I have Received COMMENTS on my Confessions Of a Realtors – Appraisal Video
The Reader / Viewer Comments are in
Blue and My Response is in
Black. I assume This Commenter to be an Appraiser.
Realtors can insist that their boards enforce complete, correct MLS disclosure. Appraisals should be reviewed more often. Review appraisers can & do research what the appraiser had available,& will interview parties well after the fact, as a diligent appraiser should do in the first place. If enough appraisers called brokers with questions then I am confident office policy would enforce proper disclosure in the first place for the brokerage's agents. When it is the broker's time, it matters.Realtors won't police for accuracy, they won't listen to Ideas to do such. They don't believe it is a problem. Saying
“Realtors can insist that their boards enforce complete, correct MLS disclosure.” Is a Lofty idea, yes Realtors can insist, the can disclose, they can be honest and enter correct data, however the Honest Realtors are NOT running the show – they don’t have as much money, clout or authority within the local MLS, Association of Realtors. So “Insisting” is Futile, at best.
Realtors, yes can Insist that their board do things to make it better but C’mon those who work at the MLS, even the top level don’t make as much as the Realtor and if the Realtor is also buying and Selling home of their own that the “Value” is dependent on Data the MLS can Provide than Forget it. They like the system just the way it is.
I called the MLS about a Data Error one of my agents made so that it could be changed and made accurate, their Solution – Fine Me – the Broker owner asking for Help.
Yes
“Appraisals should be reviewed more often.” However, what good will this do if the data that they use to create the Appraisal is NOT reviewed, audited or Checked for Accuracy in ANY way?
As a Broker Owner, I can Tell you Office Policy CANNOT enforce ANYTHING, the Realtors Code of Ethics Cannot Enforce anything. And sad but very true the laws have a VERY hard time enforcing these things. It is about he who has the most money, the biggest lawyer or franchise behind them – they win, Laws – Policies – Rules are Irrelevant in the Real World of Real Estate.
Brokers DO NOT care what their agents Do until the Lawsuit comes – then they call the E and O insurance Provider and the Insurance Company attorney Fights and Speaks for them and the Real Estate Consumer Loses.
Next Comment by Reader / Viewer
You're astute in saying Realtors don't police the listings for accuracy or even completeness. These inactions critically affect the consumer--think of the money NAR spends on TV to look like the public's most trustworthy ally.
I take your points to mean that when these inadequately disclosed (by agent) or researched (by appraiser) occur in large numbers, then the whole database of market activity--both the MLS and the public record--are corrupted.
Yes NAR wants the Public, NEEDS the Public to trust them. They Use Money with ads and other media to convince Real Estate Consumers that a member of the National Association of Realtors “Knows More” – Can Protect you Better and is Essential to A successful Real Estate Transaction. But it is NOT True.
A real estate agent who, well is just an agent and not a member can be just at Knowledgeable, just as Honest, and do just as much “work” for the Consumer.
One of the Big Difference is that the Member (Realtor) is NOT held accountable for “Indiscretions” – While the Non-Member has Less Protection and is Held Accountable.
I QUIT the NAR at the Beginning of 2008 for some of these reason as well as the NAR provides No Consumer Protection in Real Estate and in Fact makes it impossible for the Consumer to be treated fairly, justly compensated, and to have a Fair and Honest Real Estate Transaction.
A Member of the National Association of Realtors is NOT any more Trustworthy than ANY real estate agent, seller or buyer. You CAN never automatically Assume that a Realtor is Trustworthy because the National Association of Realtors Says So. They Do nothing to Make Sure.
There are Good People and there are Bad people and the Realtor Badge does NOT magically change that.
The NAR have made NO Real Efforts to Really Police their own Members to ensure that they are “Trust Worthy” – they simply say the words and put the money to ads brainwashing Real Estate Consumers INSTEAD of money spent on Audits, Checking Data, Enforcing Ethics and Making Sure their Members are doing right by the Public as much as they Possible Can.
Sure there will still be those bad ones who get away with stuff but the way it is today, Realtors are invincible. They make very BIG money with very LITTLE work and if and when they do something WRONG they are simply NOT held accountable.
The times I did reach out to the Local Board of Realtors, MLS for help they simply turn away, pass it off to “get an attorney” or make a complaint which they won’t enforce.
