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More realtor tricks.....

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Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
Did an appraisal.......came in "low" got chewed out by borrower because some realtor said they could get $XXXXXXXXXXX. The borrower based their whole future on getting a loan based on what the realtor said. Now It's MY fault for wrecking their lives and the lives of their children.

P.S. NO the realtor DOES NOT have any better comparables.......but.......it's still MY fault.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
It's always our fault. :( The problem as I see it is that somewhere in every market is an appraiser who will hit any number desired to destroy the reputation of an honest appraiser. :cry:

People want to blame lender pressure and dishonest realtors, but the fact remains that until we clean our own house (eliminate the dishonest appraiser), we will never have true credibility. The low lifes of our profession have destroyed the faith in our industry and they will not understand until it is too late.
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
Tim,

Realtors need to clean up thier act too. In this case the borrower said the home was "appraised" by a realtor. Apparently the realtor told them that their home would appraise at a certain value and did no CMA, no appraisal no nothing......Now, when the REAL appraiser gives them a value................
 

Will Trueheart

Sophomore Member
Joined
Feb 18, 2003
Blue 1,

Probably a pointless questions, but isn't a agent/broker only suppose to do a CMA in anticipation of a listing? And if not, didn't that agent/broker violate state laws for agent/brokers?
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
Will,

I dunno.......but if it is against the law to give a value without a CMA then most of the realtors in my area are breaking the law.
 

Roger

Junior Member
Joined
Jan 24, 2002
Professional Status
Certified General Appraiser
State
Missouri
Will,

I don't think that there is anything in the Realtor's code of ethics that requites a CMA for eithier a lisiting or an offer.

A knowledgeable seller and a knowledgeble buyer would each demand a CMA.

Without a knowledgeable buyer and a knowledgeable seller, the contract price does not always indicate the value of the subject property.

(Everything I needed to know about market value, I learned in appraisal kindergarten, Appraisal 101).
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Blue 1

here's a moldy oldy fer ya; when the customers says-my Realtor said I can git XXXXXX for the property, just say hey git hold of your Realtor and tell em if they can't bring a full price offer on what they quoted, they'll have ta reduce their Fee by 2%; I guarantee they'll come up with a change in value ASAP, which will be more realistic.

every once in a while ya have ta bring the Realtors down ta earth too 8O

8)
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
Good one J! :lol: But, in this case, the realtor that said he could get $XXXXXXXXX and it would appraise at that amount. The borrower (believing this) went to the LO. The LO worked up a loan using that figure. Apparently the borrower's very livlihood depended on the appraisal coming in at that value. Which I did not know. (I know I'm repeating myself........) Anyway....When the value didn't "come in" at what everybody decided it SHOULD be.....I got chewed up one side and down the other. I told the borrower to have the realtor send me better comps. "The realtor says there are no better comparables" says the borrower. (Um then why did Mr. Realtor give them $XXXXXXXXXX value in the first place? I'm thinking) "You just cut the value out of our home and ruined everything we've worked for!!" Then SLAMMED the phone down.......

GEE THANKS, Mr. realtor. You have single-handedly screwed a borrower AND an Appraiser all in one fell swoop! :eek:nfire:
 

bobburnitt

Junior Member
Joined
Jan 16, 2002
CMA is ***not*** a valuation tool, it is a marketing tool.

CMA does not have to conform to USPAP, therefore, it does not have to be unbiased. Without the requirement of being unbiased, it is simply a marketing tool. The CMA 'proves' the real estate agent's case.

The CMA is high to get someone to list. The CMA is high if the agent is the buyer's agent in order to get the buyer to buy, so the buyer's agent will get a commission, even though the buyer's agent is required by law to help procure the best deal for the buyer. End of story. A CMA ain't worth the paper it is written on.

I am a broker as well as an appraiser. I ordinarily never list houses, usually list land and only land. But, just this week, a widow woman down the road asked me to look at her house.

So I did. Took my appraiser hat off, put my broker hat on, did Uncle Bob's Broker's Price Opinion. Her house is a 30 year old house in an established subdivision that is made up of homes from 25 to 40 years of age. There were 10 or 12 sales that are identical properties. Took the best 6, analyzed them, came up with indicatiors of $89,500 to $90,500. The most ***any*** home sold for that was in her range of square footage was $93,000, and it had a $3,100 seller concession.

An agent had already told her, she (the agent) could get $95,000 for the little old house.

The agent: Is a cute young thing (female) with a brand new salesman's license that she got from one of the "we teach you how to pass the test" schools.

Uncle Bob: Is a middle aged bald guy with a college degree in real estate, is a real estate broker, and a state certified real estate appraiser, who did a proper sales comparison analysis of the property.

Guess who did ***not*** get the listing.

BB in Texas
 
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