Is It Time To Keep Your Pie Hole Shut?????

By
Real Estate Sales Representative with Keller Williams Realty--Boerne Hill Country

So...I am just days away from closing on a piece of land for a client I have been working with for months and it comes time for the appraisal.  I got a frantic call from my buyer saying that the appraiser had concerns on whether the land would appraise for the price she paid for it.  "What?  You talked with the appraiser?  How did that happen?"  She went on to tell me that the lender told her what time he would be at the property so she went out to meet him there.  She also told me that he said that it was going to be REAL expensive to pull electricity on the property and gave his opinion on the 3 acre track next to the property...that she should have negotiated a "first right of refusal" on that track...even though it was not for sale. 

Oh my gosh!  I can sure appreciate his expertise...but is it right...ethical...good judgment...to give his opinion on a property he has no concrete facts on?  If you are an appraiser or know anything about this...I'd sure like to know what the guidelines are for giving out information to a buyer without having clear knowledge of the situation.

In my humble opinion...opinions need to be kept out of conversation until ALL facts have been gathered and summarized.  If the facts come back with those details...then it can be dealt with.  All that it's done now is make my buyer unsure about the deal she's made and maybe upset about something that has no basis in reality.

What say you appraisers and fellow Realtors???

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Rainer
7,505
Brad Baldwin
Stanfield Realtors, Inc. - Arlington, TX

I agree with your statement "opinions need to be kept out of conversation until ALL facts have been gathered and summarized".  You know what they say "Opinions are like, um, pie holes(?), everyone has one". 

Oct 01, 2010 04:06 AM #1
Rainmaker
939,864
Brigita McKelvie, Associate Broker
Cindy Stys Equestrian and Country Properties, Ltd. - Lehigh Valley, PA
The Broker with horse sense and no horsing around

Claire,

Unless the appraiser has facts, he should not put in his 2 cents worth and upset the deal.  He is also setting himself up for a lawsuit if the information is not backed by facts.  Hope all goes well with the settlement.

Brigita  

Oct 01, 2010 04:07 AM #2
Rainer
85,357
Claire Record
Keller Williams Realty--Boerne Hill Country - Boerne, TX

Thanks Brad and Cindy...  My knee jerk reaction was to call the lender and tattle...but didn't want to stir it up even more.  Don't get me wrong.  I want to protect my client from a bad situation.  The reality is...I checked comps before we made the offer and the price we offered was within the comps found in the last six months.  As for the electricity...we identified poles that would work for her and told her to contact the electric company for estimates.  Goodness...  It's opinions that really can mess things up. 

Oct 01, 2010 04:15 AM #3
Ambassador
896,190
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

I've come to realize that the most powerful tool that you could ever have is to keep your mouth shut.  I received a Master's Degree in Clinical Psychology.  It took me 2 years of a Master's Degree to keep my mouth shut!  Lot's of power with keeping your ears open!  Great post!

Oct 01, 2010 04:15 AM #4
Rainer
141,960
James Baxter Encinitas Realtor
Realty Place - Encinitas, CA

kinda sounds like a Realtor that could not make it as a Realtor and went off to become an appraiser.. (no facts to back that up.. just a guess)

This ranks right up there with the family member that is always offering their 2 cents.

Right there with you on this one!

 

 

Oct 01, 2010 04:22 AM #5
Rainer
85,357
Claire Record
Keller Williams Realty--Boerne Hill Country - Boerne, TX

Good reminder, Larry...  I am trying my hardest to keep my head on this one and gather all the info I can so I can guide my client the best way.

James...good observation.  Wouldn't doubt that it's true. 

Oct 01, 2010 04:28 AM #6
Rainer
122,753
Faina Reinhardt
HotRentalsNY.com - Manhattan, NY

I would be pretty upset and probably would have called the opinion giver and made him retract damaging statements.  So unprofessional.

Oct 01, 2010 04:37 AM #7
Rainer
85,357
Claire Record
Keller Williams Realty--Boerne Hill Country - Boerne, TX

Faina...I came so close to doing that...but then what kind of message am I sending to my client?  I emphasized to her that opinion is just that...opinion.  I encouraged her to wait to see the appraisal before she got too upset.  The damage control on this is getting kinda nutsy.  Again...if the appraisal does come back lower than what we paid...then we take it back to the sellers and re-negotiate the price. 

Oct 01, 2010 04:42 AM #8
Ambassador
1,553,816
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Wow....all kinds of thoughts running around here. First....what was the lender doing telling the buyer about a time with the appraiser, and I'm not sure why the lender would even know....they aren't supposed to talk to the appraiser anymore, right? Why didn't the appraiser contact you for the appointment. And.....yikes, just appraise the property and don't talk about things you shouldn't! Ugh....good luck, I'm sure it will work out, but too bad you have more work to do with the buyers.

