Verifying Sales

[Evincere]

I apologize if I used the term "Nobody". I will say this. I have not seen one appraisal where the verification included any of the following terms: "Buyer", "Seller", "Listing Agent", "Selling Agent", or "Outside Broker".

With regard to our hiring process for appraisers, our company has no control over appraiser selection. We utilize national AMCs and the VA Portal; they select the appraiser. Damned AIR forces this issue.

You state your company utilizes 8 AMCs, so I will presume that you order a significant amount of Appraisals. You can correct me if I am wrong about volume.

My question is simple. Inquiring minds would like to know. Why do you use AMC's at all, especially since its has been noted in another threads on going discussion that a Lender utilizing AMCs puts that Lender at greater risk.

Lenders are now being held accountable for Appraiser selection. AMCs are not mandated to be used by any Lender.

Why would you even consider putting your company at greater risk if as you say, you have no control over Appraiser selection. You do have choices and many Lenders are returning to setting up their own appraisal depts. again in an effort to mitigate risk - since there will be no way around it.

Sorry, but this entire argument or discussion over quality vs. fee, who called a realtor and who didn't, seems rather petty and flies in the face of logic and rational thinking when you as a Lender choose to alienate and circumvent your participation in the selection process - by utilizing an AMC in the first place.

 

[DTB]

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

I would venture that if there were no pictures and minimal descriptions as to its condition and I had the sales price I could tell you what the condition was.

Fair to poor condition houses typically don't have photos for your viewing pleasure, nor glowing narratives describing how everything is 30 years old and they typically sell at the low range of what an astute market observer would expect.

All 3 things combined-no photos-no positive narrative-lower end price are sufficient to make a determination of condition. There may be outliers out there but I like to play the probabilities.

What would the agent tell you (a nobody-to him- appraiser taking his time) now after the fact ( and after he has spent his commission) that he didn't say when he was trying to earn his keep?

 

[ucbruin]

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:

Residential Guy,

My question to you and to NLC:

At what point in the appraisal process do you call the agents to verify information? Before or after you've decided on which sales to photograph?

A "before" example: When you set up MLS search with a range of physical characteristics to best match the subject property and MLS provides you with 15 sales, do you call all 15 agents so you can determine the best 3+ sales to drive by and photograph?

An "after" example": Or do you pre-select, based on your opinion and without the benefit of first calling all 15 agents (or any agents for that matter), the 3+ sales you consider to be the best of the 15 sales; and then once back in your office you make the calls to the agents of the sales that you pre-selected, in hopes that the information they provide supports your opinion?

Or do you employ a different method?

 

[ucbruin]

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.
Because it is the agents' business to sell and their job is to get people into the house, the information that they provide should be taken with a grain of healthy skepticism.



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.

I do live, work and appraise in the cookie cutter world. I'm lucky. Having said that, your comment made me wonder if the OP statement was for the non-cookie cutter world and I didn't realize that and therefore I responded from my cookie cutter world. Maybe its just a matter of misunderstanding on my part.

NLC and Residential Guy, were your statements based on non-cookie cutter world or cookie cutter world?

 

[residentialguy]

1234567890

 

[residentialguy]

Residential Guy,

My question to you and to NLC:

At what point in the appraisal process do you call the agents to verify information? Before or after you've decided on which sales to photograph?

A "before" example: When you set up MLS search with a range of physical characteristics to best match the subject property and MLS provides you with 15 sales, do you call all 15 agents so you can determine the best 3+ sales to drive by and photograph?

An "after" example": Or do you pre-select, based on your opinion and without the benefit of first calling all 15 agents (or any agents for that matter), the 3+ sales you consider to be the best of the 15 sales; and then once back in your office you make the calls to the agents of the sales that you pre-selected, in hopes that the information they provide supports your opinion?

Or do you employ a different method?

I do both. I'll call them on the field if it's not a cookie cutter, or something seems off... and I'll call them after inspection if they're cookie cutters.
I don't ever call all of my 15-30 pre-selects. I call the ones that I photograph, which is usually about 8-10 on average.

Again, it's not just about the physical property. You need to verify the conditions of the sale.

 

[ucbruin]

I do both. I'll call them on the field if it's not a cookie cutter, or something seems off... and I'll call them after inspection if they're cookie cutters.
I don't ever call all of my 15-30 pre-selects. I call the ones that I photograph, which is usually about 8-10 on average.

Again, it's not just about the physical property. You need to verify the conditions of the sale.

If an appraiser feels the absolute need to call agents on every comp employed in the report:

Wouldn't calling the agents before pre-selecting sales to photograph be more beneficial than calling after? IMO proper sales selection is the most important element of the appraisal process. Therefore, if I were going make it a point to call agents, I would call them before I pre-selected and photographed them because how else would I know which 8-10 of the available 15 sales were really "good" potential comps?

In my experience what I've noticed is that calls to agents were usually necessitated due to the odd subject property and not the odd sale comp. I would only consider employing the odd sale if there were no other available sales.

Plus, I can only imagine, during the slamming days of refi and sales, an agent getting calls from dozens of appraisers asking about buyer/seller motivations for his/her sale located at 1313 Mockingbird Ln. The calls going on for 6 months to boot.

 

[DTB]

Plus, I can only imagine, during the slamming days of refi and sales, an agent getting calls from dozens of appraisers asking about buyer/seller motivations for his/her sale located at 1313 Mockingbird Ln. The calls going on for 6 months to boot.

They were inquiring about the full basement with Dragon's quarters.

 

[Digger88]

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

except for new construction im trying hard to think of a single time where interior pics werent available. its been more than a few years around here.

what i find most egregious though is realtors not listing what is behind the home, ie decks, porches etc and rear photos are their saving grace.

so, before ext pics of the comps would you walk behind comps to "verify" what was there? would you believe what a realtor said who simply wants to get you off the phone?

oh yea, youd pull a data card that was last updated 7 years ago...

 

[Delta85]

I asked you in the previous thread what AMC your company utilizes and you failed to respond. Is there a reason you don't want anyone to know?

Any lender that does not demand their AMC hire locally qualified appraisers, pay them the going rate (determined by appraisers), and allow them ample time to do the actual work should not complain about quality when they receive the product.