Zillow Instant offers: What you need to know with regard to Appraisals. Appraiser's use and need FMLS/MLS Realtor based sales. We are discouraged from using Private party or investor sales by Lenders and Fannie MAE for very GOOD reasons
1. We cannot determine quality and condition of the sales from private party sales.
2. We do not know the seller concessions involved with private party sales.
3. We do not know if there were special circumstances of the sale or special stips involved.
We MUST have this in order to properly evaluate whether these sales are truly comparable and if we need to make any adjustments for SPECIAL circumstances or seller concessions, etc. This is required in order to complete a USPAP compliant report.
SO PLEASE TELL YOU SELLERS, THEY ARE ARE NOT ONLY HURTING OTHERS IF THEY ACCEPT PRIVATE PARTY OFFERS, THEY WILL HURT THEMSELVES THE NEXT TIME THEY NEED AN APPRAISAL ON THEIR HOME, BECAUSE IF THERE IS A LACK OF SALES TO REVIEW DUE TO MANY PRIVATE PARTY SALES, THEIR VALUES COULD BE NEGATIVELY IMPACTED.....NOT TO MENTION THE FACT THAT THEY WILL LIKELY GET LESS FOR THEIR HOMES VIA THE ZILLOW ROUTE.