I was wondering if anyone else here has been asked to prepare one of these MARKET CONSULTATION Reports. It seems that I'm being asked to examine and report on the propriety of a Uniform Residential Appraisal that was recently prepared (just a few days ago) by an Appraiser in support of a Private Non-MLS Sale (appears to be a FSBO).

I have a Copy of the Appraisal to critique along with a series of questions regarding the Market and some of the considerations that were taken into account or were neglected by the Appraiser.

This is very awkward; yet I know part of our current Mortgage Mess has been the result of Appraisers always being given a copy of the P&S so that they would arrive at the "Magic Number".

If you've done a MARKET CONSULTATION for anyone, and don't want to publicize it, you could PM me.

I am told that a MARKET CONSULTATION is a new kind of Product, and it is obvious to me that the Lender involved is not liking the high value that was placed on the Subject; and is holding up the Sale until they get this Critique.

I haven't heard of it. How did you get the request? Do you do price opinions for the lender? Are you also an appraiser?

Interesting-I don't know if I would do that for the small fee involved.

It's $100 and I don't have to leave the Office. Due on Monday. Subject never in MLS but I know the area.

I have to evaluate the choice of the Comps that were used PLUS give them 2 New Solds and 2 New Listed which might have been more appropriate; but NO Opinion regarding VALUE; and No Adjustments.

I've done BPOs and LMIs for them. I am not nor have I ever aspired to be an Appraiser. Now I'm even less inclined !

How did you get the request? I was just sitting here last night thinking it was another one of those pesky CAR WARRANTY Expiration calls, but it was a popular Real Estate Mortgage Servicing Firm asking me to produce one of these. All the information is right here. I'm being a Q.C. Person on some poor Appraiser.

I haven't had one of these (so far), but my broker asked me a few weeks ago if I had, and I have an appraiser-friend who had one of his appraisals reviewed by a real estate agent. Let me tell you the appraiser was plenty hot about it! But I think we're going to see more of it as a double-check against appraisers' values. We real estate brokers who do BPOs are already accustomed to the idea of banks ordering more than one BPO to determine value. I think it's all part of the general tightening up of the mortgage market, and lenders wanting more than one opinion about value before making a lending (or selling) decision.

I bet that appraisers don't like this. Getting evaluated by a Realtor. After all they think we don't know anything about values. But it can be said likewise about them.

The answer is no. I'm an Appraiser and Realtor so I can see it from both perspectives. I would be extremely peeved if a client came back to me wanting me to rebut a review done by an Agent. Appraisal reports are developed according to a specific SOW in accordance with USPAP and should only be reviewed by a certified appraiser. This has nothing to do with Realtors knowing or not knowing anything about values, because I will, from time to time contact a few of the veteran Realtors in my town to discuss a specific neighborhood or rural town. I may do an appraisal in these areas once every few months when they are working them every week. Do I value their input? Of course I do.

Would you want your work review by a person who doesn't have the same training as you?

It sounds like a BPO to me.

Doing it, I can say my orientation is completely different . . . . this is Pre-Purchase versus Pre-Foreclosure. One is at the Beginning, and the other at the End.

I was involved in producing another one of these Market Consultations yesterday when it dawned on me that, in spite of the fact that I did not have to leave the confines of my Office, I was doing the equivalent of two BPOs in the course of producing one MCR. Why ?, you ask:

I had to pull up, verify, input, and then comment on almost every characteristic, as well as the propriety of each of the 6 Comps that had been selected for use earlier by the Appraiser; plus . . . .

Search out and input the characteristics of 4 more Comps which may have, in my opinion, been better choices for inclusion in the Appraisal (which had been ordered to support a hefty re-finance), and why.

The nature of the questions and analysis regarding the current market conditions, in which that Subject was located, were far more comprehensive than the questions that were put to me last year when I first started producing these MCRs.

The amount of work has thus increased, while the Fee I'm being paid remains the same. (They did try to get me to do this one for $30 less than what I've been paid in the past; before I realized that the work had increased). Luckily, I didn't budge. I never budge ! I may change my mind; but not my Fees.

BTW, I think this thread should be merged with:

MARKET CONSULTATIONS

Just some random thoughts as I reflect on what transpired yesterday and use that to try to make today a better day.

I just did a Market Consultation yesterday. I'm only getting $45 for it tho....either because our market is different or yours was for a different client.

Over the phone, it sounded very easy. No photos, no leaving the house, no suggested market value.

But it took me forever. Maybe it was just not being used to the form, but there were lots of comments necessary on market conditions, the comps that were given to me, and the comps I pulled.

Probably too involved unless I'm really in the mood (or desperate!)

Forgot to add....if an appraiser did the original on my "Market Consultation" he/she deserved to have it looked at again.

Using a comp built in 2009 for a subject built in 1850 just doesn't cut it.

I've done a few for one company.

I've found they generally are on unique properties located in more rural areas and more difficult for the original to find appropriate comps.

I've turned down the past few since the time involved for the return just didn't compute in my mind.