Appraiser Rejected

By
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

Rejected is a harsh word.  Maybe a better word is "not accepted?"  Rejecting an appraiser is not always an easy thing to do, but it is a MUST if they aren't competent to perform the assignment.  Notice the word "compentent."  I use that word because that's the precise word, according to a fellow instructor, who is a Certified Appraiser teaching on this topic.

 

Why did I reject an appraiser due to competence?  The appraiser called to set the appointment time for the appraisal at my listing that is under contract.  I asked a simple question, "Do you use  a website to value owned solar panels?"   The appraiser answered, "No."  That one answer gave me all the information I needed.  

 

You see, valuing owned solar panels requires a formula and all of the data about the panels.  Inputting the data into the website www.PVVALUE.com  is required in order to provide value for owned solar panels.  If an appraiser doesn't use that website, how do we know the panels are being valued properly? Given any value?

 

Simply put, if an appraiser doesn't use that website then we don't know what method is being used.  That website is highly regarded and is included in appraiser education as the reference point for providing value for owned solar panels.

 

A few days later, the buyer's agent contacted me to ask why the appraiser was rejected.  Relaying the above to him, he then asked, "Why should my buyer pay for more for an appraisal to give value for solar panels?"  Another simply put, "Because the panels have value and your client will own that future value of energy savings."  And after that comment, I sent him the current energy usage for her information, along with every detail of the panels.  

 

Appraisals can be rejected, but you must have a valid reason for doing so.  Whether it's geographic location or appraising solar panels, make it clear up front what you are seeking from the lender immediately upon contract acceptance.  In this case, a "Green Qualified" appraiser. 

 

Even after telling the lender what I was seeking, the appraiser called anyway and was rejected.  Use this specific phrase , "the appraiser must be competent to perform the assignment."  Competency is a clear concise phrase and there is no second guessing what that means!  

 

If you're looking to buy or sell a home with solar panels, please give me a call.  It's my duty to be your advisor, fiduciary, and provide accurate data for solar panels.   Information provided by a home seller is required in order to relay full detail about solar panels to any potential buyer.  

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Comments (19)

William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have a list and if the appraiser is on it they don't get in.

Feb 15, 2018 03:52 PM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Good for you William Feela !   The list for any state is https://www.appraisalinstitute.org/education/education-resources/green-building-resources/

Feb 15, 2018 03:54 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

On one of my last sales, I had an appraiser, who I definitely felt was incompetent.  I've not ever rejected an appraiser, but understand why some may wish to.

Feb 15, 2018 04:48 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Good thing for your sellers you are a very competent agent who looks out for their best interests. 

Feb 15, 2018 07:03 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Jan,
Good for you!  I have rejected appraisers before.  Just told the lender why and they moved on to the next one.  Not a problem. 

Feb 15, 2018 07:30 PM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Sometimes we wonder  Myrl Jeffcoat !  Thank you for stopping by!

Feb 15, 2018 07:36 PM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Susan Haughton !  I appreciate your reading my post!

 

Feb 15, 2018 07:36 PM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Got to put your foot down Carol Williams !  Good for you!

Feb 15, 2018 07:37 PM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Jan. This is a text book example of doing the best we can to control our business from the less thans.

Feb 16, 2018 06:13 AM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Good for you Jan. That's why buyers and sellers need your experience and expertise on their team. Well done. 

Feb 16, 2018 08:51 AM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Sheila Anderson !  You describe that well :) 

You'd do the same thing Debb Janes EcoBroker and Bernie Stea JD !  Thank you!

Feb 16, 2018 09:04 AM
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Jan excellent information for many agents who do not understand how to make sure an appraiser is 'competent' before going out to a home. Well done! Great talking with you this am!

Feb 16, 2018 09:26 AM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Anna Banana Kruchten CRS,CRB !  As always, you are a great resource for all things ActiveRain!  Looking forward to our next Happy Hour!

Feb 16, 2018 09:39 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jan good for you to stand up and be counted, I am so glad we are not like five years ago, when we were not allowed to talk to the Appraiser because of Barney Frank and his hoodlums ....glad politicians are now less involved with Appraisals and Loans...Endre

Feb 16, 2018 10:00 PM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

You are so right Endre Barath, Jr. !  Not only do I speak with them, I ask them questions and interview them.  Works very well and non-confrontational.  Have a great day!

Feb 17, 2018 07:58 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

As I see it, Jan Green ... this is one of the great pitfalls of the current appraisal assignment system.  I understand the sentiment that Lenders need an "arm's length" relationship with appraisers, but LOs lose much of the control to send the most competent and appropriate appraiser to an assignment when this method is utilized.  As a former appraiser, some of the appraisals I see now as an LO give me the shivers ... 

Gene

 

Mar 12, 2018 09:53 AM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

I understand what you mean Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi !  The appraisal process we use in solar is in the income approach vs. the cost approach so I'm sure you can understand why I turn down appraisers!  I finally have someone who knows how to use the PV Value tool to give value to solar panels. Wish me luck!  Thank you for commenting and have a great day!

Mar 12, 2018 10:31 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

Sending MUCH luck your way, Jan Green ... hope you find the knowledgeable experienced Appraiser you need to successfully complete your transaction ...


Gene

Mar 12, 2018 10:39 AM
Jan Green

Thank you Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi !  Turns out, 3rd time is a charm.  He referenced the PV Value Tool that is necessary to value owned solar panels,  pvvalue.com! 

Mar 17, 2018 02:08 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Good for you for doing what needed to be done in this instance. I wasn't aware of that solar site, so thank you for that as well.

Mar 17, 2018 12:01 PM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Kat Palmiotti !  You will need it to value owned solar panels, green certified homes of any type to get value.  Did you know that New York is #10 for solar panel installations per capita in the US?  

Mar 17, 2018 02:10 PM
Kat Palmiotti

I did not know that!

Mar 18, 2018 02:50 AM