Realtor Ethics

[Non Sequitur]

A 5% variance kills a $75,000 contract just as quick as a $750,000 contract.

We can talk numbers all day long, the fact of the matter is Realtors are being advised to break federal law. And even if influencing appraiser selection wasn't against laws/regs, it is a highly unethical practice. Realtors wouldn't put up with Realtors refusing to allow access to a property if one Realtor was from 100 miles away.

For the life of me I'll never understand how some appraisers have no problem with Realtors denying access, which is de facto judging the competency of an appraiser, when it's SOP for Realtors to make up most of what they put in the MLS. Crap, half of my job is sorting through and verifying the mess in the MLS. Just this week I met a Realtor at an inspection, she was laying it on hard about the shortage of listings, prices are going up, up, UP! I didn't say anything, but I thought she was a little nuts. I had a pdf of 6 similar sales and 5 similar listings, pretty much stable as far as supply. But after the inspection as I looked through the pdf, sure enough she was right about a shortage; 3 of the 5 listings were UC for years, one 3 hadn't been updated for 3 years. So a bunch of lazy Realtors are screwing up the data in that neighborhood. But hey, some appraisers have no problems teaching them to blackball other appraisers.

 

[glenn walker]

So $3,700 +/- kills a deal .. Is this for real ..Are you guys that poor, what a joke the banks and lenders should make you guys pay all cash or trade a 1990 Chevy truck , no wonder the USA is in such bad shape : ) LOL

 

[Non Sequitur]

So $3,700 +/- kills a deal .. Is this for real ..Are you guys that poor, what a joke the banks and lenders should make you guys pay all cash or trade a 1990 Chevy truck , no wonder the USA is in such bad shape : ) LOL

About as real as a seller that can't shave 5% off of $750,000. Sellers are stubborn, especially when their Realtor is telling them it's the appraiser's fault not theirs.

 

[Ken B]

The Truth in Lending Act, which is the LAW that prohibits "covered parties", which includes, by definition, " realtors", from interfering with appraiser independence is every bit as enforceable as The Civil Rights Act and is the law that some are suggesting can or should be ignored to "protect" a deal or turf.

Imagine what would happen if anyone tried to suggest an agent "protect" a neighbourhood from a buyer based upon their race.

The lender is responsible for ensuring appraiser competency. Not the agent, not the seller, not the buyer, and certainly not another appraiser protecting "their" turf.

 

[J Grant]

If the Realtors don't let skippies in the property then **these low life's** coming from 100 miles for $250.00 are out of business !!! The lender will start forcing the AMC to employ local appraisers who know the community and it's nuances. The appraisers have lost control and have no ****s to just say no to these low fee's and 24 hour turn times. If it takes the Realtors and NAR to get these people under control then so be it . I am not talking about value pressure. Most of the Realtors are not pressuring for value but when they know 20 local appraisers who have lived in their city for 20 plus years and know the area it's a bit much for the AMC to be sending runners from 75 to 100 miles away . Im sure it's different in rural areas but I am located in Los Angeles County and home prices can change by hundreds of thousands of dollars just by crossing a major street. The appraisers have lost control of everything. Don't blame the Realtor it's the appraisers who got put in a corner and most are now AMC slaves.

This out of area thing sounds like a red herring to me. Virtually every major lender and AMC has RULES now, in place at least 2 years, that they don't assign appraisal orders over 30 miles away from appraisers home/office. They might need to make exceptions in rural or sparsely populated areas, but the main volume of work does not take place in those areas and many of those areas have no appraiser living there anyway.

Though I understand your frustration about low fees and who accepts them, most low fee work is done by local appraisers within 30 miles of an area. Some of the appraisers are good and some perhaps not so good, (and some are staff so who knows ) ; the frustration on RE agent end is about losing control of being able to pick the deal friendly appraiser. That's what RE agents used their power of control for in the housing boom and that's what they;ll use their power for now. After they eliminate all the so called far away appraisers, and there are 8 local appraisers left, they'll block access to the local ones that don't hit price, and claim those appraisers have not been appraising long enough, or don't research property, or whatever else they can invent as a reason.

 

[J Grant]

A

The Truth in Lending Act, which is the LAW that prohibits "covered parties", which includes, by definition, " realtors", from interfering with appraiser independence is every bit as enforceable as The Civil Rights Act and is the law that some are suggesting can or should be ignored to "protect" a deal or turf.

Imagine what would happen if anyone tried to suggest an agent "protect" a neighbourhood from a buyer based upon their race.

The lender is responsible for ensuring appraiser competency. Not the agent, not the seller, not the buyer, and certainly not another appraiser protecting "their" turf.

Despite the bleating about out of area/competence, it is about an appraiser's turf. Virtually every supporter of REALTOR control of access are from those who covet RE agent referrals/ or are dual license or former pocket go to appraisers....(they don't push value by 10k on a 150k SC price, they "round up" by 10k to get there!)

And for those few who have nothing personal to gain but really believe this will solve the AMC low fee problem you are badly mistaken. The low fees will continue as long as certain market forces are in place, only now you add RE agents becoming bullies who dictate appraiser selection by exclusion.

 

[Terrel L. Shields]

So $3,700 +/- kills a deal

...coming from someone who never kills a deal? Is that what you are saying? When you make $10 an hour, $3,700 is the difference in qualifying for the loan in the first place. I've seen far more $60,000 homes go into foreclosure than I have $300,000 ones.

 

[J Grant]

So $3,700 +/- kills a deal .. Is this for real ..Are you guys that poor, what a joke the banks and lenders should make you guys pay all cash or trade a 1990 Chevy truck , no wonder the USA is in such bad shape : ) LOL

Is $3700 negligible? On a mid/lower price property, $3700 is a lot of money. By pushing the value to hit SC price, your lender client is the one coming up with that pushed value $3700.

If buyer wants house they can come up with $3700 or seller can reduce price or they can split it. They are the ones killing the deal if they chose not to purse any of these options.

Question to the appraiser: why don't YOU contribute the "small" amount of value pushed so the deal won't be killed? Just give $3700 from your own funds to buyer to help them get their dream house since that $3700 is so negligible, or only is 2% off contract price.

 

[Don Clark]

This out of area thing sounds like a red herring to me. Virtually every major lender and AMC has RULES now, in place at least 2 years, that they don't assign appraisal orders over 30 miles away from appraisers home/office. They might need to make exceptions in rural or sparsely populated areas, but the main volume of work does not take place in those areas and many of those areas have no appraiser living there anyway.

\.

If that is true, someone should tell the AMC's that send appraisers from Northern Virginia to the market in Norfolk/Virginia Beach area fo do appraisals. That is 3.5 hours away and 185+- miles. Happens all the time.

Where exactly in dodd frank does it state that a Real estate agent "Must" give an appraiser access to a property?

Inquiring minds want to know.

On the largest cases of fraud by an appraiser, acting as an AMC in Virginia was an individual located in Bedfrod, Virginia sending trainees all over the state, and then the owner signed that he "did inspect". It was only after several complaints from agents and others that action was taken.

I suppose you folks want to promote that?

 

[J Grant]

So $3,700 +/- kills a deal .. Is this for real ..Are you guys that poor, what a joke the banks and lenders should make you guys pay all cash or trade a 1990 Chevy truck , no wonder the USA is in such bad shape : ) LOL

Lol, why don't you kick in the $3700 so the deal does not get "killed? Per your reasoning it's such a small amount, right?:Eyecrazy: