Dirty Harry]

Congratulations Wendy!

Now for the icing on the cake. Turn that bogus appraisal in to your state regulating authority.

 

[Mountain Man]

Ooooh, I'd be taking that client out for a lunch every now and then... that's a keeper.

 

[Tudor]

Excellent. Your one lucky appraiser, can't wait till I have one of those conversations.

 

[Wendy]

Making the person ordering the appraisal responsible for the loan performance will assure only honest appraisers are used.

It is as simple as that. There would be no need for any other regulation if that one simple rule could get passed.

I'd love to see what the powers-that-be think about it. So simple - yet it seems to be eluding them all. Wonder why? :dry:

Thanks for the good comments (& I will take care of the other report).

BUT - the thing I really wanted to stress was the part quoted above.

Has anybody in the political or regulatory realms addressed that one simple solution?

 

[Karl]

There are some of those type clients out there. (thats why I'm still doing this) No matter how much we like each other!! SORRY I'm not giving out the names of the ones I know, & hope anyone else that has these type clients is NOT foolish enough to give out the names.

 

[c w d]

I had a very refreshing conversation with a client yesterday.

Did an appraisal for them on a sale and came in much lower than the sales price. It was a bit tricky, but I felt confident in the value I reported. Client thanked me for my honesty and said they were going to tell the borrower to re-negotiate based on my report.

He also asked me if I wanted to see an appraisal that was done a couple of days prior to mine - it was ordered and paid for by the RE agent. Of course I said sure!

Surprise, surprise - the appraisal was right on the contract price. Used waterfront comps (subject was non-water front) and had big adjustments for "quality". Also failed to mention the huge number of dead ants all over the place. O'tay. All this BS was done for well under full fee.

2nd Best part of this whole thing - Client pointed out the fee and said "you get what you pay for". Woohoo!

And the best part - As we talked about all the yes-man appraisers out there the client said something we have all said over and over.....

Making the person ordering the appraisal responsible for the loan performance will assure only honest appraisers are used.

It is as simple as that. There would be no need for any other regulation if that one simple rule could get passed.

I'd love to see what the powers-that-be think about it. So simple - yet it seems to be eluding them all. Wonder why? :dry:

I wonder if this client of yours has "performance issues" or has "communication problems" within the company they work for. I bet he/she is an "under performer".

 

[Conservative in Virginia]

I had similar experience last week. I appraised under contract. The selling agent was not shocked. There is a similar (albeit a bit smaller) home pended for approx. 35K less - however this pended sale had superior upgraded kitchen. My appraisal went to MB who is a good guy. He did not argue like some do and appreciated my honesty as did buyer. The contract was renegotiated.. HOWEVER I find out Tuesday that the selling agent has begun to spread the word NOT to use this MB as he uses an appraiser (me)that does NOT make value!
Thats ME.. the deal killer.. guess I will go in the closet and hide.

 

[woodyva]

I had similar experience last week. I appraised under contract. The selling agent was not shocked. There is a similar (albeit a bit smaller) home pended for approx. 35K less - however this pended sale had superior upgraded kitchen. My appraisal went to MB who is a good guy. He did not argue like some do and appreciated my honesty as did buyer. The contract was renegotiated.. HOWEVER I find out Tuesday that the selling agent has begun to spread the word NOT to use this MB as he uses an appraiser (me)that does NOT make value!
Thats ME.. the deal killer.. guess I will go in the closet and hide.

If you are a realtor, or held a RAA designation from NAR they would be breaking ethics within their guidelines, not to mention you can sue the agent for defaming your character. I have had that happen a couple of times, and usually a call to the broker will shut them up. Last time I went to the broker on something like this he made the agent appologize on the phone in front of him. I walked away feeling sorry for her as I could hear in her voice she got creamed, but at least she shut up.

Realtors bottom line can not do that, and if they happen to be a non-realtor agent then the state board will also investigate.


WAY TO GO WENDY!!!