Realtor Says I Should Have Called Her

[Lee SW IL]

I really don't have a problem with talking to the agents, but, I will not call them 1st. That way when they call and I ask have you seen the report? Answer is usually no.
The last one I had where the agent called me, the house was 1800 Sq Ft, he listed it in the MLS as 2500. (Slight difference in value there )

He sent me a another comp, which was not in the MLS, so use it, & it came in even lower than the 5 comps I used . (It was a private arms length sale, but they saved the money for not using an agent.)

 

[Tater Salad]

I prefer to talk to the real estate agent early on, if I have permission. I hate being blind-sided by an irrate phone call after the fact.

I had one last week where I was almost 10% low. I called the L/O, who asked me to call the buyer's agent. Since she is supposed to look out for the buyer's best interest, don't you know.

She only had active comps. After we talked for awhile, she agreed that the problem is that the listing agent and I have 2 separate definitions: mine is most probable, and hers is highest possible. She actually said that she'd hate to be me, knowing that fire and brimstone was forthcoming. But she couldn't justify the price, either.

Now, she's prepared for the inevitable, and is working on how to negotiate rather than scrambling at the last minute. She thanked me for the call.

I don't see anything wrong with it as long you aren't doing it to compromise your objectivity. You may miss something--hasn't happened yet, but you never know

 

[ccooper]

I call the broker it i'm having problems. For the simple reason to put the ball in their court early. I'd rather explain to them early and give them a chance to come up with some comps that i didn't know about rather than later. I call if there are going to be FHA conditions as well in order to give them a head start. I have found that letting them know early that there deal is "circling the drain" goes over much easier than 24 hours before closing.

I have had realtors give me insight on some other items which i did not realize while writing up the comp. That house had mold or their were structural problems. I find that in the higher price home categories, the realtors generally know when people sell their executive home and it did not go through MLS. That at least gives me a lead to research a potential new comparable that may or may not change my affected value. If the new comp does change my value, it is a lot easier to change my appraisal before the lender/client has seen my signed first draft.

 

[Charlotte Dixon]

Lots of opinions here. I'll stick to USPAP.

Our State Council just had a hearing today, and presentations by the attorneys representing each of the sides, grilling of the witnesses and testimony of the appraiser went on for 3 hours regarding the appraiser/client relationship and confidentiality. It was a very sad situation.

If I had any question before about talking with a Realtor about the appraisal without permission (written preferably) from the lender, I have NO question now. That's all I have to say about that.

 

[larryhaskell]

Charlotte:

Can you share any of the details of the hearing?

 

[Phil Rice]

I see no problem talking about market data, comps, features, the neighborhood, inflation, etc.

I do see a problem discussing your value conclusion, unless you have permission. The only way they are going to be mad about the appraisal coming in under the contract price is if they know your value conclusion. Sure, they find out, and they call you, but that does not make it ok to discuss it.

 

[Elliott]

MS,
Here's my standard operating procedure. I'll call the
realtor who I've had contact with and say,
"Would you like to fax some sales which you
think are good comparables for the subject."

No more explanation than that. I consider it a
courtesy, and once in a blue moon they'll come
up with a comp I should have considered.

They will invariably tell you about the features you
already know about. I live in a small community and
you can never make most real-a-tors happy, but it
seems a reasonable act on the appraiser's part.

I hope I haven't violated USPAP, but you never know.

elliott

 

[Travis McGee]

Why do some appraisers think they owe the realtor explanations about an appraisal? I have told all my loan officers that I do not want to talk to the realtors. It is unproductive, a waste of time, puts no money in my pocket. Besides being a violation of USPAP, which I beleives defines client as direct underwriter.

Think about it, a realtor could influence an indecisive appraiser to increase a value, thereby hurting the buyer who might be over paying. The buyer could then turn around and sue the appraiser for not remaining impartial. Why do some of you want to risk that?

We get paid for doing an appraisal. When it's done, our job is done. Do the people who run credit reports spend unpaid time on the phone explaining it to unhappy consumers or their representatives? I don't think so.

 

[Blue1]

Now....Here's a "head's up" for you Realtors out there........An appraiser delivers their opinion of value to their client and ONLY their client. If your name does not appear on the report, then you are NOT the client and will have to contact the client named on the report to get information about that report.

Moreover, there is no such thing as a "head's up"........an opinion of value is delivered by a licensed appraiser to their client in the form of a 100%, USPAP compliant, completed/finished appraisal report.

 

[Ghost Rider]

Great thread about appraisal theory vs appraisal practice....

In reality, and in a perfect world, everyone would understand the rules, and play by them, but I wish you all luck when you tell a realtor that they don't have any right to the appraisal or to be able to discuss value with you. Personally, I try very hard to keep value discussions to a minimum with anyone other than the lender, and when I do choose to discuss it with the realtor, it is at the inspection. Like it has been suggested, if realtors like to "suggest" comps, bring them at the time of inspection, in a nice little package for us, with the street card and the deed, and anything else we need. Don't forget the coffee cake you have at your open houses and don't treat us like second class citizens!!!!!

If I am allowed by the client/lender to discuss value with a realtor, I look at what they suggest, and if they wish to discuss it, I will, in a very minimal basis, and ONLY after they have been supplied a copy of the appraisal from the lender. If they haven't seen the appraisal or the comps I used, I won't even talk to them.........

I totally understand Jo Anne's point about it not making you any money to do little things like this that take up time. I look at it as the same as finding an extra comp, or to write a stupid little addendum explaining the little pile of garbage in the picture that I forgot to do in the original appraisal. For me, its kind of like the lost leader that is common in retail business. Doing little things that the clients need and that makes them happy, and gets the annoying *** realtor off his or her back, I will to, to a point......then I start charging.........heavily.