I bet if an Auditor went through 10 years of complaint at any MLS board they would find that the Realtor was guilty and should not have been allowed to keep hurting consumers. Then again, MOST people in a community are Afraid to go up against REALTORS because they have More Money.
ONE Week.
I went to School for ONE week to be a Real Estate Broker Owner to join the “Realtor Club” I simply PAID the money required, READ the Oath with my hand over my Heart and then the Real Estate Consumer – The NAR Gave Me the Keys to the Kingdom.
With No Legal Training, No Contract Law Training, No Basics in Engineering to know if a house will fall down and harm my clients, no management training, no accounting training, no bookkeeping training, no appraisal or home valuing basics, no how to read a title report, no training on what Red Flags to look for to help your consumer, no training on how to fill out a Buy Sell agreement or a Listing Agreement I jumped right in to helping Real Estate Consumers make the Biggest Financial Decision of their life and into being a very BIG part in Creating Value on Homes in ALL the areas I am licensed in.
The Only Training Required was a Week Long School to Learn how to pass a 3 hour test.
The Internet…
With the Internet, there is NOT one Reason ANYONE anywhere NEEDS a Member of the National Association of Realtors to Sell Real Estate and IN FACT, it can Do MORE harm then good to Use a “Realtor” in your Real Estate Transaction.
Yes – the WHOLE data base is Corrupt
A Large Database that Has Absolutely No System in Place for Quality Control is bound to Have Corrupt Data, it is inevitable.
There is No “policing of MLS Data”. And this Data Creates the Entire Basis for Real Estate Values, Loans, Mortgages and eventually secondary Mortgage Markets. It is the Foundation of our Economy, it is Where We Live, Where we Eat, Where we Invest and Where we Work. Real Estate is the Base for Our Economy and Realtors have it ALL screwed up, but seem to Not even Be considered as part of the Problem but instead as Part of the Solution.
“….both the MLS and the public record--are corrupted.”
Also a Note to the Above comment, The MLS is NOT “Public Data” - the Realtors Fight Hard to Keep it their data and to Keep the Public Out.
WHY?
The Difference between “Public” and “Realtor” is simply MONEY paid to join the Club. The Data is made up of the Public, the Real Estate Consumers “Data” on Solds – but the Giant Powerful “NAR” Says it is Their Data Created By Years of “hard work” by THEIR members and should NOT be Public Domain for ANY reason…. Stay Out.
Keeping in mind, of course that the VERY hard work over years to a lifetime of the Real Estate Consumer is what really Paid for the Real Estate and is What REALLY created the Data that the Realtors NOW Claim to Be their Own. And the VERY little work over a week or a few months is what hand the Realtor had in it YET the National and Local Association of Realtor Boards Claims this SOLD Data to Be theirs and They want YOU to Stay OUT, unless of Course you Become a “Realtor”.
What if a FSBO could use the Sold data in their area? What if the Borrower could use the data themselves to prove the value of their home? Well it be more accurate information to the Lender loaning the money, easier for the buyer and the Seller but Hey Wait, it would Cut out the “Realtor Member” – the Appraiser – and the Mortgage Broker.. Great This would Make the Consumer Win for a Change.
Really Ask this Question. How DARE the “Realtors” take My SOLD price from my home that I accepted from a Buyer, and I Paid them Really Big bucks to Sell and then Hold it Ransom, Keep it from Me – the Real Estate Consumer. How Dare They.
It was not to long ago that our local board, Association of Realtors, changed the ability for regular offices and NOT special staff to have the ability to change SOLD data months and even years later. As if they saw an error and changed it, not true.
Most of the time the data was changed to Make a Comp with a Current Listing, Project or Real Estate of Their own look like it was worth more.
Now, to change the Data you have to submit a change request, I suppose a letter of why would be all that was needed, but you may need to have proof such as a buy-sell signed, which can be forged easily by tracing the buyer and sellers signature. There is ways to Still Get the MLS to change the Data to suit your needs or the Realtors just think ahead and make sure it goes into the MLS database the way “they” need it to for Future Real Estate Dealings, Listings, SOLDS, or Loans.
Appraiser Interviews
Yes Appraisers do Interviews, and Yes it takes up Brokers time. I don’t really like doing the Appraiser's job for them. I have even went out and took photos for them to make a deal go. They ask questions about square footage, and quite a few little things but they Don’t ask what the commission was and you CANNOT tell what the commission was from the Regular SOLD Data.
