Too Much for the Money?

[Joker]

I had an appraisal request today and wanted some other input on it. I can count on other appraiser's for their opinions :lol:

I was asked to do an appraisal and include the following:
1. As is value
2. As improved value
3. Interior Photos
4. My opinion of recommended repairs
5. Estimated cost to cure based on my suggestions
6. 3 comparable listings (grided with adjustments)
7. MLS printouts for the listings
8. Photos of the listings (not MLS photos)

Problems/Concerns I had with this: 1.) MLS is not widely used by all realtors in the area of the property. It represents maybe 50% of the sales and listings. FSBOs would be left out, even though they may be more comparable.
2.) Griding out listings could be misleading because: a) who is to say the sales price is anywhere near the asking price, B) what about sales concessions, etc. c) What about DOM? d) The market here is flooded with about 16 months worth of listings at the current sales rate, assuming no more listings. e) Many people are offering their homes for sale at above market rates. f) Sales are down in numbers.
3.) I am not a home inspector. If I suggest improvements or overlook others, am I not opening a can of liability worms?
4) The requester wanted a 3 day turnaround and was willing to pay $275.

When I asked if the home was in bad shape or why they needed as is, as improved, and recommended repairs, the response was "we always ask for that." I have never worked for this lender before. Is this type of request normal? I have never had it in 9 years. Work here is SLOW and I would appreciate the businesses, but had to pass. Am I crazy?

 

[BigBlueGA]

I wouldn't say you're "crazy" but that is not a farfetched assignment.. only thing that is out of the ordinary is that fee.. we get a little more than that for those. Usually it is a management company trying to sell a REO property for a bank.. you normally get them on the trashy properties that aren't selling. They want a good value for marketing purposes and to try and get it off of their hands quickly.

 

[BigBlueGA]

Also, we've never had problems with the lenders on these appraisals. They usually are pretty good about paying (at least the ones we do these for are).

 

[Randy Beigh]

Doug

Sounds like an REO and yes, they are often trashy. In fact, I have often joked that these are the only properties where the homeowner leaves their furniture and clothes behind, but steals the light fixtures.

The requests are quite common for REO's. The fee implies a management company. I have said many times on this forum. You decide what your fee is based on the amount of work involved, not what someone says they will pay. If you feel you are being underpaid, negotiate a fee that is more approriate for the assignment. If they decide to not hire you, so what. Working for free or being underpaid is not a good business practice.

If you do not have enough MLS listings/sales, disclose that to the customer. Why is that different from anything else?

Good luck

 

[Joe Birrell (NY)]

Ditto what Randy said. Your not crazy, but they are at $275 !

 

[rtubbs]

Doug, I recently had a similar request and they wanted a quick turnaround. I told them that I could have the appraisal to them within 2 days-after receipt of the appraisal fee (higher than you're being quoted). They agreed. Apparently the AMC had to get the fee from their client. I received the fee within a week and had the appraisal to them within 2 days. It worked so well that time, I think I'll continue with that upfront policy.

Good luck.

 

[EDWARD BERRY]

Good REO assignment, true appraising--not blank filling in--

Love them(not at that price) , you should not have much competetion on this type because they do not know the sales price.

Make friends with a title CO and they can help with Sales.

GO FOR IT-ed in Arkansas

 

[Thomas N. Morgan]

Doug,

The first time I got one of those (not too long ago), I put the same question to the Forum as you just did. Several members on this forum said, "Oh, that's par for the course. We get those all the time".

Did your instructions also say 4th comp. must support value reported? Who ever thought that one up?

Doug, those are a real pain, and for the very reasons you mentioned.
I told them I would do it for a figure that was a little more than 1.5 times my regular feet. We settled on 1.5 times my regular fee. I did them, but was not happy with the fee, and again, for the reasons you mentioned. Mine were dbl.-wide mfg. homes, one on acreage, and both 15+ miles from town.

There is no way, as far as I know, to get an accurate estimate from Marshall & Swift of how much it would cost to clean the home and grounds up, and make repairs to a trashed mfg. home. In this area, the repair of trashed and foreclosed mfg. homes is a specialty. I have had to impose on the good will of a man in that business to get accurate estimates.

If I never get another assignment like those, it'll be OK with me.

Thomas N. Morgan
Ocala, FL

 

[Pamela Crowley (Florida)]

I'll go along the other posters, especially regarding the fee which should be almost double what they offered.

 

[Karl]

WOW! That is definately REO Agree with most everybody You want a larger Fee. If we didn't do REO's we'd have a lot of free time. REO's with hefty fees are the best work because they want the Truth the whole Truth & Nothing but the Truth. NEVER did an REO while back EAST but out here they are becoming the Norm.