Realtor Pressure

[Larry Lyke]

Pamela --

Your situation is not really winable. All you can do it pick your way ethically through it and go on with life.

As far as having a conversation with the Realtor, absolutely not. Be polite and refer her to the client. AND, as bad as the client is, they are more likely to come around to your position than the Realtor.

The one factor in today's business world is that everybody is paid on their productivity, i.e., commission or bonus, etc.

You situation appears to be so obvious and straightforward, that it'll be easier to finesse than as if it weren't so clear cut. Good luck.

 

[Pamela Crowley (Florida)]

Update:

Unbelievable!!!!

The Realtor left a message (I'm not answering the phone) that the deal has fallen apart - she is going to have to pay for the appraisal - wants a discount!!!!! I spend a at least an additional 5 hours on it because of her and she wants a discount????

I will calm down before I call her back. Where is that manikin???

 

[Larry Lyke]

Pamela --

After you stick your largest and longest hatpin in the manikin, be sure to get your full-tilt invoice in the mail today to the client.

Attach a sticky indicating that the Realtor called you to cancel the order.

Now wait, and let them fight it out.

Then watch the transaction work it's way through the system and you will finally know how they make things happen.

 

[Pamela Crowley (Florida)]

Larry,

Actually, I'm not worried about getting paid. This lender will take it out of the LO if the Realtor doesn't pay me pretty quick. The invoice is always included in the .pdf to the lender so as long as they have the appraisal, they have the invoice. Plus, it must be sent to the processor and/or underwriter with only a cc to the LO so the LO is never the only one to get the appraisal. Good lender that wants the truth and no fraud games. If the LO were to attempt to do another appraisal he would be fired on the spot. This is the only good part about this situation.

Kinda sounded like the Realtor was crying when she left that message. If it wasn't such an obsurd situation that was her fault, I would feel sorry for her.

PC is D3P

 

[John M. Parker]

The following is from the "Realtors Code of Ethics" Stop that laughing. The state of Arizona has gone even further. In joint agreement between the Department of Real Estate and The Board of Appraisal. It is considered illigal for a real estate agent to provide valuation services unless they are doing it for the purpose of listing a property or representing a buyer, and they must disclose that they are not appraisers.

The services which REALTORS® provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate.

REALTORS® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth. (Amended 1/95)

• Standard of Practice 11-1
When REALTORS® prepare opinions of real property value or price, other than in pursuit of a listing or to assist a potential purchaser in formulating a purchase offer, such opinions shall include the following:
1) identification of the subject property
2) date prepared
3) defined value or price
4) limiting conditions, including statements of purpose(s) and intended user(s)
5) any present or contemplated interest, including the possibility of representing the seller/landlord or buyers/tenants
6) basis for the opinion, including applicable market data
7) if the opinion is not an appraisal, a statement to that effect (Amended 1/01)

• Standard of Practice 11-2
The obligations of the Code of Ethics in respect of real estate disciplines other than appraisal shall be interpreted and applied in accordance with the standards of competence and practice which clients and the public reasonably require to protect their rights and interests considering the complexity of the transaction, the availability of expert assistance, and, where the REALTOR® is an agent or subagent, the obligations of a fiduciary. (Adopted 1/95)

• Standard of Practice 11-3
When REALTORS® provide consultive services to clients which involve advice or counsel for a fee (not a commission), such advice shall be rendered in an objective manner and the fee shall not be contingent on the substance of the advice or counsel given. If brokerage or transaction services are to be provided in addition to consultive services, a separate compensation may be paid with prior agreement between the client and REALTOR®. (Adopted 1/96)

Remember you can't act as an appraiser unless you got the license.

I turned an agent over to the state, all she got was a slap on the hand but I'll bet she doesn't do it again.

John

 

[Larry Lyke]

Thanks, John --

Hope your message gets around.

Surpising how those who need the message most see it late, or at the courtroom door, whichever comes later!

 

[Jo Ann Meyer Stratton]

The biggest bank is the state is still having realtors do BPO's, even after that article in the Real Estate Department's December news letter. At least most of the realtors in my area haven't finally realized do a BPO for non-listing purposes is a no-no. But a former realtor who lost her license is still going strong. If I ever get my hands on one of her reports, it will go straight to the Appraisal Board. Realtors have complained to the Real Estate Department and their reaction has been--since she is no longer licensed, they can't do anything.

But I hear the echos of her work when my value doesn't come in as high as her's did a few months ago. Owner's can't understand how their property could depreciate so drastically, but it not that the property depreciated but the first "appraisal" was bogus.