AVM's

[Steve Owen]

On MSNBC today:

http://www.msnbc.com/news/741058.asp

The fourth story down is about AVM's. Comments?

 

[Pamela Crowley (Florida)]

Appraisers, after all, can undermine a deal by scaring away lenders if they decide that the home you so desperately want to buy or sell is overpriced. It’s a privilege for which you can pay $300 or more.

After all, it's only money. Who cares if you pay too much and you owe more than it's worth. Making the investment of buying a house for your family for many thousands of dollars is no big deal but that $300 to find out if it's really worth it is just too much. You just want to make sure you get what you want when you want it and the loan officers and Realtors involved will protect you because the higher the price and the higher the loan - the more money they make.

Sound logical?????

 

[jtrotta]

It's an old story getting more press; they are "Selling" their idea - but it's the old "bait & switch" tactic for us.

Bait is in at $50.00; the switch in tactics is at a level we do not get to see much of, the "Closing Statement" where additional fees can be added in. If management company's can charge $300 to $400, pay an appraiser $225 - they amke more money by not being in the processing portion. If they don't have to do anything, it's pure profit.

Look at it this way; You own a casino, it's a mathmatical wizard that provides 95% profit; only a few folks win and get these big promotional pieces so they can attract more players, they are truly "winning oriented" and you (the public) can only be told theres a chance you can "win big" if you play. Most of the public does not care about a small fee, they just want their money - if you take that opportunity for the public to play, you take away the possibility of keeping your job. The monopoly board is getting filled with houses and the larger companies are looking for "Park Place & Boardwalk" so that they can control the board and all the money - and then control of how much you make and how you can spend it; kind of like, what life was like in the USSR some years back.

8)

 

[bradellis]

Steve,

An interesting article- only the author is many years behind us in his knowledge of the market. I place little importance upon it.

An interesting sidelight- in yesterdays Sunday LA Times, there was one ad for an appraiser. Company? GREENPOINT MORTGAGE!

Brad Ellis, IFA,RAA

 

[BigBlueGA]

Appraisers, after all, can undermine a deal by scaring away lenders if they decide that the home you so desperately want to buy or sell is overpriced.

Man I would be pissed if that appraiser guy prevented me from buying a house that was $30,000 overpriced... and "undermine"? We are a bunch of little vengeful maniacs running around underming deals now...

In a busy market, even getting an appraiser to show up can take weeks, adding to the anxiety.

Is this guy for real?

Banks have spent years building databases of old appraisals and comparable sale prices in different neighborhoods and regions, and can now apply complex formulas to all that data to determine in minutes whether a property is priced right. No appraisers needed. Time saved. Money saved.

And that whole paragraph just FEELS underhanded... This is the kind of thing that would be the cause of a lawsuit if appraisers were more organized...

 

[Joe Birrell (NY)]

So says Linda Stern (by line idiot who wrote the article). Who's she sleeping with ? Must be somebody at Fannie, Freddie, or AVM to get that crapola article in the news. Wish I knew her e-mail address.

 

[Rick Hess]

Don't know about how to get in touch with little miss Linda, but you can make your point of view known to MSNBC thru their feedback button. Maybe time to let them know the true ins and outs of what the appraisal is about and for. Especially important I think, from some of you ladies and gentlemen who have lots of experience, and a grand way of expressing yourselves.

Brick

 

[Dave Smith]

Has anyone done any business with ValueNet? Today I got a letter from them. They say they are located in Northbrook, Il and seem to represent themselves as an AVM company.

Here are several sentences from the letter...

1. "Licensed appraisers operate our Internet-based property valuation system exclusively."

2. "Our appraisers typically earn more than $40 an hour."

3. "Since orders can be completed entirely from your home and require no hard copy, you can eliminate costly car and office expenses." You will need to have a computer with Internet access and e-mail capabilities, as well as a fax machine and MLS membership." (Sounds like an office to me.)

4. "If you have lost business in the past to AVMs run by outside sources, ValueNet can offer you the chance to gain that business back."

Any thoughts or comments on ValueNet?

 

[Stone]

Dave-
I was going to post the same question about ValueNet. I received the same letter last week. I work out of Madison, so it seems they are blanketing the state.

 

[Pamela Crowley (Florida)]

I believe this is where they send you an AVM filled in 'appraisal' report, their own form, and you are supposed to agree with it and sign it for $40.

How's your E&O??????? Are the State Boards checking on this????????