Austin
Elite Member
- Joined
- Jan 16, 2002
- Professional Status
- Certified General Appraiser
- State
- Virginia
Concerning verifying sales with Realtors, a few examples of why I don’t like to do it: Yesterday I was appraising a single-family dwelling. I picked the three best comps. This was on comp # 1 MLS data card: “Total GLA-2,397 sf. 1,249 sf on the first floor of this rancher plus 1149 sq ft unfinished basement = 2,397 sf total GLA.” The MLS book is full of this stuff. Total GLA includes finished and unfinished basement.
Story # 2: I did another single-family appraisal recently. Went to the tax office and the seller owned two adjoining lots, one with dwelling and one vacant lot. The lender sent me no property description so I went to the Realtor’s office. I axed the sale agent if the vacant lot was included in the sale price. He said: “What vacant lot?” I said: “The one next to the lot with the house your client is selling. What did you sell your buyer?” He says: “Hell, I don’t know. Just include the lot in the sale and appraise them both.”
One of my favorites is: “Nice brick rancher home with two bedrooms & bath on the second floor.” Another favorite is: “Immaculate 1,100 sq ft rancher with large heated 400 sf Florida Room addition.” Is the large Florida room included in the 1,100 sf? How could it be? Another MLS comment is: “Excellent investment property. Pays good return.” I called the Realtor and axed the income and expenses. Reply: “We don’t know.” I went into one of the largest and oldest Realtor firms once and was talking to the principle broker who has been in the business for about 30 years. Known for cutting deals. I axed if the sale price was cash equivalent because I knew it wasn’t. He says: “What does that mean?” I said: “Did the seller pay any points, give any special financing, or anything like that?” He says: “What does that have to do with anything.” I swear this guy has never nor can he measure the GLA of any dwelling. When I was doing a lot of regression his sales would be outliners every time because the GLA was never even close.
The MLS book is full of doublewide homes with no mention that they are manufactured. Most entries say: “1,300 sq +/- per tax assessor.” The most critical value-influencing factor and they are to lazy or stupid to accurately measure the house. If they don't have an accurate measure of the most significant value influencing features and don't even know what the features are, then how could they have determined the sale price? How these people have gotten by without being sued is beyond me.
And these are the people upon whom we are to rely on to verify sale data!
Story # 2: I did another single-family appraisal recently. Went to the tax office and the seller owned two adjoining lots, one with dwelling and one vacant lot. The lender sent me no property description so I went to the Realtor’s office. I axed the sale agent if the vacant lot was included in the sale price. He said: “What vacant lot?” I said: “The one next to the lot with the house your client is selling. What did you sell your buyer?” He says: “Hell, I don’t know. Just include the lot in the sale and appraise them both.”
One of my favorites is: “Nice brick rancher home with two bedrooms & bath on the second floor.” Another favorite is: “Immaculate 1,100 sq ft rancher with large heated 400 sf Florida Room addition.” Is the large Florida room included in the 1,100 sf? How could it be? Another MLS comment is: “Excellent investment property. Pays good return.” I called the Realtor and axed the income and expenses. Reply: “We don’t know.” I went into one of the largest and oldest Realtor firms once and was talking to the principle broker who has been in the business for about 30 years. Known for cutting deals. I axed if the sale price was cash equivalent because I knew it wasn’t. He says: “What does that mean?” I said: “Did the seller pay any points, give any special financing, or anything like that?” He says: “What does that have to do with anything.” I swear this guy has never nor can he measure the GLA of any dwelling. When I was doing a lot of regression his sales would be outliners every time because the GLA was never even close.
The MLS book is full of doublewide homes with no mention that they are manufactured. Most entries say: “1,300 sq +/- per tax assessor.” The most critical value-influencing factor and they are to lazy or stupid to accurately measure the house. If they don't have an accurate measure of the most significant value influencing features and don't even know what the features are, then how could they have determined the sale price? How these people have gotten by without being sued is beyond me.
And these are the people upon whom we are to rely on to verify sale data!
