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Same Old Thing! Realtor Thinks Everything's A Comp

Discussion in 'General Appraisal Discussion' started by Charlotte Dixon, Dec 28, 2004.

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  1. Charlotte Dixon

    Charlotte Dixon Senior Member

    0
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    So, I came in $25,000 under the contract price. My current comparable sales clearly indicate this property was listed too high, and then along comes an unsuspecting buyer who offers full price. Subject is a ranch 2+ acres and has been used as a dog kennel/boarding place. Grass worn away, droppings everywhere, so-so ranch, some little sheds, some fencing. My comps are similar in land content, nice large barns, fencing, and nicer dwellings. All sold within last 2 months and are reasonably close in proximity to the subject.

    As usual, along comes a flurry of sales from the Realtor, which are not COMPARBLE SALES, but are just SALES. The Realtor twists, turns and insists that their sales support the subject's sales price. Even those sales which are $40,000 under the contract price. I have no patience with some of these Realtors who are just out there "winging it" and grasping at straws..................GGGGGRRRRRRRRRR Here we go again, another year!
     
  2. Otis Key

    Otis Key Elite Member

    0
    May 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    It's still the same year until Saturday. However, I, like others, have an invoice statement that states that the fee paid is for the attached services only. Additional services required additional fees paid in advance. In other words, that agent should have given you that stuff in the beginning for you to round file it - then you wouldn't have to be collecting more fees right now.
     
  3. J Grant

    J Grant Elite Member

    243
    Dec 9, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    I don't discuss comps with realtors anymore. If they insist, they can fax comps, but I make it clear I won't talk to themabout it and their sending comps does not mean I will use any of them.
     
  4. Ray Miller

    Ray Miller Elite Member

    0
    Feb 20, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin
    Here ya, Ms. Dixon.

    I got the first round this morning from the one before Christmas. Now when I submit the rush rush rush that came in Thursday. I will be set for the second round this afternoon.

    Some days I would just like to take them out behind the barn for some education. If it can't sink in maybe it can be pounded in. I am getting tired of being the Lone Outlaw Lobo of the Real Estate deals around here. Need to set some traps for those weasels, skin’em and pelt the out.

    I just glad to know we have a good size pack of LoBos running out here. The web site makes it nice to hear one another howl and know we are not alone.
     
  5. The Matrix

    The Matrix Senior Member

    0
    Apr 28, 2003
    Professional Status:
    Certified General Appraiser
    State:
    Colorado
    If you don't hit the contract price, according to most Realtors, all of your comparables must be distress sales, ie. divorce, estate, or foreclosures.
     
  6. Neil Anderson

    Neil Anderson Junior Member

    0
    Jan 9, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Realtors can be annoying at times but to blatantly ignore a Realtor who farms a particular area is reckless in my opinion. By performing a market approach to value, an appraiser’s goal is to form an opinion of what a typical buyer would pay in an open market… With the absence of direct buyer-seller contact, how can we effectively keep our fingers on the pulse of the market unless we talk to the Realtors and try to gain an understanding of their reasoning? Yes, they look at things differently than we do. But a “typical buyer in the marketplace” doesn’t sit around crunching statistical data either. A buyer’s reasoning is typically closer to that of a Realtor than that of an appraiser. They get in the Realtor’s car and drive around an area while looking at properties they are interested in. They don’t say, “we can’t look in that tract because the Thomas Guide grid ends here.” When faced with limited comparables, I am amazed at how many appraisers draw hypothetical neighborhood boundaries rather than asking knowledgeable Realtors what other areas they would show a potential buyer if they were looking in the subject‘s neighborhood. I am not saying that Realtors and agents are the end-all. But ignoring all input is analogous to drawing a line in the sand.
     
  7. Blue1

    Blue1 Elite Member

    1
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    So.....Just make a 40k adjustment... :silly: :drinking: Make that 50K... :banana: I've seen the same thing before....Somehow SOME realtors think we can just pull a value our of the sky...... :blueflower:


    The facts are that realtors get paid a commission based on the sale price therefore, their motive is to get as much as they can for the property. This is their job and there's nothing wrong with that. Therefore, they have already convinced themselves that their listing price is actually 'low' and that our appraisals are 'cutting value'.......There's no sense in talking to these folks at that point. Let them send better comps, I'll be glad to look at them and if they are more viable than mine...OR if there is something I have missed I'll consider it. I don't need to listen to all the reasons why my value should be higher....Just my opinion....
     
  8. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    I do call on some Realtors that I know are very experienced and honest to chat about various things going on in my market area. THESE are the Realtors that would never consider pressuring me and they KNOW what are COMPARABLE sales. Unfortunately, this type of Realtor is becoming very, very rare.

    Very unfortunately, the majority are not like this anymore and will proceed to tell me to do exactly what would be against the basics of appraisal practice: cherry pick the sales using only those that will bring in what they got on that contract no matter how superior or how far away they are to the subject while ignoring the newest, nearest, most similar sales.
     
  9. Mike Garrett RAA

    Mike Garrett RAA Elite Member

    15
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Not talking to REALTORS® just compounds the problem. Communication is an integral part of appraising. Without their support our job would be much more difficult. Sure there are some jerks out there but the majority IN MY MARKET are good, honest, and hard working people.

    In the case cited here, just do your job and let it go. You are the appraiser...it's your decision what is comparable and what is not.
     
  10. Charlotte Dixon

    Charlotte Dixon Senior Member

    0
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    Pam, as usual....You're right on the money!

    I consult those experienced Realtors....the ones who are ethical and know what they're doing. It's all those ones who just "wing it" like I said that I have no patience with.

    The topic of my post couldn't have turned out better. I had lunch with a group of appraisers last week and mentioned this appraisal which was SO far off from the contract price. Much to my delight, and peace of mind, one of the appraisers at lunch looked at the property with the intention of, maybe, purchasing it. But, he didn't make an offer because he thought it was at least $25,000 over priced :) and he knew there was another buyer in line with baited breath.
     
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