No Appraisal Needed

[Meandering]

Why try to attack me personally and make such a claim that I would not advise a client to get an appraisal because it might make me look bad? I hope you actually do a bit more due diligence in your appraisals before reaching conclusions than you did in this post. Because if you don't then you are always wrong..

Pity you did not follow your own advice when spouting about appraiser unions lobbying for the HVCC, and especially with a degree in real estate. Didn't they teach you the "history" of the regulations and how with your degree you can influence, or not, future regulations? Isn't that kinda the point of getting an advanced degree?

Sorry for the confusion. This client did not buy four properties in a year. I closed four properties with this client in a year. On two of them I was the listing agent on rental properties they sold, on another one they purchased a town home for their kids and then they sold and purchased a primary residence. So I guess that is five properties which I closed with them.

A brokerage servicing larger real estate holding corporations, is not what I believe JGrant or the other posters were imagining.

We can compare resumes and track records to teach you this lesson and I have no interest in doing that because I am not here for that..

Then may I ask what you are here for?


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[Meandering]

Oh wait a minute.

Your real estate brokerage specializes in corporate clients,

Ghee, how many of your clients also own AMCs????




Can I guess one?

Please, please, please, let me guess at least one of your corporate clients.



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[Meandering]

Interesting take. In the last two years several agents involved in all cash transactions with contract prices between $3,000,000 and $11,000,000 involved me in advising their buyers/clients as to the market value of the interested property. Yeah, I can see there is no value to you in advising your clients to get an independent appraisal, cuz it might make you look bad.

Could it be that your sellers did not produce the AVM that valued the property,
or had the contacts to get the buyer financing?

One stop shop, sellers agent "helping" buyers, get the deal done?



This is too funny.

Of course no appraiser is recommended. Because no appraiser could possibly disagree, and still keep their license, or at least go to a tea party with the state board.




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[Meandering]

But "you be the value" to the profession.

Meanwhile, they got this buy/sell/rent/value thing nailed down.

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[ucbruin]

I'd imagine that 99% of folks paying $11,000,000/cash for a residential property (I'm assuming residential as the $600,000 sales was a residential property) really don't want or need an appraisal....

At this level....
The buyer buys what the buyer wants....

 

[Deleted member 128537]

We have lots of cash sales in my area. I'd say very very few get an appraisal on a cash purchase. There are a few when the appraisal contingency is part of the offer. But I get few requests like that. Most of the time they aren't put in the offer because agents don't want to deal with a value coming in low. I did that this past year. The broker did a CMA based upon a GLA of 2800sf. But when I measured the house it was only 2400sf. They included the garage. OOPS. So I came in about 30,000 under the purchase contract. Agents don't like that happening and avoid it.

 

[Overimprovement]

What you say is valid. We all want that. We want to stay in the business which we worked hard to enter. We want to prosper. There is nothing wrong with that.

I am just saying that there is a different way to achieve that result. Standing in front of the train with a petition in hand might not achieve that result. Taking other actions might.

I won't say that the days of becoming a CR and being content are over or are coming to an end because a couple of decades ago when I entered the business I was told all that gloom and doom and we are still here.

I did take that insight from others to heart and set out to insulate myself the best that I could. That involved obtaining the highest level licensing in both appraisal and brokerage, getting a master's degree in real estate and finding niche markets outside of mortgage lending to establish a track record.

Nobody has to do what I did to protect themselves. They just have to do something different. Find a niche market and become the go to appraiser. I do a significant amount of litigation work in commercial appraisal. Attorneys call me just because they have a real estate question and I don't tell that they need to order an appraisal, I figure out an answer for them and then when an appraisal is required by them or the many other attorbeys they know then I am getting appraisal assignments.

I get several assignments for insurance purposes. They need a credible replacement cost and I do that. The more I do that, the more assignments I get.

I get difficult residential assignments and it is common for me to hear that I am the second or third appraiser at the property. They are difficult because they are different but they are simple in comparison to some commercial assignments.

I get a steady stream of cannabis related assignments because early in that game I made an effort to gain some insight and expertise in that property type.


The list goes on and on. My point is that doing nothing to increase the value you bring to the market and instead protesting that work is being taken away is probably not the answer which achieves the desired result.

Find a niche in appraisal outside of lending. Expand your tool box to other segments. Learn to be a home inspector or public adjuster if brokerage is not the right path, become a certified property manager.

