Comments on: Failure to Communicate

By: Bill Johnson

Bill Johnson — Thu, 15 Aug 2019 15:08:10 +0000

In reply to Dave.

I get it Dave. My local MLS has a heading that says concessions, but unfortunately there is no consistency from the agents nor appraisers regarding this issue. If an agent inputs a $10,000 concession amount but in reality the seller conceded on the final price by $10,000 (typical negotiations), for our purposes this is not a true concession. Conceding on price in lieu of repairs, means the final price takes into consideration the current condition, but does not mean a single line item adjustment is warranted on the sales grid if used as a comp.

Where it gets interesting, is that you and I may seek the truth and track down the agent for the meaning of their concession amount (not warranted in example above), where others simply use the $10,000 in full or as a partial adjustment (market reaction dependent). If enough others input the $10,000 (in error), then under the watchful eye of big brother (UAD / portal), you and I will be the ones varying from a panel of our peers.

Seek the truth.

By: Dave

Dave — Wed, 14 Aug 2019 19:03:18 +0000

That could happen Bill. But what I am witnessing are buyers going through FHA and paying $110,000 for a home listed for $100,000. Then having the sellers pay $10,000 towards their closing costs, prepaid, etc. The house was already listed by a Realtor on the high end then the buyer decides that isn’t high enough of a fair price and says how bout $10,000 over list and pay my closing costs since I don’t have two dimes to rub together! I deduct that every time if I use that sale as a comp. (That is if the Realtor actually notes it in the MLS) Don’t know how other ethical appraisers handle that…. always call the Realtor and ask why it sold over list price. They almost always say the sellers paid towards the closing costs. I tell them to kindly post it in the MLS. Why are appraisers held accountable for noting concessions, when the Realtors are not. Makes no sense to me.

By: Bill Johnson

Bill Johnson — Wed, 14 Aug 2019 16:03:10 +0000

In reply to Dave.

Or how about the opposite Dave. Meaning they input say a $10,000 concession, but in reality the concession (repairs, agent commission reduction, etc.) was just part of typical negotiations and should not result in a full or partial net reduction on the sales grid.

Seek the truth.

By: Bobby Jones on Facebook

Bobby Jones on Facebook — Wed, 14 Aug 2019 14:17:48 +0000

Realtor or better yet someone that opens the door is not qualified to write a description of a property they have financial gain

By: Dave

Dave — Tue, 13 Aug 2019 17:17:02 +0000

Realtors are SALESMAN. Period. Sales people always will try to over impress people. We appraisers have USPAP, a one inch think book we must obide by every page or have the wrath of the state board upon us. Realtors have no such book which hold them accountable. We appraisers have to be uniform throughout the country. This article hits it on the head. Very few Realtors note concessions in the MLS. I call them up and say, your listing I appraised had $5,000 seller give backs and you did not post it in the MLS when it closed. They say, “and how does that benefit me”……

By: Jack Of All Trades

Jack Of All Trades — Mon, 12 Aug 2019 19:03:15 +0000

“What we’ve got here is failure to communicate. Some men you just can’t reach. So you get what we had here last week, which is the way he wants it; well, he gets it. I don’t like it any more than you men”.

By: Cotton Cornell

Cotton Cornell — Mon, 12 Aug 2019 18:02:06 +0000

A better movie analogy would have been the line from forrest gump. “Stupid is as stupid does”.

By: SB

SB — Mon, 12 Aug 2019 17:57:12 +0000

Rels Valuation Scope Creep

By: Carl

Carl — Mon, 12 Aug 2019 17:35:36 +0000

LOL! Loved the article!

We were more or less speaking the same language until the GSEs came up with the UAD language that no one seems to understand without the UAD definitions addendum.