Verifying Sales

[residentialguy]

If an appraiser feels the absolute need to call agents on every comp employed in the report:

Wouldn't calling the agents before pre-selecting sales to photograph be more beneficial than calling after? IMO proper sales selection is the most important element of the appraisal process. Therefore, if I were going make it a point to call agents, I would call them before I pre-selected and photographed them because how else would I know which 8-10 of the available 15 sales were really "good" potential comps?

Not necessary to call them prior. I have 8+ comps...I can afford to throw away some

Are you trying to give some lame excuse for not calling agents..."if you don't need to call prior, you don't need to call ever!" ???

Verification is not a debate, it's a requirement.
AI said it well here:



Oh...and if those agents don't want appraisers to use sales that had atypical motivations & high stimulus that caused it to sell below market value as comps, they better not gripe about a short phone call to verify. :happy:

 

[Delta85]

For the record I try and call realtors or e-mail them or both. In my experience, I can expect MAYBE a 50-60% call back ratio and sometimes it is several days later.

To the OP, are the AMC you are using demanding 24-48 hour turn around times? Have you bothered to find out? If YOUR AMC of choice is demanding 48 hour returns and many realtors return calls and e-mails, if at all, 2-4 days later, is it any surprise these reports contain little mention of conversations with agents?

 

[Michigan CG]

.........would you believe what a realtor said who simply wants to get you off the phone?

oh yea, youd pull a data card that was last updated 7 years ago...

So you don't call a Realtor because they lie and you don't pull the record card because it is old.

How do you abide by USPAP Standard 1-4?

 

[ucbruin]

Not necessary to call them prior. I have 8+ comps...I can afford to throw away some

Are you trying to give some lame excuse for not calling agents..."if you don't need to call prior, you don't need to call ever!" ???

Verification is not a debate, it's a requirement.
AI said it well here:



Oh...and if those agents don't want appraisers to use sales that had atypical motivations & high stimulus that caused it to sell below market value as comps, they better not gripe about a short phone call to verify. :happy:

No, I'm not trying to make an excuse for not calling agents. Other than buyer/seller motivation, MLS listing sheets provide concessions and type of financing. And if you tell me that the information on the listing sheets could be incorrect, then why call the agent at all because they are the source of the info.

If calling the agents to get information is so vital to your appraisal process then:

Can't you see the logic and benefit to you and the borrower if you call the agents to get the "information" that you seek before you "randomly" (just yanking your chain, I'm sure it's not random) select your 8+ sales, which include "throw-away" sales (BTW, why do you want waste your time by photographing "throw-away" sales?).

If it's so important, then the calls should be made prior to you making your pre-inspection sales selection.

 

[residentialguy]

No, I'm not trying to make an excuse for not calling agents. Other than buyer/seller motivation, MLS listing sheets provide concessions and type of financing. And if you tell me that the information on the listing sheets could be incorrect, then why call the agent at all because they are the source of the info.

If calling the agents to get information is so vital to your appraisal process then:

Can't you see the logic and benefit to you and the borrower if you call the agents to get the "information" that you seek before you "randomly" (just yanking your chain, I'm sure it's not random) select your 8+ sales, which include "throw-away" sales

If it's so important, then the calls should be made prior to you making your pre-inspection sales selection.

No, calling on 15-40 sales is just poor time management, not to mention that many agents can not be reached that quickly. Variances from the listing can be adjusted...that's why we have that grid. And as I said before, I have extra comps, so I don't have to worry about throwing some out.

(BTW, why do you want waste your time by photographing "throw-away" sales?).

They aren't throw-aways, they're all good. But only after one goes through them line by line and reads the additional docs, sees the surroundings, etc , are you able to truly see which are the best indicators of market value for the subject. Obviously, you can't do that until you inspect the subject so you know what exactly you're working with... and it certainly isn't faster trying to do a complete analysis on 15-40 potential comps I have in my car. Therefore, after subj inspection, I do a cursory check on my pre-selects and pull what looks to be the best 8 or so comps and I drive them. Nothing faster. You could gamble and drive 3...but you don't know they're the best three yet...I don't know what are the best 3 until they're all on my report..and yes, I put them all on...extras that aren't used in the final report go on comps 7-9 or another grid. That also comes in handy should a I another appraisal in that area. Now I don't have to drive that comp...it can transfer onto the new report, grid and photo.

