Unreasonable requirements?

[Richard Carlsen]

Got a list of requirements the other day from a prospective new client. Among the items "required" were the following:

1. A copy of the plat and tax rolls or property profile including some documentation of subject's living area, zoning classification and lot utility.

2. In addition to three closed sales (comps), provide on listing or pending sale in the market grid with photo and listing office phone number.

I find the inclusion of additional requirements not germane to the appraisal process to be unacceptable. In the case of the county records, we normally get the necessary data via phone. In one case, if we were to be doing a property in the south part of the county and were required to visit the county courthouse, it would be about a 76-mile round trip. I have told them that I will do it but that there will be a $100 up charge for gathering this data. (time & milage) Besides, what are mortgage reports for?

As far as including a current listing, I have never been able to understand how an offering has anything to do with my opinion of value unless there is an oversupply or under supply of similar houses on the market. But then, I address am required to address that in the report. Again, I have offered to include an MLS sheet as a scanned addendum in the back of the report but not in the sales grid. There will be an additional $15 charge for this inclusion.

Does anyone else find these types of particular requirements a problem?

 

[Charlotte Dixon]

Richard,

I wouldn't find them to be a problem. I wouldn't work for them, plain and simple. Sounds like BS to me! In addition, your fee for that long trip is too cheap. It's funny how a lender doesn't need all this extra nonsense if they know they'll have to pay through the gills, and of course, that's if you tell them you want to be paid up front because the deal might not fly! Now, as far as including listings, with V.A. Repos we are asked to do that and cite differences between the subject and offerings. I think in this case, listings are relevant. We are not permitted to charge for those, but that's no big deal, in my opinion. Send your prospective client packing!

Charlotte

 

[airphoto]

Richard,

Let's accept that we are a 'service' business .. and appraisals are our prime service. Similarly, the title companies are a service bidnez and much of what your client requires could easily be provided by the title company.

Having said that, take the attitude that you'll provide any reasonably available service that your client wishes at the rate of $100.00/hour plus $1.00/mile paid 'in advance!' Don't ever say 'NO' just name your value. If it's worth it to them, and important to them they'll gladly pay (might crab a lil, but they WILL pay!) If they don't choose to do bidnez with you that's equally well .. haven't wasted your time on losers!

 

[jtrotta]

Richard;

Why not offer them 3 sales and 3 lisitings and charge similar to Relo Fee, which will more than compensate you for your efforts. I believe the ERC is one of the best products around and is more market oriented; provides ample space for comments and provides area's in which you can comment on all six products. If it were used appropriately, there would less questions by UW's; our Fee would equate to the work load; and all would be much happier.


the lighter side 8)

 

[Jo Ann Meyer Stratton]

I automatically include several active listings, pendings, withdrawns, expired, etc in almost all of my reports. But then I am in a very larage area geographically but very limited number of properties for sale or sold. Dated sales (sometimes 1 to 3 years old) are also common in my report. Maybe the last three sales in the past twelve months are twice as big or half as small for GLA, on one acre instead of 30 acres or vice versus, etc, etc, etc. So the dated sales, listing properties regardless of status illustrate at least that there are other properties similar to my subject in my area. If I ever were to have a property that I found three model matches within the past six months--I wouldn't include those extras (after I picked myself up off the floor after fainting). But when dealing with my one of a kind property all that additional info informs me and any reader of my report (when they read my 3-5 page addendum).

 

[Blue1]

Richard,

Give them a list of your "requirements" and among them would be a request for a copy of THEIR appraisal license! :lol:

 

[Restrain]

The question is: Do you want their business. If you do, then comply or reach an accomidation as to the requirements. It sounds like a bulk lender with nationwide branches. Bank of American used to have such requirements. As to the listing, they want it to help evaluate the market (concerned about declining markets). If you think you'll get enough business to warrant providing the data, then do it. If not, go on with your life.

 

[Larry Lyke]

Richard --

What you aren't telling us troops is who the Lender is. It's what they say the meaning of "is" is -- BECAUSE -- if they are doing REOs, it appears to be a reasonable request.

HOWEVER, if you feel that they'll apportion the order entry differently ONCE you've sign up as a potential VENDOR, then there's more room for pause...

AS IN, they'll want those Listing Sheets upfront to try to pre-determine your potential for hitting their desired mark.

LIKEWISE, you're on the right track. Remember, as an Appraiser, you are the paid SKEPTIC.

HAVING SAID all of THAT, there's no reason not to sign up if you're looking for new business. SAMPLE them the EXACT same way they're sampling you. Tell it like it is from your perspective. You never know who will be attracted to your style of doing business. HONESTY might someday get you a customer! [You can always hope. Smile]

 

[Geoff Hatcher]

"1. A copy of the plat and tax rolls or property profile including some documentation of subject's living area, zoning classification and lot utility."

I typically provide a plat map, but tax rolls, property profiles and documentation of the subject's living area? Isn't that reported on the front page of the form and verified by the appraiser?

I physically measure every property, would be difficult to document Gross Living Area as courthouse records are often wrong, missing open family rooms, etc. Last week appraised a 2460 square foot house that court house indicates is 1800. Buying a small office building that the courthouse indicates is 4200 square feet that is 3700 square feet. Appraiser verification should be documentation enough.

Zoning classifications mean nothing without the supporting zoning text which can be pages in length. However I cringe when I get review on my desk, that the appraiser indicates a county use code rather than specific zoning. Did a house today on 1.8 acres, county use code is R511 other Residential, however specific zoning is LC-2. (Limited Office). It's current use is a grandfathered, non-conforming use, if more than 50% damaged, could not be rebuilt. Plus it has a completly different highest and best use. Needless to say, this order has been cancelled until the borrrower can find a commercial lender that can portfolio the deal. I would have no pity on another appraiser that may have got this order and failed to properly verify zoning.

I tend to look at competing properties and under contracts, due to the Principal of Substitution, however provide no documentation for standard URAR's on these.

Hmmm, didn't mean to rant and rave, but been a very long day.

Geoff Hatcher
Hatcher Appraisal Service
Columbus, Ohio

 

[bobburnitt]

Charge 'em what it is worth, make money on it. If you can't, tell 'em to stick it.

BB