Appraisal didn't "make" the sales price...

[Ken-NC]

Briefly, I recently appraised a property which was listed for sale at $185,000. The contract had been signed for $170,000 then re-adjusted to $185,000.

I had two comps in the same subdivision, one being directly across the street, the other being two houses up and on the same side of the street. Both comps were slightly newer, slightly (around 80 s.f.) larger, had slightly larger lots AND were on full basements (subject=crawl space). These comps both sold for less than $182,000 during the previous month.

My third comp was four miles away (typical) and was on a slab.

I arrived at $178,000.

Now, I am being accused of not taking the subject's "wonderful" views into consideration (but, what about the next door neighbor?), the subject's "awesome" landscaping and so on.

My boss (I am certified residential working for another certified) has discussed these issues with both the lender and the real estate agent (acting as a dual agent, by the way) and my boss has also arrived at my conclusion.

We received a phone call Friday from the real estate office and here was the jist of the call:
"The homeowner doesn't think the appraiser was at the home long enough to even measure the exterior, do you think he did?"

Thankfully, my boss defended me once again and assured the agent that I did indeed measure the home.

My question:
Are there ANY laws that you can think of off-hand that the real estate agent(s)/firm have broken, or at the very least bent?

This whole ordeal has really ticked me off! You do your job - and back it up with reliable data - only to be told that since it didn't make the number, you clearly don't know what you're doing!

Thanks in advance.

Ken

 

[larryhaskell]

Ken:

Thats just a realtor trying to defend their own mistake or lack of ability by attacking you. Its just part of this business you have to live with if you work with realtors or LOs. Based on my experience, the realtors that yell the loudest are the most incompetent or dishonest. Their just rying to shift the blame. Take a heavy dose of skin thickener.

 

[Ken-NC]

Larry,

Yes, I agree. I've done plenty that didn't arrive at the sales price, but this time the agents involved just keep calling and calling! "Did he take the incredible views into consideration?"... "Didn't he notice the thousands spent on landscaping?"... to the incredible, "Did he really measure the house?"! That's a first for me. I'm just beyond aggravated with these people.

Ken

 

[George Hatch]

I'm just beyond aggravated with these people.

Which, I believe, is precisely the plan. There are those people who figure the ends justify the means. These guys apparently aren't accustomed to dealing with appraisers who will stand their ground.

I do have a question. How does a contract that was signed for $170,000 suddenly become an "adjusted sale price" of $185,000? We may be dealing with some late-night infomercial fans who think your client should provide 100% financing. And guess who they want to take responsibility for the lender's decision?

You know what to do. Stand your ground and be the adult. Be thankful you have associated yourself with a shop that has some integrity. Buy your boss a beer (or a soft drink) to show your appreciation for the support. Above all, report the behavior of this broker to your client. They could have backed up their case by providing you with some hard data in support of the sale price. Instead, they want you to dork the value with these touchy-feely adjustments. Definitely not cool.


George Hatch

 

[Ken-NC]

George,

Well, you hit the nail on the head. The buyers are indeed attempting 100% financing. I was told of this by the client.

Now, the bad news. The client and the real estate agent both technically work for the same firm! I won't give it away, but the mortgage firm is owned by the real estate firm. XXXX Realty and XXXX Mortgage Services.

So, going to the client to complain about the inept agent gets me nowhere.

Ken

 

[Verne Hebert]

Real Estate and Mortgages in the front?

Drive around the back and get a haircut and a shave...............and see if you can get a couple of shirts pressed for 99 cents.

The "cleaners" is some place in that building!

 

[George Hatch]

Ken,

It's worse than that. The RE broker is conspiring with the mortgage broker to basically defraud the lender, and they want you to be the fall guy. It's too bad that you probably don't know who the lender is so that you could inform on them.

I would make very sure the appraisal report includes disclosure of the prior contract price and whatever lame excuse they are using to 'adjust' the sale price. Not that your report is going anywhere. Meanwhile, don't plan on your relationship with this broker to survive much longer. They will be looking for more 'cooperative' appraisal services than you guys are providing. Heck, maybe you guys will end up with a review assignment on whatever piece of trash they end up using. You never know...


George Hatch

 

[Anonymous]

Ken,
You have done your job well and your boss has backed you up. Of course the mortgage company will never use you again!

 

[Elliott]

Why was the price adjusted from $170 to $185??

If buyer closing costs were thrown in to be paid by the
seller, see how FNMA et al have screwed up the
market. Our ability to appraise is questioned because
FNMA decided to 'inflate' the market 6% cause
they make more on the more they lend. I
predict that if the market turns soft, FNMA
will adjust their policy to pay for seller
paid real estate commissions too!!

I've seen the future, and its all about money.

elliott

 

[Joe Birrell (NY)]

Tell re agent to read and abide by NAR Code of Ethics:

re: Preamble, paragraph 4 - ......"refrain from making such comments"...
Article 1-3............................"shall not mislead...as to market value".
Article 2....."shall avoid exaggeration, misrepresentation" ...etc

and that's just the first two pages. How about asking them for copy of their CMA (my all time favorite) - which they almost never have (you'll never hear from them again).

I'd ignore it and consider the source.