Under Siege at the Ranch

[Bobby Bucks]

I did a report for a purchase 2 weeks ago. Nothing out of the ordinary. It was for a “real” bank.
The subject was 2,525 SF, golf course green front lot, 3 year old house. All 3 comps were within
150 SF, similar views, age, etc. List price was $275,000, purchase price was $265,000. My value
was $268,000. The borrower subsequently went mortgage shopping and changed lenders. No
problem, the Bucks policy is you do the dirty work, I don’t.....the new lender (mortgage broker)
initially accepted the report with no problems....I didn’t even lift a finger or do a transfer.......then,
big problem and mucho noise. The buyer’s agent did a lot of puffing about the subject to the out
of town buyer (it will be a 2nd home) She gave the buyer a CMA with a lot of comps from a
gated community 1/2 mile away. She insisted they were stealing this house for $265,000. Comps
in the gated community were all about $100,000 higher than subject.....of course the gated
compound may as well be on another planet as far as site values go......now the mortgage broker,
the buyer’s agent and purchaser are all screaming and threatening Mr. Bucks and saying I’m
$75,000 to $100,000 off on my value and I better change it. I’m ignoring all calls which I
normally do anyway. My only phone reply was to the mortgage broker and it was a curt, but
polite “Hell no.” Obviously the buyer’s agent has egg all over her face over the CMA and wants
to make me the bad guy.....The mortgage broker and buyer’s agent now want to have a
conference face to face with the buyer, loan officer, agent and Bobby Bucks Esq.......yeah, right
I suppose they want me to leave my sidearm in my vehicle too.........at this point I’m not
going to do anything and why should I? When a situation like this arises I must admit I am not
the most polite person in the world and must wonder should I even reply further to these idiotic
requests? These folks have spoiled the Bucks pre-holiday weekend kick-off and I’m not amused.

 

[airphoto]

Bobby ..

Invite your client to send your work out for a field review .. or order a new appraisal. Your engagement has ended ..

 

[Elliott]

Bobby,

You just need to use that new appraisal speak....

"Y'all aren't understanding that this was one of
them intended client appraisals. See, it was
only for the intended client, the bank, and
their constrained meaning of market value.
Sheet, we all know you real-la-tors know what
the real value is. Now y'all go f-off cause my
holiday starts at noon. Thanks for visitin the
Bucks Ranch. come back soon."

elliott

 

[Pamela Crowley (Florida)]

Bobby,

Ae you capable of keeping your cool long enough to go to that meeting and mash the egg all over that Realtor in front of everyone, while being very nice about it??? Could be very, very amusing. Just think of the great time you'll have to kick off your holiday weekend while laughing at the situation you took control of.

Now my rant: WHAT IS THE DEAL WITH THE REALTORS USING GATED GOLF COURSE COMMUNITY COMPS FOR EVERYTHING ELSE THEY WANT TO SELL AT GROSSLY INFLATED PRICES ?!?!?!?!?

This seems to be the newest Realtor scam on out-of-area suckers - er, buyers.

 

[wyecoyote]

Hey ask the client to provide three comparable sales that they would like you to consider. When you get them then blast them for their location in a gated golf course community.

 

[Elliott]

Pammie,

True story. I lost a client, local mortgage broker,
to a new upstart number hitter appraiser. I was
curious about his work, and then I got one of his
appraisals. He has an assignment to appraise a
4000 SF house in one of the oldest towns west
of the Mississippi. The house is in a neighborhood
of other old (100+) homes. He comes up with the
$390,000 by using 3 comps in a "new, gated, golf
course, ocean view community." Shezaaam.
I figured I need to go back to school, I haven't
taken Course 8 (there maybe some of you who
knows what that is) for 25 years.

elliott

 

[Judy Whitehead (Florida)]

Is it full Moon? I, too was yelled at this week. Only this time, I was the 2nd appraisal done on the subject.

Mr. Buyer was at the subject when I arrived on Monday morning, standing in the driveway with Mr. Seller. This was a waterfront on-grade home (before current standards) and Mr. Buyer had apparently been trying to buy it for a few months. In fact, Mr. Buyer was on his 2nd mortgage company (enter - me the 2nd appraiser). In this case the only good thing is there were no real estate agents involved.

They were both quite honest about the first appraisal being low and Mr. Seller proceeded to tell me what he had used as comps. I assured him I would not use the same ones :roll:

Anyway, after giving them my life history along with qualifications (I am a native Floridian and this is my home town. I sold real estate for 8 years and have been appraising for 10) In fact, my parents and grandparents were also born in Florida and my husband's family has sold real estate here for over 40 years. Do I know the market or what?

Anyway, I was $22,000 lower than the contract price. There is another well known appraiser who has an office at the end of the subject's street and that appraiser also lives in that neighborhood. Wonder why they didn't ask him to do the appraisal? Could he have rendered a lower opinion as well?

I think the best idea that was given to you was to ask the Realtors involved to provide you with what they consider better comps. If they are in the gated community, perhaps at that time, you could provide them with lot sales that proves a superior location? If not lot sales then perhaps some type of extraction technique (and I don't mean extracting beer from a bottle) to illustrate the superioressness (like that word?) of the rich people who live behind the gate!!!!

At any rate, don't let it ruin a good holiday weekend. I'm off to see my Noles play in Tallahassee this weekend!

 

[Blue1]

Bobby,

Maybe you could write a letter instead of attending the meeting. Just take their "comps" and "disassemble" them one by one in your letter. Then, let this one roll off your back and start rockin!!! :lol:

 

[Tim Hicks (Texas)]

Bobby, I wish I was as tactful as you. I would probably say something I should not or toss a Disto or useless PDA at their heads. They aren't worth wasting ammunition on. Who else has no time for the holiday besides me?

 

[Bobby Bucks]

thanks for all the feedback folks. Update. I had a message from the owner of the mortgage co. Since the message was polite, I returned the call. Bill, I heeded your advice and suggested they order a field review. The owner said it wouldn’t be necessary. He said his wife is an agent and he showed her the report. She knows the market and saw nothing wrong with it. He apologized for me having been bothered at all ...(maybe he fired the LO?).....now I wonder if his wife the RE agent will be used as their desk reviewer for all future reports ....not to worry,
Bucks is a bank groupie....I’ll always loathe mortgage brokers. Now since that’s all behind me, it’s Friday, it’s the ranch and time to let the festivities begin.