Oct 01, 2010 04:42 AM #9
Rainmaker
487,245
TIM MONCRIEF
Tim Monciref - Austin, TX
Over 2,000 homes sold…..

I am not so sure who is worse, the appraiser or Larry.  I have never heard a post on AR where someone told a member to shut up.  Both would be blackballed in this town.

Oct 01, 2010 04:45 AM #10
Ambassador
1,337,161
Charles Buell
Charles Buell Inspections Inc. - Seattle, WA
Seattle Home Inspector

Claire, this is way out of my department so all I can do is comment on similar things that occur with inspectors.  We routinely see things on neighboring properties that can materially affect the property I am inspecting and then those things come into the conversation.  That said I would not want to get into areas of "speculation" about the neighbor's property----there would have to be real evidence.  Would love to hear from some appraisers on your question----sure seems fishy to me.

Oct 01, 2010 04:53 AM #11
Rainer
85,357
Claire Record
Keller Williams Realty--Boerne Hill Country - Boerne, TX

Tim...thanks for your input.  I don't think Larry was telling me to keep my mouth shut (Were you?)...but referring to the appraiser.  At least that's the way I took it.

Karen...I am just as surprised that the lender made the buyer aware of when the appraiser would be there.  I'd like to get that verified that the lender actually did that before I jump on that issue as well.   I thought the same thing on appraisers talking with realtors...I didn't think we had input any more on the comps in the area.  So...this is all a huge surprise to me. 

Charles...thanks for your input as well.  I was thinking that appraisers were held to the same standards as inspectors and weren't allowed to give their opinion on homes or land. 

Oct 01, 2010 05:25 AM #12
Rainmaker
159,191
Deborah "Dee Dee" Garvin
C2 Financial - San Diego, CA
C2 Financial

Claire,  First, blown away by the comment from Tim.  I didn't take Larry's comment like that at all!!!!!  I have read a lot of his posts and I don't see him as ever being rude.  Just sayin'...

I am going to agree with Karen....what in the world in the lender thinking to put appraiser and consumer together.  Isn't that what HVCC is supposed to prevent.  Needless to say someone should send the appraiser a zipper for a reminder......best of luck with the transaction.

Oct 01, 2010 06:49 AM #13
Rainmaker
3,365,385
Richard Weeks
Dallas, TX
REALTOR®, Broker

I don't think Tim read what Larry wrote.  Unfortunate the buyer was there and the appraiser made those statements.

Oct 01, 2010 06:49 AM #14
Rainer
85,357
Claire Record
Keller Williams Realty--Boerne Hill Country - Boerne, TX

Deborah...I still stumped on this entire thing...but once things are closed and done I will address all issues.  Btw...what is HVCC? 

Richard it is unfortunate that the buyer and appraiser got together.  None of us want to keep valuable information from our buyers...but let's all be sure that what information we are giving is factual and not opinion. 

Oct 01, 2010 06:55 AM #15
Rainmaker
1,007,568
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Claire and Tim:  I am SURE that Larry was referring to the appraiser... when he was said "keep your mouth shut."  I am sure he was NOT aiming that comment at another Active Rain member.  Calm down, kids.  Take a deep breath.  <smile>

Oct 01, 2010 09:31 AM #16
Rainmaker
1,007,568
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Claire:  My thought would be to NOT contact the lender or the appraiser until after the appraisal is made.  I would not want any conversation about the appraiser's conversation/suggestions with the buyer... to adversely affect the value of the appraiser.

Another thought I had... was that perhaps the appraiser was told by the lender that they did NOT want to lend money on that lot... or any lot.  Loans on land can be risky.  And, if the lender found it too risky, they might just reject it for some other reason... rather than say outright that they just didn't want to make the loan in the first place.

That is one of the thoughts that hit me.  But, bottom line, that appraiser has a definite case of VD.  Verbal Diarrhea.  He needs to have a sock stuffed in his mouth.  Way out of line in his conversation... although... the buyer DOES pay for the appraisal... so with that in mind... maybe the buyer was also asking questions of the appraiser... and perhaps even asking the appraiser if he/she thought that buying the lot was a good investment ? 

Just my thoughts, here. And... once the deal either is completed, or falls through, I would THEN talk to the lender... and make SURE that they came down really hard on the appraiser.  The lender needs to be made to feel "uneasy" as to your continued use of them... if this is an example of what could be expected on loans in the future.

Just kind of letting whatever comes rolling into my brain... get written down here.

Oct 01, 2010 09:42 AM #17
Rainer
166,665
Andy Chaudoir
Professional Inspection Services - Georgetown, Texas - Georgetown, TX
Your Home Inspection Connection in Central Texas

Hello Claire - I'm not an appraiser but I get asked my opinion all the time as an inspector.  I don't think inspectors or appraisers should give opinions.  I stay strictly with the facts....ma'am.

Oct 03, 2010 02:01 PM #18
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