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Be careful out there

ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
Who cares what the listing price is? Mickey mouse realtor games like this have nothing to do with market value. Why would you care if they switched the list price on the MLS? People can list a home for whatever they want. It means nothing - until it closes title.

Its the closed sales, and the closed sales alone that determine value.
As Alsie35 implies . . . Appraisers are required to describe the listing history, and to analyze the contact, but not to analyze the listing history. You're creating additional work for yourself in order to satisfy some sort of unwarranted concern of absolutely no interest to an Intended User. No conspiracies, no collusion, no harm, no foul...
 

Jayjay25

Freshman Member
Joined
Oct 9, 2013
Professional Status
Certified Residential Appraiser
State
Connecticut
I’ve had realtors tell me “we increased the list price so any back up offers that come in know where to start their offers......”. It seems it’s either a way to manipulate the bank/appraiser or it’s a way to disclose the price of a confidential contract to other buyers.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Who cares about stupid RE agent games- ? I see that here too, so what? Make note of it in as a comment in the listing history and continue with your appraisal
 

Sid Holderly

Senior Member
Gold Supporting Member
Joined
Jun 16, 2005
Professional Status
Certified Residential Appraiser
State
Indiana
If the increased listing price stays with the dlosed price on the MLS data sheet it makes things look like a decreaing market because the list to sale price ratio has a greater spread. Doing these things does not help the market. Just report the listing history as required and analyze the sale. The MC form does enough analysis on the list price. There are mor important things to focus on.
 

Mike Ault

Junior Member
Joined
Sep 23, 2004
Professional Status
Certified Residential Appraiser
State
Texas
Back during the Nehemiah and Ameradream gift program days dishonest real estate practitioners would raise the list price by the amount of the seller concession and pretend that was always listed for that. Slovenly appraisers who didn't bother to point things like that out were in high demand and those of us who did and (as an additional offense) pointed out deferred maintenance were bypassed. One reason why rotation lists exist now. As long as your report contains enough information for a diligent reader to figure out why the list price is being manipulated then you have done your job, a simple statement that the listing price was raised on such and such a date after the contract was signed on such and such a date is good enough. You don't have to call the FBI however you don't want to appear to be colluding with such sleazy tactics. When I review reports I don't call people out for that issue because it is a gray area however those are the reports that get an extra level of scrutiny to see what other things they might have overlooked that would lead to an artificially high value conclusion. If you're too busy to analyze the listing history of your subject with things like that going on then you're too busy.
 
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ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
Back during the Nehemiah and Ameradream gift program days dishonest real estate practitioners would raise the list price by the amount of the seller concession and pretend that was always listed for that. Slovenly appraisers who did not bother to point things like that out were in high demand and those of us who did and (as an additional offense) pointed out deferred maintenance were bypassed. As long as your report contains enough information for a diligent reader to figure out why the list price is being manipulated then you have done your job, a simple statement that the listing price was raised on such and such a date after the contract was signed on such and such a date is good enough. You don't have to call the FBI however you don't want to appear to be colluding with such sleazy tactics. When I review reports I don't call people out for that issue because it is a gray area however those are the reports that get an extra level of scrutiny to see what other things they might have overlooked that would lead to an artificially high value conclusion. If you're too busy to analyze the listing history of your subject with things like that going on then you're too busy.
I've never conducted a review appraisal, either field-review or desktop, but it seems that they would be more challenging than an ordinary 1004, although I just completed my first "ordinary" appraisal in months.
 

Mike Ault

Junior Member
Joined
Sep 23, 2004
Professional Status
Certified Residential Appraiser
State
Texas
I've never conducted a review appraisal, either field-review or desktop, but it seems that they would be more challenging than an ordinary 1004, although I just completed my first "ordinary" appraisal in months.
Review work isn't any more difficult than regular appraisal work but it is more time-consuming and less lucrative. I've never been able to talk any client into a "tiered fee structure" which escalates with the level of complexity involved, you just take those assignments and hope for the best. It is a necessary function for maintaining the integrity of Appraisal Profession however and I'm happy to provide those services when needed.
 
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Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I love including that stuff - do they think we don't notice??
Perhaps they KNOW some of our "peers" don't notice... :(

Who cares what the listing price is? Mickey mouse realtor games
I go to great lengths to clear things up the best I can
The games are an effort to make a cogent effort to influence. Period. And we are human. The Anchor Bias is real...and invisible. Even if you think you are not subject to it, you are. So I have to agree with Mike. I want to 'splain 'splain 'splain... We'll all seen properties that go off market only to reappear days later for a higher price and sell after languishing on the market for months. It happens. Sometime we have to say I don't know but I am not blind, and then proceed to make the case that the sales we selected for comparison are the true indicators of value.

If I have a subject selling well above the others in the same project, then they will have a tough time budging me by arguing some rapidly increasing market and tons of contracts. Contracts are a dime a dozen. I have faced completely bogus ones foisted upon me by agents to suggest a higher price.
 
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