Another Reason Why

[Joe Birrell (NY)]

During inspection this morning property owner says "let me ask you something ? " . "Go ahead" (sigh). "The mortgage broker xxxxxx told me that appraisals never
reflect what a house is really worth, how come ?" (double sigh coming from under my breath). "Well, first of all that's not true, the problem is that actual market value doesn't reflect property owners expectations, which are based upon false perceptions rather than actual closed sales " (such as in this case I'm thinking). There is a long pause coming from owner - I can see his wheels turning slowly as he tries to take it all in........why do I even bother talking to these people.

I know this mortgage broker, she's been in the business
30 years. I always knew she was dumb as wallpaper, but this takes the cake ! It's no wonder we are bombarded with calls from irrate buyers and sellers all day long. I wonder how many people has she told this to over the years ? Give me a break ! :blink:

The definition of market value really needs to be changed
to something like "whatever the property owners wants it to be so they can get their loan" and/or "whatever the LO tells them it is" and even "whatever their neighbor, relative, or agent told them it should be no matter how unrealistic it is"

On second thought, some among us (i.e. the numbers hitter) are apparently already using this updated definition of MV. <_<

 

[jeff samolinski]

Go to your state board of appraisers they will help you. Or better yet turn the mortgage broker in to their regulatory agency so you can be blackballed by the rest of them. Just following what my board would have me do here in florida.

 

[Joe Birrell (NY)]

Originally posted by jeff samolinski@Aug 4 2003, 03:40 PM
Go to your state board of appraisers they will help you. Or better yet turn the mortgage broker in to their regulatory agency so you can be blackballed by the rest of them. Just following what my board would have me do here in florida.

Jeff:

I've been following the thread on your posting "hi my name is...." I think your right on with your analogy. I withheld my comments because I didn't want to get into
a debate with those on this forum to actually believe things will change.....well now that you brought it up
our board and state regulators are USELESS, along with
the AF, federal regulators, appraisal organizations, NAR, etc.

I've been fighting proverbal "windmills" since 1978. If
it's true (as some claim) that those above (and their crony membership), really want changes for the better and proclaim to be helping us, then why does the current state of affairs within our industry continue.....aghhh - don't get me started - this is why I have decided to generally stay out of such debates and "keep treading water while the sharks circle". It's easier than trying to reform a corrupt industry, been there and tried it for decades, I'm simply sick and tired of it at this stage.
It will evetually collpase under its own weight and by that time I'll be out of it. I prefer to make sarcastic postings in
the meanwhile B)

 

[Judy Whitehead (Florida)]

You know something....my first reaction is usually what you described as yours. (sighs) But in reflection, don't you think you could help our profession by using phrases like: "Why no, that isn't true at all. If an appraiser does a good job, then we use several steps to determine market value. Such as how much would it cost to reproduce it (less depreciation, you know, it is not new) but we rely primarily on other homes that sold in the neighborhood, or if not in this neighborhood - one as similar to it as possible - and what people are paying for the homes generally determines the market value." I will even go on to describe that I must make adjustments for different features, size, age, site size, etc.

I try not to go into appraisal class 101 but it is just possible that Mr. Homeowner will understand the process better if you try to explain at least the basics. By doing that in a professional manner, I think you have more credibility when Mr. Homeowner finally looks at the appraisal report.

I try to ignore any comments about the lender or mortgage broker, as you are actually there on their behalf. Sure, many of them make silly comments like that, but it is just possible the mortgage broker didn't actually say that - but that is what Mr. Homeonwer heard. I'm not trying to lecture you and I know it gets tiresome listening to those comments, but if I manage to at least partially educate someone on the appraisal process, then perhaps the next appriaser won't have such a hard time.

 

[Joe Birrell (NY)]

Judy:

Your right, but like your said it usually leads to Apppraisal 101 and they get a glazed look in their eyes. Most stop listening as soon as they realize your not going to agree with them. It depends upon how they come across. In this case, this guy had the let's try to intimidate the appraiser attitude. I really don't sigh (I do mentally), but not actually. Actually inspite of my rantings on this forum, I'm very polite with nearly all property owners (inspite of what I may think about them). There are some that make the inspection process enjoyable. Bottom line, is I don't
have the time (or patience any longer) to edcuate the clients of re agents, lenders. etc. - that's their job which apparently they are not doing. If I have a hire direct type I spend a lot of time and energy educating them (you know the "well informed" phrase in the definition of MV)

 

[Judy Whitehead (Florida)]

Joe, I guess I'm just too dumb not to defend myself. Of course I won't argue with anyone. I just get my "Southern Grandmother" face on and they usually calm down. I know it gets real old......but I guess I just will never learn not to have some kind of reply and hope I can keep it polite.

 

[Ghost Rider]

It's funny, I have heard this same thing from a TON of homeowners, and I usually take a different tact with them - Without getting into a deep discussion of "market value" and what it really is, I usually say "It's true, sometimes an appraisal cannot totally predict what is the highest value you might sell the home for. There is always the possibility you might find someone who falls in love with your property, and want to pay even more than you think it is worth. What an appraisal does is gives a lender an idea of what the typical buyer in the market will pay for it, and by analysinze other sales of homes that are similar to yours, an appraisal can help predict what that value is.".......I find it's easier to semi-agree with them, and move forward.......Because in the long run, none of us can predict with 100% certainty what a property will sell for in the future, or what it would sell for is the homeowners put the house on the market 15 minutes after we walked out the door.

 

[Mike Simpson]

Here's a response;

"Mortgage Brokers know as much about appraising as I know about making a loan...and that's typically just enough to get it wrong."

-Mike

 

[Richard Carlsen]

Joe

The questions you ask put you on very thin ice.

You must remember that "DUMB" is an inherent right protected by our constitution. This LO has the right to be dumb and if you challenge that right, you will not only be infringing on her rights but also creating a victim of the system that is suppose to provide her with income.

Right next to "DUMB" is "STUPID" which this remark comes very close to qualifying as but lacks the ridicules outcome associated with"STUPID" remarks that require at least 3 hours of non-productive time to correct.

In the future, to protect yourself and ensure that this ladies rights are not infringed upon, please answer such questions as was posed to you with a smile and the words with a Mortimere Snerd twang, "Gosh I don't know. That's just what they taught us in appraising school."

 

[Judy Whitehead (Florida)]

Actually, MHMerriman - (I wish that I knew if you were male or female and I don't know why)

What you said is exactly what I would recommend. At least give an answer....and a (hopefully) intelligent one at that.

If we cannot defend our own profession, why do we expect anyone else to?

And I don't think our state boards can protect us from people who do not understand the profession or even remotely how we perform it.

By the way, I know that everyone that posts meets Wayne' s rules, but I sure wish more of you would actually reveal who you are. IMHO...at least a general location (east,central,west,southwest,south U.S.) and (believe it or not) your gender. I am interested in the opinions of male/female. Call me prejudiced...... h34r: