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Five Step Program for Honest Appraisers - read story

> I read Phil’s article in Working RE Online and think it carries a valuable message that should be heard by all of Oregon ’s licensed and/or certified appraisers. As such, I am requesting permission to reprint the article in the newsletter our agency publishes twice a year. I would be happy to give proper acknowledgement to Phil and Working RE magazine. - Bob Keith, Administrator Oregon Appraiser Certification & Licensure Board


> I am an independent fee appraiser working four large, sparsely populated counties in Eastern Oregon . There aren’t many appraisers out here. And as the refi market fades so do prospects for work. Rather than take the ‘all bets are off’ approach to work, I chose a different path. I upgraded my software package figuring that will cost me the profit on two appraisals a month and am e-mailing clients to stress continued integrity and more services. If someone wants a ‘meet value’ appraisal, I will happily give them the names of all four other appraisers in the area.

 

There are still lenders who want to know what the value of a property is and they are who I want to work with. Those “meet value” appraisals are the ones who will come back to bite you. Meeting value usually means the client is in money trouble. Quite often these properties soon go on the market with the inflated appraisal value as the asking price. You don’t need me to tell you what happens next. Thanks. Keep up the good work.  - Dave Mead 


> After working as an appraiser for more than 18 years, I’ve encountered all of the changes in the industry from the days of hand-written reports to AVMs. During all this time, I haven’t met a mortgage broker, originator or agent who doesn’t want the deal to work. Being that an appraisal is one person’s opinion based on the best facts available, it comes down to how stretched your conscious has become as an appraiser. Do the years tend to break your resistance to: “I have a qualified buyer, ready, willing and able to pay this amount?” “Who are you to dictate a low value?” Or “Come on, you can’t find another $5,000 in there somewhere?”

 

After enduring many years of this torture, I found going up a little in my prices taught my less than perfect price seekers to look elsewhere for a number. Doing first class work and the proper due diligence takes a bit longer than it used to, so when you have become comfortable with your own talents as an appraiser, you realize that your work is worth a bit more (just don’t price yourself out of job).

 

Get to know your clients. Don’t be afraid to ask questions ahead of time. Be specific in what you will and will not do and gently say what you can’t do, like guarantee a number. If you pick your clients carefully and ask around about what others think of them, you will stand a better chance of having a long-term and positive relationship.   

Lastly, give more than your competitors do. One thing everyone wants now is great communication; with email this is easier than ever. Beef up your report with better and more up-to-date details and demonstrate your higher technical ability. Don’t forget that you are in the service business and apply the golden rule. - Jim Thompson


> You would be surprised how much of this article fits the inspection industry.  Me?  I'm too damn slow and thorough.  I've lost a lot of agents but you know what, I put out a damn good report and I'm not going to half ass it for anyone.  Thanks.  I enjoy your articles and your attitude. - Gary Powell


> We at the American Guild of Appraisers OPEIU  AFL-CIO contacted everyone that we could regard the inflation of values and the pressure put on appraisers to inflate. We spoke to Fannie Mae in direct meetings with them. We spoke to major banks, Congressmen and Senators about inflated values and the ethics of agents, mortgage bankers and banks. All turned a deaf ear to what we had to say. This includes AFL-CIO pension fund administrators (who are bankers hired by AFL-CIO). We also spoke to the FBI on a number of cases and they didn't want to hear about it. Several turned into major scandals that could have been prevented if the FBI would have done something. In a single family sale, the bottom line is that greed prevails. Agents control the broker in the deal by threatening to take the business somewhere else if the value doesn't come in. The broker who works on commission also bows to the agent who works on commission and they both control the appraiser’s living. 

The honest appraiser doesn't receive anymore work and the appraiser who plays ball gets the work. Thus, a pool of bad appraisers who come up with the value that the agent, broker or banker wants are the only ones left. The broker/bank sells the loan to one of the wholesale money people - Fannie, Freddie or a private group. They have washed their hands and go about doing business as usual. The American people are left holding the bag. (What’s new?)

- William Sentner, Past National President American Guild of Appraisers OPEIU AFL-CIO

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