Also appraisers Don’t take into effect or even know if a house is “habitable” and they oftentimes draw the rooms wrong
Next Comment from Reader / Viewer
“One sale does not a market make. An appraiser, who is an expert in the local market, should be able to spot that this one sale was an anomaly and that it does not meet the definition of market value (in this case the buyer was not "acting prudently" but emotionally).If all sales are found on the MLS then the effect of the commission is treated and it need not be backed out. “Personal property or cash concessions included in the sale should be disclosed in the MLS.
ONE sale DOES make a market. I have seen situation where an appraiser can find a sale that they can force to fit the specs required for this particular "job" but really is a stretch, however if they have a just ONE good Comp, that really Nails it Then they -Yes Create a False market with One Comparable. This comparable can easily be a buddy buying and money changing hands in the shadow just to create a comp, it can be a comp created by a Realtor (Mistakenly) entering the Wrong Sold Price, or Selling a Home in your Market Parameters or subdivision for Above Market – giving a kick back and yet the MLS data is taken as the SOLD price equaling the value. One good comp can make several BAD comps look relevant. ~
“If all sales are found on the MLS then the effect of the commission is treated and it need not be backed out."
I find this Shocking for some reason. What it says to me is that appraisers feel that if ALL the Comps were found on the MLS then the Appraiser can Somehow Assume the Commission and that the Commission is somehow irrelevant.
If the appraiser assumes that ALL commissions are the Same then the Appraiser is Assuming that Realtors Violate Anti-Trust Laws Every Day.
The Association of Realtors Wants to Convince the Public that All of Us Broker Owners “Independantly” decide commission on a One to One Basis, negotiated by Office Policy and Our individualt negotiations with Sellers. ( Not True but Never the Less the NAR pretends it is to Back of the Department of Justice)
Or maybe the Appraiser “Assumes” that the SOC (Selling office Percentage) is Exactly half of the Commission Charged by the Listing Realtor. Because the MLS data I am Familiar with only says the SOC and Not the Listing Commission. And the Listing Office Commission is “Variable” Right?
Does the Appraiser Call the Listing Broker and Ask the Commission? If So do they look at the Signed Listing Agreement and Prove that they are telling “the Truth”?
Does the Appraiser look at All Settlement Statements to See what really has been Paid to the Real Estate Brokerage, the Attorney, the Water Rights, Personaly Property included and its value, Seller’s Contributions, Any Fees the Seller is Paying to the Buyer, ANY Bonues the Agent Received or ANY other Monies Paid for ANY other Reason that Might effect the Value of the Real Estate or Somehow create a SOLD price that is Not Quite accurate.
Does the Appraiser Assume that this is ALL standard and the Same Price for Each Deal and there for irrelevant?
The Truth Is… That there is Sellers Bonuses to Realtors, that are advertised to Realtors and in the Remarks in the MLS (most of the time) and they are Included in the SOLD Price. The Seller Pays the Bonus Out of the SOLD price and this 5, 10, 20 thousand dollar bonus and quite often even more Does effect the “Perceived” Real Estate Value.
To Me there is No Possible Way to Get a Real Value with the MLS Data that is Currently in Use. And Remember Folks, Appraisals are Opinions. Opinions that Banks, Lenders Trust to Value Real Estate Across Our Entire Economy.
“Personal property or cash concessions included in the sale should be disclosed in the MLS.”
This Statement… Should Says it all. It is NOT included, but yes It Should be, Good Luck Enforcing that One.
Thank You for Your Comments I do Appreciate the Input.
My Opinions are VERY strong, and are based on what I have Personally Witnessed as a Real Estate Broker Owner – Ex. Realtor.
My Point is these Things Can and Do Happen.
And Real Estate Value has been Falsely Climbing EVERYDAY
the past 8 years I have been a Real Estate Broker.
Crystal Cox, Real Estate Whistleblower
Note to This Post
Buyers Agents use agreements, Buyers Broker Agreements, to Strong Arm Sellers, if the buyers agent does find a FSBO, as they say the can – will and if the Seller finds it the BUYERS agent still demands they get paid, then this is put into the MLS, is this an Arms Length transaction? This goes into the MLS as a FSBO found by a Buyers agent for a seller, will it be used by an appraiser as a Comp? YOU bet it Will… arms length will not come into play if this Comp is Really Needed.
