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Homeowner Opinion of Value

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RustNeverSleeps

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May 15, 2007
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Certified Residential Appraiser
State
Texas
I'm curious to know how others handle homeowners who insist on giving their opinion of value during an inspection. I try to be polite but it makes me uncomfortable.

Just had this one last week:

"Do you mind if I tell you what I think my house is worth? $zzz because that is what I need to make my loan work".

btw, I'm AL so I was all by lonesome :icon_mrgreen:
 

Michigan CG

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Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
A couple months ago I had a property owner (not a house) tell me his property was worth $5,000,000.

Thanks.

Three weeks later I gave him his appraisal at $2,000,000.

It is what it is.
 

RustNeverSleeps

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May 15, 2007
Professional Status
Certified Residential Appraiser
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Texas
Ouch. But so true, it is what it is.

This one came in $10k under his opinion. If his house was 300 s.f. bigger and didn't back up to a major road he may have been right.
 

Terrel L. Shields

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May 2, 2002
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Certified General Appraiser
State
Arkansas
If his house was 300 s.f. bigger and didn't back up to a major road
If a frog had a pocket to carry a pistol in, he wouldn't be afraid of snakes.

I usually ignore the comment and will not engage in such parte...If the fellow is completely obnoxious about it, I turn the appraisal back to the lender saying I cannot work under that circumstance.

I had a knucklehead call me about an estate appraisal. When I met him he said, flatly. "We've listed this for $30,000 an acre and I need you to appraise it that way."...I smiled and said, "Then you need someone who is crooked." His mouth dropped as I crawled back in my car and took off...he started saying, "Wait..wait..I'm not trying to make you do something illegal..." coulda surprised me. Since our state allows an exception for brokers to appraise estates, he took the brokers BPO for the value...It's still listed after 2 years. His nephew cornered me later in a cafe and said, "well, I see you found out Uncle Bill is as crooked as I thought didn't ya? He's not gonna sell that place until he can figure out how to beat me and my sister out of Dad's one-third of the place." (BTW, the closest sale to the property is $5000 an acre.)
 

RustNeverSleeps

Thread Starter
Junior Member
Joined
May 15, 2007
Professional Status
Certified Residential Appraiser
State
Texas
Sheesh, that guy sounds like a total jerk.
 

panappr

Elite Member
Joined
Dec 5, 2007
Professional Status
Certified Residential Appraiser
State
California
"Do you mind if I tell you what I think my house is worth? $zzz because that is what I need to make my loan work".

At least they were kind enough to ask. Most homeowners come right out and say "she's worth about $550,000 don't you think? Just to get the conversation started. Then point out the house down the street sold for $610,000 just a few months ago (translation 8 months). The diluted/desperate homeowners are the ones putting all the pressure on the poor LOs, who are loosing deals left and right and blaming the appraisers. :shrug:
 

OSU Beavers

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Joined
Jan 10, 2007
Professional Status
Licensed Appraiser
State
Oregon
I tell them that "I have to locate and confirm comparable sales, then go back to the office and do the homework. Then I have to show my work by writing the report before I can disclose the conclusion. Once the report is done, it goes directly to the lender since they are the client so you will need to contact them to get the value or any other information."

Oh, ok but what do you think it 'll appraise at?
 

aussie ken

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Joined
Mar 11, 2005
Professional Status
Retired Appraiser
State
Australia
I'm curious to know how others handle homeowners who insist on giving their opinion of value during an inspection. I try to be polite but it makes me uncomfortable.

Just had this one last week:

"Do you mind if I tell you what I think my house is worth? $zzz because that is what I need to make my loan work".

btw, I'm AL so I was all by lonesome :icon_mrgreen:

Its never a problem......just say the following easy mantra ....."You could well be right."...........and leave it at that. It polite , is none committal and leaves the home owner feeling satisfied.
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
When a home owner tells me his opinion of value, I listen. Then I ask which comparables he considered so that I may look at them during my comp inspection. That generally tells me right there whether the home owner is knowledgeable or not. I don't think it is unreasonable to assume that if the home owner is knowledgeable and observant that he may have a better idea of sales in his subdivision. Perhaps he knows of a sale that just occurred that was FSBO. Regardless of his opinion I do not contradict it. If he pushes for my opinion on the spot I inform him that there is little I can say due to confidentiality.
 

AnonApprsr

Elite Member
Joined
Jan 21, 2008
Professional Status
Certified Residential Appraiser
State
Massachusetts
I tell them that "I have to locate and confirm comparable sales, then go back to the office and do the homework. Then I have to show my work by writing the report before I can disclose the conclusion. Once the report is done, it goes directly to the lender since they are the client so you will need to contact them to get the value or any other information."

Oh, ok but what do you think it 'll appraise at?

Haha, exactly. That's pretty much what I say (except I use some fancy appraising terms like market research, data analysis, and sales trends) and that is exactly what they say.
 
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