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I am about to be the Bad Guy (again)

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Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I can see it coming. Doing an appraisal on a nice house in a fair neighborhood. I was impressed with the house, moderate sized older ranch with lots of remodeling. I pulled comps and looked at the sales contract and thought the sales price was to high. Comps confirmed it without doing any analysis yet.

I just now pulled the MLS listings on the house and the contract is 3K over the listing price. Plus the house has been on the market for a long time. Add to the fact that buyer appears by their name to be a minority. Looks like an uniformed buyer to me.

Only good thing is the lender is a Government program so I won't get any hassle out of them But I bet the Realtor is going to call me! Time to practice my new Mantra.

"You are not the client."
"You are not the client."
"You are not the client."
"You are not the client."
 

BigBlueGA

Junior Member
Joined
Mar 13, 2002
Professional Status
Certified General Appraiser
State
Georgia
What does the minority issue have to do with it? Not trying to jump on you or anything, just genuinely curious if you know something I don't about a program or whatnot. Also, is it a HART or down payment program? 3% over the list price screams down payment assistance...

- Brandon

EDIT: Oops.. read 3% instead of 3k.
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I was trying not to sound prejudice but maybe I came across that way anyway. The reason I mention it as a concern of mine is we have a lot of a certain minority moving into the area to work in the chicken processing plants. Many of them do not speak English and I have my strong suspicions that many are not really knowledgeable buyers.

It looks like they have found a house they like all they want to know is can we afford the payments? The fact that they might be overpaying and may want to sell it someday is something they may not understand or have thought about. Not a prejudice remark cause it see it all the time regardless of race but knowing my market I am suspicious

All the facts I am gathering are really pointing this way. I can't say say they are being taken advantage of but it has crossed my mind.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Jeff,

You are mentioning a dirty little secret that I noticed a few years ago too. If fact, another appraiser that now works for the county and I were just talking about it this weekend because that assessor's office has also noticed it.

It is a fact here that non-English speaking immigrants usually pay more for the same house. Had one a couple months ago with a Vietnamese couple. I think the mortgage broker was also asian but no longer sounded like it (going by his name). That mb was furious with me for mentioning the termite damage and told me, basically, that I had just put myself into the position of NEVER getting any more of his orders. GOOD for me! The appraisal 'just' made the contract price but it was at the higher end for that subdivision.

My open eyes and disclosure also nixed the deal I had with the seller to buy one of his Big Green Egg BBQs for a really nice price. :twisted:

So, yes Jeff - what you are seeing is real. Immigrants are taken advantage of... too often.
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
Remodels: it's a love/hate relationship. If you have good comps that are in similar condition to your remodel then it's not too tough - they can be a real joy because the house actually does show an increased value. If you don't have good comps in similar condition then it can be awful - no way out without subjective reasoning - I hate it when that happens. I just started working on a remodel today that is going to be a slam dunk - looks like they might be selling below value, although the analysis is not complete yet. I did one last week that was horrible - nothing like it anywhere in the marketing area, even though it doesn't look like that unusual of a property. Way below price. Luck of the draw, I guess.

Yeah, the 3k over listing price and long time on the market do sound like things that would cause suspicion. No one likes to be the bad guy, but sometimes that's our job. Think of it this way, if the appraisal comes in way low, and if you really do have an uneducated buyer, then you are getting ready to be their best friend. You are going to save them from making a big mistake. They may not immediately love you for saving them $3,000 or more, but the odds are good that they will apreciate you in the long run.

Hang in there, and good luck.
 

Ted Martin

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
Buyers, minority / majority (what ever that means) don't really care what they pay only can they make the payments. Houses are like leasing a new car. Sellers and agents / brokers care what the box sells for, but the buyers only care about the monthly payment.
 

MARKETVALUE

Sophomore Member
Joined
Feb 11, 2002
Professional Status
Certified Residential Appraiser
State
Georgia
Jeff-

Very non PC comment. But facts is facts.

Unfortunately, we see that alot when there are bi lingual agents involved with buyers who may or may not speak english.

Amazing how they can always move there houses at full list or more. Agents ethics are killing me lately. If these agents cared about their heritage, community etc... you would think they would have a conscience about bilking these uniformed first time homebuyers. I have killed so many deals because of rolled in concessions and the like lately, i am beginning to question my own sanity....

Side story-Last week had the owner of a realty company call me with a very practiced and predetermined speech of why i should have to shoulder some of the 'expense' on a deal I cut by $10k (at least $15k of personal ppty in the contract with $0 value assigned by realtor). When i told her A) i didnt understand what she was asking, did she want a $5k check from me? and b) politely telling her she wasnt my client and she probably could call her LO and get someone else to throw a number on a cocktail napkin for her to get her value. She promptly called me young and arrogant and hung up me.....

I still dont know what she meant by sharing the 'expense'.

Have done over 100 appraisals for homes with her agents involved in the past year or so. Not one has ever come in light, and all of a sudden I'm the bad guy..

Where's the love?

MRM
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Now that is the slickest way I have heard of axin' for an increase of value. Or was she was looking at loosing a commission, and wanted U to loose your fee too? 8) Share and share a-like. :roll:
 

Craig Sewell

Freshman Member
Joined
Feb 6, 2002
You are NOT the bad guy. The market is what it is, you can't change that. The Realtor is (typically) not your client and you owe them nothing. When doing your appraisals leave no stone unturned and keep on truckin!
 

Mike Simpson

Senior Member
Joined
Jan 30, 2002
The 'minority' issue has been making a lot of headlines lately. Predatory lenders--according to those in the media--are apparently targeting minorities, and presumebly immigrants.

Marketvalue-

I have a similar story w/a Realtor over a pest inspection I performed some years back. Seems I missed some dryrot in the deck and consequently a clapboard or two. She calls and wants to know 'what my liability is if I miss something.' I tell her I'm not sure she'll have to ask my attorney. "I'm not talking attorneys here, I just know when I make a mistake I make it good," she tells me. I tell her, "I'll get back to you."

Research reveals she recommended a home inspector who was not licensed to do pest inspections in my state. His operation was a franchise--similar to the AMC scenario. The dry rot was incipiant, and of no consequence (if he'd been qualified he'd have known this).

So I writes her a letter--paraphrasing; You recommended an unqualified home inspector to your clients who subsequently performed a pest inspection in violation of state law. I'm filing a complaint with the state against you & your 'home inspector.' But no one has anything to worry about cause, (how did you put it?--oh yeah) when you make a mistake you make it good.

You know I haven't heard from her since?--no Christmas Card--nothing.

'Ya gonna pull them pistols or whistle Dixie?'

-Mike
 
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