Leaving The Market Area To Get A Contract Price In Maricopa, Az

[Deleted member 80407]

Was wondering how some of these properties are selling way above anything else in the market area. I am working a property in the Senita Subdivision. Just got off the phone with a realtor who said I was bull headed for not leaving the subdivision to support a contract price. WHY SHOULD I LEAVE THE SUBDIVISION WHEN THE SUBJECT SUBDIVISION HAS 8 SALES WITHIN THE PAST 6 MONTHS OF HOUSES WITHIN 50 SQUARE FEET OF THE SUBJECT. This realtor gave me 3 SALES (not comp's) that support the selling price of his listing. All 3 were located in subdivisions with superior amenities (2 in Glennwilde & 1 in Villages of Rancho El Dorado). One of the sales located in Glennwilde was constructed 8 years after the subject. It appears to me that there are too many appraiser's out there chasing contract prices rather than market value.

FOR THE LIFE OF ME, I cannot figure out why these scum *** appraiser's are allowed to exist. They give the honest appraisers a bad name. Furthermore, realtors now think they can get away with MURDER in pricing properties well over market value and finding a sucker buyer, a dumb *** appraiser and a mortgage origination company looking the other way. Wonder what will happen when a buyer finds out that he over paid and walks from the mortgage. Just think if someone pays $10,000 above market value for a property how much extra he will pay over a period of 30 years. SOMETHING SHOULD BE DONE. Fannie Mae and HUD should be doing more reviewing and holding appraiser's accountable for the difference between market value and contract price when they cheat market value.

 

[CindyR]

You summarized that very nicely JS. i've been noticing that myself lately. i always work with way more than 3 comps and there is often one that is just ridiculously and inexplicably well above the rest of the collection.

 

[Deleted member 80407]

You summarized that very nicely JS. i've been noticing that myself lately. i always work with way more than 3 comps and there is often one that is just ridiculously and inexplicably well above the rest of the collection.

Looks like will are heading in the same direction as market conditions from late 2007 to about 2012 which appears to be right around the corner. Too many dumb ***'s out there to see this. The problem is when a property over sells in a market place, it becomes the next target price to exceed. Not every appraiser can recognize an extreme end indicator which is not prevalent in a market area and will try to use the sale to hit a contract price. If these people are not stopped (appraiser's as well as realtors and mortgage origination companies) the last down turn will look like Disneyland compared to the one that looks like it just around the corner. The main problem will be: Will the government bail out the banks again?????????????

 

[Mike Kennedy]

 

[Deleted member 134708]

I stopped doing purchases long ago. The market couldn't support sales price on 5 in a row in 2014. And I said, not worth it. I'll keep off the radar. Don't need to be blacklisted, turned in etc.

 

[Riick]

You summarized that very nicely JS. i've been noticing that myself lately. i always work with way more than 3 comps and there is often one that is just ridiculously and inexplicably well above the rest of the collection.

I've seen that as well, and when I do, I'll make a comment about how 127 XYZ Lane sold for $xx,000 more than the next highest sale --> for no reason discernible to the appraiser. (!)
Then go on to say that it was considered an outlier, and thus not used in the analysis.
---Keeps the Realtors off your neck---

 

[glenn walker]

Good chance your buyers are coming from California and everything looks cheap to them -- So don't get emotionally involved and always try to keep an-open mind ** I have been through four booms and busts since 1980 and never met any appraiser who called a top or bottom correctly and as far as liability a low appraisal has as much liability as a high appraisal because when it does bust your good friends at Fannie & Freddie this time have that neat little 1004-MC form which was designed to use against the appraiser when a market busts.

Markets like Aircraft Carriers and they take a long time to turn and when they finally do it's often well over a year before the appraisers realize the trend is no longer "stable or increasing". The appraisers will start to notice that 4-5 cars are all taking the same comp photos they are using and get to know other appraisers because they all huddle in the street talking about the last outliers that saved their appraisal. The homeowners call the police because they a have no idea why so many people are driving bye taking photos and finally the Realtors start talking about the slowdown because of the hot or cold weather and the need for increased FHA and Fannie Mae loan limits - Looser underwriting and credit scores and finally how to get rid of those no good bull-headed deal killing appraisers.

NEW 1004-MC
* Stable
* Stable Increase
* Decline
* Stable Decline
* Increasing
* Stable Increase
* Unknown- Appraiser Cannot Determine Any Trend.

 

[Deleted member 80407]

Good chance your buyers are coming from California and everything looks cheap to them -- So don't get emotionally involved and always try to keep an-open mind ** I have been through four booms and busts since 1980 and never met any appraiser who called a top or bottom correctly and as far as liability a low appraisal has as much liability as a high appraisal because when it does bust your good friends at Fannie & Freddie this time have that neat little 1004-MC form which was designed to use against the appraiser when a market busts.

Markets like Aircraft Carriers and they take a long time to turn and when they finally do it's often well over a year before the appraisers realize the trend is no longer "stable or increasing". The appraisers will start to notice that 4-5 cars are all taking the same comp photos they are using and get to know other appraisers because they all huddle in the street talking about the last outliers that saved their appraisal. The homeowners call the police because they a have no idea why so many people are driving bye taking photos and finally the Realtors start talking about the slowdown because of the hot or cold weather and the need for increased FHA and Fannie Mae loan limits - Looser underwriting and credit scores and finally how to get rid of those no good bull-headed deal killing appraisers.

NEW 1004-MC
* Stable
* Stable Increase
* Decline
* Stable Decline
* Increasing
* Stable Increase
* Unknown- Appraiser Cannot Determine Any Trend.

Please keep in mind, I do not care how much a property sells for, however, I do care when the buyer is only coming with a down payment of 2.5%. In the past, some of opinions of value came below contract price, however, the buyers were strong and paid the difference. It is not the appraiser's job to stretch market value to meet contract price, especially when the buyer has minimal investment to loose. Believe me, we will be seeing another down market in the near future if the shadiness by realtor's, mortgage originators and appraiser's is not stopped.

 

[ucbruin]

Please keep in mind, I do not care how much a property sells for, however, I do care when the buyer is only coming with a down payment of 2.5%. In the past, some of opinions of value came below contract price, however, the buyers were strong and paid the difference. It is not the appraiser's job to stretch market value to meet contract price, especially when the buyer has minimal investment to loose. Believe me, we will be seeing another down market in the near future if the shadiness by realtor's, mortgage originators and appraiser's is not stopped.

Please tell me that your opinion of value is not influenced by the borrower's down payment amount....

 

[Tim The Enchanter]

Just got off the phone with a realtor who said I was bull headed for not leaving the subdivision to support a contract price. WHY SHOULD I LEAVE THE SUBDIVISION WHEN THE SUBJECT SUBDIVISION HAS 8 SALES WITHIN THE PAST 6 MONTHS OF HOUSES WITHIN 50 SQUARE FEET OF THE SUBJECT. This realtor gave me 3 SALES (not comp's) that support the selling price of his listing. All 3 were located in subdivisions with superior amenities

You don't have to kill the deal.
Just pronounce it DOA.