The third party

[Paul in bama]

Every has been there, you do an appraisal for a mortgage broker (see also 'middle man') who then shops the appraisal around to investors. Would you consider the investors to be a third party? The reason I ask this: in my area (SE Alabama) some of the orders I get are way out there in the boondocks. It is not unusual to have comps 10 miles away from the subject, especially if it is a large house in an area with nothing but peanut fields around it. It doesn't matter how many statements, comments, whatever, that you put on the appraisal, they always come back saying that the investor wants 3 more comps within 5 miles of the subject. As far as I am concerned, I did the appraisal for the mortgage company who's name is on the appraisal, not for the 10 out of state investors that they are shopping it around to.

Lately there have been instances where they loan is already closed with the local company, then they shop the mortage around, it is then they call wanting things added to the appraisal. The transaction that the appraisal was intended for is done, shouldn't that mean my work is done?

Thanks for listening to my ranting.

 

[Verne Hebert]

First things first. This is Friday and I thought "the third party" started about midnight.

Just Kiddin'--long week.

These are "supplemental requirements", you job is done.

Tell them you are elated to extend your professional services to them for their additional, and supplemental requirements.

How about $ 100 a comparable?

That is how I handle it here..................and often sales are no closer than 10 miles.

Have a good weekend!

 

[Pamela Crowley (Florida)]

Hey Verne, are we related? :lol:

Paul,

Ditto to Verne's post.

 

[George Hatch]

I include the following verbiage in all my appraisal reports. I've used it for years now:

It is intended that this appraisal and appraisal report meet or exceed the minimum requirements of the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), the minimum appraisal regulatory laws administered by the California State Office of Real Estate Appraisers (OREA), as well as the Client's requested guidelines. Any additional requests by third parties must be requested in writing, and may be subject to additional billing to recover the costs associated with such requests.

In other words, I wrote this appraisal for my Client. If I err within the scope of my original engagement I need to fix it, ASAP. However, if you (Mr. Third Party) have additional requirements beyond this, I reserve the right to bill you for my time. To date, I have not received a single request for stupid stuff. I think it's the warning that they might have to pay for it.

George Hatch

 

[Pamela Crowley (Florida)]

Thanks George! I always learn something from your posts.

 

[Mountain Man]

I love this forum :!:

 

[Tim Hicks (Texas)]

George,
You just changed every one of my future reports. thanks

 

[BarbaraNJ]

Paul.......

Maybe I am misunderstanding something, but it seems that you are being asked to discuss/defend a report with someone other than your client.

When I am asked to do this, I state that I cannot share any information about the report (including how it was developed or how I arrived at the value) unless I have something in writing from MY CLIENT to place in my file.

Nine time out of ten, the client is too lazy or too busy or too forgetful and never supplies the letter. As far as I am concerned, I'm off the hook, and don't need to look at this file again.

I have been in this position a few times, and the problem is with your client. They are so intent on making the loan, they seem to be ignoring what their people want. They make the loan, pass on the report, and then the questions begin. I have to agree with the other posts; you did the work, they accepted the work and had the opportunity to question your report at the time of submission. Any additional research should be at additional cost to the requester.

 

[George Hatch]

OOOPs!!

In my last post, I inadvertently left out a very important clause. This is what I get for writing things on the fly...

It is intended that this appraisal and appraisal report meet or exceed the minimum appraisal standards as defined in the Uniform Standards of Professional Appraisal Practice (USPAP), the minimum requirements of the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), the minimum appraisal regulatory laws administered by the California State Office of Real Estate Appraisers (OREA), as well as the Client's requested guidelines. Any additional requests by third parties must be requested in writing, and may be subject to additional billing to recover the costs associated with such requests.

Sorry 'bout that. I bolded the addition. I normally include this paragraph as it shows above, not as my previous post appeared. Incidentally, it's no accident that USPAP shows up on the list first and the client's requested guidelines show up last.

Truth to tell, I probably lifted parts of this paragraph from other appraisers' reports I've seen over the years. I don't think there's much in the way of original thinking going on here. Form follows function.


George Hatch

 

[Mike Garrett RAA]

Nice work George, I am going to use your statement in my addendum also....with your permission, of course.