Today I Struck Back

[Don Clark]

8)

After spending the last year hearing how appraisers in my part of the country(Southeastern Virginia) have been low balling properties, and hearing, reading, responding to complaints that VA Appraisers have been told to keep property values down(an outright lie). Having attended 3 meetings of the VA Fee Panel where such allegations have been discussed. Having responded to 2 letters, multiple phone calls with the accuser(s), and having told everyone that no such comments have ever been made, written, implied, or suggested by the VA or anyone else, I finally had my shot at evening the score.

A property on my street, in my neighborhood where I have lived since 1968, and on the waterfront same as mine with a somehat larger site and an additional 2 story 1220+ square foot detached garage and boat garage went on the market for $499,900. It is currently assessed at $176,000. It is the same model as my house. My property is assessed at $145,000. The highest sale in the past 10 years was $149,900, on the waterfront, same street which was also the highest sale in the neighborhood.

I wrote a 3 page letter with 20 pages of addenda to demonstrate that the listed property is $350,000 above the highest sale in 10 years, and over 300,000 above the highest sale in the same Zip Code area and all adjacent comparable neighborhoods within 5-8 miles. I suggest this might be a violation of both state law and the Realtors Code of ethics. I directed my comments to the state association of Realtors, the same place many of the complaints against appraisers have been sent in the past year. And, no, I did not suggest a value for the listed property. That would be an appraisal and I get paid for doing appraisals.

:twisted:

Don

 

[Pamela Crowley (Florida)]

Good for you!!!!

Wonder what will happen next????

 

[Don Clark]

8)

Pamela:

Since all Realtor Associations as well as their appraiser sections are 100% controlled by Realtors, I suspect that very little will happen, or that I will even get a reply. After all, it is only appraisers who screw up. Obviously Realtors know what they are doing , right?

:roll:

Anyway, I thought I might jerk a few chains and see if I get a growl :lol:

Realtor Organizations have about a .5% out of a 100% interest in appraisers and their concerns.

Don

 

[Anonymous]

Good for you.

But, here is the problem. Is it illegal to ask that much for a home? Is it the agent's job to get as much as possible for the seller?

 

[Don Clark]

8)

Bill:

I will answer your post with a question as well. Is it an agents job to commit fraud or misrepresentation in serving a client by listing a property at an amount that cannot possibly be achieved in the market :?:

Would not simple disclosure and ethics preclude such nonsense :?:

I would be willing to bet that if this thing sells, and the amount cannot be achieved, the appraiser will be blamed.

Don

 

[Karl]

Congradulations. Of course U know your gonna be the GUY that has NO IDEA of the market & YOUR the problem with Y people can't get what thier property is REALLY worth ETC ETC

 

[Anonymous]

I would agree with Don Clark. First, either the seller pressured the Realtor for the ridiculous price, or they are inexperienced. Either way, the Realtor is supposed to be professional, and in control. I would think, professional includes knowing the neighborhood market values.

There are also 2 ways this can be wrong. First, let's say they get an out of State buyer, with a different mind set about prices. They depend on, and trust the "professional" Realtor. They PAY the price. Then, let's say it goes to Mortgage Co. A, who has their "make em all happy" appraiser in their pocket. It allegedly appraises at the inflated value. I would think if a half dozen or more independent appraisers, or, the State board reviewer, came up with a much lower price: (Fraud aside) The Realtor could be sued for a variety of reasons, misrepresentation, giving an opinion to the buyer that this was a good price to pay, etc. costing the buyer excess dollars in purchase price, taking unfair advantage to make a sale, etc.

It can also be applied for a "seller's suit", when the agent lists as a low ball, below a fair market price, in order to make a fast sale & commission. Perhaps costing the seller a loss of many dollars. We see this one more often.

So, no, it may not be illegal off the bat, to list those prices, but there are some violations I think a good attorney would find. Plus, all the publications and PR that the Realtors put out, stating how "professional" they are, and put your "trust" in them, etc. etc.

 

[David C. Johnson]

<span style='color:darkblue'>Ron,

Well said:

"It can also be applied for a 'seller's suit,' when the
agent lists as a low ball, below a fair market price,
in order to make a fast sale & commission. Perhaps
costing the seller a loss of many dollars. We see this
one more often."

I have seen this pulled several times -- and have suspected it many other times. I believe it is very under reported. In addition to the quick sale, the sales agent may be able to profit twice as much by getting both parts of the commission -- even if it is just the first part of a near future quid pro quo with another agent in the brokerage that produces the buyer. The days on market can be so short that the listings never even reach the MLS until the property is sold. Very often, the "culprits" are high-profile, major heavy-hitter sales people, so peers decide not to complain, in fact, some learn to imitate (and particularly since, in reality, there are rarely any law suits).

dcj</span>

 

[Anonymous]

You're right ! I never thought of that. Say, mr. sharpie broker already has a few buyers "waiting" for that particular style home. He gets the listing, low balls it-----and immediately shows it to his own buyers. Wallah ! Big $$$$$$$

He may ALSO, anticipate the listing, pump up his buyers---------and-------
show it fast, as soon as signed up, before it gets to the MLS. thereby also "cheating" his fellow Realtors.

Another thought: In the listing agreement, dont they also promise to give the seller exposure to the open market, and all other Realtors, for maximum exposure ? That would be close to misrepresentation, and taking advantage with "superior knowledge".

A nice anonymous letter to the sellers and buyers, with sold comps enclosed, would soon put a stop to that. Lots of Attorney business.
Sellers usually leave a forwarding address at the Post office.

I know in the past, I've felt bad for some sellers, when I see the Sold price. Maybe I'll start an information program.

 

[David C. Johnson]

Hmmm...

Now, let's see here. Seeing as how one would have done no appraising (at least initially -- since supplying comps is not appraising, except to AVM folks), and also seeing as how the attorney (who's name and accolades one would include with the anonymous letter to the sellers), is well aware of one's superior competence and crime-fighting inclinations (thereby justifying one's handsome, near-future consulting, appraising and testimony rates), the business plan is born!

UNDERMARKET BUSTERS, INC.


Regards,

David C. Johnson
Senior Vice President of the Coalition to Stamp-Out Discrimination Against Those Who Sometimes Prefer to Write Run-on Sentences Every Now and Then in Their Posts, And Stuff