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Communicating with a RE agent about 'hitting the mark'

Kdef

Thread Starter
Freshman Member
Joined
Sep 26, 2019
Professional Status
Licensed Appraiser
State
Colorado
I'm newly licensed, working in a small town market. Did an appraisal, came in under contract price, and so, of course, both agents are after me to change my mind. I did tell them I'd look at some sales they thought relevant: figured I'm not perfect, I might have missed something.

Anyway, my issue is one of the agents is telling me he was 'blindsided' when the appraisal came in low. According to him, local appraisers will call him up if it looks like the opinion of market value isn't going to be as high as the contract price. Is this a thing? Seems like a violation of USPAP confidentiality to me...
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I'm newly licensed, working in a small town market. Did an appraisal, came in under contract price, and so, of course, both agents are after me to change my mind. I did tell them I'd look at some sales they thought relevant: figured I'm not perfect, I might have missed something.

Anyway, my issue is one of the agents is telling me he was 'blindsided' when the appraisal came in low. According to him, local appraisers will call him up if it looks like the opinion of market value isn't going to be as high as the contract price. Is this a thing? Seems like a violation of USPAP confidentiality to me...
Who knows if it really happens or they are just saying it to pressure you, though VA has tidewater reach out to agent
.
Either way it does not matter, DO NOT COMMUNICATE with these agents after you turn report in to client, including agreeing to look at more sales. Direct any tantrums they have or contact with you to respond with a neutral " I can not discuss the appraisal with parties, please direct any inquires to the lender". No matter how much they badger and pester you, state that once , whether by email, text or phone, and after you tell them once to direct inquires to the lender do nor respond to any further attempts to reach you

If the client wants to send other sales to you as an ROV it needs come from the client.
 
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Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
When a realtor or home owner calls about the results of an appraisal, I direct them that lenders and AMCs have review procedures and advise them to contact the lender. If the lender or AMC send a request for review, then I address the issues brought up and communicate the results back to the lender or AMC.
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
"According to him, local appraisers will call him up if it looks like the opinion of market value isn't going to be as high as the contract price. Is this a thing? "

That broker might have had that experience a couple times and is using that to project it as some obligation you somehow owe them. We don't, and moreover the contractual obligations in our assignments often explicitly prohibit it. So it's usually not even a matter of will vs won't, but of can vs cannot.

The time to let the broker have their say in the data you are looking at is right up front, before you even inspect the property. No promises to make because you're still going to pick the comps you think are most relevant. You let them take their best shot up front, not after the fact in the form of an ROV.

The one thing that I think it's important to tell people is that you are looking at everything you can get your hands on that's even remotely comparable, and that your appraisal is based on your consideration of it all, not just on the handful of sales among that larger dataset that you think are among the most similar/comparable. So the appraisal *does not* hinge on any one or two sales. There is no swapping out one sale for another that's going to change your appraisal.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
RE agents seem to sense who is new or vulnerable in appraisal as I rarely if ever get that - some of it is how the appraiser handles themselves on the inspection with RE agents present and that comes with time - we can interact with them, even question them about the property or area sales yet maintain a detached attitude and confidence - that comes with experience. Sometimes they ask "feeler " questions perhaps to probe if appraiser is vulnerable such as " what do you think the value will be " or they will say things like "I just sold one down the street for a zillion $, or I have ten back up offers on this".....I accept any statements they make or sales they hand with a very neutral demeanor and do not argue with them about what they said or about a sale. While some agents are very astute and appreciate appraising, many are just trying to get a commission and incredibly dense about what a comp is . They can offer some insight at times into a subject or area sales so it becomes an art form ferreting out what they tell you.
 
