The following addresses some of the common sources of confusion I encounter with clients.
C. O. D. ORDERS:
I never assume that an order is C.O.D.. The Client must specify in writing if I am to collect at the door for each and every C.O.D. order. For everyone's protection, all orders are to be faxed, mailed or emailed to me, so that I have written instructions on your intentions. Client accepts full financial responsibility for all appraisal assignments. For C.O.D. orders, I can not release an appraisal or give a verbal unless the check has been collected from the property owner.
CANCELLATIONS:
There is no charge for a canceled order if it is canceled before the property is observed. If the property has been observed, I will charge $100.00 to cancel the order. Once the appraisal report has been completed I will have to charge the full fee.
INVESTMENT PROPERTIES:
Although single family rental properties almost always require the completion of a rent schedule and operating income statement, do not assume that I automatically complete these if I am told the subject is an investment or rental property. The additional forms must be specifically ordered in writing. Additional cost will apply for Single Family Residential Homes.
ADDITIONAL COMPARABLES:
All of my appraisal reports are guaranteed to conform to USPAP, Fannie Mae, Freddie Mac, or FHA and lender guidelines and the comparables utilized will be the best available at the time of the appraisal. If better comparables were available or the above mentioned guidelines were not met, I will provide additional comparables at no charge. In all other instances I will charge for the additional comparables as per my fee schedule.
CLIENT CONVERSIONS OR TRANSFERS OR RETYPES:
Per Uniform Standards of Professional Appraisal Practice, client conversions will be processed as a new assignment with a new effective date, provided a client relationship no longer exists between the original client and the appraiser.
A NEW ASSIGNMENT THAT INCORPORATES BY REFERENCE A PRIOR REPORT:
(Fannie Mae's guidelines effective 06/30/2002— Section 201 - Age of Appraisal –an update of an original appraisal report) Per Uniform Standards of Professional Practice published 01/01/2003, Advisory Opinion 3: Update of a prior report, a new assignment with a new effective date of the opinion value may be reported in one of three ways.
When there has not been any changes in either the subject property or marketing conditions for the subject, a letter type of report that incorporates by reference the original appraisal report that included an interior observation, will be completed for only the original client up to four months from the effective date of the original appraisal. When there have been significant changes that have occurred in either market conditions or to the subject property and/or a new effective date that will be more than four months after the original effective date, I will offer to the original client a new standard appraisal report for a discounted fee at my discretion. In compliance with the Uniform Standards of Professional Appraisal Practice, a Recertification of Value will only be completed for new construction when there is not any changes to the original effective date, current market data is not considered and the subject property was completed per the original plans and specifications .
FINAL INSPECTIONS:
All appraisals that were made subject to completion per plans and specifications, or made subject to repairs or alterations are subject to the appraiser completing a final observation when the work has been completed. Note: The appraiser is NOT a property/home inspector; observation will be for completion of proposed items only. Please be certain the work is complete before ordering any final inspections. If the work is not complete, I will have to charge you for each additional observation. Items of a technical or mechanical nature should be inspected by the appropriate licensed professional.
VERBALS:
When requested, verbals will be given after completion of the report solely to the client/lender named in the original appraisal report. Client/lender named in the report will be responsible for payment of the fee. I define the client as the party who actually ordered the appraisal and who is shown as the client/lender on the report. Under no circumstances will any other party such as borrowers, real estate agents, or sellers be given a verbal value estimate or any other discussion about the report and will not be provided with any copies. Please understand that once this value is given, the appraisal report is considered complete and the full fee will be charged.
BROKERS:
If you have chosen a lender who the loan will be brokered to, please inform me at the time the order is placed. Every lender has their own list of "approved" appraisers as well as unique guidelines other than those specified by Fannie Mae, Freddie Mac, FHA, etc. If I know who the lender is we can avoid possible underwriting or approval problems.
In Compliance with the Uniform Standards of Professional Appraisal Practice, the engagement and compensation of the appraiser in an assignment will not be contingent upon developing or reporting predetermined results, opinion of value or direction of value, attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of the appraisal assignment. There is a fee for all professional services rendered. In compliance with the Ethics Rule of the Uniform Standards of Professional Appraisal Practice as illustrated in Advisory Opinion 19, "comp checks", "pencil searches", "ballpark figure", etc will not be offered. A phased assignment may be arranged with payment of fees in advance and each phase of the assignment will not be contingent upon developing or reporting a predetermined result.
