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Would You Call The Realtor For The Cma?

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Ghost Rider

Senior Member
Joined
Apr 27, 2003
Professional Status
Banking/Mortgage Industry
State
Connecticut
Did an appraisal of a 1,000 sf 2 BR ranch today, at the house, was browsing the MLS I had pulled prior to getting out there, trying to pre-select some comps while waiting for her to show......Couldn't find ANYTHING in the neighborhood.....the place is total ranchland, like 20 streets, nothing but ranches - I figured the MLS screwed up, and didn't pull for some reason, so I get to the town hall, and start flipping through the comp book....Second ranch I see, on the subject street, right across the street from the subject, sales price - $127,000......Contract price for my subject $170,000.....OUCH....I figure, maybe distressed, keep looking, see what you can find.....Next street over, 1,000 s br ranch for $128,000, next block over, $122,000......I found NINE ranches, ranging from 950-1050 sf, all closed within 6 months time, all within a 1/4 mile of the subject, sales prices ranging from $122,000 to $135,000......I'm REALLY curious to see what the realtor "comped" this POS to when she priced it.......Would you call her, and tip your hand to see the CMA before you send it out?? She showed up with no info for me, just said "you shouldnt be a problem......" and "I wonder why they didn't send out my regular appraiser...." :blink: DOH!!!! I think I know!!!!!!!!
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Nope.

I wouldn't contact her at all.

Here's what I just put on the beginning of my sales comparison comments for the one I'm just finishing:

Due to the disparity between the current pending contract price and the Appraiser's Opinion of the subject market value, additional comparable sales and a comparable Active Listing are also provided.

$330K on contract, FSBO that I believe was just a couple of guys talking, one said "I like your neighborhood and your house." The other one said "Well..... we've been thinking of downsizing."

Came in at $290K - plenty of new sales, bracketed comps, to say so. Think I'll hang on and send it tomorrw late afternoon. After all, I'm leaving Sat morning.

DARN!!!! I was feeling so good after a refi came in $30K above the 'estimated value' last week. Hadn't had one like that in ages!!!! Must have been a typo....
 

Darrell Hignite

Sophomore Member
Joined
Jul 16, 2003
Professional Status
Certified Residential Appraiser
State
North Carolina
Many appraisers have made it their policy if the sales price is not in the indicated values, especially when the appraisal is like yours, off by many thousands, to call the Realtor and to ask what comps she used when she listed the house.

You probably won't believe this, but some Realtors don't do cma's, they just list the house for what the owner says....

I would at least let her know that you are struggling, of course you don't tell her that you are thousand's off, just give her a chance to suggest comps that you "might" not know about. Then finish it with comps that you sellect and submit it. An additional comp can never hurt.

Appraiser's have to have thick skin, and I think you do or they would have called her regular appraiser. Good Luck and happy appraising. :D
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
B) Darrell,

Right you are. I ahve asked agents many times...."What did you use to establish a list price?" The better ones readily tell you, many have no clue except to say "that's what they wanted for it". In many such cases as the second response, they property may well be way over priced or under priced. The property owner would have just been as well off to have sold it FSBO. What ever happened to the professional realty agent(Realtor is a registered trade mark, not all real estate agents are Realtors) that does a CMA that shows what similar properties have sold for, how much pending sales are under contract for, and the list price of the expired listings? I realize, at least in my market, there are few expireds, but the other information certainly is still valid. I guess I am fortunate. I live and work in a market where the MLS is a private corporation, not affiliated with a Board of realtors. I do my own CMS's and put the findings listed above to demonstrate what the market is like. I also do a "List to Sales Price Ratio". That is great evidence of what the market is actually like, with the caveat that the pending sales are an excellent indicator of the current market trends. I also realize that not all appraisers have all the resources I have.

Don
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Never hurts to ask. They may have a sale in their back pocket that they've been hiding. :rofl: Anyway, you've gone the extra mile before torpedoing their sale. That way they can't come back and say "What about ....?"

Roger
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
I do understand the reasons for asking the agent what they used.

My personal experiences (that's plural) in a situation like MHMerriman's is that if you make that call, especially when the price is that far off, you open yourself to the chance that all H*** will break loose before you deliver the report with the worse case scenario being the order gets cancelled and everyone involved insisting you not be paid.

Too many like this and similar is why I'm now almost exclusively COD. I don't need to spend my unpaid time fighting with an agent. About all I'll say anymore is that if they have "newer, nearer, more similar comparable sales - qualified arms-length transactions that I can readily verify - that I didn't already use, please provide them through the loan officer and I'll be happy to look at them. If there is something that I missed, I will use it. If the sales provided are not superior - as in newer, nearer, more similar, etc. - and you still want me to discuss why I didn't use them, there will be a charge of at least $50 each.

I just don't have any BS patience anymore.
 

Randy Beigh

Senior Member
Joined
Jan 16, 2002
I would call the agent, not for the cma, but to see if there are sales out there that I missed. Nothing would be more embarassing, than for sales to pop up that you didn't use or, worse, didn't know about.

Often, the agent's sales are on the other side of the continent, but you gave them a chance to prove you wrong and that matters.

Pam mentioned all h*** breaking loose. Since you are 50K below the sales price, that is going to happen, no matter what you do. Provide a listing or 2, along with your appraisal.

Like Darrell said, you better have your thick skin on.
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
What I find most surprising is the willingness of a buyer to enter such a purchase transaction (apparently) without sufficient market knowledge or without reasonable supportive buyer-agent representation to guide them before signing on the dotted line. How 'bout even independantly engaging an appraiser the day the prospective buyer fell "in love" with this 1000sf rancher ? We are not asked to solve those riddles. We are asked to take what is --- most-similar, most-proximate and most-recently transacted --- and come to an opinion of current market value. If the lender does not see the logic in our report that spares them....and the buyer....from likely future misery and risk, then......oh well. MHM, write it up like you know you should. If others want to gripe at you....have them e-mail those feelings to you. I hope for you that your invoice is honored, as we all know how some of these folks operate.
 

Ghost Rider

Senior Member
Joined
Apr 27, 2003
Professional Status
Banking/Mortgage Industry
State
Connecticut
Thanks all for the replies......I'm gonna send it in over the weekend, I'll be expecting the phone calls on Monday.....perfect way to start the week.......And yes, I will be putting on my bullet proof skin for the barrage of phone calls......thats only until I put one in my head!!!!!
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Some times I do......... some times I don't. If they are one of the more professional, respectable agents, then I'll call to see what they were thinking, and get their idea of the market/neighborhood.

If they are one those that I know has a history of acting unprofessionally, lack luster, and do nothing but fuss and *itch to get any and all sales through...... I let them find out when the buyer finds out. :twisted:
 
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