Switching from FHA to conventional

[Dale Floyd]

Sooooo, does every client Letter of Engagement need to indicate that results as expressed in a signed appraisal report cannot also be provided to other entities, possibly potential competitor clients? Or is that implied because of the appraiser's obligation to USPAP via a cert? Etc? Etc?

The Engagement Letter is from the client. If it includes things outside USPAP, don’t agree to it.

An appraisal can be given to anybody after the client receives it. And we all know of those instances. But our client relationship, confidentiality, certifications, and scope dictates who we are allowed to communicate about it. We can’t defend the report to those it wasn’t intended for, or for purposes it wasn’t intended.

I was questioned what purposes, other than the stated intended use, my narrative could be used for in court a few years ago. I said it could be used to start a good fire.

 

[Zoe]

Had it happen to me yesterday. House under contract. I already inspected the house, performed preliminary market analysis and all the field work. I probably would have finished it yesterday,
however, selling agent called and said the buyer has backed out due to health reasons, but I already have a new contract on the property and it is selling for more. I think new buyer is vet also. We can still use that appraisal can't we?

I already knew the answer but I called VA and VA said there is so many things wrong with that. You can't do that. SOW could change. You are already engaged by a lender and VA. You would have to go back again anyway and the list goes on.

VA said lender can cancel that assignment and you ask for pay on work performed. This is totally new transaction. I called lender and informed of situation.

There it is in black and white.

 

[Zoe]

The effective date cannot be in the past UNLESS you are completing a retrospective appraisal.

It will be a retrospective appraisal because the new assignment is ordered AFTER the original inspection date.

Give ME the lender's phone number, $50 and I will fix this for you.

Told you that me and you are right. If we could get $50 for your coaching?

Your advice could save some of these appraisers way more than $50.

 

[Zoe]

Agent wasn't real happy with me, but not my client. The selling agent will get over it.

 

[Zoe]

Hi, I have a lender asking to switch a report from FHA to conventional. They ask if it is required to perform a new order. What are your thoughts?

One more time. Totally new assignment.

 

[Tom D]

Yea, but it's the old appraisal with lipstick on it now. New assignment, looks good for new fee, some discount.