Verifying Sales in a foreclosure world

[Michigan CG]

Since I bought my foreclosure home in February and had the pleasure of house shopping I know that foreclosure homes come in a variety of conditions.

I got an order (full fee) Thursday. I found six very good comparables and proceeded to call the Realtors. Three returned my calls and three did not. So, no verification, and the three that did not call back were all foreclosures. So what was the condition of these homes at the time of sale?

Saturday I got in my car and drive about 60 miles going to these homes. Knocked on the first house and asked the new homeowner about the questions in mind after making small talk. Got what I needed.

Went to the second house, little Johnny was home but no parents. But, the neighbor was sitting in his driveway drinking Busch Light and smoking a Marlboro waiting for the race to start. Made some small talk with him, learned about his life history and learned that Kelly, the former homeowner, kept the house immaculate and he doesn't think a single particle of dust was ever in the house. Confirmed my feeling that the house was in good condition because of the selling price.

Third house, no one home. Knocked on the neighbors door. Asked about the house, he said it was a "sh--hole". Told me everything about it and confirmed my suspicions because it was the lowest sales price of the six sales. Based on what he told me I can estimate the costs to bring this home up to the subject property.

In this foreclosure world I wonder how many of my peers (when not in some ghetto) are doing the same?

 

[jay trotta]

sounds like you did a $1,250 appraisal with all the driving N investgative reporting.

Most foreclosure agents here, make one trip; notify the Lender of the condition and get someone in to clean it up. How reliable are the sources you spoke with ? Perhaps the neighbor didn't like the old Owner, and would do anything to discredit them.
Most of our MLS now offers interior photo's, when there not available, one can assume it was not photogenic, as over 90% of the current Listings offer those interior shots for "marketing purposes".

 

[Mztk1]

I inspect the subject first, then my comps and while in front of the house I call the buyers agent and listing agent for the first time. Our MLS is pretty good with interior MLS photos. But if I see a neighbor or the owner I'll talk with them, and sometimes I'll get out and knock, but honestly that is rare. I have called the prior owner on phone more often then knocking.

I end up getting the listing agent or buying agent on about 99.99% of sales, I think they are the most reliable sources because they understand real estate and can even provide a guestimate on how much it would cost to update the house to average. If they don't call back I call and call until they do. Most know me, or of me, and it is rare that it takes more than 24 hrs to hear back from an agent, though I have called three times on occassion.

I am not adverse to knocking on doors.

I think there is a pool of appraisers who do their job right and a pool who don't. Then there is the rest who does overkill - which I guess I fall into at times. But most loans these days are based off AVMs and you know the AVM isn't knocking on doors.

 

[Lawrence R.]

Just you Tim. You are the last good appraiser on Earth. Don't die without first multiplying.( Only teasing but I do have a point forthcoming)

That goes for all of you good, honest appraisers--it is up to you guys to be fruitful and multiply and replenish the profession with good appraisers.

If only we had proliferated the way skippy did, we may have had a strong enough front to be the majority....

By having ethical appraisers in the minority, we lost the fight before it was even started.

Also, consider what your client would have gotten had he not offered you your full fee...you passed on it and the next guy got it.

I don't think you have to charge a certain fee to do good work, but I think that low fees and low quality tend to go hand in hand.

You just won't get an appraiser like Tim to get off the porch for 175 bucks.

Will the lenders EVER realize this?

 

[Deleted member 77547]

I call each and every listing agent for the foreclosures I am considering. When I have to leave a message I simply tell them that I have a question regarding one of their listings. They ALWAYS call back. I never tell them I am an appraiser because....well, they won't call back.

 

[Mike Boyd]

I.

I end up getting the listing agent or buying agent on about 99.99% of sales, I think they are the most reliable sources because they understand real estate and can even provide a guestimate on how much it would cost to update the house to average. If they don't call back I call and call until they do. Most know me, or of me, and it is rare that it takes more than 24 hrs to hear back from an agent, though I have called three times on occassion.

99.99% has been my experience also. That's good enough for "government work" as far as I am concerned.

 

[Michigan CG]

The three properties I investigated did not have interior photos on the MLS.

How do you get agents to verify 99% of the time. That has not been my experience at all, here or in Iowa.

 

[Hamlet]

That goes for all of you good, honest appraisers--it is up to you guys to be fruitful and multiply and replenish the profession with good appraisers.

Are you suggesting that we appraisers intercourse?

In my area, the good local agents will return phone calls. Ususally the ones who won't are out of area jerks...although we do have a few local jerks too.

If it is a listing comp, I'll just make an appointment to go look at it and if it is a sale, I will go and talk to neighbors.

 

[chad hampton]

I'd just take a look at the interior photos in the MLS

The only reason I would ever start talking to neighbors is if I didn't want to go home for some reason. But I enjoy being home, so I doubt that will be happening anytime soon.

Regardless, I don't do more work for less money. That's rule #1 in business. This is still a business, isn't it?

 

[Hamlet]

If photos are not available in the MLS and agents will not call you back, how do you verify those comps?