Realtor wants Lender to use only HER Appraiser

[David Mullen]

This is very common in my area. Many of the agents have an "appraiser" in their pocket and if the lender does not play ball, they go somewhere else.

These agents have no sense of loyalty and will soon move on to another lender and after that, still another. You are not losing much.

At some point, you will see the work of the "appraiser" and if I were in your position and saw anything at all that was irregular, the report would to straight to your state licensing agency.

I would not nit pick but my experience with agents like this is that if they are doing business in a professional manner, they should not care what appraiser the lender uses and it will not be long until you see reports that reveal why they use this person for their appraisals.

I would keep notes of the date of this conversation and whatever I could remember. Never know, the agent might be dragged into a fraud suit at some time in the future and your testimony might help send them where they belong.

 

[Dee Dee]

Okay Larry. I promise I won't STARE at the mud on their faces.
But is it okay to just rub it in a teenie-weenie bit? :lol:

 

[Pamela Crowley (Florida)]

Larry and Mike are right.

Welcome to my world Dee Dee. The corruption is so prevalent here it actually makes me want to throw up sometimes. Sometimes it's really difficult to stuff down the anger I feel about it. OK, I'll admit that sometimes my anger gets to the front and sarcasm pops out of my mouth to some LO or Realtor. Seems like everyday I have to take a few deep breaths to stop myself from telling someone off.

Just got a nice referral yesterday. This new LO called and wants a Comp Check first!!! Glad the call was in voice mail first instead of direct. I might be able to talk civilly to her today. I have NO respect for any LO that asks for this. They really do know better and my opinion already is that this is an unethical Bitc*.

You go ahead and gloat when the mud shows up. Just don't let them know you're gloating.

 

[Anonymous]

Years ago I thought that lender choice was just that..lender choice. It is clear that some realtors are the tails that wag the dog. And, that is why that realtor, in all probability, is looking for new blood in lenders....they have already abused the good graces of the last one.

I had a realtor try to influence me once with offer of more work, but I bluntly informed him that since he was "pushing" a jerk in the next town (what else would you call a banker who has filed bankruptcy themselves?) and I could not even get on their vendors list, how could I be helped? He shut up.

Would be interesting to see the appraisers work...and turn it in to the state if subpar. One of our local banks got to using an appraiser...really high on him, turnaround in 5-6 days, do ANYTHING, but now he is no longer being used. I found out he had screwed up some reports so badly they lost customers AND had several bad reviews in a row from his work....now guess what? They are back to the 3 locals whom they beat over the head about how much faster and nicer the little so and so was to them....ha ha ha.

 

[Pat Butler]

The Realtor is suppose to be an advocate for their client and is doing the right thing by trying to control as much of the sales transaction as possible. Before appraising, I too was in real estate sales. I used to request particular appraisers, not because they'd hit the value, but because I knew which ones did a good job, had the fastest turn time, and were quick to do reinspects when repairs had to be made.

There were some appraisers who were completely ignorant in the area of residential construction and would always call for way too many certifications from other professionals (heating, roof, etc.) even when there were no obvious problems- their attempt at liability reduction would cost my clients hundreds, or thousands, of dollars. I sold one of my rental properties last year that required about $30,000 in repairs- that was just the materials cost. Put in all new water service, furnace, electrial, etc. The appraiser required 3 different types of inspections on items that were brand new! She did that with all properties that she appraised to reduce her liability. Do you think I'd make sure that my clients don't get clobbered by her? You bet. And I would be negligent in my duties to my seller clients if I didn't attempt to prevent that sort of thing in the future.

There are a lot of bad appraisers and a good real estate agent is suppose to try to influence everything legally for their client's gain. I'd wouldn't naturally assume that the preferred appraiser in this situation is necessarily a bad appraiser. And I'd suggest that if you ever sell your house with a real estate agent that you get one like you are talking about-a person who will try to control as much of the transaction for your benefit.

From the information you've provided, it sounds like the lender is the one to worry about if she has concerns that bad appraisals may make it into her business. She should already have the quality control in place to make sure that doesn't happen.

 

[Anonymous]

DeeDee:

I actually have a good story with a similar scenario. I did an appraisal of an investment property for a client (bank). The Realtor was acting as a dual agent. Well, the property appraised under contract (4 comps on same street in cookie cutter s/d) and to top it off, the potential rent would not cover the mtg payment.

I turned the report in. The lender called me back and told me the Realtor was fit to be tied. One of those big names in the area. He scheduled a meeting with the buyers and the banker. In the meeting, he proceeded to not look at the appraisal, but simply trash me, when he called me incompitent and that I should be turned into the state, the buyers stood up and said, sir, we have bought 22 investment homes in the last 16 months. We have used the same bank and the same appraiser. This is the first time we have used you. I think we all know who is being unethical and should be reprimanded.

The banker told me the guy about lost it and stormed out. She said the buyers were furious with him that he would trash anyone without looking at their work. They told the banker that they had concerns about the property going in, but would wait to see if the numbers would work. As a happy ending, they are still buying investments, I have appraisedothers for them.

 

[Dee Dee]

Bravo Bill!
That's the kind of story I love to hear.

 

[Ross (CO)]

Yesterday, while speaking with a listing agent to acquire additional info about her sale, I had one of the most un-expected experiences in nearly 4 years in this appraising gig. We talked for 45 minutes, and clearly posed questions to each other to better understand just what we both are supposed to do in fulfilling our professional roles according to standards. She knew exactly what kind of slander, ridicule and blackballing we appraisers are directly and indirectly receiving as we handle each new assignment, with any and each new potential outcome or reporting, even when people have to receive the "bad" news on value. She feels far too many agents habitually, and without forethought, will create a new listing at exaggerated prices, hyping everything, promising the moon, and then stringing out that h/o with a listing that gets few showings and virtually no offers. Their attitude would then be...."at least I had that listing and not another agent in town". This woman believes wholeheartedly in promoting full appraisals with each potential selling homeowner, and "selling" that party on the power and significance of "investing" in an appraisal to have an appropriate asking price to sell the home in rapid time. Wow ! She firmly believes that folks want to sell fast, minimize the showings and all the appointment times with strangers trudging through one's home. She also flat-out admitted that most of her agent friends do NOT and will NEVER measure a house and truly "inspect" it for the qualities it has , and those which it lacks. Most simply go straight to county recs, or literally "copy" size numbers from previous listings with a little fudging of a few sq.ft. +/- per level. If ever asked to provide a sketch or calculations of area, her piers would simple play out a fake role of having misplaced and "lost" the sketch page. Ooops ! She insisted I send her some business cards, which I am doing today, and I will likewise earnestly refer her name at any appropriate opportunity. While so many in the Forum probably already have had similar experiences.....you know all this.....but I just had to share this refreshing chat with someone who often is seen as a party in contest with our due diligence. There are some good apples in the barrel too !

 

[Farm Gal]

The Realtor is suppose to be an advocate for their client and is doing the right thing by trying to control as much of the sales transaction as possible.

Pat I agree to a point... have recently been apprized of a situation where the Realtor ASSURED the concerned first time buyer homeowner that they didn't need a home inspection because on their FHA loan "The appraiser/inspector would be doing the inspection process for them". :evil: :evil: (and that is, I understand, a quote)

Patched hole in fiberglass tub, repaired seamlessly from above and rotted subfloor and more below... the Homeowner was going to sue the appraiser, but has now (on expert advice from a friend) decided to go after the Realtor instead... because... the realtor misrepresented the appraiser's purpose and ability AND THE HOMEOWNER only found that out at closing: when presented with the Get an Inspection form :!:

And I'd suggest that if you ever sell your house with a real estate agent that you get one like you are talking about-a person who will try to control as much of the transaction for your benefit.

Yup and in my case that would not be the person you described, but rather a particular sharp dressed, extremely nice, highly professional, young man with the thousand watt smile. This guy regularly lists and sells homes for way more than they are worth... He generally gets both sides of the transaction, and I HATE getting an appraisal order with him as contact... But I have a great deal of admiration for his professionalism, and ability to get his seller the absolute top dollar every single time always accomplished in well under average list periods. And his buyers are always well pleased at his efforts on thier behalf...

That's the person I want selling MY house!

 

[Dee Dee]

Ross,
It's great to hear a story where the realtor understands the honest appraisers dilemma. Many honest realtor's are having problems getting listings because the homeowner 'shops' for realtors who will promise to get the highest possible value for their home. Once again we are faced with that element of greed vs. honesty, and so the cycle continues.