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For Charlotte Appraisers or Members of CMLS

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NC Appraising

Thread Starter
Senior Member
Joined
Apr 28, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
In the March 2008 edition of Realtor Reflections, a new rule will be adopted concerning the way agents list the square footage for residential properties.

On page 8: Square footage will be listed as a range, 10% down, and 5% up. Once the square footage is in the MLS system for an active listing, it then will be converted to the range and will remain a range until the listing is closed, the actual square footed, as entered by the agent, will be seen by CMLS users.

--So the single number that will be seen when the sale is closed is now irrelevant, somewhat; since the market seen the property as a range (when it was active), when they were making their informed decisions. Any thoughts?

OFF TOPIC
On page 30 under "Professional Standards Administrator" the columnist wrote an article entitled "expert advice", what would you call it?

Here's a peep: "Provide the basis for the opinion, including applicable market data, and if the opinion is not an appraisal, provide a statement to that effect" ---- " If your client asks you to perform an appraisal assignment for which you are not qualified to perform, you must disclose your lack of experience and tell your client you will obtain assistance from a qualified appraiser. BE SURE TO IDENTIFY THE INDIVIDUALS OR FIRMS THAT PROVIDE ASSISTANCE IN YOUR APPRAISAL REPORTS."----

Its been a long day, maybe I'm reading this wrong.
 
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Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
this is actually a win for appraisers. Orignally they wanted to eliminate GLA all together. Myself and all the appraisers I know adamantly opposed the thought and apparently this is what we got.

Personally, i dont have a problem with it. Buyers dont keep all that stright in there mind anyway. Unless it is a small house most buyers for example, cant tell the difference between a 2300 sft house and a 2600 sft house. The larger the house the more difficult the comparison.

1000 sft cracker box would have a range 0f 900-1050 - thats pretty close.

5000 sft mcmansion 4500 sft to 5250 sft. again pretty close.

I dont see this as a problem.
 

NC Appraising

Thread Starter
Senior Member
Joined
Apr 28, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
Thanks for responding.

I don't see it as a problem either. I was just trying to get some feed back on how other appraisers are going to handel this issue. I guess its business as usual.

Most agents use the tax info anyway. :huh:
 

Queen City Gurl

Sophomore Member
Joined
Jul 14, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
Call me crabby..... but I just have a problem with changes being made, because there were a cazillion realtors lobbying the change, so that they didn't have to learn to measure a house, as they were supposed to. Imagine if we could just do away with whatever responsibilities we have, because we didn't want to be bothered learning it, and so didn't want to be bogged down with the liability.

Injustices are kind of my pet peeves..... I just think people should be responsible for doing thier jobs. You guys are all nicer than me !!

I guess it is better than loosing all GLA info.... but there's no excuse for going to this IMO. Wouldn' t it be nice to do away with some of our liability also..

Thinking I'm crabby ?? :O
 

Couch Potato

Elite Member
Joined
Mar 15, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Thanks for responding.

I don't see it as a problem either. I was just trying to get some feed back on how other appraisers are going to handel this issue. I guess its business as usual.

Most agents use the tax info anyway. :huh:
Only the stupid agents use the tax info. (So I guess I'm agreeing with you. :rof: )

What it does for an appraiser is reinforce the idea of not adjusting for small variances in size and define a range of sizes to use in searching for comparable sales. It puts more of an emphasis on usable space over space in general. It helps eliminate the incongruence caused that house with 300 sqft of hallway.
 

Queen City Gurl

Sophomore Member
Joined
Jul 14, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
I still don't see this change as a benefit to appraisers, but rather, an ease on their liability. I like to determine how much emphasis I should give a space, in my analysis.

One concern, and I read the article awhile back, but don' t remember this in particular.... is when is the specific GLA entered by the realtor? Is it after the closing, such as when they update form pending to closing status? Because, many realtors are really lax about that, and I have seen updates that don't take place for months....

Or is it entered at the time of the listing, but only becomes available at the time of the closing? I am just wondering how reliant we will be, on their expediancy.

Plus, particularly in a volatile market, it makes analyzing current activity a lot more difficult. I would rather have specific, accurate data supplied.

Even many realtors that provide BPOs have a problem with this, as they are dealing with our side of the equation.
 

USPAP Compliant

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Right out of the NCREC rules:


Although real estate agents are not required by the Real Estate License Law or Real Estate Commission rules to report the square footage of properties offered for sale (or rent), when they do report square footage, it is essential that the information they give prospective purchasers be accurate

Some sources of square footage information are by their very nature unreliable. For example, an agent should not rely on square footage information determined by the property owner or included in property tax records. An agent should also not rely on square footage information included in a listing, appraisal report or survey prepared in connection with an earlier transaction.

As an alternative to personally measuring a dwelling and calculating its square footage, an agent may rely on the square footage reported by other persons when it is reasonable under the circumstances to do so. Generally speaking, an agent working with a buyer (either as a buyer's agent or as a seller's agent) may rely on the listing agent's square footage representations except in those unusual instances when there is an error in the reported square footage that should be obvious to a reasonably prudent agent. For example, a buyer's agent would not be expected to notice that a house advertised as containing 2200 square feet of living area in fact contained only 2000 square feet. On the other hand, that same agent, under most circumstances, would be expected to realize that a house described as containing 3200 square feet really contained only 2300 square feet of living area. If there is such a "red flag" regarding the reported square footage, the agent working with the buyer should promptly point out the suspected error to the buyer and the listing agent. The listing agent should then verify the square footage and correct any error in the information reported.





Looks like aan error (or range) of 10% is ok with the NCREC.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
If i recall the allowable error under the new system is 5% high, and as much as 15% low.

If available I have been using the realist GLA if it looks close for any actives I use.
 

USPAP Compliant

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
If there is an allowed margin of error.......it would to be no more than the NREC which appears to be about 15%. The NCREC would overrule at any time.

The CMLS can have their own guidelines for members....bur licensed agent an brokers must first do what the state says.


Why two different margins of error?
 
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