hi,

I received an order from a lender located in Phoenix for a newer property in a city south of Indianapolis. The house was purchased in 2004 for 104K. The lender called to see if I had a chance to look at comparable sales from the area When I told her about USPAP and that comp checks were illegal - she said "Oh, that just must be for Indiana" I went on to explain to her that it was all over not just Indiana but she kept talking and didn't really listed to what I was saying. She then asked if I thought her estimate of 200K was high? I didn't even answer Suprisingly, a few minutes later, the order was cancelled. I guess she figured it out.

Johalber

Next time explain the Charge is $350 for comp checks, the written appraisal is free...

Keep figting the fight....I now it is tough

hi Johalber,

When did comp checks become "illegal"? USPAP says you can do them, you just have make sure it's within the bounds of USPAP. But they certainly are NOT illegal. That's not to say they are without numerous hazards and pitfalls - but if decide you want to provide them, you can - you just need to watch your step.

Nesta

Actually, the way comp checks are done by 99.9% (my guess) of the hacks who complete them for LOs, who frequently are shopping for we-need-at-least $xxx,xxx appraisers IS illegal. This group does NOT log in the job, compile data nor open a file with the required documentation. They do NOT follow USPAP.

So, if my guess that only 0.1% of the comp checks are completed in the country legally is close to being correct, why are so many appraisers okay with comp checks?

johalber,

I never let the Loan person get to the point of asking for a comp check. Usually the conversation will start something like this. "I have a potential loan that I'm working on and since I'm out of State or out of the area and have no knowledge of values". This is usually where I interrupt them and just simply say if your asking me for an appraisal, then I need to see the property in question and then perform an analysis of similar sales. They then will say oh no I'm not asking for an appraisal yet, I just need to know if the owner's stated value is in the ball park. I then tell them that if I agree with a supplied number or give my opinion, then I've just performed an "oral appraisal" and that's not going to happen apart from me either knowing the property or visiting it and I certainly am not doing it for free. At this point they usually go away.

Olencia

hi Johalber,

When did comp checks become "illegal"? USPAP says you can do them, you just have make sure it's within the bounds of USPAP. But they certainly are NOT illegal. That's not to say they are without numerous hazards and pitfalls - but if decide you want to provide them, you can - you just need to watch your step.

Nesta

Loan officer asks, can I get 400K for this address, you say yeah. They send the order over, you call and make the app't. You write it up and send it in. Did you sign the report???..Better read CERTIFICATION #18.....


My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage loan application).

:D Next time explain the Charge is $350 for comp checks, the written appraisal is free...

Keep figting the fight....I now it is tough


Good reply, Tony! I always try to turn them into a client. Or you can send'em over to ZILLOW!!!!!!!!!!!!!!!

TN