The lender gets a call. Agent tells them that appraiser “X” just called to set up an appointment to do the appraisal for 123 Main St. That darn appraiser killed my last deal and if he is appraising this house, I will have my clients find another lender. I flat-out refuse to work with this appraiser.
Whether it’s the listing or buyer’s agent, who put this person in charge of the appraisal process? Does the banker have to listen to them and risk losing the loan? It depends.
What’s his motivation? To protect his client and do the best job he can; or to simply get a commission. Far too often the commission wins. Many could care less if the appraiser is honest. They think they have already figured out the value and they don’t need someone coming in and checking their math. They just want an appraiser who understands their job, which is their mind is to bring the appraisal in at the contract price. The agents have already set the value and no appraiser knows better than they do about the current market.
This is happening all across the country and is getting out of control. How much power does a Realtor® have over the appraisal process? Apparently, they have decided they know best and are taking charge.
Then there’s the MLS. That’s a whole different set of problems that keeps getting worse. Puffery and flat out exaggerations (lies) are filling the MLS. Anything to get a sale and get paid. And, square footage being correct is getting worse in more and more places. Most agents aren’t going to measure a house, or pay to have it measured. They are leaning towards using tax records and figure it’s close enough. Reality is – It IS NOT!
If appraisers don’t help protect buyers, lenders and mortgage investors, and keep doing their job the best way they can, with fair and honest values, many of these rogue agents will say anything to get a deal done. Consumer protection is going backwards at an alarming rate and no one seems to be looking at agents and the MLS. Why is that? Reform needs to make a beeline for Realtors® and the MLS!
