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Jim Davey, Real Estate Pro in Carlsbad, CA

Back in the business! Are agents still allowed to talk to the appraiser to give them pertinent info and comp data?

Asked by Jim Davey, Carlsbad, CA Mon Jun 6, 2011

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Jim,
Yes agents can talk to the appraisers. It is the lenders who are restricted at this time.
Jerry Heard
0 votes Thank Flag Link Mon Jun 6, 2011
Thank you for your perspective, Adam, but, really? If the pay has changed that much, and I know it has, that you're throwing out cut-rate appraisals, then you probably should be considering another line of work. Don't you have a duty to your client to provide an accurate estimate of value? And, then to ignore supporting comps for a different estimate of value because - you're not paid to re-do them, and it wouldn't look good? If you took that pride and put it into a good first appraisal, we wouldn't be having this discussion.

The market changed for us agents too, and we adapted. We cannot represent out clients in a cut-rate way, even if we cut our commissions to compete, because we have a fiduciary duty to these people, who are making one of the most important transactions in their lives. I believe agents absolutely should speak directly to appraisers, and if nothing is done, then let the lenders should know that their comps aren't being taken into account, especially when they're providing better comparables than what's in the appraisal, and it's often not that hard.

Sorry if I'm sounding harsh here, but we're trying to do the best job we can for our clients.
2 votes Thank Flag Link Mon Jun 6, 2011
Cory,
If you re read my response you'll note that I refer to "appraisers", not myself. I still appraise, but I have not taken the low paying fees offered by many Appraisal Management Companies. I have focused on working with direct lenders, attorneys, and REO portfolio managers. So fortunately, I still make decent money appraising, and I don't provide cut rate appraisals. All I am saying is that many appraisers do not do the due diligence necessary to provide an accurate appraisal because of the 50% or more pay cut many have taken. I do not agree with it, but it is a fact and a real problem. Due to the low fees, many are not interested in spending any extra time working on an appraisal if possible. So you better get the info you want them to see, before they complete the appraisal. I even refinanced recently and had to pay for two appraisals because the first one was done by an out of area appraiser that just threw it together. I provided comps and all in a rebuttal, but all she did was say the info wasn't relevant and the bank accepted her answer. Had she corrected all of the mistakes I pointed out and had she considered all of the info I provided, she would have spent a lot of time redoing her work. It was easier for her to just say no. The second appraisal I got was much more thorough and it worked out fortunately.
I hope that clarifies things.
1 vote Thank Flag Link Tue Jun 7, 2011
Jim,
I am an agent and appraiser. All of the answers are correct. I would emphasize, that many appraisers are performing appraisals at cut rates, which in turn results in cut rate appraisals. It is a lot easier to inform an appraiser the first time around versus trying to rebut an appraisal. Appraisers are not paid extra to review additional info nor does it reflect particularly well for an appraiser to change his/her value.
1 vote Thank Flag Link Mon Jun 6, 2011
Of course you can talk to the appraiser. The problem with appraisals, the market, and this whole mess we call real estate is that MARKET VALUE is so different than REPLACEMENT VALUE and many other monetary VALUE STANDARDS that REO's will continue to drag down the prices. Many appraisals require REO's in market value computation. No matter what you tell the appraiser they have to much education to be influenced. Trust me, they were laughing and I was pist. During my appraisal course at OCC the professor stressed that market value is different than replacement value and commercial properties are valued differently than residential ones.

David Chiles
Meridian Capital
800 729-5111 Ext 420
Your eco friendly real estate agent!
0 votes Thank Flag Link Wed Jun 15, 2011
Just for complete clarification: The lender can talk to (they hire the appraiser after all) the appraiser...it is just the loan consultant who cannot have direct communicatio with the appraiser. i cannot imagine how much more HVCC rulings could confuse except by adding layers that the underwriter's could not talk with the appraisals. Just the loan officer, just the loan officer...the logic being that we have a vested interested in closing the loan.
0 votes Thank Flag Link Wed Jun 15, 2011
I know of no regulation that says an agent cannot talk with an appraiser. Like any other communciation relating to your business as a real estate agent/broker, I would document all communications.
Web Reference: http://www.theCSYteam.com
0 votes Thank Flag Link Wed Jun 8, 2011
Whew! Adam, I'm glad I got THAT wrong. And thank you for letting agents know to provide all the info up front, so the appraiser doesn't have to take extra time to re-work it. Appraisals take time, so getting all that info to the appraiser before he actually writes up the report will help us with our deadlines too. Thanks again for responding.
0 votes Thank Flag Link Wed Jun 8, 2011
I did appraising back in the early 80's. I always welcomed the information when an agent supplied me with accurate comps. I will hand or email the appraiser accurate comps - the key word being accurate. Good appraisers can spot a bad comp and will ignore all the comps you give them at this time and in the future.
0 votes Thank Flag Link Mon Jun 6, 2011
Our job as full time agents is to insure the interest of our clients. If this means doing an appraiser’s work for them, meeting them at the property with information to support ours and our client’s interest, reams of data and research so be it. Potential buyers and sellers pay attention; this is exactly why you need the services of a full time agent. The appraiser works on their own schedule an agent needs to be extremely flexible to meet the appraiser. Their appraisal determines whether this deal moves forward or not. AGENT code name aunt bunny or uncle buck cannot ensure the deal gets done if they are at their full time job when Joe appraiser shows up.
Web Reference: http://www.randshomes.com
0 votes Thank Flag Link Mon Jun 6, 2011
I spoke with an appraiser friend of mine this morning and she said that more regulations are coming at the appraisers.. they will be required to not only support their appraisal with comps but also with "current market" information. In my opinion, a responsible listing agent should supply comps and current local market information on the property. Don't assume the appraiser lives/works in the area.
Web Reference: http://www.theCSYteam.com
0 votes Thank Flag Link Mon Jun 6, 2011
Hi Jim,

Welcome back! Yes, we can still talk to appraisers. It can be a bit challenging to pin them down, but for the most part they are still open to hearing our 2 cents' worth, in my experience.

Best of luck!

Rachel LaMar, J.D.
LaMar Real Estate, Inc.
0 votes Thank Flag Link Mon Jun 6, 2011
Hi Jim, welcome back! Yes, listing agents can still meet with appraisers but I'm finding that appraisers today are very rushed. They typically just want access to the property. I do email comps to support my price which they are usually glad to receive. Since they have the "lottery" it's not uncommon for an appraiser to be WAY out of area with not a lot of info to go on for their appraisal. Anything you can provide to them will help them make better assessments. I actually had 2 appraisals on one of my bank owned properties done within 6 days of each other. The appraisers were 50k apart (on a $250k property). It's in your interest and th seller's (if you are the listing agent) to let them know any pertinent stats that will help them get a handle on the community and home they are assessing. Great luck to you!
0 votes Thank Flag Link Mon Jun 6, 2011
Agents can but Loan people can not
0 votes Thank Flag Link Mon Jun 6, 2011
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