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Something fishy?

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Vegan702

Senior Member
Joined
Feb 24, 2005
Professional Status
Certified Residential Appraiser
State
Nevada
So I have a property I am doing a short sale appraisal on. It is listed by Agent X and owned by Guy A. When searching out comps most of the current pending/contingent sales are listed by Agent X and they are all owned by Agent X or a combination of Agent X, his wife or Guy A. It wouldn't be so bad but all these pendings/contingents are the lowest in the sub by $40k over properties that have sold by other agents or currently pending/contingent by other agents. Would you use these properties that are listed by Agent X? All the properties are very similar to each other.
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
From what you describe, it sounds like they are setting prices low to purchase themselves and sell later. If I didn't have to, I wouldn't use them.
 

aussie ken

Member
Joined
Mar 11, 2005
Professional Status
Retired Appraiser
State
Australia
So I have a property I am doing a short sale appraisal on. It is listed by Agent X and owned by Guy A. When searching out comps most of the current pending/contingent sales are listed by Agent X and they are all owned by Agent X or a combination of Agent X, his wife or Guy A. It wouldn't be so bad but all these pendings/contingents are the lowest in the sub by $40k over properties that have sold by other agents or currently pending/contingent by other agents. Would you use these properties that are listed by Agent X? All the properties are very similar to each other.

I can smell them all the way down here............got to be arms length & well done to check up on parties to those sales............this is the classic reason we do it.
 

Vivian Bachner

Junior Member
Joined
Oct 6, 2006
Professional Status
Certified Residential Appraiser
State
New Jersey
I don't think there is an easy answer but I would explain, explain and disclose. :shrug:
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
Wow, Vegan, that's a sticky one. It looks like there are two markets going on in the same neighborhood. I'd do a study on each and try to draw conclusions about the relative relation of each to the overall market.
and the overall impact on the subject's value.

You might be able to make a case that an investment "group" is controlling part of the market in a way that makes the sales less than arm's length.

You may find some data on special financing that is not available to the typical buyer that would put some of the sales firmly into the non-arms length catagory.

I had one recently that had sales split half and half between arm's length resales and repo-sales controlled a builder/lender/agent entity. I was saved from my angst by discovering the exclusive atypical financing terms.
 
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