MLS Comp Photos WTF!

[Offshore]

I started the thread and am buying a flip in two weeks. I will be declining some work at that point for a while. Too much nitpicking for a few sheckles, I need a break.
m2:

Just curious, did you look at the property or were the MLS pics good enough to make the decision?

 

[Randy G]

21 pages of posts to tell the guy he needs to drive the comps and take pictures of them. m2:

I sure hope he doesn't have a brother that does oil changes across town. He might just send you a bill with an internet picture of 5 bottles of Mobile 1 and a filter.

 

[Lobo Fan]

I spent 10 hours in the past two days driving comps. I should have just skipped that whole process and stayed home writing reports. Now I see how people are still making money at some of these bottom feeding levels. I have to compete against this?

 

[New Orleans Guy]

Two latest posts from guys in California and New Mexico, hey are'nt those are two of the 4 states that made every appraiser in the country have to start doing the 1004MC form? No, it does not take 20 pages to tell someone to drive the comps, I know that already, I was being realistic. If 99% of your peers are doing appraisals by using comp photos most of the time, I don't feel that bad about using them myself. If the photo is not good or if it is a comp I am likely to use, I DO SNAP THE PHOTO while I am out there. If it is an odd neighborhood that varies block by block, I drive all the comps so I see what streets and comps are truly comparable. Did I drive every one of the 20 something comps in the neighborhood for the report I started this thread about, no I really didn't, I did only use comps that I knew were truly comparable and felt confident in using though. And in my area values don't change by 10% a month so time adjustments are not that hard either. I have come to believe that this is mostly the disgruntled appraiser's forum.... not everyone here, but a lot of people love to be the white knight and ream someone for not being the textbook perfect appraiser. Speaking of oil change, I used to work at Jiffy Lube 15 years ago and they are supposed to check like 50 things on your car for the 15 minutes that you are there, do you think they really check them all... every time? Or do they change the oil properly, check air filter, and tire pressure for safety and send you on your way happy? That is what we ALL have to compete against now.

P.S. The REO flip house had NO MLS PHOTO, but I know the area well enough to know that the 4 bed models in that neighborhood with 1,159 sqft always have a 1 car garage that is usually closed in adding more GLA. This one DID have the closed in garage even though it was listed at 1,159 sqft, it is really about 1,485. It will be a high profit flip, luckily I knew the area well enough to know what it could be worth or I would not have caught it on the first listing day. But what do I know, I am a skippy right?

 

[Pamela Crowley (Florida)]

So... if 'everybody else cheats, it's OK to cheat?

I do NOT believe that and it scares me for our society that so many apparently do.

 

[Mike Kennedy]

Still Scratching My Head wondering.

So, can we all agree on the following.

USPAP is moot on taking pictures of the comparables. In fact, it doesn't even say we need to look at them.

USPAP does say we are to produce a credible appraisal and a report that is not mis-leading.

Failure to comply with supplemental standards or guidelines could be considered a violation of the Competency Rule.

Signing an appraisal report the appraiser certifies that he/she observed the comparables from at least the street. Failure to do so would be a violation of USPAP and might even be considered fraud.

Using MLS photos is not prohibited by any of the GSE's, FHA, or VA; however, there should be a good reason why you are not using your own photos such as locked gates, people in the yard, adverse weather conditions, and probably a few more I can't think of at the moment.

The MLS photo may be better and more representative of how the property looked at the time of listing. Most MLS systems allow use of the MLS photo in appraisals.

Using MLS photos is a function of Scope of Work. The appraiser should disclose the photos are from MLS and the reason why they are used.

The fee should not dictate whether or not an appraiser drives the comps. If you say you did then do it.

How on earth this thread required any other posts (including this one) AFTER #40.

Amazing.:Eyecrazy:

p.s. reallllly no need to respond to this post. seriously. Let the thread die a quiet, peaceful, WELL-EARNED, death. R.I.P.

 

[Couch Potato]

So... if 'everybody else cheats, it's OK to cheat?

I do NOT believe that and it scares me for our society that so many apparently do.

Did't you get the memo Pam???

It is only cheating if you get caught, and even then only if you suffer consequences. Otherwise it is just being "creative."

 

[Carnivore]

How on earth this thread required any other posts (including this one) AFTER #40.

Amazing.:Eyecrazy:

p.s. reallllly no need to respond to this post. seriously. Let the thread die a quiet, peaceful, WELL-EARNED, death. R.I.P.

Simple and you know why just like mike g, kevinmc, pam and a host of others know that these skippies are attempting to produce profitable URAR's for a buck $1.25 in 24-48 hours. The skippies also realize they can not make a profit by increasiing volume at a $1.25. The turn time and volume is impossible if they follow the Intent of USPAP and the rules of Fannie/Freddie.

 

[Stone]

Do what you say and say what you did.

 

[Lobo Fan]

Yesterday, I spent the better part of a gorgeous Saturday driving down nasty dirt roads and forest trails looking for comps. The good part was that I was in a beautiful area (Jemez for the locals). The aspens were in full color, it was about 70 degrees and crytal clear. I saw several deer a coyote and numerous squirrels and chipmunks. I looked at a very nice log cabin with no issues so that part was OK. I even found some good log comps. I know of a few local appraisers that use a lot of MLS photos.

I try to play by the rules as best I can.

If someone is cutting corners by using MLS photos, it is not a big leap to fabricating comps and hitting numbers. If you cheat a little you will cheat a lot. Extensive use of MLS photos should get appraisers put on watch lists by lenders. It is red flag for appraisers with situational ethics.

It is like the story about the attractive woman at a party. A man asks her if she would sleep with him for a million dollars. She ponders a moment and says yes. The man then asked her if she would do it for one dollar. "Of course not, what do you think I am" she sputters. "We have already established that, now we are just negotiating price".

Extensive use of MLS photos establishes the kind of appraiser.