Verifying Sales With a Realtor

[Michigan CG]

My post from another thread.

Minimal confirmation of sales deserves minimal compensation.

I don't understand what some folks consider verification? No one can tell me that their MLS tells the whole story. Realtors are in the business to SELL Real Estate and promote the property in the MLS listing. If an appraiser thinks they can get all pertinent information from an MLS listing they are very wrong.

When appraisers are respected by Realtors the Realtors will fully describe the property in personal interviews (in most of the country) and its bad and good attributes.

Some appraisers do not think outside the box. Verification makes for better reports that are more supported and verification also leads to better Realtor relations and a better reputation with the Realtors.

An earlier poster in this thread said that less is better. BS. Your appraisal reports are also part of your marketing. A fully supported report might be seen by accountants, lawyers or other important people. Referrals come from all fronts.

The problem with the residential world is that verification is held to a minimal. For those that think not talking to a living person in the transaction, or that less is better go to the most respected commercial appraiser in your community and ask to read a commercial report and see the amount of documentation, verification and narrative provided in those reports.

Why do good commercial appraisers write 80-150 page reports? Because the verification, documentation, supporting documents and narrative are included in the reports.

Why do "good" commercial appraisers provide verification, documentation, supporting documents and narrative in their reports and residential appraisers typically do not?

Is it less important to fully support a residential appraisal (vs. a commercial report) for most likely the biggest investment folks will make in their lives?

Does my daughter's (or your daughter's) first home purchase deserve a credible report that fully supports the opinion of value with verification, documentation and supporting narrative? How about your home?

Many appraisers come on here asking how to get legal work, or specialty work. Most are not qualified and will get severely beaten up in court, if they ever get there.

Do appraisers who do not verify sales for mortgage work extend more Scope of Work for litigation? Eminent Domain? Yes or no and why?

 

[Oceanic1]

While verifying a comp this morning, I learned a few shady things about the subject property which the listing agent decided not to tell me about when I met him at the property. So while some realtors can be rude or obnoxious, most are usually pretty knowledgeable. Some, you can't even get off the phone.

 

[Doug DeMars]

USPAP aside, the verification process is critical when gathering evidence. Never mind the "rules" for a moment and consider what exactly is the goal of the appraisal. To get the most credible value humanly possible. Proper analysis and verification of data is critical to the most credible of appraisals.

Very often, at a minimum, good MLS data coupled with public record data may be sufficient. However, if higher confidence in your final analysis is desired, you have to step up the due diligence and dig a bit deeper. As such, there are many appraisal assignments I wouldn't finish without extensive research:

Current MLS and pix
Public Records
MLS history
Prior MLS and pix
Google Earth
Pictometry
Aerial Pix
Plats for Comps

...oh yeah...communicating with agents works too...


I would strongly argue that only using one source is trouble waiting to happen.

 

[Ken B]

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?

That sounds like data collection, not data verification.

 

[ElvisMiami]

Last week I called a newbie agent to ask about activity on a listing of his. I was informed his consultation fee was $500 an hour. After I verified he wasn't kidding, I advised him that "what goes around, comes around" and hung up on him.

This morning I called a veteran broker about a sale of his and we discussed the market for about 20 minutes.

Newbie's loss.

That's crazy. Apparently, the newbie hasn't received proper training. If I was his Broker I would want to be made aware that such an ignorant newbie was in my employ. Perhaps you should call his Broker.

 

[TennMan]

I always try to get information from the agent. I catch many in dishonesty, but that is par for the course. i was doing a complex home a few weeks ago and called one of the well known agents that sell in that market, he told me there were no concessions at all. I spoke with another agent who had sold one on the same street, and had another property listed on the same street. She wanted to chat a bit and told me she thought her listing was over priced and asked my opinion on it (her sellers were not listening to her advice), but first mentioned she based it the same comp from the other agent. She said that it went to closing with X% CCA. Funny how the agents will tell each other but refuse to tell us.
Even when I am pretty sure I get what I need from MLS and PR I usually call the agent. I get all kinds of information by just letting those that love to talk do just that. Sometimes what I find out is something that needs to be included in my analysis. I do database my comps and like to have robust info, and scrubbed data so that i can actually run some statistical analysis on the data.

 

[Kevin Mc]

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.).

Yup....We do have access to much info (sometimes too much if that is possible).

 

[jlabauve]

That sounds like data collection, not data verification.

In many instances, data verification BECOMES data collection, because you uncover so much unreported information about the sale.

 

[residentialguy]

Data and verification is not only limited to sale and finance concession line, it applies to all the lines. My verification includes exterior inspection of the comps.

 

[Doug DeMars]

http://www.merriam-webster.com/dictionary/verification

ver·i·fi·ca·tion

Pronunciation: \ˌver-ə-fə-ˈkā-shən\
Function: noun
Date: 1523
: the act or process of verifying : the state of being verified

ver·i·fy

Pronunciation: \ˈver-ə-ˌfī\
Function: transitive verb
Inflected Form(s): ver·i·fied; ver·i·fy·ing
Etymology: Middle English verifien, from Anglo-French verifier, from Medieval Latin verificare, from Latin verus true
Date: 14th century

1 : to confirm or substantiate in law by oath
2 : to establish the truth, accuracy, or reality of <verify the claim> synonyms see confirm

Collecting data then reconciling it with more data is verification. Whether it confirms or contradicts is the whole point.