Realtor Ethics

[Ken B]

Society would be so much more polite if those uppity appraisers would keep mind of their place.

 

[Non Sequitur]

Society would be so much more polite if those uppity appraisers would keep mind of their place.

And be thankful for their welfare.

 

[George Hatch]

Society would be so much more polite if those uppity appraisers would keep mind of their place.

Just think of how many people actually think appraisers should be team players working for the common goal.

 

[Terrel L. Shields]

The only way a broker refusal can have an effect on an appraisal is if a lender allows them to get away with it.

Exactly...

how many people actually think appraisers should be team players working for the common goal.

apparently a lot more appraisers than I thought...

 

[J Grant]

It's no surprise to see out in the open the number of appraisers who think our "real purpose" is to get deals though. This agenda has nothing to do with competency. It's a mindset and present up and down the food chain of skill set and license level and experience ( same goes for appraisers who are ethical and practice with integrity,)

If these deal friendly appraisers happen to be highly skilled or designated, they use their skills in service of the agenda driven purpose. If they are less skilled their efforts may be cruder and lacking in extensive narrative; but fundamentally the reports share the same predictable elements: a cherry picked high price "comp" they dragged in to provide the high end of bracketing of adjusted sales range, the fudged adjustments, the omission of manipulation of information that would indicate a different, more credibly supported (but less deal friendly) outcome than the one delivered.

 

[Don Clark]

It's no surprise to see out in the open the number of appraisers who think our "real purpose" is to get deals though. This agenda has nothing to do with competency. It's a mindset and present up and down the food chain of skill set and license level and experience ( same goes for appraisers who are ethical and practice with integrity,)

If these deal friendly appraisers happen to be highly skilled or designated, they use their skills in service of the agenda driven purpose. If they are less skilled their efforts may be cruder and lacking in extensive narrative; but fundamentally the reports share the same predictable elements: a cherry picked high price "comp" they dragged in to provide the high end of bracketing of adjusted sales range, the fudged adjustments, the omission of manipulation of information that would indicate a different, more credibly supported (but less deal friendly) outcome than the one delivered.

Has nothing to do with getting deals through. Just ask the 3 lenders that I did appraisals for this month and came in well below the contract price. The agents in those cases were less than thrilled with my opinions.

It has nothing to do with the agents selecting the appraiser. It has to do with lenders and their AMC's sending bottom feeder appraisers to areas where they have no competence, to appraise property when they do not even know how to get to the right address, do not know where the coutyhouse is(8 in my market of Independent Cities), have no access to the MLS and expect others to provide all that. The tactic is to get enough appraisals at 25-50% of C&R to make the trip worthwhile.

If the members of this forum support that, as apparently many do, then so be it.

 

[Ken B]

If I have someone speeding through my residential subdivision at 55 miles an hour every day when kids are waiting at the corner for the school bus to arrive, I might be tempted to wait for the driver every morning and throw nails in the road just before he blows by me. Or, I could call the Sheriff and make a complaint.

One way gets the guy a ticket, maybe a reckless driving charge, maybe thrown in jail.

The other way accomplishes nothing, except maybe gets you a ticket for destruction of property, creating a hazardous condition, or something similar.

A number of years ago, my Aunt was complaining about the speeders on the road leading by her house. So she called the Sheriff's office and wanted to know why they weren't doing anything about it. So, a couple of weeks later, she gets pulled over by a Deputy on this road. The Deputy walks up to her car and in the course of the conversation, my Aunt says something about having recently made a complaint about the speeders on the road. To which the Deputy replied, "Well, Ma'am, you will be glad to know I just caught one."

True story.

 

[Ken B]

It's been a while since I have done one, but I understand the 1004 has a certification regarding the appraiser having access to MLS data, etc where the property is located and that the appraiser has the competency needed to perform the job.

While "having access" doesn't mean, "is a member of the local MLS", if an appraiser signs a certification which is not true, that would be a USPAP violation. I believe that is grounds to file a complaint against the appraiser.

 

[J Grant]

Don, I absoultely do not support that. However, to think that this is all agents care about is absurd. Many of us have sold RE or spent time as agents and know what they are about, which is not to dengrate them, but an admission of reality.

The low fee issue is a problem that may change in future ....however that is a topic for another thread. As far as distance, are you aware that almost every major lender and AMC has a rule that appraisers are limited to orders within 30 miles from their residence or office? How does this jibe with the RE agents saying the problem is out of area appraisers?

Back in the mtge broker order days, agents acted as gate keepers for appraisal selection and all they wanted was value pushers/number hitters, had nothing to do with fees or distance or quality. To presume that all of a sudden commission driven sales people are only concerned with competence/distance is a denial of their strategy. They are using a supposed concern about quality to gain a foothold of controlling access. And once it becomes acceptable on the downlow for them to control access, they will deny access to competent, local appraisers who are not deal friendly; with a new list of reasons to justly it)

 

[Don Clark]

Don, I absoultely do not support that. However, to think that this is all agents care about is absurd. Many of us have sold RE or spent time as agents and know what they are about, which is not to dengrate them, but an admission of reality.

The low fee issue is a problem that may change in future ....however that is a topic for another thread. As far as distance, are you aware that almost every major lender and AMC has a rule that appraisers are limited to orders within 30 miles from their residence or office? How does this jibe with the RE agents saying the problem is out of area appraisers?

Back in the mtge broker order days, agents acted as gate keepers for appraisal selection and all they wanted was value pushers/number hitters, had nothing to do with fees or distance or quality. To presume that all of a sudden commission driven sales people are only concerned with competence/distance is a denial of their strategy. They are using a supposed concern about quality to gain a foothold of controlling access. And once it becomes acceptable on the downlow for them to control access, they will deny access to competent, local appraisers who are not deal friendly; with a new list of reasons to justly it)

If by the above you mean that the real estate agents are acting as advocates for their clients, well that is their job.

So far I know of only a few cases except the one I noted earlier. In that case there were ove 20 individual complaints lodged against the appraiser who was acting as an AMC, and almost all were over 100 miles from his office.

Someone better advise the AMC's about the 30 mile rule. And, i do many appraisal more than 30 miles from my office. My market radius is more like 50 miles. it is not the actual miles per se, it is about having competence in a market.

I routinely get request to go places in virginia and North Carolina where I have never heard of before. I simply advise them to look at a map. but, phone monkeys calling from India for an AMC may knot know the area well.