When do you decide to decline the order ?

[lmichels]

I like to go through the competency liturgy - "If I were to accept the order, USPAP would require me to become competent to appraise this which would take me approximately X weeks. I charge $XXXX per week - if you would like to pay me $XXXXX, I'll be happy to complete the appraisal for you. By the way, I am required to disclose in the appraisal that I wasn't competent when I started it, and what steps I took to become competent". They run away.

 

[Mary Tiernan]

So, why are there no comps? Is this a complex assignment? I have declined those after seeing the property, and explained to the client this is a complex assignment and requires the services of a certified appraiser or someone more familiar with this type of property.

 

[Mike Kennedy]

I know that location plays a large part of it, if you receive an order that is witnot in an area that you are familiar with, and don't have the time to learn the market before producing the report.

Refer it to a colleague who IS geocompetent who will reciprocate; client wins, colleague wins, I win. :icon_idea:

 

[Brockway]

When I am busy, I decline orders from companies who don't normally use me. I turn down most field reviews because they usually turn into a headache. I turn down all assignments that need a 1-3 day turn time. And I only accept assignments from homeowners when I'm slow unless a realtor or one of my clients recommended me to them. I find that homeowners are a pain in the butt because they don't know how to read a report. Of course, I don't turn down much when I am slow or when I need extra money for something (car repairs, house repairs, etc).

Recently, I inspected a property and declined the order because it was a mixed use property and I am a residential appraiser. Plus, the lender basically asked me to commit fraud by calling part of the first floor (a business since the 1950's) residential so they could go FHA. Some Skippy did complete this order and it closed. Yes, Pam has this file.

 

[Marcia Langley]

I don't decline orders.

I tell them, up front, that there are no guarantees. They ask for a value, I provide it. That is my job. I collect at the door or they agree to pay regarless of outcome. They get the report. There is no bull**** about comps. there is no bull**** about condition. They hire me to tell them what it is worth. Not to make the deal. Not to meet some UW conditions. They agree to my terms, or THEY decline the assignment.

I have never stopped an order due to the physical viewing of the property, however, conversations on this board have made me think hard about some issues I have not encountered, yet.

Overall, if I'd rather err on the side of completing a POS (for whatever reason) assignment than on the side of letting the client move on to skippy.

I do understand that some clients have minimum property requirements but when does that become unreasonable?

For example, if the order form instructs that the client does not loan on manufactured homes and you don't know it is until the visit, You'd have to call the client and inform them. The client will probably cancel the order.

I guess my angst hinges on the difference between allowing the client to cancel as opposed to me declining.

Where is the line crossed between giving the client a legitimate heads up and giving him a heads up that he should not have; like 'the value is not there'?

 

[Couch Potato]

Keep a list.

Refer it to a colleague who IS geocompetent who will reciprocate; client wins, colleague wins, I win. :icon_idea:

Clients love it when you can help them find an appraiser and appraisers love it when people send them business. If you don't have a list of appraisers that suround your area, start one.

Aside from being out of my area, I decline orders based on property type, value guarantee demands, requests to commit fraud and payment issues.

I think discussing unusual inspection findings with the client is always a must. Such things alter the scope of work, and USPAP requires we discuss the scope of work with the client. Most unusual items can be handled in multiple valid ways. Under the scope of work rule, an appraiser should be using the valid way the client prefers.

 

[Oregon Doug]

... #1 reason is that they want me to guarantee the value before doing the appraisal(call if the value isn't there, any value problems call first, call if the value isn't supported, etc....

Tom - have 'em call me - I'll be glad to take care of 'em (we need a few more $ in the state's general fund anyway). I always do thank 'em for their support.

Oregon Doug

 

[Terrel L. Shields]

Just wondering where in the process that each of you decides to decline an order.

ring ring "Whatzyerfeeandturnaroundtime?"
method 1 - "If you have to ask, honey, you can't afford me."click

method 2 - "I'm sorry, I don't work for mortgage brokers."click

method 3 - "go away, you bother me."click

ring ring - "we are thinking about selling our home and we know its worth at least $500,000."

method 1 -"sounds like you've already appraised it. don't need me."click

method 2 -"sure. list it with Teresa **son. My nephew doesn't like wasting time listing sure losers."click

ring ring - "You appraised a property for us 12 years ago and we need an update."

method 1 - "i'm sorry there's a bad connection....i can't hear you."click

method 2 - "I charge $100 to update an appraisal...per year." click

 

[Peter LeQuire]

Gosh, I wish I could afford to turn down all assignments that aren't cookie cutters: there are days when I'd do an appraisal with model match sales in the SD for nothing (BTW - what does "model match" mean? All our model matches come with wheels.)

I also turn down most requests that start with the "Whatzyerfeeandturnaroundtime?" question; and most requests from past clients that are PITAs.

I also price my work based - in part - on my perception of the difficulty of the assignment, which has the effect of running off a lot of the problem properties and the problem assignment (for instance, when heirs are squabbling).

But I also take a lot of difficult work because it's challenging, it's not cookie cutter, and it can lead to higher fees.

 

[Mike Boyd]

I decline orders all the time. 4 or 5 today alone. Mostly due to location or a ridiculous turn times. We decline them if the borrower is a PITA when trying to schedule. If they are a problem early they will be a problem late.

Any order where they push for value right away either from the borrower or from the LO. We will decline anything that might get us field reviewed. Bad comps, rural location or any other weirdness. Frankly we are too busy for anything other than cookie cutters. I am at the point where we will soon no longer do plans & specs or brand new houses. The land home things are always a PITA because they always come back wanting more value to cover change orders or cost overruns. The new ones need comps from the builders that I cannot verify properly.

Nope, give me a nice cookie cutter refi with 4-5 model matches in the last 6 months. I gave up on 203K deals months ago. It seemed like those things would never die.

Do you actually get enough of those to make a living? What kind of an area is it that only has cookie cutter homes to appraise?