WRE bifurcated Survey

[Joe Flacco]

Yup. Liability is non issue with fees.

 

[Joe Flacco]

It's kind of like appraisers that want to charge $50 more to have to go do a property visit in a neighborhood where they might get mugged or shot.

 

[George Hatch]

You could make the case that the extra effort it takes to schedule the inspection so you can get out of town by 11:00 AM could justify the surcharge. And in turn maybe the extra time/effort an appraiser has to put in to one of these desktop assignments to compensate for what they're not seeing of the area as a result of not inspecting would warrant a surcharge there. Either way, that strikes me as more fee due to more work or effort.

 

[djd09]

I get approached by parties for whom I decline to do business because - regardless of the fee - I don't want to be associated with them.

you do that with AMC work. they hide the so call (scum) brokers carefully. nice model.

 

[George Hatch]

Kinda hard for me to understand exactly what you're saying above. Are you saying that the AMC's deal is with the mortgage brokers and not with a direct lender? If so then those appraisals would not be usable by a lender.

 

[Evincere]

^^^ Exactly.
.

Most people - myself included - don't think these hybrids are sufficient for ANY high LTV deal or ANY oddball property. Unfortunately, some of these lenders disagree with that and are willing to roll the dice.

NP rolling the dice - Lenders can stack the tables and roll the dice to their hearts content - so long as my license doesn’t get thrown into the kitty when they’re betting

 

[Terrel L. Shields]

If you really think your chances of getting sued or generating a complaint are significantly higher with a given SOW then there's no fee that will be worth taking that assignment on.

You can never predict when or who is going to sue you. And irate borrowers may call and threaten you but end up doing nothing. The lawsuit I was involved in came six years after the appraisal and out of the clear blue. No one saw it coming. Not me, the bank or the poultry company that was being sued. But "winning" is a pyric victory. I was still out about $6500 and 2 years of worry. Now guess what happens when you are pending a trial and your E & O premium is due.

As for complaints, there are less than 1000 appraisers in Arkansas. In an average year 40 complaints are filed. So in a 25 year career the average appraiser gets pinged at least once...and since over 50% plus of them are dismissed without a sanction-and in my state that means they complied with USPAP...so it isn't like only "bad" appraisers get pinched. Biggest complaints? Didn't hit the value or it involved a divorce or foreclosure. Foreclosure... can you predict who will go into foreclosure? That was the reason I was sued and another appraiser I know was sued for the same reason. He won that case. Also was a USPAP instructor until his death. He also had a complaint filed and he ended up driving to Little Rock before the board after the investigator recommended it go to the full board. He won there and said he E & O saved his bacon both times on cost.

So, one way or the other, you are charging to include the cost of a complaint. And like I said, odds are in a 25 year career here, you will get a complaint filed. So far I have dodged the complaint bullet but I didn't dodge the lawsuit bullet. So honestly, can you expect to get sued six years after the report was made? Low probability does not mean no probability. Serendipity rules.

SOW and low expectations of a "drive by" 1004P are not a "get out of jail" card and if it was, you wouldn't need E & O in the first place.