An assignment is easier to manage when the important questions are answered before acceptance. What work is requested? What makes the property unusual? What are the fee and delivery terms? Who should you contact if the assignment changes?
An appraisal management company, or AMC, helps coordinate the relationship between the client and appraiser. Clear communication supports that work, but the appraiser still needs to understand the assignment and exercise independent professional judgment.
Read beyond the form name
The requested report format is one detail. Also consider the intended use, property characteristics, inspection requirements, attachments and client instructions. If the available information does not explain a complication, ask before agreeing to the work.
An assignment may describe a single-family home and later reveal multiple parcels or a substantial change in use. Discuss those facts promptly. A revised description may require a conversation about the work, proposed fee or schedule.
Keep a record of the clarification so that the AMC, client and appraiser are working from the same information.
Make the fee terms explicit
Confirm the proposed fee, what it covers, payment terms and how cancellation or additional work is handled. If a requested service is unclear, settle that point before assuming it is included.
For covered transactions, federal valuation-independence rules address customary and reasonable compensation for fee appraisers. The applicable requirements depend on the transaction and parties involved; a single advertised rate does not explain every assignment. [1]
This article does not establish Avisso’s fee or payment policies. Those should be confirmed in the actual engagement terms.
Agree on workable delivery expectations
A requested date should be considered alongside access, available information and the work involved. If the timing is not achievable, raise that early and offer a realistic alternative where possible.
Ask who receives status updates and how a change to the delivery expectation should be communicated. Useful updates identify the open issue and next action. “Waiting for access confirmation” is clearer than a generic “in progress.”
Read revision requests carefully
A request may seek a factual correction, missing information or a fuller explanation. If it is unclear, ask which issue the reviewer is trying to resolve. If the report already addresses it, point to the relevant section and explain the connection.
Sometimes a request introduces work beyond the original assignment. Identify the change and clarify the engagement terms before proceeding. Avoid assuming that every revision is a new assignment or that every new request belongs within the original fee.
Protect independent analysis
Asking an appraiser to consider appropriate additional information is different from directing a particular value. The federal valuation-independence rule permits certain requests for information or explanation while prohibiting pressure designed to replace independent judgment. [1]
If a request appears to seek a predetermined result, clarify it through the appropriate contact and follow the applicable professional and regulatory requirements. Keep the communication focused on evidence and the question being asked.
Questions worth answering before acceptance
Is the property and requested work described accurately?
Are fee, payment and cancellation terms clear?
Are timing and access expectations workable?
Is there a defined route for questions and changes?
A well-described assignment gives both sides a better basis for resolving issues as they arise.
Learn about working with Avisso.
Sources: 1. Consumer Financial Protection Bureau: Regulation Z, § 1026.42, Valuation Independence.
General educational information. Engagement terms and applicable requirements govern each assignment; this article is not a fee schedule or legal advice.
