Use Of MLS Photos In Report

[RSW]

I asked this exact question to our PAR/NAR attorney last meeting. As a paying dues/voting member I can use MLS photos, without fear of repercussion, in my reports.

The 1004 form, for example, says "inspect comparable properties from the street" PERIOD. It does NOT say "original photos/color photos/seasonal photos". So in theory, I can provide a black and white MLS photo of the comparable sale and comply with the signed certification (the client may require color or original photos though). Credibility is the signature on the report saying the certification was followed.

I will use MLS photos and I will take original photos. It 100% depends on the scope of work/assignment conditions and fee offered.

Our local MLS put out a warning to all Realtor a few years ago that said there would be a $50 fine for each case where a Realtor used another Realtor's photo in their MLS brief. I would assume that would also apply to appraisers. Let's see: 3 closed sales, 2 active listings is 5 MLS photos X $50 - $250 fine for a $350 to $450 appraisal. Sounds like good business sense to me. Not!

 

[Mike Garrett RAA]

I always drive by the sales used in my appraisals. I also take my own photographs. The exception to this would be gated communities were I can't get access or long driveways where the improvement isn't visible from the street. I will use an MLS photograph and also take a picture of the gate or driveway.

The purpose if the photograph is to show comparability and to also prove the appraiser looked at the property in question. Like it or not, it's a lender requirement. While USPAP is mute on photographs there are requirements for the appraiser to produce a credible appraisal and that includes complying with client requirements.

 

[Peter LeQuire]

It is not completely about viewing the comparable property. It is about viewing the comparable property and the surroundings that may have an impact, positive or negative, on the sale price of the comparable.

It actually says "neighborhood", not surroundings, but understanding the neighborhood's and the comparables surroundings and discerning influences on price is the point. I'm admittedly cranky about this: appraisers who openly flaunt these (and other) requirements are - at least in part - the cause of all the extraneous, nonsensical photo requirements. They also an embarrassment, bragging about not complying about photo (and other) requirements in a public forum.

 

[CANative]

Our local MLS put out a warning to all Realtor a few years ago that said there would be a $50 fine for each case where a Realtor used another Realtor's photo in their MLS brief. I would assume that would also apply to appraisers. Let's see: 3 closed sales, 2 active listings is 5 MLS photos X $50 - $250 fine for a $350 to $450 appraisal. Sounds like good business sense to me. Not!

That's not what they mean. You can't use someone elses listing photo to market their listing.

 

[RSW]

I asked this exact question to our PAR/NAR attorney last meeting. As a paying dues/voting member I can use MLS photos, without fear of repercussion, in my reports.

The 1004 form, for example, says "inspect comparable properties from the street" PERIOD. It does NOT say "original photos/color photos/seasonal photos". So in theory, I can provide a black and white MLS photo of the comparable sale and comply with the signed certification (the client may require color or original photos though). Credibility is the signature on the report saying the certification was followed.

I will use MLS photos and I will take original photos. It 100% depends on the scope of work/assignment conditions and fee offered.

Our local MLS put out a warning to all Realtor a few years ago that said there would be a $50 fine for each case where a Realtor used another Realtor's photo in their MLS brief. I would assume that would also apply to appraisers. Let's see: 3 closed sales, 2 active listings is 5 MLS photos X $50 - $250 fine for a $350 to $450 appraisal. Sounds like good business sense to me. Not!

That's not what they mean. You can't use someone elses listing photo to market their listing.

What's the difference in using a photo for a different list than using a photo in an appraisal report. The user is profiting from the use of the original photo without getting permission from the original Realtor.

 

[CANative]

The deal is marketing someone elses listing and using THEIR photo.

"Hi... my name is Howard Allen and let me be Frank (inside joke). Inventory is low in your neighborhood of <fill in the blank> but there are still some properties available. See the list below and make sure you check out the lovely photos."

 

[TRESinc]

I'm admittedly cranky about this: appraisers who openly flaunt these (and other) requirements are - at least in part - the cause of all the extraneous, nonsensical photo requirements. They also an embarrassment, bragging about not complying about photo (and other) requirements in a public forum.

i beg to disagree. photo requirements are a direct result of appraisers not doing what they certify they are doing, namely inspecting the comps from at least the street. lenders/fannie did not suddenly wake up one morning and think "hmmmm, i wonder what we can do today to screw with appraisers".

 

[Elliott]

I think Fannie wakes up every morning and says, "God, I wished we could get rid of the appraisal requirement, we are a 'for profit' enterprise and we could make so much more money if we weren't hamstringed by appraisals. I wished they'd bring back liar loans, our stock price was so high back then."

 

[Vermonter]

Our local MLS put out a warning to all Realtor a few years ago that said there would be a $50 fine for each case where a Realtor used another Realtor's photo in their MLS brief. I would assume that would also apply to appraisers. Let's see: 3 closed sales, 2 active listings is 5 MLS photos X $50 - $250 fine for a $350 to $450 appraisal. Sounds like good business sense to me. Not!

And have you ever heard of any appraisers have been clipped for this (by the MLS, not their appraisal board)? How about agents doing CMAs?

 

[Tom D]

with the MLS number now in your report i would not put an MLS photo in your report. FHA will certainly burn you. somehow, new technology has not moved some old ways of appraising. if we now have close up aerial photos & google street what is there to not see the neighborhood, or the comp. oh, the drug crew on the corner which you can't mention. there are some areas of the city where i would go just to see how bad a st has become. but i take all comp photos, FHA has a big stick to beat you with.