First it's almost impossible to get into another persons motivation especially when nothing adds up and as both a Appraiser and Broker I can tell lots of stories about weird deals that made no sense- But-here are a few big Red-Flags and this is why you need to focus on the value and sit buyer motivation on the shelf-Especially if its a purchase or refinance - Easiest way to get large amount of tax free cash is for two guys say a buyer and seller to form a plan -then get together and make a deal- House is worth $500,000 but if they can show a purchase contract at $700,000 and get some appraiser to hit the number it's a done deal. Often these buyers story and motivation is so convincing the appraiser even starts believing their B.S.and if everything goes as planned they split the $200,000. If things go south everyone turns on the appraiser
Also buyer motivation is rarely disclosed because legitimate buyer motivation is normally a person trying to purchase something for way under market value or what it's worth and the buyer wants his broker to negotiate as hard as possible. The most dangerous buyer motivation is when the buyer says I will pay any price for this property !! because either his emotions have over-taken his common sense, he just fell off the turnip truck, has more money then brains or it's all simply just part of the act. No matter what rarely does anything good come out of these situations.
While doing Forensic Appraisal and Consulting for attorneys it was quite common for the Pump and Dump schemers who got caught to simply say they loved the property and simply got swindled by the seller or his brokers and the appraiser. Unfortunately their defense came to a halt when it was discovered the entire real estate transaction was an-orchestrated event.
Even in legitimate situations extreme buyer motivation is often a sign of emotion and not supported by the facts. Think about how some people act when they fall in love same principle sometimes can apply in real estate. Unfortunately a scorned buyer or seller will do anything to lay blame on someone else.
( Some Thoughts Below )
1- Don't get involved emotionally with so called buyer motivations.
2- No matter how good or crazy the story is focus only on the comparable sales and data.
3- Don't make statements about the buyers motivations because it's can come back to haunt you.
4- If the buyer is obtaining a purchase loan-his extreme motivation should be backed up by cash..
5- Always appraise the client and these buyers before appraising the property.
( Never Forget This )
6- If you have that gut feeling something just doesn't add up simply call in sick and run don't walk.
7- Appraisers not trained for Red-Flags or Slim-Shady types are often charmed and conned.
8- When the ****-hit's the fan the buyer-seller-lender- will all turn on the appraiser like rabid dogs.
9- The buyers motivations are fickle and that dream home may end up being their nightmare.
10-OK- now you have been through the basic 10 step-forensic appraisal program.
11-Next stop 10-Step at AA and weekly sessions with a good therapist for anger management issues.
Hope this helps : It may take a few therapy sessions with a professional to learn to trust again
