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Looking Bad in Good Company

By
Real Estate Agent with South Bay Brokers

So this morning I'm sitting there in a room full of fellow Realtors in our Manhattan Beach office conference room trying to keep up with this sharp, fast talking loan broker holding court about the ins and outs of present day loans. He says that generally most banks want a tremendous amount of documentation, need to see a years worth of mortgage payments in the bank and these days they pick appraisers from some list instead of local, more appropriate appraisers. Being the social animal that I am I chime in, these days appraisals are not a problem. That’s all I said. You could hear a pin drop for what seemed like several hours and the broker turns to me with this quizzical look. I’m terrified, something’s wrong! I look around to see an uncomfortable smile slowly forming on my fellow Realtor's faces and it's like the room is slowly slipping into the Twilight Zone…and I'm dying. A millennium later he says in an uncharacteristic slow cadence, n o , t h e s e d a y s a p p r a i s a l s a r e a r e a l p r o b l e m because appraisals are coming in too low. He didn’t get it. I'm mortified but I forge on in a daze, what I meant was as prices go up then...no I mean as prices go down and the appraisals take into account...Everyone starts cracking up, swooping in for the kill, yea Mori that's it...I'm proud to have Mori as my agent...how long have you been doing this? As self-protection I take on a cool Mori attitude, look around and say with a perplexed but confident expression, I must be still dreaming in bed and you guys aren't real, right? Polite, self-conscious laughter, and the broker moves on to the subject of contingent sales. Now, what I meant to say was that if prices are at one level and a house is sold at a much lower level, which is starting to happen, then an appraisal is no problem because the subject house is below market value and will appraise with no problem. So why didn’t I just say that?! Oh you cruel curve ball of life, why does thy sting leave a big red spot on my heart? I know this never happens to all you perfect people out there, but you guys also never get to write about it, like I just did.

Mori Biener, GRI, CRS

South Bay Brokers

Mr. Neighborhood of the South Bay

Show All Comments Sort:
Elizabeth Bolton
RE/MAX Destiny Real Estate Cambridge, MA - Cambridge, MA
Cambridge MA Realtor

Hi Mori,  Too funny!  It's true - it's one positive about a declining market - there is a stretch of time when the comps are easy to get because they're all for higher sales prices.  Gotta see the silver lining...

Liz

Jan 30, 2009 04:15 PM
Jen Olson
First Weber Group Realtors - Marshfield, WI

Hi Mori!

I feel for ya!  There is nothing worse than knowing exactly what you meant when you said something, and realizing that a room full of people heard you say it out loud, and had no idea what you really meant!  We've all been there, and your thoughts on appraisals are very true, by the way!  Sorry I wasn't there to help ya out!

Jan 30, 2009 04:28 PM
Kelly and Laura
Re/Max Estate Properties Palos Verdes - Redondo Beach, CA
Sisters SOLD on the South Bay

The Appraisal phase of the transaction is a good subject to discuss up front w/ sellers.  It helps bring up the fact that we are in a "declining" market (in case the seller doesn't know that already) and then can help w/ pricing the property properly up front. 

It is sad that the banks are bringing in what they refer to as the "listed" appraisers vs. the local appraisers.  It's like bringing in cousin June from Tim Buck Too vs. the competent local realtor.  No justice served.  Good luck, Mori! To us all!

Feb 01, 2009 02:08 AM