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Anyone else noticing this?

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Pamela Crowley (Florida)

Thread Starter
Elite Member
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
I've decided to name it the Realtor Feeding Frenzy. Haven't had a chance to actually run statistics regarding # of sales this summer compared to last summer so I don't know yet if it's due to sales slowing down. I do notice some neighborhoods where pulling comps is getting tougher, ie: fewer sales to choose from.

The Realtor pressure seems to be building here with values being pushed in all sorts of ways that used to be rare. Even when taking inflation into consideration, I just can't make the sales prices because the Realtors are ignoring sales within the subject subdivisions and are using comps in their CMAs from larger and more expensive subdivisions. The appraisers that are making the values for some of these sales are causing the neighborhood statistics to be all over the board now and the bottom line for the 3 comps are not as close as they used to be. I call to verify information regarding some of these sales and still can find no rhyme or reason for the sales prices.

Just last week I had a Realtor tell me that a sale I was using as a comp was loaded with wood rot and multiple necessary repairs and I needed to adjust for that to make the sale price for her deal. I called the selling agent on that one and she told me that the property had a couple of places of very minor wood rot at the bottom of a couple of trim boards and had been very well maintained and updated. (figured the selling agent would be more likely to tell me the truth than the listing agent)

I just don't trust anything in MLS anymore. Finding more and more where the sale price in MLS doesn't match the county records and/or neither does the type of financing. Multiple instances of Realtors using comps from gated and/or golf course communities for properties outside of them; simply adding 10% to what the owner paid for it last year (and last years sale price was too high) and that should be all I need to know about it, entering investor inflated and privately financed sales with incorrect sale prices and dates; hiding an investor in between the sale so they don't show up in the deeds; telling me to just go to the other more expensive subdivision of newer and larger houses to make the value like 'so-n-so' does and just ignore the sales within the subject subdivision; and "No appraiser has ever asked for the contract before and I'm not sending it to you."

Don't they realize what this makes them and/or what it's doing to the statistics? I'm telling a Realtor today to please send my appraisal that was completed for a cash buyer to the State Appraisal Board with her complaint. Trying to sort out the MLS mis-information is costing me a lot of extra time and it appears that way too many feel that an appraisal is only supposed to be done to justify whatever they did - not reality.

I know.... this kind of thing has been going on for a very long time. It's just that I'm noticing much, much more of it these past few months and am wondering if the rest of you are seeing more of it, too.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Pam:
In our neck of the woods there have been a number of "everythings comin up roses" stries on the front page, one recently resulted in my snort of disbeleif over my moring cuppa and my husbands 'wasting' an entire DAY on stastistical analysis to disprove every single point made in the raft of lies in a top selling realtor's assessment(s) of our local market.

What I AM hearing from most of the agents is that their personal listings are down, and a very few trademarked marketing 'groups' consisting of a single Realtor and many assistants are getting most of the action. I am not sure the sellers are getting most of the results they need from these groups, and the groups seem to have no loyalty to thier parent companies: once established the 'groups' move about in search of a better cut from the name brokerages! Problems everywhere :roll: .

The alarming thing that I am observing in person, is the number of 'pocket listings' wherein the listing agent takes the information places a sign out front and earnestly tries to market the house BEFORE placing it on the MLS... Often these homes 'sell before print' to the agent or someone from that agents office. What a surprise! It was hardly an open market sale! Often the values are seriously out of whack, and not surprisingly I don't get to do the appraisal. :eek: The bells ring, buzzers sound: Cancel CanCEL CANCEL: Hostile appraiser alert!~

Anonymous calls to agents' numbers posted on the "for Sale signs" has been a minor sideline for me in the last several months: " I notice you have your sign out and I can't find the listing on the MLS, was it mis-addressed or filed incorrectly?? :twisted: :twisted: " I generally follow up if they are real weaselly. We has to get our fun where when we can :p The follow-up call is even more fun I usualy say and I called the board office to see if they could help me and they couldn't find it either 8) .
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
ROFL Wow! Lee Ann, you are truely an agents best friend. :lol:
I quess I am the more quiet type. Rather than calling the agent directly with such a threat, errr, I mean correction. I just send a quick little email to our boards pres. or director to let them know they need to get onto so and so.
 
Joined
Jan 16, 2002
Identical situation here also ! In over 24 years I have never seen it so bad. It is absurd, especially when re agent is pressured to justify asking prices and contract prcies. I had one actually tell me just this morning that
she has no CMA, and guessed at the price based upon showing lot size to
architect for land value (it's a circa 1945 vintage, resale). Her original asking price was $624,900 with a price reduction to $479,900, and contracted for $450,000 (98 days marketing time) - comps show value range of $385,000 to maybe for $400,000 on a good day !!!!