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ramrcdk

Senior Member
Joined
Jan 15, 2008
Professional Status
Certified Residential Appraiser
State
North Carolina
Posts 2- 5 PAY attention to this great info' !!
Of course, Appraisers do look for "typical market responseS". Therefore, 1 sale or even 2, unique, etc etc would not be a " stream of data IN MY market AREA ". (where rural this could be different, perhaps.)
Again to say it, YEP I'm anal and I do quote that IN my Reports. Meaning: in describing market, market reactions to the SCA per each grid line is determined from " a stream of market data reactions" found in the data source __ MLS data__ and based upon SOW & the date of the inspection.
NEVER after Report delivery : chat with anyone about "value" or comps or...much of anything. Intended User = Lender-Client and they will get in touch with you where found applicable.
However, in the meantime this will give you time to CYA, perhaps review your awesomely detailed work file !!! A good thing.

Said in a previous post: there are Great Forms for this Appraisal Challenge tagged as " Appraisal Dispute Form" which conforms to AIR Appraiser Independence Requirements
and allows you power to defend your report comparable selections & "why" to have not used their perhaps emotional sale choices.
***Form Use: when the Form has been provided by the Intended User or I guess you could request that they USE the Form.


One example of the Form -type is attached.
 

Attachments

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Lee in L.A.

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
If the mark is on the end of their nose I will be glad to hit it good and hard. Pow! :dancefool:

Is one of them named Alice?
To the moon, Alice! :leeann2:
 

andrew81

Senior Member
Gold Supporting Member
Joined
Dec 5, 2008
Professional Status
Certified Residential Appraiser
State
Illinois
this is going to be an unpopular opinion and im sure to receive some hate for it. part of what we do is interview market participants, which includes brokers.

nothing wrong with looking at some additional sales. just be careful how you communicate the results.

i also work in small town markets. mostly rural agricultural properties and villages of 10 to 3000 population. there are a couple agents that i will call and ask if they have any additional data or sales they would like me to consider before the report is submitted. "hey im just finishing the report for 123 County Rd, super nice property, do you happen to have any additional sales data i might have missed."

i do not communicate a value point or range in relation to the contract price, no value communication is happening at all, but we have known each other long enough they can read between the lines. sometimes they send good information from a non-MLS sale that i missed and sometimes its complete junk that was picked based on price.
 
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glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
I'm newly licensed, working in a small town market. Did an appraisal, came in under contract price, and so, of course, both agents are after me to change my mind. I did tell them I'd look at some sales they thought relevant: figured I'm not perfect, I might have missed something.

Anyway, my issue is one of the agents is telling me he was 'blindsided' when the appraisal came in low. According to him, local appraisers will call him up if it looks like the opinion of market value isn't going to be as high as the contract price. Is this a thing? Seems like a violation of USPAP confidentiality to me...
NO big deal they are not under USPAP and it's common. I just tell them I did my best and to contact the lender and ask for a ROV. After that I tell them I cannot discuss any value issues with them and that normally ends the problem.
 

Econobot

Junior Member
Joined
Aug 9, 2019
Professional Status
Certified Residential Appraiser
State
Colorado
I'm newly licensed, working in a small town market. Did an appraisal, came in under contract price, and so, of course, both agents are after me to change my mind. I did tell them I'd look at some sales they thought relevant: figured I'm not perfect, I might have missed something.

Anyway, my issue is one of the agents is telling me he was 'blindsided' when the appraisal came in low. According to him, local appraisers will call him up if it looks like the opinion of market value isn't going to be as high as the contract price. Is this a thing? Seems like a violation of USPAP confidentiality to me...
#1....unless proven otherwise, realtors are used car sales persons who often have less education than a barber or hair stylist....
#2.....stop answering the phone or calling, send emails or texts
#3.....if they hand you a list of comps, quickly review the addresses and then hand them back with a "thank you very much"
#4....learn to make a statement and not say anything else, only respond with "ok" or "I'm sorry regulations prevent me from discussing this with you" then walk away or hang up phone with a "I'm sorry but I have to go, thanks for the call"

Once you establish dominance with the sales person they can no longer dominate the situation. Head down to your local car lot for practice or even consider researching sales tactics. "The first person to speak loses", perfect great example of how to deal with people trying to force your hand or influence your decision making.
 
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