No Appraisal Needed

[chad hampton]

you had a client pay $600k for a home and didn’t advise them to get an unbiased opinion of value? Not sure what part of that is more shocking, that you didn’t recommend it or they didnt ask you if they should.

Goes against what happened to me today. A guy called me up and order an appraisal on the home he was buying for his own use. Said he didn’t trust anything the banks do with the builders preferred lender games, etc. He’s probably right. Small price to pay for peace of mind. I know the fortune you pay to agents and lender fees don’t provide much.

 

[ucbruin]

I'm not taking sides with either of the 2 opposing sides in this thread....
Because each side has some valid points....

But I can't stop myself from posting....

"Protect public trust" = weasel words....

Of course "protect public trust" is a second tier issue....

 

[Michigan CG]

above drivel?

You call anything you disagree with drivel.

I would say that since nothing you posted is true it classifies as drivel.

 

[Joe Flacco]

They don't want to use appraisals. To expensive and too slow. Not much can be done about it now.

 

[Joe Flacco]

What is happening to the res business did not start recently and it did not start with HVCC or Dodd Frank, AMC's either. The last 20 years should have been spent improving the appraisals, reports, and the value proposition. Instead, the last 20 years were spent trying to get faster and cheaper when appraisal can never be faster or cheaper than alternatives. We have been on this path for the last 20+ years. This profession has been poorly managed and heads should roll.

 

[Phil McDonald]

you had a client pay $600k for a home and didn’t advise them to get an unbiased opinion of value? Not sure what part of that is more shocking, that you didn’t recommend it or they didnt ask you if they should.

Goes against what happened to me today. A guy called me up and order an appraisal on the home he was buying for his own use. Said he didn’t trust anything the banks do with the builders preferred lender games, etc. He’s probably right. Small price to pay for peace of mind. I know the fortune you pay to agents and lender fees don’t provide much.

It is shocking to you that my client would not have an appraisal completed when I am their broker?

There is no chance that a residential appraiser completing an appraisal on that property is going to have greater market insight or valuation insight than I have.

I am not trying to be a jerk, I am just pointing out the facts.

 

[gregb]

What is happening to the res business did not start recently and it did not start with HVCC or Dodd Frank, AMC's either. The last 20 years should have been spent improving the appraisals, reports, and the value proposition. Instead, the last 20 years were spent trying to get faster and cheaper when appraisal can never be faster or cheaper than alternatives. We have been on this path for the last 20+ years. This profession has been poorly managed and heads should roll.

Whose heads should roll? AI designees, for selling out? Those who have college degrees? Those who have CG licenses? Yeah, tell me who manages the profession so i know who to shoot before i shoot myself for having a cg, a degree and lately some clients who pay me a decent-nonamc fee?

 

[gregb]

It is shocking to you that my client would not have an appraisal completed when I am their broker?

There is no chance that a residential appraiser completing an appraisal on that property is going to have greater market insight or valuation insight than I have.

I am not trying to be a jerk, I am just pointing out the facts.

You are not a jerk, per se, you just don't recognize you are wearing two hats, a broker advising a client versus the role of a neutral appraiser with no interest in the transaction. No jerk, just biased.

 

[Joe Flacco]

Whose heads should roll? AI designees, for selling out? Those who have college degrees? Those who have CG licenses? Yeah, tell me who manages the profession so i know who to shoot before i shoot myself for having a cg, a degree and lately some clients who pay me a decent-nonamc fee?

Anybody who has been pushing for faster and cheaper in the profession for the last 20 years. Were there AI members pushing down this path? Chief skippies? Why don't you tell me who has been leading down this path?

 

[Phil McDonald]

You are not a jerk, per se, you just don't recognize you are wearing two hats, a broker advising a client versus the role of a neutral appraiser with no interest in the transaction. No jerk, just biased.

My bias as a broker is in favor of my client. I act in their best interest. Why would they need an appraisal? I would never let them pay to much for a property.

This is the forth property in a year that I closed with them. Contrary to some beliefs, most brokers act in the best interest of their client and don't have tunnel vision on doing a deal to get a paycheck. You last in the brokerage business by being of value to your client.

I am simply advocating that appraisers might want to focus on being of value instead of regulations which requires thier participation.

A significant amount of my appraisal work involves buyers or sellers of commercial property who want a credible value determination to make a financial decision. Nobody needs to require them to get an appraisal, they do it because it is of valuef to them.

On the purchase of a $600,000 house with me as the broker there is no reason to get an appraisal because there is no value in doing that.