Appraisal House Blog

Do you know Otto?
March 29th, 2011 10:30 PM

I received this exciting opportunity tonight via email (through the Mercury Network, which annoys me):

Dear Appraiser,

I have a unique product my client is interested in ordering. They have used realtors, however they would like appraisers to do this. It is a 2 billion a year industry and appraisers have been cut out on.  I have clients that would be willing to use appraisers for their product. Realtors have been doing these for the past 3 years and do between 20-25 per week and earn an additional $1200-1500 per week. I have clients that are willing to pay $60-70 per order. Realtors give 24hr turn times on these. I have our turn time set at 48hrs with the client.

They are very simple you go to the subject property take 7-8 photos of exterior, if vacant take interior photos if you have access. They also need you to pull MLS comps on the property that you think are the best comparables for the subject property. There is no write-up and they will come in blocks of 3-4 usually at at time. You attach your photos and comps to the form in alamode under General Property Inspection. This form is found by going into appraisal product requirements.

Basically, these are photos of the subject and pulling MLS comps. No write up is needed. This product will start in approx. 2 weeks.

Otto Krebs
Diligent Asset Valuations


So do you know Otto?  All I have to do is provide him with MLS comps on the property, which, if my MLS board finds out, will get me a substantial fine and probably my MLS access revoked, since it is a violation of my MLS agreement to disseminate the MLS information.  But for $60-$70 a pop, for only 2 hours of work (plus gas and the usual overhead), that seems well worth the risk of losing my livlihood! 

The sad thing is that Otto is a certified appraiser in California.  Seems to me that he is selling out his own profession, but that is just my opinion.  What do you think, am I wrong?  Does this seem like a good opportunity to anyone?

Posted in:General
Posted by Mike Lay on March 29th, 2011 10:30 PMPost a Comment

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I saw the same thing. I can't find any info on this.. I am wondering if it is legit. I am trying to stay afloat in the time of AMC's and I am sinking !!!

Posted by Gigi K on April 19th, 2011 1:30 PM
I just got this same email. I believe that this is a non USPAP product like a 2075 ext. I guess I don't know why making extra money on a non value based assignment is selling out? Like he said I've asked realtor in my area and that is what they are getting paid. I'm in Kansas City. thanks, Stephen

Posted by Stephen on May 12th, 2011 6:48 PM
Stephen, the problem is this line: "They also need you to pull MLS comps on the property that you think are the best comparables for the subject property." By choosing the comparables that you believe are the best, you have just provided a client with a range of values, and so you have just performed an appraisal, which is subject to USPAP. A 2075 does not require you to choose comparables. In order to determine which sales you "believe are the best" you need to analyze the property, analyze the sales, and determine which ones are most similar and most indicative of the market value of the Subject. If they were asking you to run a report on all sales in the immediate subdivision in the past 12 months that were +/-20% of the GLA of the Subject property and within 5 years of age, that would be fine, since it would be up to them to interpret the specific raw data that they asked you to provide. But by accepting their terms, to send the ones that YOU think are the most comparable, you are bound by USPAP. Just my opinion, of course.

Posted by Mike Lay on May 15th, 2011 11:11 PM
Otto Krebs is a thief. He burns appraisers all over the country for their fees. He sends out orders and never pays the invoices.

Posted by Dan Anderson on April 6th, 2014 10:32 PM
Krebs, Otto AR 023309 Newport Beach 9/6/2016 Voluntary Surrender

Posted by interesting on November 30th, 2016 11:55 AM


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