Verifying Sales

[Delta85]

As far as verifying GLA probably 99.9% of the time the realtor got the GLA from assessor records. How many realtors actually measure a home or hire an appraiser to do so?

 

[ucbruin]

But not according to FNMA.




No, that is data that needs to be verified. Have you never seen a mistake? I just called on a sale for 185,000 and the concessions were listed at $181,000. I called and verified that it was incorrect..it was FHA with 3% paid and the seller would have sold the home for 3% less in lieu of paying 3% concessions.



No, again, that is data that some put in. Per FNMA, Examples of Data sources include: a multiple listing service, deed records, tax records, realtors, builders, appraisers, appraiser’s files, and the Internet.



Call the selling agent.



Unfortunately, FNMA IS TELLING EVERYBODY THESE TYPES OF ACTIONS LISTED BELOW ARE WHAT QUALIFIES AS VERIFICATION SOURCES

Examples of Verification sources include:
the buyer, seller, listing agent, selling agent (and closing documents in certain situations).

You don't have to call them...you could email them, fax them, take them out to dinner

ResGuy,

FNMA requirements have provided all appraisers with a very narrow definition of "verification sources". Can we at least agree that when it come to buyer/seller as a source this is next to impossible? Not impossible but more than likely in the real world, next to impossible. So that basically leaves just the agents. When you are completing a report and you haven't been able to get a response from the agent, for whatever reason, do you refuse to submit the report as complete or do you remove that sale as a comp and employ another sale in its place? And what do you do if the agents for your "best" comp doesn't get back to you? Do you refuse to employ any sale in your report if you haven't heard back from an agent?

 

[Lost Cause]

Not Analogous!

When you are completing a report and you haven't been able to get a response from the agent, for whatever reason, do you refuse to submit the report as complete or do you remove that sale as a comp and employ another sale in its place? And what do you do if the agents for your "best" comp doesn't get back to you? Do you refuse to employ any sale in your report if you haven't heard back from an agent?

So now we're comparing what some may be forced to do because of a lack of response to justify what appears to be others' routine practice?

 

[ucbruin]

So now we're comparing what some may be forced to do because of a lack of response to justify what appears to be others' routine practice?

Based upon some of the posts I've read I didn't think there was "gray" area about this issue. One's standards and ethics are one's own. But if one wishes to judge that an other person's standards or lack thereof is offsetting to one's senses, then one should not waiver from one's ethics. Because if done once, it is more apt to happen more often.

If agents are the only true source for"verification" then you can't use a comp that hasn't been "verified" by an agent. Right?

What does an appraiser do when a comp was, for all intent and purpose, a FSBO that an agent put into MLS for a fee from the seller? There could be a buyer agent involved but less pretend there wasn't. If the comp was properly marketed and was open to the marketplace and appeared to have sold at market price, how would an appraiser "verify" this sale?

 

[gregb]

As far as verifying GLA probably 99.9% of the time the realtor got the GLA from assessor records. How many realtors actually measure a home or hire an appraiser to do so?

About 20-30% of the custom home listings here include a floor plan with GLA. Asked this agent what the floor plan cost, he said $300. Nice side business for those with a disto or tape.

 

[ucbruin]

So now we're comparing what some may be forced to do because of a lack of response to justify what appears to be others' routine practice?

And BTW, I agree that calling agents is a good, great, excellent thing to do regardless of personal ethics and/or a FNMA requirement. I just choose not to do it, unless something seems out of place for the market area. And from reading responses on this forum I will acknowledge that I am deficient in my "verification" process because I haven't called the agents. No argument from me.

I am just amazed at what I consider to be the level of inconsistency regarding this issue from some of the contributors who seem so rigid and unwaivering when it comes to this issue.

Really, should I be impressed by a fellow appraiser who expresses admiration for his mentor because his mentor had the unique ability to accurately determine GLA by viewing a house from the street? Should I believe that his due diligence is so much greater than mine because I don't call every agent?

 

[Joe Flacco]

About 20-30% of the custom home listings here include a floor plan with GLA. Asked this agent what the floor plan cost, he said $300. Nice side business for those with a disto or tape.

I see a lot of these types of floor plans these days. Virtual tours and floor plans seem like good business for those that have established themselves. It's crazy to me that producing a virtual tour or floor plan costs almost the same as a appraisal.

 

[DTB]

I see a lot of these types of floor plans these days. Virtual tours and floor plans seem like good business for those that have established themselves. It's crazy to me that producing a virtual tour or floor plan costs almost the same as a appraisal.

Seeing those things beginning to pop up back in the day helped push me out of the business.

Risk/reward totally out of whack.

 

[mark hurlock]

should I be impressed by a fellow appraiser who expresses admiration for his mentor because his mentor had the unique ability to accurately determine GLA by viewing a house from the street?

LOL,

have you never counted the blocks in a foundation to determine the SF of a comp?

 

[Michigan CG]

LOL,

have you never counted the blocks in a foundation to determine the SF of a comp?

I have counted blocks many times.

Last year I was hired to appraise an estate for a farmer. There were 5-6 grain fields, a house and multiple outbuildings. The estate hired two of us and we both inspected at the same time. The other appraiser who is very well respected and has been appraising for over 35 years "walked off" the house and all of the outbuildings, I am guessing about 6 buildings.

I used my laser to measure. We were within 2 feet on our measurements with barns as long as 120 feet. Talented guy.