What Do You Consider To Be Data Sources And Verification Sources?

[TRESinc]

Not in ohio.

Edit. NE ohio.

Do they send the purchase ageeement to you. Some of these dopey realtors can barely tie their shoes. But go ahead and call them. hearsay

once again you are wrong. it's amazing how misinformed you are when it comes to matters relating to appraisals. how do you get any work at all?

call NORMLS and ask them about concessions. the vast majority of listings do not have them. about a decade ago someone was misinformed that it was against the law to post concessions on listings so they sent an email out to the agents telling them to stop. i verified with the state and told the MLS office that it was allowed but they don't care. sales concessions are reported approximately 20-25% of the time based on my calls to agents. you would know that if you called agents to verify sales.

 

[Pittsburgh Pete]

Amazes me how some take their responsibilities so cavalierly!

For those that think that public record is a reasonable verification source, I remember the sale of a gas station across the street from my office that was recorded at a particular price. In verifying the data, I called the current owner (the grantee) and found out that the sales price was the result of an agreement entered into nearly 25 years earlier. Yep, them public records are the be all and end all!

 

[ucbruin]

Amazes me how some take their responsibilities so cavalierly!

For those that think that public record is a reasonable verification source, I remember the sale of a gas station across the street from my office that was recorded at a particular price. In verifying the data, I called the current owner (the grantee) and found out that the sales price was the result of an agreement entered into nearly 25 years earlier. Yep, them public records are the be all and end all!

Was the sale price below what you considered current market?
An oddball sale???

 

[Pittsburgh Pete]

Was the sale price below what you considered current market?
An oddball sale???

Sales price was semi-realistic (perhaps a little low for the land minus demolition costs) in the market depending on their intention. My first thought was that the improvements would be gone and the land repurposed. Turns out that the station is there some 10+ years later.

 

[Michael P Jacobs MAI]

One of my favorite topics but I'm not going to read through comments because somebody smart here has probably already pointed out that there is no USPAP standard for verification. In each case you have to ask yourself and explain to the reader whether typical market participants would regard THIS comparable as meaningful (i.e. the market-standard level of verification). I have given public record sales 100% weight because of closely held "proprietary" information among a very few buyers, sellers and brokers. BUT, in these cases I provide compelling narrative to convince the reader that market participants would not overlook these sales because they were by far the most comparable and - however weakly - other sales supported the range. If you have to use public record sales, chances are there isn't much else.

However, if we find an appraiser using public sales only when better or equal quality verifiable sales data is available, I think we could all agree that this is a USPAP violation because market participants and the appraiser's peers would find it indefensible. This is especially true if the public record sales tend to skew the analysis significantly.

On a practical note, I don't spend a tremendous amount of effort verifying sales that I don't give much weight to (when my observations and conclusions would be unchanged if I left them out). For example, I've been using some 2015 and even a couple of 2014 sales this last month because although market conditions have changed significantly, they are the closest in proximity and/or property profile and the more current data isn't all that good. They help illustrate that the range indicated by more contemporary sales would not be considered unreasonable by market participants, keeping in mind that the vast majority of market participants are unlikely to go back that far to dig out the details any better than I can with all of my resources. This practice is therefore consistent with they way they would develop their observations (and most likely conclusions).

So, be practical. That's my story and I'm sticking to it.

 

[residentialguy]

Was the sale price below what you considered current market?
An oddball sale???

How does one know that if you don't know if the sale price is skewed by something??? You don't know the true sale price, which is why you verify.

 

[Michigan CG]

Amazes me how some take their responsibilities so cavalierly!

More amazing is that they are proud of it.

 

[Mr Rex]

Consistency.

 

[ucbruin]

How does one know that if you don't know if the sale price is skewed by something??? You don't know the true sale price, which is why you verify.

In the example that I presented to you (7 sales) only a BS'er, in my opinion, would say that he/she, would call ALL the agents and sellers and buyers to confirm the 5 that fell within 1-2% of one another, 100% of the time.....

If you had answered "no" to the example...
That would have been believable....

And I know you aren't telling me that you will discard a sale simply because you have not heard back from ALL agents and sellers and buyers....

Are you really wishing for me and others to believe that you will only believe what a "true sale price" after you interview the motivations of the seller and buyer?

Are you really wishing for me and others to believe that you have never employed a comp in a report that you weren't able to verify with ALL the agents and sellers and buyers?

You must have been a hell of an appraiser back in the '80's and '90's prior to the the advances in technology......

Come on ResG.....

 

[Michigan CG]

Are you really wishing for me and others to believe that you will only believe what a "true sale price" after you interview the motivations of the seller and buyer?

Are you really wishing for me and others to believe that you have never employed a comp in a report that you weren't able to verify with ALL the agents and sellers and buyers?

I call a Realtor involved in almost every sale. Can't get them all. I get about 75% of them on the phone. I want to know how much of the basement was finished. I want to know the quality of the basement finish. If something looks odd in the photos I will ask about it. Depending on the property there are additional questions I ask. For commercial the verification process is more.