Email Elizabethsacramento appraisers
Why Agents Might Not Cooperate With Sacramento Appraisers
Well, Sacramento appraisers are not gonna like this blog, I can tell you, but I think agents will find it interesting. Let’s say, for example, that there are two different listing agents at Lyon Real Estate. Both of these agents list identical condos. Same square footage, same type of location, similar amenities, and identical sales price. The first condo sells at list price. Shortly after that condo status changes to pending, the second condo comes on the market and that seller goes pending in 3 days. We later discover it went pending at a lower price than the first condo. I know, sounds strange and peculiar that the seller accepted a lower price. Especially after only 3 days on the market.
In any case, fast forward to the first condo is getting ready to close escrow. The appraiser goes over to appraise that sale. The appraiser then calls the other Lyon agent and asks this agent to disclose confidential information about the pending sale. The second Lyon agent, not thinking probably, blurts out the condo sold for less than list price. Shares the exact price. Due to limited inventory, the appraiser uses this pending sale as a comp and discounts the appraisal for the first condo seller. Yup, one could reasonably conclude that the appraisal came in low because a Lyon agent blabbed.
Two condos. Same company. Lyon Real Estate is a huge company in Sacramento. 17 offices and almost 1,000 agents. The likelihood of this scenario happening is very high. So likely that it did happen.
Let’s just say I am not that second agent. For one thing, I would suggest to a seller that she counter a lower offer like that. Especially when the condos sell so quickly in a hot market. But I’m not privy to that second contract or transaction so I have no idea, really, what went down. Do not mean to point fingers.
But I do know this situation has opened my eyes. Especially concerning dual representation of more than one seller. From now on, helping out Sacramento appraisers by providing more information than they are really entitled to know could be a very bad move. I suppose I could ask Sacramento appraisers if their transaction involved a Lyon agent on either the selling or buying side and then refuse to disclose. But it seems to make more sense not to disclose any confidential information that could affect a sale or harm other parties.
Sacramento appraisers can find everything they need to know in MLS and at the County Recorder’s Office. Good risk management says it’s wise to limited exposure to potential lawsuits.
Sacramento Appraisers and Lockbox Keys or Lack Thereof
Sacramento appraisers without a lockbox key are at a disadvantage.
Sacramento appraisers who do not belong to our MetroList are somewhat like the real estate agents from the Bay area who want to represent buyers in Sacramento, yet also don’t have a lockbox key. Without a lockbox key, aka display key, a professional cannot access the common Sacramento Supra lockbox and open it. That puts them at the mercy of the Sacramento listing agent whom, regardless of her affinity to assist, is not required to cooperate.
In many instances, however, it is in the best interests of the seller for the Sacramento listing agent to help out. Since a Realtor is required to put the interests of her seller above her own, there could be some pressure for the agent to arrange for access to the home. The problem becomes more complex if the out-of-area agent without a lockbox key writes a purchase offer because that agent, believe it or not, is not entitled to a commission if she does not belong to our MLS.
The situation becomes who will give access to all of the home inspectors? Who will be present for the final walk-through? Who will show up to assist the buyer? Does the out-of-area agent have an understanding of how purchase offers are written in Sacramento or local customs?
It doesn’t mean the listing agent can’t pay a commission, though. We do it all of the time. There is little reason not to cooperate with a Bay Area agent, although we might say, if the tables were turned, we would NOT go to San Francisco, for example. We would refer the buyer to a specialist there. There is no quid quo pro. It also doesn’t mean the listing agent can’t help Sacramento appraisers do their job, even if the appraiser is not equipped for business like all of the other local Sacramento appraisers.
I will generally try to find a way to help out an appraiser without a lockbox key. I realize it is hard to make a living as an appraiser these days, being plucked from a random pool of appraisers, forced to accept discounted fees because the management company has its fingers into the fees. Although I have been known to call the lender and request a new appraiser when the appraiser is from out of the area, does not know the neighborhood, and is unusually demanding, on top of not having a lockbox key. I’d rather keep our appraisals local.
One of our Sacramento appraisers called me a few days ago to appraise a home in Elk Grove. We arranged an appointment with the tenant who, at the last minute, had to leave the house. Well, the appraiser could use the lockbox. No biggie. Except her key had died; she forgot to charge it. It was OK, she said, she could come back the following day.
The next day, she removed the key from the lockbox and by accident dropped the key in the grass. Oh, I’ve been there and done that. This is when you need one of those metal detectors you see old guys in sandals and socks on the beach using. Where are you gonna find one of those? She searched for 45 minutes and could not find the key.
It just means she didn’t look where the key was. Keys don’t evaporate into thin air. This poor appraiser was beside herself. It has never happened before. She was losing 2 for 2 on getting into this home in Elk Grove. I called the tenant, but the tenant was far away. The seller had given me her key, so she did not have an extra key; regardless, I checked anyway. Just as I was about to jump into my car and drive over to paw through the lawn with her, the appraiser found the key!
Tips for Sacramento Realtors Who Meet With the Appraiser
Sacramento Realtors who meet with the appraiser are often disillusioned.
It only gets better from here on out, so here goes my first tip for Sacramento Realtors who meet with the appraiser: DON’T. The appraiser does not want to meet with the listing agent and most certainly is not interested in the buyer’s agent’s opinion about world politics, either. The appraiser is at the home to do a job that is best done without a yakking agent bending her or his ear. They’re just too polite to say it.
This is not to say that appraisers don’t appreciate information about the home that might not be evident from the tax rolls, MLS description or physical inspection because they do. If an agent or seller has access to crucial data that would make a difference in the appraisal, that information can be emailed to the appraiser or discussed over the phone. It won’t help to increase chances of a higher appraisal to deliver that document in person. I often engage in lengthy phone conversations with appraisers to ascertain their expertise in a given neighborhood and lend my advice but I would not show up on the front steps, back against the front door, arms splayed, to force a discussion.
Now, when I was younger and selling real estate in Orange County in the 1970s, I used to believe the hoopla and myth that it made sense to meet the appraiser. But those bellbottom-and-incense days are long gone and did not involve the appraisals laws we have today. Although I did spot bellbottoms with a twist, skinny thighs, at Nordstrom this spring. I won’t go so far as to say triple martinis and 3-hour lunches were not the norm or that some appraisers were crooked or on the take, but stuff was more relaxed during the Nixon-Ford-Carter era, let’s say. Yet, especially in Sacramento today, Sacramento Realtors who meet with the appraiser are often very disappointed that exuding their incredible charm, and that hand shaking, eyeballing and flitting about does not influence the appraisal value.
To give you an idea about how misled some agents are, there are buyer’s agents in Sacramento who believe it’s a good idea to send over to the listing agent the comparable sales, as they see it, along with a purchase offer. They have no clue how insulting they are, and what a bad impression they make. These are the guys who live in their own little fantasy drama where the world revolves around them and them only. The additional problem is they probably convinced their poor buyer to offer a price that won’t get them into escrow. And there’s often no changing those dual errors.
In real estate, there is stuff you hear that if it’s repeated enough times you might begin to believe. Then, there is the real world. The real world says Sacramento Realtors who meet with the appraiser are often wasting their time and, in fact, knowing some of them, they could be hurting their chances. Treating appraisers with respect is a much better path to follow. Allow the appraisers do their jobs in peace. Don’t invite trouble where trouble does not exist.
