Has anyone attempted to bring Ethics Violations against a Realtor for continually making negative remarks against you?

[JeffSH]

The market is ON FIRE ?? Truly you should switch careers and become a RE agent, your thinking is in their realm - you are typing in a RE agent type price opinion, on an appraisal form.

We dont know more than the market ? WTF are we hired for...we are supposed to know more, within our professional in our realm of expertise which is to analyze the market in MV appraisal terms.

Market Value is the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.

Nowhere does it mention comps, adjustments, or any other appraisal terms. A home is worth what people are willing to pay for it. It's insane to think otherwise.

 

[J Grant]

There are a couple of Realty offices in my town that believe that they have the right to talk about appraisers in a negative light because they don't always agree with the contract prices they arrive at. I know that is as old as time, but when they constantly throw appraisers under the bus, even to people that are related to you. What tactics have you used in the past to shut that down? The local Association of Realtors has a few statements that talk about not talking or communicating negative comments about other real estate professionals in the association. It is part of their Ethics Rules, and I wonder if that would be a good way to at least start.

Right now the sales are going up very fast in our area, and I am finding many of the Realtors are not doing a CMA, just putting a number on the property without doing any market research. Due to the lack of product, people are just going under contract without any knowledge of the market because the Realtors are to busy to do their jobs. There are people getting into the real estate business without being properly trained and they get upset when the appraiser doesn't agree with them. Sorry that this has made it way into a rant, just tired of being thrown under the bus for doing my job based on guidelines the Realtors don't have to adhere to.

Unless one of them directs tactics or statements that harm you as an individual appraiser, just ignore them. As you note, only a few realtors are sleazy enough to do this. Many of them understand prices are outstripping value, thus a number of them in my area in a super high price contract, include a seller will pay X $ over appraisal value clause in the contract.

 

[JeffSH]

Are you guys just assuming the market participants are irrational based on similar homes that sold when interest rates were near 3.5%?

 

[J Grant]

Market Value is the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.

Nowhere does it mention comps, adjustments, or any other appraisal terms. A home is worth what people are willing to pay for it. It's insane to think otherwise.

Who was your mentor they should be shot if they taught you so poorly.

A home is worth what people are willing to pay for it as a PRICE. We are hired to find out the market value ( expressed as an opinion ) of the house filtered through the SOW of the appraisal.

The DEFINITION of market value is the most probable price, but the OPINION of market value is the appraisal ( look it up in USPAP, what an appraisal is. - an appraisal is defined as an opinion of value.

The MV definition is the type of value used in the opinion.

 

[apprtech]

Are you guys just assuming the market participants are irrational based on similar homes that sold when interest rates were near 3.5%?

We have a lot of people moving into the area from more valuable locations, like from New York to Florida. Taking cash money and bidding the prices up and having no appraisal completed to know if they are paying over the market. The Realtors they are using are not explaining to this buyer that they are paying 10-15% more than the house right down the street sold for last month. There is no data to suggest that the value has went up that much in a month. Also in situation of condos at some of the resorts they have 1031 exchange money that they have to park somewhere to keep from paying capital gains taxes and are paying way more than the prudent participant in the market is paying figuring the value will arrive soon to make the property worth what they paid for. I have been an appraiser for 28 years and I have appraised through many different types of markets, this one is the scarcest yet to me.

 

[J Grant]

Are you guys just assuming the market participants are irrational based on similar homes that sold when interest rates were near 3.5%?

No they are not irrational, but what THEY pay is not supposed to be one and the same as what YOUR OMV is...the appraisal opinion is based on the presumed sale actions of the buyer and seller outlined in the MV definition. Read the MV definition -what does it say A buyer and seller acting prudently - is a buyer paying highest price evah for a mediocre house acting prudently? They might be acting in their own self interest but they are not acting prudently. The MV definition states the price not affected by undue stimulus. Was a bidding war under time pressure creating undue stimulus on the price ? etc.

I am fine btw with a high price as the MV opinion as long as that price is credibly supported in the appraisal. But I am not going to inflate value just because a bidding produced a high price with no other credible support for it.

 

[JeffSH]

A buyer and seller acting prudently - is a buyer paying highest price evah for a mediocre house acting prudently? They might be acting in their own self interest but they are not acting prudently. The MV definition states the price not affected by undue stimulus. Was a bidding war under time pressure creating undue stimulus on the price ? etc.

People want to pay for housing. There's nowhere to live. This is undue stimulus?

 

[J Grant]

We have a lot of people moving into the area from more valuable locations, like from New York to Florida. Taking cash money and bidding the prices up and having no appraisal completed to know if they are paying over the market. The Realtors they are using are not explaining to this buyer that they are paying 10-15% more than the house right down the street sold for last month. There is no data to suggest that the value has went up that much in a month. Also in situation of condos at some of the resorts they have 1031 exchange money that they have to park somewhere to keep from paying capital gains taxes and are paying way more than the prudent participant in the market is paying figuring the value will arrive soon to make the property worth what they paid for. I have been an appraiser for 28 years and I have appraised through many different types of markets, this one is the scarcest yet to me.

I am also in FL and feel teh same, each appraisal takes far longer now.

But the appraisal method has not changed... a greater percentage of my purchase appraisals are below SC now than in the past. But that has some relief as a number of contracts have a buyer will pay X$ over the appraisal value clause. The rest, not my problem. If a buyer can not cough up the extra cash then why am I supposed to inflate value to cover it ? Not gonna happen.

 

[apprtech]

People want to pay for housing. There's nowhere to live. This is undue stimulus?

It is a weird time, however people are going to pay to much for a house and I have seen great foreclosure markets after times like this. We are in a seller's market and yet sellers are paying 3-5% in seller's concessions to help buyers to get into the house without paying closing cost.

 

[JeffSH]

I couldn't imagine being in a market like Denver or Dallas. Things here are appreciating, but those places were busy even before the pandemic.