As absurd as this sounds, it is typical !

Re agents are totally disregarding size, condition, and location. NONE
repeat NONE have done CMAs and have no clue what a comp is. The entire market is based upon WHAT THE OWNER NEEDS - TOTAL DISREGARD FOR MARKET VALUE.
 

Bill Plunkett

Freshman Member
Joined
Aug 29, 2002
Pamela,

In the 250-300 reviews this office has performed in the last 12 months I certtainly agree I'm seeing more and more stating "Sales contract unavailable "

I have taken to stating in block 12 what it took to get a copy of the sales cointract.ie One phome call and reviewer received sales contractt in five minutes. Or, Reviewer called selling agent for copy of sales agreement and was informed she had given a copy to the appraiser!!! :)

Ethics, Ethics, Ethics!!!

Bill of SC
 

Soar Ohio

Sophomore Member
Joined
May 8, 2002
Professional Status
Certified Residential Appraiser
State
Ohio
Bill,
Agents can move real fast when they need to cover their a**. Plus, most of the reviews I get state that you are not to discuss the review with anyone. I have never been able to get info from a realtor without stating why I need the info.
Tom
 

Liz South

Junior Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Virginia
Don't even get me on that bandwagon. The other day I called the listing agent (got their support person) for copy of contract - asked them to fax it to me - they said it wasn't their responsibility to fax it, that it was the buyer agent's responsibility - I hung up - called the broker - similar response - again no contract - then I called the homeowner - explained that their agent refused to do their job and that possibly they needed to check with their agent and inquire why they don't want to facilitate the sale. Got the contract within 30 minutes - but why are they being such jack a es.

I'm seeing a whole lot more FSBO's here - people are realizing that Realtors don't really do much to add value when for a nominal fee a FSBO can be listed in the MLS. I'm having to use FSBO's alot more often as they are often the most recent sales.

Praying that Realtors develop brains and hearts -

Liz S.
 

Jim Joseph

Freshman Member
Joined
Jun 11, 2002
Pamela, I am with you with a few other emotions, like for isntance the FHA repairs I site while the listing agent is there....or how about the time I requested the buyer's agent and seller's agent meet me at the property and we had a committee meeting on every V.C. Accompanying the report was a $125.00 invoice for consultation. Hah!! I have no mercy on buying or selling agents, they have no regard at all for the law. I had to fill cracks in a concrete driveway for an FHA transaction on a hot Saturday afternoon a few years ago and vowed never to be in that position again. Live and learn. Hold your grounds and have a little fun with it.
Best day to you,
Jim Joseph
 

Kathy in FL

Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Florida
Not just you, Pamela...it's going on in redneck Florida, too. (Except that I think our brokers can be the pushiest....)

I came in a little low on a riverfront lot last week on the Withlacoochee River. Sales price was pretty inflated. (Yankee buyers from out-of-state)

The lot was really overgrown and I didn't wade through it to take a picture of the river dock. Got a call back from the AMC saying the broker had her panties in a wad because I didn't include the dock in the photo. Says AND I QUOTE "She says she goes out there every day in her heels and stockings and there's no reason not to take a picture of the dock and the value is too low and should be raised." Now, we know that brokers visit their vacant listings EVERY DAY all the time and that it was the value bit she was worried about.

I had the best comeback line ever, which happened to be true. "Well, you know, I guess I could have, but I'm glad I didn't, because a man was attacked there later in the day not too far away by an alligator and he's in intensive care. Are you sure you want me to go back?"
They, of course, declined.

Kathy in FL
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
It is happening everywhere. In the Asheville, NC market it is terrible. I am on that list of appraisers not to send those to. Actually, I was on that list. I left the area. Usually, when your call the listing agent and ask what cmps they used on their CMA they cant find the file, but they will call you back in a little while. When they call back, they used sales like you described. OUt of the area, not comparable, etc. When you ask why they didnt use the house next door, the one behind it, etc they go into great detail about how superior the subject is.

Then I call the Buyer's Agent. One would think that this agent should really have done his/her homework on the offering price because they represent the buyer. Ask how they got to that price. "Thats what they wanted to offer." Did you offer professional advice based on the sales in the neighborhood? Nope. Never talked about them.

The truely sad part is I have contacted both NAR and the North Carolina Banking Commision (about 4 weeks ago) to find out if it is legal for an agent and/or a mortgage broker to not disclose to the potential buyer that an appraisal has been made on aproperty, but since it didnt hit the majic number, it is tossed in the garbage can and another, more accomodating appraiser is used. Neither NAR or NCBC has replied. Guess I know what their position is.
 
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