Realtor Luncheon

[EVAUSA]

warm things up by asking the audience if they saw the version of COPS on TV when various crooks were notified by phone that they won a TV and needed to visit a specific address to collect their prize.

After you get the group laughing and texting via their blackberry devices, change your tone of voice and let them know that your presentation is actually a front for the FBI and the whole lot of them are about to be busted for appraiser coercion, mortgage fraud, collusion to the extent that the RICO Act might be imposed on the whole lazy, dumb lot . . .

 

[Michael Tipton]

The "changes" in the residential appraisal changes have been in place in FNMA's sellers guide for a number of years. We are required to complete appraisal assignments that reflect the current market conditions.

http://www.allregs.com/efnma/index....w=0&tv=0&tq=0&tx=/&tp=FNMA/annoc/n2007/n07-11


FNMA released several announcements during 2007 addressing how FNMA addresses declining markets. The selection of comparable sales is also discussed in FNMA Sellers Guide Section 406.02.

http://www.allregs.com/efnma/index....FNMA/selling/part-xi/xi-ch-4/xi-406/xi-406.02

FHMA also has a Mortgage Fraud Resource Center available on-line. You might review one of their monthly updates during your presentation.

https://www.efanniemae.com/utility/legal/antifraud.jsp

Finally, I understand Texas is a non-disclosure state. Emphasize the appraiser's obligation to review the complete purchase contract and any concessions associated with the comparables. I would consider taking a blank appraisal form to show page one, the contract review section, SOW, the Appraiser Certifications (#5 specifically). As stated in an earlier post, reporting of accurate concession info in the MLS serves to speed up the appraisal process. The sooner we can confirm data the better.

Just a few suggestions.

 

[Mike Garrett RAA]

Speaking to a group of REALTORS by an appraiser is like swimming in shark infested waters. Be prepared for a hostile audience. One of the easiest ways to defuse the group is using humor, how you do that is up to you but remember you cannot be George Carlin.

I have found obtaining a list of questions from the group IN ADVANCE will help you prepare. Can your MLS help by having agents submit questions in advance? Put them on 3x5 cards and make a show out of answering them. Always say...what a great question! Make up a few of your own, have one that you look at and then throw away saying...."you can't be serious!" Always gets a good laugh.

Go on line and find some appraiser jokes. If you have the ability to use visuals via power point and a lap top, include some interesting photos.

Having some sort of hand out is always a good thing. Maybe a sample grid would allow you to discuss the importance of the adjustments starting with...concessions.

Advise them that you are not the enemy but rather part of a team in the real estate transaction. Tell them how they can assist the appraiser. Refrain from being negative.

Offer free assistance in answering appraisal questions. Anyone who wants to consult with you can ask for one of your cards and call you for advice. Having a good group of REALTORS knowing they can call on you will increase your business through referrals.

You might want to offer a door prize for a drawing. A book is always good thing or a coupon for a continuing education class on appraisal.

Be prepared...that's the boy scouts marching song. Be prepared as through life you go along. I think that was a Tom Lehr song from years ago.

 

[ZZGAMAZZ]

There's probably nobody in the audience who isn't fully aware of the appropriate relationship between realtor and appraiser. To think that anybody in the audience is concerned with the appraiser's ethical or legal obligations is pure folly. Think back to the few realtors who go out of their way to reassure you that they want only an objective appraisal, and sure as sh... they've been the ones to pressure you the most to "work with them like a good team player."

We're not a part of the "Team." Promoting that notion breeds a sense of alliance contrary to our disparate objectives. Appraisers are an objective, independent source of valuation with an inherent contentious relationship with realtors based upon "different masters" so to speak. The goal of the realtor is to sell a property and to make a commission, although the goal of the appraiser is to establish an objective perspective of the property and the local sub-market market, in order to ensure that collaterization is extended appropriately. (If one can make a buck while maintaining that sense of perspective so be it.) The distinction between professioins is neither good nor bad; it's just a fact of life.

The "Team" concept is a sugar-coated phrase to conceal coercion and fraud because the realtors have much less legal obligaion to be factual, and much much less liability.

Rather than sell your soul as it has been suggested, perhaps the presentation would be more beneficial to make the broad generalization that "I don't care if your deal works or not" and then ask the audience to work with you to understand your perspective.

You should also notify them that by the end of the year they'll no longer be able to order appraisals or to select appraisers, nor to collude with brokers to order appraisals, so the concept of free comp checks will become virtually meaningless...but keep that to the end of your presentation or the moderator will hustle you out the door when it's realized that you will no longer be relegated to the role of a shill for the realtors.

 

[Mike Garrett RAA]

And at the same time be sure to tell them what you will be doing next year...like flippin burgers at Mickey D's if you have that kind of attitude. I am the appraiser...I am GOD! Sorry...I don't think so.

 

[Mountain Man]

You have a great opportunity here. I'd stress the definition of "Market Value" over PRICE or "most likely sales price" as done in ERC's. I'd also discuss the Highest & Best Use... why I can't do a URAR on a crappy 1940's brick house surrounded by shopping centers on 10 acres of CBD land. I'd also hand out the old FHA VC's and say this is what I look for. None of it is unreasonable, and it's not a home inspection... it's stuff that should be disclosed in YOUR LISTING anyway.

 

[DWiley]

I do such talks on a fairly regular basis. If you have the ability to do a PowerPoint presentation, that is always good. If not, you could make notes highlighting your talk and pass that out. I always try to leave them something (other than just a business card) with our company name on it.

Explaining the pitfalls of price per square ft is always a good topic. You can use actial data to show why such a simplistic approach can lead to bad pricing.

Last week a LOT of interest was generated by explaining the difference between Market value and Anticipated Sale Price.

 

[chicago guy]

They need to know that we are there for a third party, independent, unbiased opinion of value. We are not looking for comps that "make the deal work" nor are we there to "kill" there deals. We are basically the eyes of the lender and need to accuratley assess the market value.

 

[Michael Tipton]

They need to know that we are there for a third party, independent, unbiased opinion of value. We are not looking for comps that "make the deal work" nor are we there to "kill" there deals. We are basically the eyes of the lender and need to accurately assess the market value.

If we haven't, the lender's reviewer might not be satisfied with the report submitted.

 

[Mike Seward]

I, too do these talks on a regular basis. I start out explaining Fannie's definition of MV and the principle of substitution.
Then I explain how we choose comparable sales, closest in proximity, most similar, most recently sold, etc.

FHA is a hot topic with them today. I cover some of the items that FHA will require to be repaired, some that will require further inspections and some that FHA now considers cosmetic.

They ALL use price per square foot. Some examples that I have had success with is kitchens cost more than family rooms, so a smaller house will have a higher price per square foot than a larger one. A funny one is using price per square foot is like buying a car by the pound. They seem to understand that.