Now I'm Really Steamed!

[Blue1]

Just finished a Manufactured home report. It is a sale. Unfortunately the listing agent (non MLS member) has listed this property $10,000 above the highest recent comparable sale in the neighborhood! As you can imagine, my report came in quite a bit below the sale price. Well, you shoulda heard the c**p that the Realtor said about me!! Keeping my composure, I suggested (to my clinet) that if there were BETTER comparables I'd be happy to review them. That was 1 week ago. No BETTER comparables are forthcoming. All that happened is the the Realtor (tore my comparables apart) In fact, this Realtor had to ask another Realtor for access to the MLS!!

Bottom line, GUESS WHAT? You guessed it, the Realtor called "another appraiser" who will guarantee an appraisal at the sale price. (apparently without even seeing the property) Can you say USPAP violation? Unfortunately only hearsay.

Luckily, my client is ethical and is on my side. I will be able to get a copy of this "other appraisal" at which time I will: 1) learn what I did wrong or 2) get even more steamed. I'll keep you updated........

 

[Pamela Crowley (Florida)]

Blue1,

Are you a member of your local Realtor's Association???

If yes, you need to inform this Realtor that (s)he is violating the Realtor's Ethics by badmouthing you, applying pressure for you to act unethically plus pressuring you to violate the law. Realtors need to learn that when they mess with an Appraiser like this, they are in violation!

Please keep us informed on this one. I'd love to get my hands on another appraisal like this.

 

[Jo Ann Meyer Stratton]

Have you printed out a copy of Fannie Mae's Announcement 02-02? Fannie Mae will start reporting appraisers to appraisal boards and make lenders/brokers buy back loans that use "created sales" and lots of other items. Pass that announcement along to your MLS association, maybe even give all their members a talk about it. And if you get a copy of the other report--turn it in to the state!

 

[Tim Hicks (Texas)]

Don't forget to tell the loan officer that they are working for the buyer not the Realtor. Also, remind them that if the buyer catches wind that they over paid for the house and the loan officer had an appraisal that showed they did , but chose to get a "higher" appraisal, they are subject to a law suit. One more thing, if this Realtor is not a member of the MLS, then they and the Realtor that provided MLS comps to him/her are in direct viloation of MLS bylaws.

 

[Dee Dee]

If your client is truly ethical and on your side then this should be easy. When this other appraisers report comes in you'll know which way the wind blows. Like you said, either you'll learn something or your client will make the decision that you are correct. Then you can work together to hang both the realtor and her appraiser buddy. My guess would be that since she's not been able to come up with any reasonable comps for you by now then you already know how it's going to turn out.

 

[Tiny280]

Stick to your guns Blue.

I had a similar situation about a year ago - property was WAY over listed due to the owner being in too deep on a second mortgage (appriser stretched it beyond reason) and could not sell at a true market price, Realtor told my client that I was completely off base, offered alternative comps (in a better school district) and insisted that no location adjustments should be made, etc, etc.

In the end, the owner got ahold of my report, reviewed the comps I had used, and decided to sell at my appraised value. And the owner didn't even call to say Thanks. :wink:

 

[Blue1]

Pamela Crowley,

I am a member of the MLS; the Realtor is not which is probably why the property was listed way above the highest sale (or current listing) in the area. This Realtor had to go to another Realtor in order to get access to the MLS and review the sales in the area. As I said, no better comparable sales were provided to me.....only information that the Realtor "shredded" my comparables and has hired another appraiser who guarantees the value.

As I said, I will be able to see the "other" appraisal when it is finished (maybe 2 to 3 weeks from now). I now know who this "other" appraiser is. It's the same one who mis-reported GLA on the sale of a home I subsequently appraised. It's the same appraiser I reviewed recently who had the wrong parcel, the wrong house and over-reported a sale price in excess of 50K. It's the same appraiser that my client refuses to use. This is the last straw! If this appraisal is bad, I'm taking action......somebody has to do it.

 

[Tiny280]

You GO blue!

I actually like review work, but it does bother me when I see a case of probale fraud and / or pure incompetence like that.

I'm working on one now where the "appraiser" (also a Realtor) skipped over some local comps on a historic home in favor of comps that were 23 miles away, in a HIGHLY desirable village / college town, in a different county, and in a HIGHLY desirable school district - characteristics that are notably lacking in the subject's location.

The "appraiser" made a -$10,000 location adjustment for each comp, but market says he dropped a digit; adjustment should be more like $100,000. :evil:

I don't want to write a book for thie review, but I'm on page 5 of the comments and haven't even gotten to the good stuff yet - like subject was listed for less than the appraised value for 9 months last year, with no offers. I guess he might plead ignorance, but it will be next to impossible since his office is on the same street less than 1/4 mile away.

Ah well, back to the crucifiction :twisted:

 

[Blue1]

Tiny,

Thanks for the support :lol: Tip: Uncheck the "Disable Smilies in this post" box and the little emoticons will show up on you post :lol: :lol:

 

[KD247]

Hi all. I 'm here to present the contrarian viewpoint.

Isn't your current contract price your best "comparable"? Why do you think that this buyer's motivation is unusual and different from the "typical" buyer?

Are there other equivalent or superior properties available at a lower price?

Are the buyers represented by knowledgable agents and have they adequately considered alternative properties?

Are the buyers reasonably aware of any problems with the subject property?

These are the first questions I ask when considering a contract price. If everything checks out, I strongly consider the current contract price in my estimate of value.

In my area, almost every sale has been at prices above the most recent closed sales. How could values increase if there was never a sale at a higher price?

During this strong market, I've run into several appraisers who are intent on telling the market how to behave, instead of analyzing what the market is actually doing.

Maybe the true test is: If this sale closed and you found it during a comparables search a few months from now, what would be your justification for not using it?

Occaisionally, I need a reality check. I've been indicating that the market has been stable, not rising, since late last year. But now, I'm seeing evidence that the market is actually stronger than last year (although I expect that to change any minute now).

Koert