After I weed those 8 or so comps down to the 4-5 best to use in my report, then I call the agent to verify my information is correct and find out the conditions of the sale.

 

[Mr Rex]

I call the buyers and sellers mothers, they will dish the dirt without filtering.

 

[ucbruin]

No, calling on 15-40 sales is just poor time management, not to mention that many agents can not be reached that quickly. Variances from the listing can be adjusted...that's why we have that grid. And as I said before, I have extra comps, so I don't have to worry about throwing some out.

15-40 potential sales. Wow!!!!!!

They aren't throw-aways, they're all good. But only after one goes through them line by line and reads the additional docs, sees the surroundings, etc , are you able to truly see which are the best indicators of market value for the subject. Obviously, you can't do that until you inspect the subject so you know what exactly you're working with... and it certainly isn't faster trying to do a complete analysis on 15-40 potential comps I have in my car. Therefore, after subj inspection, I do a cursory check on my pre-selects and pull what looks to be the best 8 or so comps and I drive them. Nothing faster. You could gamble and drive 3...but you don't know they're the best three yet...I don't know what are the best 3 until they're all on my report..and yes, I put them all on...extras that aren't used in the final report go on comps 7-9 or another grid. That also comes in handy should a I another appraisal in that area. Now I don't have to drive that comp...it can transfer onto the new report, grid and photo.

In your example you take with you 15-40 MLS provided sales (all of them "good") and after you inspect the subject property you then do a "cursory" check of all of them to pick what you believe are the best 8+ to drive by. What criteria do you use to "decide" the best 8+? The information on the MLS listing sheets? If you believe the information on the sheets why do you need to call the agents (I can see the need for an odd ball sale, but I can't fathom all 8+ sales would be odd ball)?

After I weed those 8 or so comps down to the 4-5 best to use in my report, then I call the agent to verify my information is correct and find out the conditions of the sale.

What "information" do the agents need to verify for you? You've already decided on your best 8+ sales based upon your "cursory" review of the information that the agents placed on their listing sheets. This doesn't make any sense to me.

 

[Delta85]

If I have 20 potential comparables I do not call realtors on all of them. I narrow my search down to the 4-6 I hope to use and call on those. If any get eliminated when new information becomes available then I bring into play and call on additional potential comparables.

 

[residentialguy]

What criteria do you use to "decide" the best 8+? The information on the MLS listing sheets? If you believe the information on the sheets why do you need to call the agents (I can see the need for an odd ball sale, but I can't fathom all 8+ sales would be odd ball)?

Why are you so confused about the term "verification"? It's validating that the information is true, accurate and complete. It's a confirmation.

What "information" do the agents need to verify for you? You've already decided on your best 8+ sales based upon your "cursory" review of the information that the agents placed on their listing sheets. This doesn't make any sense to me.

Listings are helpful, but it's a sale tool for the listing agent and believe it or not, they sometimes show just the good stuff from the good angle. Often, what appears to be a C3 is really a C4 when you get the whole scoop from the listing and selling agents. You seem so bent on taking the listing as full truth. Brother, you're a fool if you do.

You have to call them anyway to find out about the conditions of the sale. Was there any relationship between the buyer and seller?
Sale price seem lower than most: Maybe there was high pressure/stimulus to sell... Bank pressure...Death in the family...Relocation, etc
Or the sale seemed high: Maybe there were some gifts included....Concessions involved? If so, what would the seller sell it for without them? Maybe it was due to the motivations of the buyer. Find out why they choose that property... Did they look at other properties?


State boards have come down on appraisers that don't verify. If any of you aren't doing it, I suggest you make a change. :icon_idea:

 

[DTB]

Why would an off the record short conversation with agent verify or trump what is in the written for posterity listing?

What exactly are you verifying? If they were lying in the listing or lying in the phone conversation.

IMO, it verifies nothing really.