REAL ESTATE BROKER

"regarding the appraisal issue. There is an appraisal and there are comps. Two separate items. Both equally important."

1-Actually the comps are part of the appraisal. There are 3 legs to an appraisal. Comparable sales, replacement cost ( with depreciation considered ), and the income approach. Income approach is generally considered less reliable unless it is rental or commercial property. Replacement cost is subjective and less reliable unless the property is new. There are supposed to be 3 comparables used that are similar to the subject property and in the same market area no older than 12 months. The appraiser must explain fully if this requirement is not met. ( not many recent sales, rural area, or specialty property )

"I would not as a seller pay for an appraisal. Comps are what you base the sale price on. The buyer's bank is going to require an appraisal at "the time you go into contract"."

1=True, a Realtors " Market analysis " is supposed to be like the comparable leg of an appraisal and IF done right it should be accurate, assuming the right comps are used and they are properly analyzed.

"The appraisal is what the amount the bank will loan is based on. That said, the comps are taken into consideration at this time also."

1-As stated before the comparable approach is part of the appraisal, a major part.

"Your house may appraise at X amount but when the comps (i.e. sold like homes in area)are looked at and the sold price is 'considerably' lower than what you are listing it for, the amount the bank will loan to any buyer will be the lower amount of the sale of the like home."

1-Not really true because the appraisal is based on the comps ( remember it is one leg of the appraisal ), so if the comps indicate a lower value, then the appraisal would have been lower to begin with. The correct statement is " your house may go under contract at X amount but when the appraisal, with comps, is done and the comps indicate a lower sales value, then the appraisal AND loan will be less than the contract price.

I spent much of my time the last five years working reviewing single family appraisals for accuracy and compliance with standards. New standards are pretty rigid. But like every field there are good appraisers and bad ones, and some are just dumb. Most know what they are doing and do it right.

NJRVer wrote:

down home wrote:

captnjack wrote:

down home wrote:

M GO BLUE wrote:
We are looking to go full time in the next 5-10 years and the first step toward that is moving closer to the grandchildren...

We have a real estate agent right now that is doing practically nothing to help sell our house so we are looking to dump her and go with someone else...is there typically any reason we can't change agents such as penalty for us changing, etc??

Any and all suggestions are appreciated...

Wife had a Broker, in southern Michigan, that was supposed to be selling her property. She did not return two calls from serious Buyers that we know of.
We tried to find a way to complain to the governing body, in Michigan.
No one seemed to be responsible.
We should have sued her but could not get the two Buyers we knew of to testify. Wife ended up losing money, on it, after switching to another Realtor. She grew weary, of fooling with it. We came to find out, that this Woman had a bad reputation, in the whole, of southern Michigan. On top of that the woman across the way, tried every way she could to scare of Buyers. She thought she would get it at a bargain if wife couldn't sell. Because of her wife probably lost 50-75,000.00.

This is highly unlikely to be fully accurate. Houses tend to sell for what they're worth. The only way I see her losing 50-75K is if the entire market tanked during the listing period. If so, it doesn't much matter who the realtor was. Although I agree there are very good bad and everything in between.

Growing weary of it probably caused her to let it go too low.

This did not have a house on it. It had been her father's home. We had to tear down the barn and two houses because the neighbor kept breaking in the screen door, to the porch and leaving cat food.It drew all the cats and racoons and then into the barn etc. Then someone complained about it. The Broker came reccomended by a reputable source, we thought. The person that bought it got it for a bargain.

If you tore the buildings down then they weren't worth anything to begin with.

Amazing how much you think you know but don't. :)

regarding the appraisal issue. There is an appraisal and there are comps. Two separate items. Both equally important.

I would not as a seller pay for an appraisal. Comps are what you base the sale price on. The buyer's bans is going to require an appraisal at "the time you go into contract".

Before ANY bank or lending institution will give a "buyer" a loan an 'appraisal" is required and is paid for by the buyer.

The appraisal is what the amount the bank will loan is based on. That said, the comps are taken into consideration at this time also.

Your house may appraise at X amount but when the comps (i.e. sold like homes in area)are looked at and the sold price is 'considerably' lower than what you are listing it for, the amount the bank will loan to any buyer will be the lower amount of the sale of the like home.

