Realtor Pressure

[Pamela Crowley (Florida)]

I'm trying very hard to do all my rants right here at my office, by myself, no one else around to hear me. I normally have low blood pressure, but have to wonder about those spikes that must happen. 8O

This week it's Realtors - again. This one listed a property at $30,000 higher than any other sale in it's subdivision. Finds an out-of-state buyer that appears to think this is a really great deal. Realtor did the CMA by using sales in the Gated Golf Course/Country Club across the street from the subject project. Of course, those properties are newer, median size GLA is much larger, and more expensive. Subject is an older gated community, no real community amenities and No Golf Course, older houses with much smaller average GLA.

I try to explain to her that you cannot use the GGC/CC properties for comps - there are 3 good sales since January in the subject subdivision that must be used. I know this lender very well and they do have all the data of all the sales in the area. "Oooohhhhh. They do that?" :roll:

Isn't a Realtor supposed to be a Real Estate Professional????? Can you imagine the repercussions if I had used non-GC/CC properties as comps for a property inside of it???? She would have me tarred and feathered and run out of business for being stupid!!! She called me at least 3 times yesterday trying to get me to use the Golf Course community properties anyway. I went overboard and have in my file all the proof that would be necessary to prove adjustments that would bring the subject right back to where it is - including other similar houses that are not in the subject gated community or GGC/CC that would bring it up slightly, and the GGC/CC community that would adjust it down. Very thick file with some really interesting statistics - still won't change what the subject is.

BTW, I really was very nice on the phone with her. Maybe I should get a manakin - dress it up in a nice suit and wig - put it in a corner of my office - where it will be available every time I want to strangle someone! :twisted: :twisted: :twisted:

 

[Restrain]

Remember - The Realtor IS NOT your client. The Lender is your client. You have NO obligation, and rather a responsibility, NOT to discuss the appraisal with the Realtor. Any time a realtor calls in this situation, we tell them to talk to the Lender about a reconsideration of value and provide the comps that they want us to review. Invariably, we punch their TS card, but at least we give them an appeal.

Remember, you DON'T have to talk to them, so don't. It keeps the blood pressure down.

Roger

 

[David S. Roberson]

Realtor (or Borrower) calls, "Boo Hoo, Boo, Hoo." You try to be nice & explain appraisal procedures. It blows up in your face. Roger is right. It is better to refer them to the Lender. This is coming from experience. Don't try to be nice. Be professional. It's not always the same thing.

 

[Ted Martin]

The realtor is also NOT the buyers best friend. Realtors are proffesionals, they are proffessionals in sales. Doesn't mean they are bad, mean, evil or slimey, their job is to push people into action. In this case it is to get them to buy a house. Our job is to value the subject, if the sale price is reasonable then the lender LOANS the money to the buyer. The lender is our client and they hired us to tell them how much risk they are taking so they can establish a rate of return which reflects the risk they are taking. Keep that in mind an you can sleep nights knowing you did your job. If a realtor get' mad, oh well.

 

[Joe Birrell (NY)]

Realtor is in violation of Article 1-3 (NAR Code of Ethics) - for whatever good that will do you. I give them one hour to produce 3 identical sales within the past 3 months within the same census tract, if they don't produce it (which I already know in advance is impossible) - I start writing the report - END OF STORY. Had some old battle axe go nuts on me yesterday - better her blood pressure than mine.

 

[Verne Hebert]

So it sounds like when the Association of Realtors has an required ethics class in your area...............they fly in the instructor.

We have the same thing going on.

I have always wondered where the ethics instructors that fly in, fly-in from.

 

[Joe Birrell (NY)]

So it sounds like when the Association of Realtors has an required ethics class in your area...............they fly in the instructor.

We have the same thing going on.

I have always wondered where the ethics instructors that fly in, fly-in from.

I read it on my own. Ethics ? They don't have any, which probably explains why they never offer any courses on the topic.

 

[Steve Owen]

Can you imagine the repercussions if I had used non-GC/CC properties as comps for a property inside of it???? She would have me tarred and feathered and run out of business for being stupid!!!

Sounds to me like she should be the one getting tarred and feathered. What do you want to bet she goes shopping for a more amenable appraiser?

 

[Pamela Crowley (Florida)]

This client's upper management will be watching this one and they do not want any fraudulent or unethical behavior. The LO could be on his way to getting himself into trouble since it appears he sicced the Realtor on me and wants me to reconsider what she is telling me to do. NOT ME!!!

What's really unbelievable is that I have a second one like this now. Outside of town in an area bordering on rural but growing pretty fast. Very near the St. Johns River - BIG river that goes to the Atlantic Ocean. There is a small gated community down there with comm. pool, nice clubhouse, tennis court, access to the river with a nice dock and owned boat slips. Boat slip just added another $10,000 to a sale. My subject is not in this community but those are the comps the Realtor used. Another one where I have about 8 comps that say about $250,000 and the Realtor wants me to use the gated community comps and make it $267,000. They just bought the place 13 months ago for $235,000.

Must be the newest Realtor twist to making a value for a newbie Yankee buyer.

The comment I really like is: "Just look at the great new comp you'll have to make the other values higher after this one closes."

Arrrrgggggg :twisted: :twisted: :twisted: :twisted: :twisted:

 

[Mountain Man]

:roll: I discount those for "cash equivalency" due to the idiot factor. :wink: