Verifying Sales With a Realtor

[Pittsburgh Pete]

Flawed poll. Sometimes I do, most times I don't. I have 3 data sources that typically allign like the sun, moon and the stars on most sales.

Still no guarantee--once had a gas station sale, and two sources (private sale with no MLS info) indicated the same consideration and generally identical data. Talked to the buyer and found out it was based on a purchase option from 1956. You can never tell!

 

[residentialguy]

Calvin wrote: I email requests for verification before I set the appointment. I set appointments two days or more out so by the time I look at the subject, most of my verifications are back.

I like your email idea, because when you get an agent on their mobile phone, they sometimes don't have a good recollection of the details / concessions, or else they just guess.

Hey Lloyd,

There goes your elite Tier 1 status!

 

[HF Mudd]

Flawed poll. Sometimes I do, most times I don't. I have 3 data sources that typically allign like the sun, moon and the stars on most sales.

I rarely verify sales data with RE Agents, but you have to understand the NY Metro Market to understand why.

1) Many RE Agents won't give you the time of day - they're probably still ticked off at the last appraiser who "killed their deal".

2) Multiple data sources are readily available, which usually confirm one another.

3) PRIMARY data is available in the 5 boros of New York City (an image of the Real Property Trasfer Report, which indicates buyer, seller, property use at time of sale, building class, block and lot, signatures of buyer and seller, type of deed, whether or not the parties are related, if the sale is of a fractional interest, etc.).

 

[Bama Bayou]

The URAR has two lines at the top of the grid: one for the source of data; the one beneath is for the source of the verification.

Riddle me this, if the source of the data is listed as "MLS" on the top line, what does one put for its verification source on the second line? Certainly not "MLS". Than what?

If one cites public record data, Realist or similar "source" date on the first line, what do they put on the second line.

From what source, and by what verification can one learn: was the sale arms length; what was the seller's motivation; were there any unusual terms and conditions that were not disclosed in the MLS?

My bold. I use the deed from the probate records to confirm the sale.

If the source on the first line is MLS, how would calling the selling agent be considered verification when they entered the MLS info? It might be a good idea, but it's not verification.

 

[TJSum]

My bold. I use the deed from the probate records to confirm the sale.

If the source on the first line is MLS, how would calling the selling agent be considered verification when they entered the MLS info? It might be a good idea, but it's not verification.

That is what I keep wondering, how can you verify data from a second source, if you are contacting the listing agent who wrote the MLS info in the first place?

If you are calling them to research the sale further, fine, but I would not consider it verifying the data from a second source.

Our MLS has hot links to both agents, so when I truly wish to "verify" a sale, I always do it with the buyers agent. They can also give a different perspective of the sale. If further info is needed beyond verification, then I contact both agents.

 

[Calvin the Airedale]

My bold. I use the deed from the probate records to confirm the sale.

If the source on the first line is MLS, how would calling the selling agent be considered verification when they entered the MLS info? It might be a good idea, but it's not verification.

If you get deep enough into the GSE or FHA weeds you will find that the priority of verification runs from buyer/seller to either of their agent/brokers as primary sources. Every other type of verification is considered second best.

How does the probate deed verify condition, decorating, updating, seller motivations or concessions?

PS. Do your buyer's agents fill out the MLS? Around here it's the listing agents.

PPS. I take back my "second best" comments. As to verification, the most superior source is from one's own appraisal files, which may include copies of the sale agreement, disclosure statements, and full details of the property.

 

[hastalavista]

I will just supply an anecdotal reason to call the agents.

I'm working on a complicated assignment right now; custom modular, high-tech design and finish (architect fees alone are close to $100k).
I called an agent and left him a voice-mail. He called me back in-between coaching his son's sports team (about 5-minutes ago). Not only did he answer my questions about the specific sale, he also happened to have sold 9-new homes in a 6-block radius of where my subject is located, and has sold several of the modern-design homes.
His less-than-5-minute conversation with me just saved me at least 2-hours of additional research.

It doesn't matter to me if other appraisers don't think calling an agent for additional verification is necessary; that's their process-decision.
And, for some, maybe the other data sources are so comprehensive that there is no need to call and verify sale price, terms/condition of the sale, credits, and conditions/motivations of the buyer and seller.

But I would disagree with anyone who says its meaningless, not useful, or doesn't improve improve the quality of the process and, as a result, the quality of the report.

When I started doing commercial, it was drilled into me always to call and verify the terms/conditions of the transaction with someone and not just rely upon paid vendor data sources. I think that is good advice for residential work as well.

 

[Lloyd Bonafide]

It's a must for high-end properties. I used a comp recently, (not as Comp 1, 2, or 3), that had a 500K seller-carried 2nd mortgage, at 0% for 5 years, (requiring a heavy discount.) It was hard to estimate the amount of the discount, because a 2nd mortgage maybe could not have been obtained from any other source at almost any rate.

 

[Michigan CG]

........How does the probate deed verify condition, decorating, updating, seller motivations or concessions?..........

This is my point. Finding out condition, what needs to be done, how much it will cost and many other things are not in the MLS and the other "verification" sources do not provide that vital information.

Below is my post from a previous thread:

Do you think the MLS pictures actually depict the true condition of the home or do Realtors put the good pictures in to get people to look at the home?

Your opinion is a perfect example of why the mentor system is broken. Why don't you try calling the Realtors, just for a week, and see if you learn anything about your comps. Try these questions:

* What was the condition of the home?
* What improvements were needed to the home?
* Was the home updated/dated?
* Was the home a foreclosure?
* Was the home a short sale?
* If the home was a short sale did you, in your opinion, price it below market? What would you have priced it at in a typical sale?
* Is the basement finished?
* Was the basement finish professional or was it two guys with a case of beer?
* How much $$ would be invested in the property by a typical buyer and what needs to be done?
* If you were buying the property how much would your wife make you spend on it?

 

[Michigan CG]

My post from another thread:

In my neighborhood of 299 homes there are two sales that are significantly lower that the other sales in the neighborhood.

Why did they sell so low? Well one had significant functional issues, the layout was terrible. Do Realtors put that in the listings?

The other was a 2,400 SF home, typical of many homes here. OOPS, the bedroom above the garage was 600 SF. So the rest of the homes had rooms that were below average in size including the tiny kitchen, living room and dining room. Do Realtors put that in the listings? Um, NO.

How did I find this out? I called the Realtors.

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By the way, regular contact with Realtors will get you referral work because they know that you care and perform due diligence. I have $1,770 in Realtor work on my desk right now.