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Speaking of Market Value....

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Charlotte Dixon

Thread Starter
Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
Received a call today from a lady asking for an appraisal on a property she is considering buying, and of course "time is of the essence"....I politely told her I couldn't help her out for at least 2 weeks, maybe 3 weeks. She said she was afraid to make an offer until she got an appraisal because she doesn't want to pay too much. The Realtor told her (who represents both the buyer and seller) if she wanted to call an appraiser, o.k., but the appraiser's report doesn't indicate market value. He said the appraiser's job was just to provide something for the lender's file so the buyer could get a mortgage and that the sale price and appraised value are usually the same. :roll: The property is listed for almost $500,000 and the Realtor told the lady she'd better hurry up and sign a contract if she wanted the property. I'm almost tempted to call her back and do the appraisal tomorrow. How much do you want to bet the property's appraised value will not make the Realtor happy? .... I'm a Realtor and an Appraiser, and am disgusted with stories I hear about these Realtors.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
This kind of pressuring the buyer is a bunch of bull that has gone on probably as long as Neanderthals tried to peddle their caves. Go fer it. You are right, the property is likely overpriced or the realtor would not have to be so eagar to flesh out an offer.
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Charlotte, ...... Terr shares what I would have concluded. It's just another attempt at the "take away close" as if to say ...you'd better get this place now because it's likely to be under another contract before the week comes to an end, and you do not want to lose it, do you ?, well ? o.k. so you are willing to offer how much ?, o.k. sign right here...there you go, o.k., I'll give the list agent a call, pronto. I just know you are going to love the place. This is such a smart decision, considering how "hot" our market is right now ! ----I am certainly not familiar with you market there in Wyoming (DE). If the buyer becomes your client she needs to know your opinion as soon as possible, and tell her why. If you lose her on the turn-around time issue I might see nothing wrong with expressing the importance of having a solid valuation performed and give the name of another appraiser she can trust to be straight with her. You know the agent is going to play on her interest in the property yet again, but its like having to take the power in a new car purchase. There is power in getting up from the chair and walking for the door. There are other dealerships selling the same car !
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
I feel like you do. I would call her back and do it even if I had to lose sleep. Great opportunity!!! And then the Realtor would have to find a way to justify that high list price. Find that post from last week about the Realtor that was sued - part of the suit was that she inflated the value of the property. Give that to the potential buyer.
 

liznindy

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Indiana
Realtor Sale Tactics 101:

the market is alway "hot" if you are the buyer and its a "buyer's market" if you are the seller!! :D
 

Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
Liz that’s a very good observation. As a Real-i-Tore and an Appraise-I-Tore I love keeping notes
on comments about property conditions for comps. My experience is that most agent Real-i-Tores
will say whatever they think you need to hear at the time.....I have called the same agent more
than once about the interior condition of a sale and the condition changes with time. What was an
“absolute dump” in the dead of winter becomes a “doll house” by spring. Same property, same
sale date, same MLS #, same Real-i-Tore, just a different verification date. :)
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
What's wrong with writing up the purchase offer contingent on an appraised value within (say) 5% of the selling price/offer?
 

bradellis

Member
Joined
Jan 16, 2002
airphoto-

The problem with that is two fold,

1. If the appraiser opines a value and something goes wrong- it is the appraiser who will get sued and not the broker, and

2. Our client would typically be the lender- not the buyer.

I have done these in the past- here's how:

Tell the broker and the buyer that for this assignment, the buyer is the client and that the report may NOT be used for mortage lending purposes. I might intentionally use a format that would not conform to banking requirements. Get a check from the buyer.

Then- if the deal will continue, you can easily do the report for the bank ordering it later, and you do not even have to charge full fee. You already did the development part.

But, be careful of your exposure.

If the buyer will not engage me to do the appraisal when there is such a contingency, I will refuse the assignment. And, I suggest everyone think about this.

Brad Ellis, IFA, RAA
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
Charlotte,

I agree with the others. Do it! Would be a very satisfying assignment. In addition, I may have a real hard time not chewing on that Realtor's ear a bit. (after the fact, of course) Maybe enlighten her a bit on the true purpose and content of an appraisal. She has no business running amuck at the mouth in that fashion with her current agency of both buyer and seller. There appears to be big ethics issues here. That buyer would be far better off having another agent represent her in the transaction. But you'd almost be certain to get yourself in hot water bringing that up to the buyer. Has to be her decision.

Brad brings up some very good points. Make sure your data is rock solid and prepare the report as if you were already planning on litigation.

Sounds kinda familiar doesn't it? Remember this?

http://list.realestate.yahoo.com/re/story....730/20020730601

Wonder if the Realtor and their broker would appreciate a copy of that article? :twisted:
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
Some time back on the forum I picked up a good trick from on of the Girls (women). When contacting the listing agent for an inspection I always ask them to provide the comparables they used to price the property. Why is it that the ones that say "no problem what is your fax #" have got it right, and the ones that take issue are always overpriced?
 
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