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Realtor Fallout

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Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
This is happening with more and more frequency in my area:

Hungry realtors canvass neighborhoods telling homeowners what they can "get" for their home. Instead of lisitng their home, homeowner calculates how much money they will get if they re-finance. They (the homeowner) then take said calculations to LO who re-calculates and decides how much their commission will be. GREAT! Everyone has decided what the home MUST be worth and has already mentally spent the money! Then the call me...................... :roll: Sound familiar?

GOT EQUITY?
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Bruce,

The practice that you mentioned would be a good one to have as a topic in a consumer watch section of our soon-to-be-developed website.

Homeowners need to know the differences between a real estate agents 'market analysis' and a value estimate by a qualified appraiser.
 

Mike Simpson

Senior Member
Joined
Jan 30, 2002
Blue 1-

How'd you like to be a real estate agent competing for a listing with some hack? If you're first in you've got a chance to present your research to a potential seller before they've formed an opinion based on nonsense offered by a silver-tongued salesperson.

If you're in the unenvious position of presenting your information to someone who's been approached by other agents who've 'bid' their home up...you might as well not even waste your time. In this case I've actually heard the potential seller say, so-n-so "obviously likes my house better than you do." Can you imagine trying and talk statistics to someone who believes you're going to cost them $10-$20 even $30 thousand dollars--and you want a commission on top of it?

-Mike
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
Mike,

How'd you like to be a real estate agent competing for a listing with some hack?

Seems we are all competing with the "hacks." Trouble is......at least in MY area......there are lots of "hacks." They wouldn't recognize a CMA if it hit them in the face! Just tell the seller what they want to hear.....List at whatever.........then blame the appraiser when value doesn't "come in" at what the seller wants. Seems to me that Realtors aren't policing their own profession at all.
 

Mike Simpson

Senior Member
Joined
Jan 30, 2002
Blue 1-

That's why cruising the cancelled and expired listings for potential clients can really pay off. You sell your services as a real estate agent with X amount of years experience as a state certified appraiser (if there's one thing I know--it's value). List the fact that banks, mortgage companies, FHA, USDA, attorneys, investors, builder & developers and the like have relied on your professional opinion for years now--makes for a nice looking presentation.

Actually, I don't want the real estate agents to police their own. I've seen the problems in this industry grow exponentially over the years, and have directed my business in that direction as a result. I believe the future will hold many opportunities for those specializing in fraud as an expert witness. The financial payoff for these individuals is significantly better than for those working in the trenches daily who's only clients are mortgage companies.

-Mike
 

Cowgirl

Sophomore Member
Joined
Jan 22, 2003
Professional Status
Certified Residential Appraiser
State
Texas

Boy, does that ever sound familiar. I had one just like that this month. The owners were refinancing and had gotten an opinion from a local realtor. Two of my comparables were on the same street and the value came in well enough to make the 80% LTV plus a little. But that was not good enough for Mr. and Mrs. Homeowner. The expected considerabley higher with the opinion of the realtor. They sent the LO the information on four properties that the realtor gave them to support their opinion. One was a comparable I used (the highest sale), one was almost two years old, two were listings which had DOM of 545 and 260.

I informed them I was very comfortable with my opinion of value and that it required considerably more experience and education to obtain an appraisal license than to obtain a real estate sales license. Adding they were welcome to obtain a second appraisal opinion.

It was a COD and they stopped payment on the check. But, expected to still use my appraisal to obtain their loan. I notified the lender and sent a certifiled letter requesting payment in cash within the 10 days allowed by law or I would press charges for Theft of Services. The lender was very apologetic and sent me my fee plus the bank charges over night.

Some people have all the never and think they have all the knowledge.
 

Cowgirl

Sophomore Member
Joined
Jan 22, 2003
Professional Status
Certified Residential Appraiser
State
Texas
Oh, to clarify the letter was sent to Mr. and Mrs. Homeowner not the lender. But he collected from them before sending me my payment. Hope they don't disagree with him and stop payment on his check.
 

Cowgirl

Sophomore Member
Joined
Jan 22, 2003
Professional Status
Certified Residential Appraiser
State
Texas
Pamela,

I am not sure what article you are refering to. Guess I need to read that one.
 
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