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This is what I will tell your client!

By
Real Estate Appraiser with Appraisal Pros in Texas

There is this appraisal area that creates confusion and sometimes hard feelings for your home owner.  Please know that I try to keep the peace as much as possible.  I do my best to explain and keep the home owner happy.  I am speaking about just who I can talk to about the value of the home I am appraising and why I can't just send a copy of the appraisal.

Depending on the scope of work for each assignment I accept I am limited in who I can discuss the value with. IF you are the mortgage broker, banker or agent who has hired me then I am not at liberty to discuss the value with your client or provide a copy of the appraisal unless I have a release from you!

Most homeowners are asked to hand over a check or money order for the appraisal fee before I leave their property.....in their eyes this means they are entitled to ask about value, ask for a copy of the appraisal.  Heck, I would feel the same way if I were in their shoes.  Heck, I feel the same way and I am not in their shoes.  Does this mean I tell them? NO it does not.  You are my client, not them...they are your client.

Due to laws I must follow I can not.  What I tell them is this.......Mr. or Mrs. Homeowner, I will be in your neighborhood for a while longer looking at sales comparable to yours.  After that I will be typing your report and doing the research on values in your area.  You report will be sent to your agent, (insert agent's name), and he or she will be calling you in a few days, I am sure.  If you need any further paper work for your agent now is the time to finish gathering it as I will have the report done in a day or two.  When your agent calls is the best time to ask for a copy of the appraisal report that way they can have it for you at closing or send it by email, however you two agree.   By law, your agent must give you a copy as long as  you have paid for the appraisal report. The same law says I cannot give you a copy unless your agent says I may.

I usually use those words as I am collecting their check.  I try to head them off at the pass, so to speak.  I would rather explain it first than have to first say "no".  It is so much easier to explain it first than try to make them happy after I've had to deny them something they really feel I owe them.

I wish I had a dollar (inflation, you know) for everytime I've heard:  "But, but, I paid you for the appraisal you have to give me a copy!".

If you are the type who tries to educate your client in the processes involved with the loan which includes the appraisal then hearing that they will receive a copy of the appraisal at closing or ??? then possibly you could explain to them first and my comments will be in support of what you have told them. 

 

Comments(5)

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Cathy Glass
Realty Executives Associates - Knoxville, TN
Realtor - Knoxville, Tennessee
Glad to hear it from the source...
Nov 05, 2007 10:22 PM
David Hintz
Accurate Appraisals & Consulting of AZ - Maricopa, AZ
AZAppraiser

The best way I have found to deal with this specific type of situation is  -  when I collect the fee (regardless of who pays it) I provide a full page receipt that I print off before I go to the subject property.  A full page receipt is less likely to get lost or misplaced and fits nicely in my work file.  I present two copies of the receipt for the homeowner/borrower/person paying to sign.  One copy for them, one copy for me.  I also have included two paragraphs on the receipt form that I point out to whomever is makeing the payment.  They are as follows:

Our report of the subject property will be delivered only to our client.  Under the confidentiality section of the Ethics Rule of the Uniform Standards of Professional Appraisal Practice we are under a strong obligation to our client and may not discuss the results of the report with others.  We can not provide copies of the report to others without written permission from our client.

Under 12 U.S.C.A. Section 1691(e), part of the federal Equal Credit Opportunity Act, a residential mortgage applicant has the right to receive a copy of the report from the client.  To receive a copy of the report, the applicant must request it in writing from the client within ninety (90) days of submitting the application.

This clears up any questions the borrower may have, plus it also imforms them that they are entitled to a copy - which on numerous occasions I have found the borrower was never aware of.

 

 

 

Nov 06, 2007 03:25 AM
Alisa McKeel Willson
Appraisal Pros in Texas - Huntsville, TX
Certified Res. Appraiser

Danielle, thank you! 

Cathy, thank you too!

David, I like your method!  It would be hard to argue with what you provide them. 

 

Nov 06, 2007 05:03 PM
Sara Goodwin
Estimation Nation Corporation - Portland, OR
Portland, Oregon Appraiser

Hi Alisa -
I also have a similar 'schpeel' that seems to help confusion and help the borrower better understand my situation regarding confidentiality. What drives me nuts is when they follow the protocal for receiving a copy of their appraisal and the Lender still won't release it.  More than once I've had to call the Lender and remind them of the law.  PS - It's nice to see your picture :-)

David - I like the idea of having the information on your receipt.  I might have to steal (er share) your idea.

Nov 07, 2007 02:29 AM
Alisa McKeel Willson
Appraisal Pros in Texas - Huntsville, TX
Certified Res. Appraiser
Sara, you are right...it bugs me too when the client is unable to obtain a copy of their appraisal the proper way.  I know many times it is out of fear  that they are loan shopping that many agents like to hang on to the appraisal.  That is why I tell the client it is a good time to ask when the agent calls to set the appointment for signing.
Nov 07, 2007 02:18 PM