Has anyone attempted to bring Ethics Violations against a Realtor for continually making negative remarks against you?

[Jayjay25]

Over the past six months, what percentage of your purchase appraisals have come in low? I would estimate 10%-20% here. Just curious given the sentiment

Over the past six months, what percentage of your purchase appraisals have come in low? I would estimate 10%-20% here. Just curious given the sentiment I'm reading.

100% of all my purchase appraisals where the current comparable SALES don’t support the contract price come in below the contract price. The realtors who understand market values and appraisal guidelines are the same ones you see dropping appraisal contingencies from the contracts with offers to pay above appraised (market) value. These are the successful realtors who don’t complain (or file complaints). It’s the sellers agents who recommend that their client take the highest FHA offer over list price with 1% down and $10k back to the buyer that do almost all of the complaining when the property doesn’t appraise out. Silly appraiser, not coming in way over the list price that was based on the CMA that was completed yesterday with comps that closed 2 days ago.

 

[JeffSH]

100% of all my purchase appraisals where the current comparable SALES don’t support the contract price come in below the contract price.

Don't you give the most weight to pending sales in changing markets? What's more relevant, a home that sold the day before inspection or an under contract sale from today (with five other buyers willing to put in the same offer)?

Edit: It's funny because I just had a revision request that said the same thing. It made me pretty mad. She even double-downed after I pushed back. Looked her up on Linkedin Been reviewing appraisals for 20 years. No other experience.

"Comp 1 and 5 are given significant weight however comp 5 is a pending sale and should be given no weight since it is not a closed sale and should only be provided as support. Please correct."

 

[Jayjay25]

Don't you give the most weight to pending sales in changing markets? What's more relevant, a home that sold the day before inspection or an under contract sale from today (with five other buyers willing to put in the same offer)?

Sure and if it’s positive then I will weigh my value toward the high end of the value that is supportable by CURRENT comparable sales not future sales that may or may not happen due to unforeseen future events. Stupid example would be an earthquake or something prior to these home closing. Anything else is a prospective value. It’s like saying prices are going up 2% a month vs prices have gone up 2% a month. It hasn’t happened until it has happened.

 

[J Grant]

Over the past six months, what percentage of your purchase appraisals have come in low? I would estimate 10%-20% here. Just curious given the sentiment I'm reading.

Mine are coming in below SC price approx. 30%-40 % but it varies. One month about 60 % lol. One month 20% . Depends on what comes over my desk..
In normal market it is usually around 15 % -20%, in a good month 10 % .

 

[JeffSH]

Sure and if it’s positive then I will weigh my value toward the high end of the value that is supportable by CURRENT comparable sales not future sales that may or may not happen due to unforeseen future events. Stupid example would be an earthquake or something prior to these home closing. Anything else is a prospective value. It’s like saying prices are going up 2% a month vs prices have gone up 2% a month. It hasn’t happened until it has happened.

The comparable pending sales get you to today's market conditions. You use today's data in conjunction with the best you have from yesterday. Pending sales with pre-approved offers are sometimes the best indicators of value, ESPECIALLY in changing markets.

They are snapshots in time. Even if the home gets blown up or aliens invade an hour after the contract was signed, it's still relevant.

 

[J Grant]

The comparable pending sales get you to today's market conditions. You use today's data in conjunction with the best you have from yesterday. Pending sales with pre-approved offers are sometimes the best indicators of value, ESPECIALLY in changing markets.

They are snapshots in time. Even if the home gets blown up or aliens invade an hour after the contract was signed, it's still relevant.

Pending sales are the best indicators of PRICE

We are opining a market value opinion, which is not the same thing as a price opinion. We typically use pending's or active to support reconcile our point value at higher, lower or mid range -depending on trends. But we don't weight the pending like a closed sale comp.

The market conditions are normally factored in at an annual rate, not just what today's crazy price jump a pending listing might show.

 

[JeffSH]

Pending sales are the best indicators of PRICE

Does it shock you that price and value are related? I truly don't understand where you are coming from. Value is the most probable price that the home would sell for based on the effective date.

Let's say a home sold yesterday for $95,000. The market recently has been very hot. You can't turn on the radio or news without hearing about the shortage of housing and demand from buyers. There are paired sales from last week that show tremendous appreciation.

Today the buyer has to leave and wants to resell. You, as an appraiser, would tell the person that despite the increasing market conditions and ten people lined up to put in $100k+ offers, that his home is not worth more than $95k? $95k is the most probable price?

 

[JeffSH]

The market conditions are normally factored in at an annual rate, not just what today's crazy price jump a pending listing might show.

Who says market condition adjustments have to be annualized? If the market has increased more in the past three months than the previous nine, why would you do an annual adjustment?

Edit: This reminds me of my very first supervisor who told me I couldn't adjust an oversized comp at a lower per square foot rate based on diminishing returns. "You can't do that! Every comp has to be adjusted at the same rate." When I ask why they have nothing.

 

[RCA]

There are a couple of Realty offices in my town that believe that they have the right to talk about appraisers in a negative light because they don't always agree with the contract prices they arrive at. I know that is as old as time, but when they constantly throw appraisers under the bus, even to people that are related to you. What tactics have you used in the past to shut that down? The local Association of Realtors has a few statements that talk about not talking or communicating negative comments about other real estate professionals in the association. It is part of their Ethics Rules, and I wonder if that would be a good way to at least start.

Right now the sales are going up very fast in our area, and I am finding many of the Realtors are not doing a CMA, just putting a number on the property without doing any market research. Due to the lack of product, people are just going under contract without any knowledge of the market because the Realtors are to busy to do their jobs. There are people getting into the real estate business without being properly trained and they get upset when the appraiser doesn't agree with them. Sorry that this has made it way into a rant, just tired of being thrown under the bus for doing my job based on guidelines the Realtors don't have to adhere to.

Turn the other cheek. Support them by going to their open houses. Just be informal and real friendly; --> Mind your behavior, dress nicely, that sort of thing.

 

[Mike Kennedy]

Defamation, Slander, and Libel

Defamation is an area of law that provides a civil remedy when someone's words end up causing harm to your reputation or your livelihood. Libel is a written or publi

www.nolo.com