Here we go again

[graindart]

Like most everyone on here, I've had plenty of homeowners "kindly" letting me know the exact number that the house should be worth.

However, I got my first true taste of bribery recently. I wasn't appraising the house, but was just going on an out of town trip with a friend who's also an appraiser. We got to the home and my friend did the inspection, then the homeowner broke into his speech about how much the home needed to be worth. The homeowner wasn't timid, tactful, or smooth. He bluntly told my friend what the home was worth (somewhere in the $500,000 range), he also told the appraiser that if the home comes in at $600,000 that there's an extra $500 in it for him. But what the homeowner really needed was $700,000 value, and he was willing to throw in an extra $1000 for that value. My friend kept trying to skirt the issue and explain the appraisal process, but the homeowner didn't want an education........all he wanted was to purchase a "value". I was ever so happy that I hadn't got that one........the appraisal came in at around $400k........my friend hasn't heard back from the homeowner yet, but I'm guessing he's not too happy.

 

[Pamela Crowley (Florida)]

Dee Dee,

Yep, that kind of statement used to really set me off. What I have learned:

1) Those that make statements like that are usually unethical jerks themselves. Just smile and say, "Oh, really? That's interesting." Proceed with your job and ignore them as much as possible.

2) Nobody that says something like that wants any kind of education about anything. They already know it all. Bite your tongue! (Mine bleeds often from my own teeth!!!) If you don't bite your tongue - you will end up with one or both feet in your mouth. (I also do this often enough to know!)

Regarding bribery: interesting - isn't it? So far, I haven't had a HO go that far, but I have had a couple of LOs and Realtors go that far.

Just this morning, I did have a HO that wanted a rush appraisal done for removal of her PMI. When I told her I couldn't possibly do it until about Dec. 5th, she told me I could have someone else do it and just sign off on it!!!!!! She hung up on me when I told her that would be fraud and there was NO WAY I would do that. ------ I wonder who she found???? Sounded like the same one that called me about 10 days ago and didn't like my fee. Seems my fee wasn't a problem anymore, just the time.

 

[Blue1]

When the HO informs me that they need a certain value and that they already talked to the LO about it I say the LO didn't mention anything to me about it. That usually takes care of any more conversation along that line but, if not, I'll go on to explain that inspection of their home is just the start of the appraisal and that I will need to gather market data, fill in my forms, figure out their Sq.Ft., take into account all their "special" features (they really like that one) etc. blah, blah, blah. This helps turn the conversation away from specific value talk.

 

[Bemis Pownall]

I ALWAYS GET A CHUCKLE OUT OF THE TRUELY UNIQUE HOME IN THE MIDDLE OF NOWHERE AND THE HOMEOWNER HAS AN ESTIMATE OF VALUE
HECK I CANT EVEN FIND A COMP! OR ANYTHING SIMILAR HOW THE HE11 DO THEY KNOW WHAT IT IS WORTH??

SAME SITUATION OUT OF TOWN CLIENT I EXPLAINED 'THERES NO COMPS"
SHE ASKS "WOULD YOU LIKE TO TALK WITH ONE OF OUR REVIEWERS?" JAW DROPS WHAT? ME THINKS WHAT THE HECK DOES A REVIEWER IN MAINE KNOW ABOUT MY MARKET??

nfire: :rofl:

 

[Steve Owen]

Dee Dee, (and others) I guess some people can do indignant better than others. I've never gotten into any trouble with it. But, then, of course, I'm in a very conservative county. People around here don't like the $13k each one of us had to shell out for the S&L boondoggle.

On a similar note. Whether they want to be educated or not, it's part of our job to do so. If not, then here is the impression they will get: The LO tells them, "You know, I'd like to just make the loan based on your credit, but these danged laws say that we have to get it appraised." (In other words, the appraiser is nothing but a bureaucratic pain in the butt that holds up progress.) If enough individuals decide that is indeed the case and communicate that to their representatives and senators, you can bet that the certified appraiser part of the business will go away. Of course, that's what a lot of the bankers would like to see. They refer to it as the 'good old days.'

I don't care how distasteful you think it is. You must tell our story to the people who are paying the bill. Otherwise, all they will get is the negatives from the LO. There's an old saying "Selling is kind of like shaving; if you don't do at least a little bit of it every day, you're a bum." We can't rely on the government to protect us; we must sell our product to every new contact. Of course, some will not listen, but I'll bet you'll be surprised how many will know the truth when they hear it even if they don't really want to believe it. (There's another old saying: seek the truth and the truth will set you free.)

 

[Jo Ann Meyer Stratton]

I agree with Steve. When I get that question from the home owner, I tell them that I have only started the easy part of the assignment by looking at and measuring the property. The hardest part and the majority of the assignment will be the investigating, researching and analyse of what I find and a value cannot be determined until after all that is completed. Values are based on other homes that are as similar to the subject as possible and the sale prices of what other properties have sold for will be the indicator of their property. Then I explain that because of federal regulations I will not be able to discuss or provide them with a copy of the report after it is complete without written permission from their lender. But federal regulations do require their lender to provide them with a copy and they should call their loan officer immediately to find out what procedures their lender follows for them to get their copy. All of that usually satisfies about 99.999% of the borrowers.

Also on my order form I have copied most of line 6 from the limiting conditions as well as some other comments. And if it is a COD I have similar comments at the bottom of my receipt. So everyone is forewarned.

 

[Judy Whitehead (Florida)]

I have had a lot of tense homebuyers lately, so it looks like everyone is going through the same thing. Also, since our market is good, most of the homebuyers think their house has increased at least 15-20% in value so that they can get rid of PMI.

One guy the other day (who obviously stayed home from work to be "in charge" instead of the lowly wife :roll: ) said, "So how do you think the market in (his community) is doing?" I guess he couldn't think of anything else to say, or (I think most people do know) didn't want to bluntly say how much he thought his house had increased in value since he built it one year ago.

I was kind of startled, and just said, "It seems to be holding it's own." It was such an ambiguous question, I couldn't think of an answer. :lol: