Is it lawful for a co-op managing agent to tell a prospective buyer that an apartment he is thinking of buying will not appraise for the asking price?

Asked by Trulia Boston, Boston, MA Wed Dec 5, 2012

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Maria Cipoll…, Agent, Coral Springs, FL
Wed Dec 5, 2012
It will be a better idea to recommend to order an appraisal to the prospective buyer. The appraisal will be conducted for somebody with license to do so. Like that you are out of the loop.

All the best

Maria Cipollone

Century 21 Tenace
1 vote
John Dean, Agent, Boston, MA
Mon Jan 28, 2013
Appraisals have been an issue in the Greater Boston area since demands is up and inventory is down. Before purchasing a new property your buyer's agent should give you a CMA or market analysis of the property so you know it's value. As a buyer if you decide to pay more than the perceived market value then yes you may bump into an appraisal issue. The good news is the market has had scare inventory for the past 12 months and thus sales prices are climbing and there is a history of higher priced purchases.
0 votes
Territory.c…, Agent, MA,
Wed Dec 12, 2012
Sounds like a friendly warning to me but hard to give a full response without knowing a little more about the context of the statement.
Massachusetts Premier Buyer Broker
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0 votes
Mario Pavli, Agent, Boston, MA
Fri Dec 7, 2012
I will consult with a council beforehand.

Best Of Luck.
0 votes
CH Naamad, Agent, Boston, MA
Thu Dec 6, 2012
Please consult counsel advise for what is lawful here.
0 votes
Jaime Fernan…, , 02472
Wed Dec 5, 2012
Your question does not provide enough details so a conditional answer is yes.
It seems that the agent is just expressing an opinion.
Allow me to try to frame a scenario here.
In general, it is always wise to hire your own real estate agent to protect your interests and guide you through the process of purchasing or selling your real estate property.
Therefore, every buyer’s agent performs a CMA (comparative market analysis) as part of the couching offered to his/her client to determine a reasonable purchase price. This analysis consists of selecting properties that have been sold recently and that are closely similar to the target property and within a defined perimeter nearby, usually a mile far. In the end the buyer must ponder needs and wants based on all the information provided and make an informed decision of how much is willing to pay for the property. This only reflects how much the buyer wants the property.
On the other hand, most purchasers use a loan to come up with enough money to buy a house. Then a lender comes in to the picture. Every lender will request an appraisal of the property before committing to give a loan. Appraisals are performed by professional appraisers, no real estate agents, and perform a more elaborate value analysis that includes CMA’s and several other techniques to come up with an estimated value of the property. Appraisers are independent professional, so until you hire one to make an appraisal of a property there is nothing unlawful in expressing an opinion.
Of course we have here just scratched the surface of the issue. So if you would like more details, etc. please feel free to contact me at your convenience.
Jaime Fernandez-de-Castro
0 votes
Ex-Broker, , Chicago, IL
Wed Dec 5, 2012
Based on the terminology you're using, and the way you're phrasing your question, I'm going to go out on a limb...
You're the owner of said condo, trying to sell it without a Real Estate agent representing you. A buyer came in with a Buyers Agent, and said agent had the opinion that your property was overpriced, and relayed that opinion to their buyer in front of you. You are offended, and seeking justice.

A brokers opinion about the price of a property is just that, an opinion. If they are wrong it is to their buyers detriment. My guess though is that you probably are overpriced compared to the market and unwilling to accept it. Sellers almost always overprice their own properties by 10-20%
It is also possible that that agent has already started negotiating with you, and you just don't realize it...
0 votes
Carey T. Han…, , Massachusetts
Wed Dec 5, 2012
Give me a call anytime. Thank you.

Carey Hansen
Nextgen Realty
0 votes
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