I got a call from an appraiser yesterday to set up an appointment to do an appraisal one of my listings that just pended!
He said, "What would you do if you were called to appraise a property that had been on the market for over 6 months for $100,000, with no offers, and the purchase price of the offer is $110,000 with $10,000 going back to the buyer at closing?"
Before I tell you how I responded, think about the ramifications of this situation:
1) As an appraiser that relies on income from referrals from lenders, real estate agents, etc., do you try to make the person happy that sent you the referral (and he/she made it clear that they needed this value in order to do this loan) and knowing that if you don't........you may never make a dime off their business again? You stand to lose over $10,000 of business from this lender if you don't comply.
2) The buyer is your client and is the person that paid for the appraisal. The buyer knows what he/she paid for the property, thinks that he/she got a good deal, and wants the property to appraise so that he/she can close! After all, who are you to interfere with what a willing buyer and a willing seller agreed to in an open market? You will kill the deal for sure and have an upset buyer and a very upset seller as well if you don't comply.
3) You have been getting pressure from people who say that the foreclosure rates are going up and you need to be sure of your value and to look for situations that look "fishy".
Who is your allegiance to? What would YOU do?
I will update this later to tell you my response. I want to know YOUR thoughts first!
Lucky Lang :)
For info about Real Estate Anywhere in the World, please call:
Lucky Lang, SRES®, RFC, M.I.S.
Licensed in Florida & Iowa
Keller Williams Realty, 830 Bald Eagle Drive, Marco Island, FL 34145
Cell: (563) 676-9031
Don't let this great Real Estate buying opportunity pass you by!!!