Undue influence from realtor

[Terrel L. Shields]

am just not that good of an appraiser.

me neither but a lot of reviews I see is an appraiser who thinks they are

 

[Mike Kennedy]

CONNECTICUT LAW JULY 2008 - REAL ESTATE AGENT/BROKER UNDUE INFLUENCE SECTION 15
http://www.cga.ct.gov/2008/TOB/H/2008HB-05577-R00-HB.htm

 

[Mike Kennedy]

Is there a case for undue influence from realtors if they call my clients (lenders) and slander my company for not hitting value, and then argue with the lender and try to persuade them to reconsider the value and appraisal with no evidence or support of a higher value?
Is there a case for undue influence if a realtor calls my client before I even view a property and tell my client that there will be an issue with value if myself or my firm does the appraisal?

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CODE OF ETHICS
ETHICS COMPLAINT FORM


The 2008 Code of Ethics and Standards of Practice of the National Association of REALTORS® is provided below.

Download Adobe Acrobat and Microsoft Word versions of the REALTORS® Code of Ethics suitable for printing.

 

[Timothy Fierek]

Listen, this was not a $2,000 discrepancy. It was a $38,000 sale that appraised at $34,000. The home was a 50+ year old 1 story, 720 sq. ft. with 2 bedrooms and a 1 car garage. There were no comps that sold for over 38k. Those that did were 4 times the size of the subject and would have adjusted lower than the 34k that it was appraised at. Unfortunately that price range in this area was also full of foreclosures. I was familiar with all 3 comps, having prior appraisals on 2, and 1 purchased by a friend. Everything was considered. I went over the report many times and researched comps several times before completion as I knew a "hard look" needed to be taken if the appraisal was 4k short of the sale price. Bottom line is that the house just was not worth it. This is only 1 of 2 sales in the last 12 months that I have done an appraisal for which came in short. There is absolutely no arrogance on my part, other than I performed a rock solid job and the home was not worth it. And it DID NOT KILL THE DEAL. Had the realtor not called my client SLANDERING my company (and yes I did use that term as what they did meets all of the qualifications and burden of proof), I would not even had heard about it. The realtor cut their own throat on this one, and it did not help that they decided to call another one of my clients a week later and try to pre emptively have me removed from another assignment.
Now that the complaints have been filed, I will make sure to let everyone know the outcome. I am prepared to submit my work to the regulators as I have done nothing wrong and my work is solid. Had it been questionable it never would have reached this point.
It seems to me that most appraisers are willing to turn the other way and not file complaints against those applying undue influence as they find their own work questionable and are afraid that it will come under scrutiny.

 

[gina benson]

I need some advise on the preparation of a response to a client.
Scenario:
I appraised Custom Construction SFR last week - built on an 'in fill' site surrounded by tract homes.
Borrower responds how she feels my value is incorrrect complete with her resume, and exhibits. (she is a lic. realtor -presently, a former contractor (1980's) , former appraiser (1970's) She places 3 sales on a grid, with adjustments.
Now client is requesting a summary response.....

She has no problem with the fact she is not lic. & completing an appraisal report (partially) for her own house... BTW -her 'comp's are 1.5 miles away, or COE 1/2008.

Neither the borrower, or lender have any questions regarding my report, or can point to any issues.

Any advise would be appreciated.
Thanks
Gina
(certified residential- CA)

 

[PropertyEconomics]

Gina,

I dont believe an owner has to be licensed to provide an opinion of value on their home, in fact, they are the only ones allowed to do so in a court of law other than a qualified expert witness. Also as a licensed agent she can also grid sales and provide them as information without issue.
I would take the report you have been provided, and write a very thougtful professional response. I would not make it any kind of personal attack nor would I say she is not qualified to do so. Its within their rights to do so.
I think you should respond and you should do so professionally. Point out the distances of the sales they used in comparison with those you used. Point out market trends within the neighborhood. Question yourself as to whether you have adequately appraised a custom home in a tract neighborhood. Research comparable sales and make sure you havent missed anything. This is a difficult assignment given that it is an infill site adn being custom it is pretty natural there will be some questions. Point out all the data you have at your disposal to show why the sales you used are more relevent to the appraisal process and point out that in accordance with USPAP you are charged with providing the most comparable sales to the property you are appraising.

Take this opportunity to show the credibility of your report. Again do not make it personal in any way. Its merely a business response and should be done quite professionally. Should you find something that changes your mind, make note of it and tell them. If you dont find anything that changes your mind, conclude that you have reviewed all available data and you have concluded your original conclusion was correct.

I wish you the best.

 

[Webbed Feet]

Ms. Benson,

P.E. gave a very good answer. This one is not a problem, your client just doesn't know (or want to do it for political reasons) how to respond to her. Just politely hand your client all the needed ammo to shoot her plane down. Waving around qualifications aside, she is certainly allowed to advocate for her own opinion, you are allowed to advocate for your opinion. She is involved in the transaction and biased, you are not involved in the transaction and therefore presumed to be unbiased. Just explain why her comp picks would not be your comp picks.

Webbed.

 

[Mister Ed]

<SNIP>

I would make certain that ... I would be there when the property was inspected along with a package of comps and other details about the house and the neighborhood as well as the community.

<SNIP>

While I feel like I know my market quite well, I love it when agents meet me at the property with a copy of what they used to help the seller set a price. I love to see what they think are comps (whether I agree or not). For one thing, it helps me see how they are thinking. For another thing, it may help me not miss something. I would ALWAYS prefer too much information to sift through rather than too little.

As to the original post, I have not faced that situation, so I really don't know the answer to your question. However, it sounds like you've got grounds for something.

 

[Gary Schinagel]

I need some advise on the preparation of a response to a client.
Scenario:
I appraised Custom Construction SFR last week - built on an 'in fill' site surrounded by tract homes.
Borrower responds how she feels my value is incorrrect complete with her resume, and exhibits. (she is a lic. realtor -presently, a former contractor (1980's) , former appraiser (1970's) She places 3 sales on a grid, with adjustments.
Now client is requesting a summary response.....

She has no problem with the fact she is not lic. & completing an appraisal report (partially) for her own house... BTW -her 'comp's are 1.5 miles away, or COE 1/2008.

Neither the borrower, or lender have any questions regarding my report, or can point to any issues.

Any advise would be appreciated.
Thanks
Gina
(certified residential- CA)

Neither the borrower, or lender have any questions regarding my report, or can point to any issues.
Just ask the realtor to go through the proper channels(which they probably cannot unless there is serious red flags) for any areas of dispute. If the underwriters ask for a rebuttal . Be specific and hit each point as presented with no animosity. Strictly Business. There appears to be no problem with your report via the Lender. Dont answer the realtor directly though because it should be in writing via Lender. Even though you do not work for the realtor you can still be PROFESSIONAL and polite. Keep an open mind, stick to protocol and respond to the checklist if needed. Theres alot more incompetent realtors than there are incompetent appraisers.

 

[Dale Smalley]

My car cost more than that house. What can you get for under 38k?