Henceforth the domino affect of the crash. All it took was one house on a block to foreclose and sell for squat and your house now was also worth squat. That quick.

Comps are the name of the game for obtaining loans for the buyer and is what fast-tracked the crash into oblivion in such a short time period.

down home wrote:

captnjack wrote:

down home wrote:

M GO BLUE wrote:
We are looking to go full time in the next 5-10 years and the first step toward that is moving closer to the grandchildren...

We have a real estate agent right now that is doing practically nothing to help sell our house so we are looking to dump her and go with someone else...is there typically any reason we can't change agents such as penalty for us changing, etc??

Any and all suggestions are appreciated...

Wife had a Broker, in southern Michigan, that was supposed to be selling her property. She did not return two calls from serious Buyers that we know of.
We tried to find a way to complain to the governing body, in Michigan.
No one seemed to be responsible.
We should have sued her but could not get the two Buyers we knew of to testify. Wife ended up losing money, on it, after switching to another Realtor. She grew weary, of fooling with it. We came to find out, that this Woman had a bad reputation, in the whole, of southern Michigan. On top of that the woman across the way, tried every way she could to scare of Buyers. She thought she would get it at a bargain if wife couldn't sell. Because of her wife probably lost 50-75,000.00.

This is highly unlikely to be fully accurate. Houses tend to sell for what they're worth. The only way I see her losing 50-75K is if the entire market tanked during the listing period. If so, it doesn't much matter who the realtor was. Although I agree there are very good bad and everything in between.

Growing weary of it probably caused her to let it go too low.

This did not have a house on it. It had been her father's home. We had to tear down the barn and two houses because the neighbor kept breaking in the screen door, to the porch and leaving cat food.It drew all the cats and racoons and then into the barn etc. Then someone complained about it. The Broker came reccomended by a reputable source, we thought. The person that bought it got it for a bargain.

If you tore the buildings down then they weren't worth anything to begin with.

down home wrote:

captnjack wrote:

down home wrote:

M GO BLUE wrote:
We are looking to go full time in the next 5-10 years and the first step toward that is moving closer to the grandchildren...

We have a real estate agent right now that is doing practically nothing to help sell our house so we are looking to dump her and go with someone else...is there typically any reason we can't change agents such as penalty for us changing, etc??

Any and all suggestions are appreciated...

Wife had a Broker, in southern Michigan, that was supposed to be selling her property. She did not return two calls from serious Buyers that we know of.
We tried to find a way to complain to the governing body, in Michigan.
No one seemed to be responsible.
We should have sued her but could not get the two Buyers we knew of to testify. Wife ended up losing money, on it, after switching to another Realtor. She grew weary, of fooling with it. We came to find out, that this Woman had a bad reputation, in the whole, of southern Michigan. On top of that the woman across the way, tried every way she could to scare of Buyers. She thought she would get it at a bargain if wife couldn't sell. Because of her wife probably lost 50-75,000.00.

This is highly unlikely to be fully accurate. Houses tend to sell for what they're worth. The only way I see her losing 50-75K is if the entire market tanked during the listing period. If so, it doesn't much matter who the realtor was. Although I agree there are very good bad and everything in between.

Growing weary of it probably caused her to let it go too low.

This did not have a house on it. It had been her father's home. We had to tear down the barn and two houses because the neighbor kept breaking in the screen door, to the porch and leaving cat food.It drew all the cats and racoons and then into the barn etc. Then someone complained about it. The Broker came reccomended by a reputable source, we thought. The person that bought it got it for a bargain.

Sounds like the neighbor is the problem, not the broker. Like another poster said, property tends to trade in a narrow range near it's actual value. That being said, non income producing raw land that is not in a desirable area has a very small market. Why would you or your wife take $75,000 less than the true value? Most likely because the true value was closer to what the buyer paid and the price that would have generated the additional $75,000 was mostly wishful thinking. What would be the motivation for a broker to not contact serious buyers? Why wouldn't serious buyers be persistent? I know I would be if I wanted something. And if you know the names and contact information of the "serious" buyers, why didn't you step in and complete the sale? For $75,000, I sure would have.

captnjack wrote:

down home wrote:

M GO BLUE wrote:
We are looking to go full time in the next 5-10 years and the first step toward that is moving closer to the grandchildren...

