• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

New home comp verification in Texas

Status
Not open for further replies.

AC King

Thread Starter
Sophomore Member
Joined
Jan 20, 2002
Well, it finally happened. "Gramm-Leach-Bliley" has finally taken its toll on the appraisal profession in Texas. For those of you who are not familiar with the State of Texas, it is a nondisclosure state. That means if you do not get the information from MLS you typically do not get sales information. That works all right for preowned homes that sell through MLS, but what about new home sales data?

Over the past 17 years of residential appraising, I have been able to obtain comparable sales data from builders and have been able to verify the data with either the mortgage lender or the title company, and usually both. TODAY, the lender and the title company both refused to verify data because of the privacy laws that went into effect July, 2001.

It has finally happened. So now there is no way to verify the builder data on comparable sales and it will soon be impossible to get the data from competing builders that have in the past been kind enough to furnish sales data on similar properties.

Has this refusal to verify comparable sales data by the lender and title company happened to anyone else in Texas or the other nondisclosure states yet? If not, prepare yourselves. You will have to rely on the builder and put disclaimers in your reports about the validity of the data and the inability to verify same. That will also eliminate or severly limit the third sale from a competing builder that most lenders like to see in their appraisal reports.

Just when I think it's getting better, WHAM. Oh well, that appraising.
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
AC,

I don't see a problem with this. Looks to me like the end of financing for new home sales. If you don't think that'll get corrected right quickly, just hold onto your hat ..
 

H. Robert Murray III

Freshman Member
Joined
Apr 29, 2002
yep, very inconvenient for us appraisers. I started having this problem last year. So now I just ask for a copy of the closing statement, that works fine for me. But what reallllllllllllly bothers me, is when I ask a builder/rep for a copy of the closing statement for comp sale and they respong--other appraisers don't require it, why do you?

One specific instance really stands out in my mind, here in Houston, there is a high end development named Royal Oaks; I did one rush appraisal in this development last year. The developer was also the builder (and his mother is also his sister, or something like that), the the best the sales rep could do was give me a post card with an address, sales price, sf and closing date; and said there is your comp data. I tried to comfirm and the title co sited the Grahm-leeeeeeeeeeech bill. Of course, I held true, held the appraisal up until the borrower of the property I was appraising started to scream for performance to the sales rep. (lets 3% of $700,000 equals ? sales commision) I finally got a redacted closing statement (black out partial name of buyer for privacy reasons. I really got a chuckle out of that one.

What I really wonder about is, how many other appraisers hold out for proper verification for non-MLS sales data.

Robert Murray
Katy,TX
 

bobburnitt

Junior Member
Joined
Jan 16, 2002
Where are all these title companies you are getting sales data from? I have NEVER been able to get sales data from a title company. They all shove that 'attorney client privilege' crap up my you know what, and don't give me a thing. Once in a while when I am in one of the counties that don't use the MLS, they will give me the name of the agent that handled the transaction, and then I can go to the agent, but that is the most I have ever gotten from a title company.

BB in Texas
 

bobburnitt

Junior Member
Joined
Jan 16, 2002
And one more thought on the matter.

I really don't see it as a big deal. It will be slightly more work for the appraisers that follow the rules, but it won't affect the number hitter, paper pushers one tiny bit. It is just one more thing they will half a** do and not get caught at because of the lack of enforcement.

BB in Texas
 

Roger

Junior Member
Joined
Jan 24, 2002
Professional Status
Certified General Appraiser
State
Missouri
Isn't the 'G' in GLB your own Phil Gramm of Texas?

Have you communicated this to him?
 

AC King

Thread Starter
Sophomore Member
Joined
Jan 20, 2002
The Republican Senator is retiring. Big race between Democrats and Republicans to replace him. It will be interesting to learn who will represent Texas in the Senate.
 

bobburnitt

Junior Member
Joined
Jan 16, 2002
Yes, Phil Gramm is the Gramm in GLB.

I was a delegate to the state Republican convention in Dallas last week, Gramm was there, gave a big retirement speech. I love going to those things in one way, but come back with a feeling that no matter what you do, the big, giant machine will always do just what it wants to do.

Just got in from a "town hall" meeting this morning hosted by my Congressman. I carried a copy of USPAP into the meeting and let them have my not so humble opinion about the most crooked business on Earth. I presented an appraisal request that I got from a lender this week that had the standard "if you can't get value, call immediately". Then I expained how the "set up" works.

The Congressman asked me if I wanted him to change human nature. I told him I wasn't sure he could do that, but I WOULD LIKE SOMEONE TO ENFORCE EXISTING LAWS AND REGULATIONS. He told me in front of witnesses that he would contact the ASC.

There was one thing about my little "presentation" that did surprise me, the reaction. Several people were very interested in the 'situation'. If nothing else, meeting the public that way sure is a good way to market.

You know, there are only about 80,000 appraisers nationwide. That is not many people in the scheme of things these days. But, I will bet there is at least one appraiser in every single congressional district. If one appraiser in every district would do what I did this morning, go to your Congressman and tell it like it is, well maybe something would happen. Lay it on their *** in front of their constituents, believe me it gets their attention. Doesn't cost one red cent, and wow, what a way to market your services. Bring plenty of business cards, you will need them.

BB in Texas
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Bob,

Thank so much for this suggestion and letting us know what you did, how you did it, and most importantly, the response.

This will now be a priority for me, and I hope many others.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks