Realtors Manipulating The Market.

[CANative]

.....the writers of USPAP decided to put this requirement on appraisers knowing full well that the data was not going to be available.....

"The writers of USPAP" did not decide to "put this requirement on appraisers" in order to hang them. The definition of MV we are working under is based on terms of cash or cash equivalency and was in existance before USPAP. Analyzing the effect of non market terms or creative financing would be necessary by a conscientious appraiser even if there was no such thing as USPAP or Fannie Mae.

(c)
identify the type and definition of value and, if the value opinion to be developed is market value, ascertain whether the value is to be the most probable price:



(i)
in terms of cash; or



(ii)
in terms of financial arrangements equivalent to cash; or



(iii)
in other precisely defined terms; and



(iv)
if the opinion of value is to be based on non-market financing or financing with unusual conditions or incentives, the terms of such financing must be clearly identified and the appraiser’s opinion of their contributions to or negative influence on value must be developed by analysis of relevant market data;

 

[Couch Potato]

There's only one way to stop the concessions and excessive real estate commissions from inflating the true market:

RECORD THE HUD-1's along with the DEED

It would certainly make everyone's job easier when getting the information. Skippy would hate the burden of actually having to check for concessions that others can verify. Then again, I'm sure the adjusted sale prices would show up on RealQuest and AVMs in no time. :new_smile-l:

One more piece of information they don't need that pesky appraiser to give them. :new_all_coholic:

 

[jay trotta]

Don't know about anyone else's State, but here we can go the Town Clerks office, pull the Deed and note the "Tax Stamps", multiply them oput and you have the "Recorded" payment for the property. Whatever, whatever....it gives you the Price Paid and is on a Legal Document....no need to call Agents or anyone else.

What I need to know is what whomever it was PAID for the property, how they get there is their problem.

 

[Couch Potato]

Don't know about anyone else's State, but here we can go the Town Clerks office, pull the Deed and note the "Tax Stamps", multiply them oput and you have the "Recorded" payment for the property. Whatever, whatever....it gives you the Price Paid and is on a Legal Document....no need to call Agents or anyone else.

What I need to know is what whomever it was PAID for the property, how they get there is their problem.

Tax Stamps do not account for a $20,000 credit back to the buyer. The tax stamps may indicate a $200,000 price paid to a seller that only received $180,000. For that matter, a person looking to manipulate the market can have the tax stamps show a sale price of $300,000 for the same transaction. The tax man will gladly accept an overstated price, just not an understated price (at least that is the way it works in some areas.)

 

[J in Florida]

What I'll bet most appraisers don't realize is that buyers generally want referrals from us to local lenders. And despite what the cherished beliefs are around here, we don't refer to a lender based on their ability to purchase fake appraisals. We refer primarily based on efficiency. If the lender stays on top of things, gets docs in on time, etc & doesn't delay closings, that is one we like to use.

And local lenders & agents tend to get to know each other quite well in most communities.

It has not been a rare event to chat with a lender about a new transaction & ask who the appraiser is going to be. If it's one of the angry/hateful ones, we don't hesitate to speak up & let the lender know that particular appraiser is rude, obnoxious, condescending, whatever. And guess what the lender does? Goes to the next name on the list.

I'll be some of yall have lost a few orders.

I don't rep buyers anymore so it's not my issue but there are repercussions to treating people like crap.

I just spewed diet coke all over my screen. That was good!

 

[The Bob]

This has been going on for so long that every MLS system in the country has corrupt data. Its built into the system. Most buyers couldn't give a rats *** what the "price" is. The only things that matter are......"How much do I have to put down" (hopefully, nothing) and "How much will my payments be" (really low, honest!).

I doubt proper disclosure of concessions is going have much of an impact on that fact of life.

 

[Nate2]

I report concessions in the report if the information can be obtained within reason, but very, very rarely (maybe once) adjust for them. The state questioned this practice when I went for my certification. I explained to them how often times concessions are not reported, there are inaccuracies (accidental & intentional) and typos (accidental & intentional) No argument from them on the issue.

The most accurate and reliable information you collect is the information you obtain on your own...sales concessions can be hidden and/or gray/vague. How can one be positive your info is accurate when it comes to concessions?

 

[Couch Potato]

This has been going on for so long that every MLS system in the country has corrupt data. Its built into the system. Most buyers couldn't give a rats *** what the "price" is. The only things that matter are......"How much do I have to put down" (hopefully, nothing) and "How much will my payments be" (really low, honest!).

I doubt proper disclosure of concessions is going have much of an impact on that fact of life.

And it is a real shame we don't value property based on the buyer's down payment and monthly payment instead of cash going to the seller.

 

[ZZGAMAZZ]

Each Market Analysis should include an analysis of the prevelance of sales concessions in the subject's local sub-market.

A downward concession should be applied by default to every comparable for which an appraiser is unable to determine whether concessions exist, if the Analysis reveals that concessions are an integral part of a typical transaction.

Kinda surprised this hasn't been widely opined.

 

[Joyce Potts]

Yes - and the HUD-1 would bring ALL the fees to light..........

Which is exactly why the lending, title, lawyers, AMC's and Realtor community don't endorse it.