I am just saying that there is action that every appraiser can take and protesting a policy which may result in fewer appraisal assignments is probably not the action which will achieve the desired result.

I might be wrong and it is great if I am. I am just putting up these posts because this business has been good to me and my insight may resonate with someone.

I have no interest in debate. Everyone can move forward on whatever path makes sense to them and I sure won't try to stop them. I am good with whatever happens to this industry because it will not have a big impact on me.

Many good points, and some that I have been trumpeting myself of late--diversify now before there is nothing coming in. One problem is that there is probably only enough non-mortgage work out there in total to keep 2 or 3 out of 10 appraisers busy nationwide. Appraisers in general are very dependent on mortgage transaction work, whether we want to admit it or not. The ones who have been successful in building a large non-mortgage portfolio will do fine I think, but they are a small percentage, and probably the better quality appraisers as well. At least the cream will rise to the top. Some consolation I guess!

What's amazing to me is that some nutbag can cry about a Peanuts or Veggietales cartoon being racist (both ridiculous claims, oh I guess a red tomato and a green cucumber aren't colors?), and it gets front page news, but something that directly impacts a trillion dollar industry gets brushed aside. We aren't hitting the sensitive spots like all these 'groups' are. We aren't using social media the way there are. We aren't getting the right people outraged. And if we truly do not believe that what we do has value, then we probably out to seek something else to do. Any appraiser who genuinely feels they are only as good as a $50 AVM or $100 hybrid is probably right.

No, I don't have a solution up my sleeve, but I know we cannot depend in any way on the existing groups out there for any assistance, including, but not limited to, the ASB, AI, state boards, GSEs, brokerage industry, lending institutions. It is amazing how some of these groups kowtow to each other. If we like our job and our industry, we will have to fight for it ourselves I am afraid...

 

[Overimprovement]

We have lots of cash sales in my area. I'd say very very few get an appraisal on a cash purchase. There are a few when the appraisal contingency is part of the offer. But I get few requests like that. Most of the time they aren't put in the offer because agents don't want to deal with a value coming in low. I did that this past year. The broker did a CMA based upon a GLA of 2800sf. But when I measured the house it was only 2400sf. They included the garage. OOPS. So I came in about 30,000 under the purchase contract. Agents don't like that happening and avoid it.

But this is exactly WHY folks SHOULD always get an appraisal. People will drive 5 miles to save a dime a gallon on gas, but won't spend 1/10% of a purchase price to ensure they aren't making a 5 or even 6 digit mistake. People are nuts!

 

[glenn walker]

Residential Appraisers are often some of the worst buyers because they get fixated on a number and get focused on nickels and dimes. We had one guy who is a 20 year + Certified Residential Appraiser and he wanted to get his own appraisal and a second opinion before he would make us an-offer. I was like dude you already got a Second Opinion didn't you hear your Wife say this was her dream home, hell she was talking about where the new furniture would be placed, and the frosting on the cake was when she jumped into your Suburban and hightailed it over to the schools your kids will be attending, so buckle up because you just purchased this home and pray the appraisal doesn't come in low because I am walking.

This guy proceeds to get his own appraiser and follows this appraiser around the house during the entire inspection , it was kind of amusing because he was even telling the other appraiser what to look for and what adjustments to make. Anyway a few days later the other appraiser comes in higher than my list price and the buyer-appraiser went off the rails and even accused me of paying the guy off , then he proceeds to review the other guys appraisal and-he says its crap and should turn it into the State. At that point I informed him that even though the other appraisers value was higher than my list price I had no bias and would have no problem selling him the house at the appraised value LOL

 

[glenn walker]

This guy bought 4 properties with you in a year, hope down the road the values at time of purchase turn out solid. If a buyer over pays that buyer will not know it until things play out in the market, ( though at time of purchase, a non biased appraisal can see it )

If you are advising them as an appraiser and not as a broker that has to be clear, and if you advised them about the price as an appraiser you did an appraisal..If you advised them about price as a broker it would be hard to say how much bias did or did not affect the perspective. Certainly it is a bias discouraging the buyer from getting their own independent appraisal since it is per your own perspective, not a "fact" that nobody has greater market insight or valuation than yourself. The lack of vested interest alone from an appraiser is of worth to a buyer when a broker is wearing 2 hats.

If a market is going up then it's not an -issue if its going down then he is screwed SO a single point of value appraisal is worthless the day after : )