Webbed Feet
Elite Member
- Joined
- Feb 11, 2005
- Professional Status
- Certified Residential Appraiser
- State
- Canada
Mr. Biggers,
Since the buyer is your client my prior advice is out the window.
The above is not pertinent to your problem. If anything, it makes things worse. If it wasn't for loan purposes what was it for? About the only answer left is it was to advise the buyer regarding the sale and property. Which is a classic case of when NOT to knock out a report like it's for one of your normal clients. I personally perceive such an assignment as calling for a higher fee, around six to ten hours more work, and copious addendums. A classic "How the appraiser got sued" assignment.
This is also of no use to you now. The person hired you directly. They have a right to rely on your work regardless of their own professional status and what they should have known or not known.
The seller isn't required to disclose squat to you, nor does not meeting them have any bearing.
Due to the P.U.D. and it's amenities I would have used dissimilar comps from within it and ones up to a year old or more if I had to. Along with the outside comparable. Sounds like at least a five comp appraisal to me. It's unfortunate that so many of us in the appraisal field seem to believe three is the maximum number of comparables used instead of the minimum.
As the buyer is your client I now advise 180 degrees opposite my earlier advice. This was not a good piece of information to leave out of your first post. It's interesting a very experienced R.E. agent or broker obtained an appraisal for what must have been an all cash sale. You need to respond. Ignoring or trying to duck this could result in worsing the situation. Again, clearly this question from the buyer shows buyer's remorse and an implication is being made you over-appraised the property due to ignoring an external influence. Clearly, you discussed nothing about it in the appraisal so you have a problem. There can be a claim made you were hired to advise the buyer on the sale. My guess is you do not have a clear and concise engagement contract with this private party. Correct? I advise just the opposite of some earlier advice regarding E&O notification. No matter how friendly things seem at this point, it is time to start documenting everything and to call your E&O carrier. They do not raise your rates because you need their advice on what has a potential to end in legal action or a claim of some sort. Just the opposite. A good E&O carrier wants to get involved right now and go over your response with you. You've been paying lots of money for E&O, use their services. They are as vested as you in wanting to head this off at the pass before letters from lawyers start arriving. The above does seem to be your answer and explains your lack of addressing an external influence as you say there isn't one. But how you say it at this point is going to be important. Plus you need to respond quickly, kindly, and professionally.
Barry Dayton
Since the buyer is your client my prior advice is out the window.
The above is not pertinent to your problem. If anything, it makes things worse. If it wasn't for loan purposes what was it for? About the only answer left is it was to advise the buyer regarding the sale and property. Which is a classic case of when NOT to knock out a report like it's for one of your normal clients. I personally perceive such an assignment as calling for a higher fee, around six to ten hours more work, and copious addendums. A classic "How the appraiser got sued" assignment.
This is also of no use to you now. The person hired you directly. They have a right to rely on your work regardless of their own professional status and what they should have known or not known.
The seller isn't required to disclose squat to you, nor does not meeting them have any bearing.
Due to the P.U.D. and it's amenities I would have used dissimilar comps from within it and ones up to a year old or more if I had to. Along with the outside comparable. Sounds like at least a five comp appraisal to me. It's unfortunate that so many of us in the appraisal field seem to believe three is the maximum number of comparables used instead of the minimum.
As the buyer is your client I now advise 180 degrees opposite my earlier advice. This was not a good piece of information to leave out of your first post. It's interesting a very experienced R.E. agent or broker obtained an appraisal for what must have been an all cash sale. You need to respond. Ignoring or trying to duck this could result in worsing the situation. Again, clearly this question from the buyer shows buyer's remorse and an implication is being made you over-appraised the property due to ignoring an external influence. Clearly, you discussed nothing about it in the appraisal so you have a problem. There can be a claim made you were hired to advise the buyer on the sale. My guess is you do not have a clear and concise engagement contract with this private party. Correct? I advise just the opposite of some earlier advice regarding E&O notification. No matter how friendly things seem at this point, it is time to start documenting everything and to call your E&O carrier. They do not raise your rates because you need their advice on what has a potential to end in legal action or a claim of some sort. Just the opposite. A good E&O carrier wants to get involved right now and go over your response with you. You've been paying lots of money for E&O, use their services. They are as vested as you in wanting to head this off at the pass before letters from lawyers start arriving. The above does seem to be your answer and explains your lack of addressing an external influence as you say there isn't one. But how you say it at this point is going to be important. Plus you need to respond quickly, kindly, and professionally.
Barry Dayton