We have a real estate agent right now that is doing practically nothing to help sell our house so we are looking to dump her and go with someone else...is there typically any reason we can't change agents such as penalty for us changing, etc??

Any and all suggestions are appreciated...

Wife had a Broker, in southern Michigan, that was supposed to be selling her property. She did not return two calls from serious Buyers that we know of.
We tried to find a way to complain to the governing body, in Michigan.
No one seemed to be responsible.
We should have sued her but could not get the two Buyers we knew of to testify. Wife ended up losing money, on it, after switching to another Realtor. She grew weary, of fooling with it. We came to find out, that this Woman had a bad reputation, in the whole, of southern Michigan. On top of that the woman across the way, tried every way she could to scare of Buyers. She thought she would get it at a bargain if wife couldn't sell. Because of her wife probably lost 50-75,000.00.

This is highly unlikely to be fully accurate. Houses tend to sell for what they're worth. The only way I see her losing 50-75K is if the entire market tanked during the listing period. If so, it doesn't much matter who the realtor was. Although I agree there are very good bad and everything in between.

Growing weary of it probably caused her to let it go too low.

This did not have a house on it. It had been her father's home. We had to tear down the barn and two houses because the neighbor kept breaking in the screen door, to the porch and leaving cat food.It drew all the cats and racoons and then into the barn etc. Then someone complained about it. The Broker came reccomended by a reputable source, we thought. The person that bought it got it for a bargain.

Be careful regarding appraisals. You have to disclose the appraisal after it is completed and that can be problematic if the appraisal is low or prices rise rapidly. We had it happen and it was a pain

Please explain what law would require me to disclose an appraisal ( that I order and pay for ) to a third party. I think if I pay for an appraisal it is mine. Most appraisals state that they can only be used by and for the person paying for it, at least in NC. Your State may be different.

Now if the appraisal is ordered for a particular buyer / sales contract that may be different. That is not what was suggested above.

down home wrote:

M GO BLUE wrote:
We are looking to go full time in the next 5-10 years and the first step toward that is moving closer to the grandchildren...

We have a real estate agent right now that is doing practically nothing to help sell our house so we are looking to dump her and go with someone else...is there typically any reason we can't change agents such as penalty for us changing, etc??

Any and all suggestions are appreciated...

Wife had a Broker, in southern Michigan, that was supposed to be selling her property. She did not return two calls from serious Buyers that we know of.
We tried to find a way to complain to the governing body, in Michigan.
No one seemed to be responsible.
We should have sued her but could not get the two Buyers we knew of to testify. Wife ended up losing money, on it, after switching to another Realtor. She grew weary, of fooling with it. We came to find out, that this Woman had a bad reputation, in the whole, of southern Michigan. On top of that the woman across the way, tried every way she could to scare of Buyers. She thought she would get it at a bargain if wife couldn't sell. Because of her wife probably lost 50-75,000.00.

This is highly unlikely to be fully accurate. Houses tend to sell for what they're worth. The only way I see her losing 50-75K is if the entire market tanked during the listing period. If so, it doesn't much matter who the realtor was. Although I agree there are very good bad and everything in between.

Growing weary of it probably caused her to let it go too low.

M GO BLUE wrote:
We are looking to go full time in the next 5-10 years and the first step toward that is moving closer to the grandchildren...

We have a real estate agent right now that is doing practically nothing to help sell our house so we are looking to dump her and go with someone else...is there typically any reason we can't change agents such as penalty for us changing, etc??

Any and all suggestions are appreciated...

Wife had a Broker, in southern Michigan, that was supposed to be selling her property. She did not return two calls from serious Buyers that we know of.
We tried to find a way to complain to the governing body, in Michigan.
No one seemed to be responsible.
We should have sued her but could not get the two Buyers we knew of to testify. Wife ended up losing money, on it, after switching to another Realtor. She grew weary, of fooling with it. We came to find out, that this Woman had a bad reputation, in the whole, of southern Michigan. On top of that the woman across the way, tried every way she could to scare of Buyers. She thought she would get it at a bargain if wife couldn't sell. Because of her wife probably lost 50-75,000.00.

Be careful regarding appraisals. You have to disclose the appraisal after it is completed and that can be problematic if the appraisal is low or prices rise rapidly. We had it happen and it was a pain