Verifying Sales

[Digger88]

Wouldn't most of you agree that there have been substantial improvements in MLS?

Most of the listings on my MLS have a series of photos of the property. I am able to observe the interior and back of most properties that I would use as a comparable in an appraisal. In addition, my MLS gives me a complete listing history, price changes, contract date, sold date, days on market, continuous days on market, and concessions when a property sells. I have much more data now then ever before. That said, sometimes there is something that looks suspicious. It's at that point I find it necessary to contact the agent for clarification.

My source of verification includes MLS and public record. When I need more information I call the listing agent. Can't remember the last time I talked to the buyer or seller and I don't know any of my peers that do that either.

How many of you have called an agent to verify information only to be sent to voice mail and then not have that agent call back for two, three, or even more days? Worse yet, how many of you have been given different information about a property by the agent? This is especially true of sales that are more than a few month old. The agent is seldom in the office looking at the file. They are relying on memory and, if they are really good at selling properties, might have 20 or 30 properties to remember.

The best solution would be for appraisers to request more and better data to be included in the MLS listing. A rating system for condition would be very helpful. Observing the interior photos is really one of the best things to do.

Lastly, I think reduced appraisal fees and unreasonable time restraints play a part in how much research and verification is being done. If those fees and shorter and shorter time allowed to complete assignments become the norm I would suspect less and less verification will be done. Sadly, we have met the enemy and it is us. As long as we let the users of our services dictate what we are paid and how long we are given to complete an assignment things won't get better.

careful, not contacting agents every single time without fail will bring harsh judgement from the group here. not me mind you just sayin'

 

[Mr Rex]

When you call these folks do you warn them that the conversation may be recorded for your appraisal file and they need not worry that they are being recorded? Do you dance around the fact that you are implying that their reporting in the MLS is a patent lie?

 

[residentialguy]

In my last thread, I got an earful from appraisers about how money makes the mare go, that I get what I pay for, etc. One of my biggest issues is that appraisers rely on MLS and public record for their verification process. Nobody contacts a broker, a buyer, or a seller to get any further understanding about the sale that wasn't in the MLS. There may be issues surrounding a sale that are not in the MLS that influence the sale price and require attention in the sales grid.

As an example, I am reviewing an appraisal on a duplex. The appraiser provides three sales ($215k, $270k, $280k). My first reaction is why the one sale is so low compared to the others. The appraiser explains that these are basically the only three sales in the market in the past year. I do my research, and I agree with the appraiser; these are the most appropriate sales. Still, was there something else about the one sale that made it so much lower?

I found out who the listing broker was and sent an email. He responded in an hour of my email, and we talked about the sale for 15 minutes. I found out that the property required a complete interior overhaul that probably cost $35k to $40k. This information would not be contained in either the MLS or the public record. And you can guess that the appraiser made no adjustment for condition.

So, I now have to present this to the convening authority for review, who then has to present it to the appraiser, who then gets to consider our request and accept or deny our research. The ability to provide a loan to a worthy borrower rests in the hands of a lazy appraiser and a governmental bureaucrat.

I always try to contact the agents, even try to contact the Home owners if something is wacky. I also question the agents of the subject contract, as well as the buyer/seller.

You'll find that many do not. They blame low fees, etc. oh...good luck with that.

Stand your ground. Your review will trump his appraisal if the appraiser took short cuts. S/he deserves to get the hammer...maybe the state will end up having a little chat with him, too. That's the only way to knock sense into these low fee appraisers. :new_2gunsfiring_v1:

 

[Digger88]

I always try to contact the agents, even try to contact the Home owners if something is wacky. I also question the agents of the subject contract, as well as the buyer/seller.

You'll find that many do not. They blame low fees, etc. oh...good luck with that.

Stand your ground. Your review will trump his appraisal if the appraiser took short cuts. S/he deserves to get the hammer...maybe the state will end up having a little chat with him, too. That's the only way to knock sense into these low fee appraisers. :new_2gunsfiring_v1:

i wouldnt need a 15 minute conversation with the agent to find out the low comp needed a complete interior renovation. use common sense and interior comp photos which are provided 95+% of the time.

when a realtor lists a property they talk about what they can. if its been renovated the agent will put that. if they talk about the yard, schools, neighborhood... basically anything BUT the interior condition its because they isnt anything to talk about.

 

[Mr Rex]

From the guy that never meet a contract that shouldn't be supported by the appraisal, truly a classic. Maybe the mods will make it a tongue in cheek top of the page go to pasty?

 

[residentialguy]

when a realtor lists a property they talk about what they can. if its been renovated the agent will put that. if they talk about the yard, schools, neighborhood... basically anything BUT the interior condition its because they isnt anything to talk about.

Digger, You can't make a stance from silence. Besides, there are more things to verification than the physical property...you have the conditions of sale, ie. buyer/seller motives, concessions, financing, etc

 

[JTip]

With public records available at little or no cost and unlimited talk on the cell, who needs the MLS?

The deed gives me the mailing address of the grantee, search for a phone number. Who prepared the deed will give me another contact point. A dozen doughnuts will secure every single transaction in the county for the YEAR.

I can search closed sales on NARRPR for FREE right now and not pay a membership fee to YOUR MLS.

Now ain't that some shhhhhhh.....

 

[Tim Hicks (Texas)]

With public records available at little or no cost and unlimited talk on the cell, who needs the MLS?

The deed gives me the mailing address of the grantee, search for a phone number. Who prepared the deed will give me another contact point. A dozen doughnuts will secure every single transaction in the county for the YEAR.

I can search closed sales on NARRPR for FREE right now and not pay a membership fee to YOUR MLS.

Now ain't that some shhhhhhh.....

Try that system in a non-disclosure state.

 

[Michigan CG]

i wouldnt need a 15 minute conversation with the agent to find out the low comp needed a complete interior renovation......

You can't state that as fact because you don't call agents to verify. If you did, and actually made the effort for a few weeks you would find that most agents are very honest when you call them. Your statement holds no water because it is not based on fact or experience.

....... use common sense and interior comp photos which are provided 95+% of the time.....

Agents are in the business to sell real estate. They don't typically take pictures of the bad things. Their job is to get people in the house. You obviously don't work a rural area.

... basically anything BUT the interior condition its because they isnt anything to talk about.

Is this how you base your condition opinions of the comparable properties? If you live in cookie cutter world then I guess that would work.

 

[Michigan CG]

..... use common sense and interior comp photos which are provided 95+% of the time......

If a comparable has no interior photos what is the condition of the home?