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BillDing

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Reply with quote  #1 

Appraisers are required to verify your comps (meaning, contact someone from the actual transaction to find out about the physical condition of the property and if anything affected the sale price, ie motivations, finance etc ). 
Here's another good reason

http://www.bostonherald.com/business/real_estate/2018/01/virtual_staging_sets_stage_for_misleading_house_listings


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Meatloaf

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Reply with quote  #2 
Here is the real problem.

Say a house is "virtually staged" and it appears to be much superior to its real self.  It sells for whatever.  The other agents use that listing and sale to make decisions on how to price their listings.

I would imagine that a "virtually staged" house would sit on the market for quite a while.

Its kinda like when a house is over GLA'd.  When an agent says the GLA is X but it is really Y.... Does it matter?  The market accepts X as truthful and other sales/listings are based on X rather than Y.

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nogava

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Reply with quote  #3 
Might as well Photoshop a pool or detached garage in the backyard too.  It's still a misrepresentation.

Have a buddy who had a run in with an agent recently who used a doctored front photo on her listing to show a future renovation.  Y'know, what the house COULD look like if painted & renovated.  No as-is photo anywhere.  He got there and the exterior was a pile of dog squeeze.  Nothing like the picture.

Hey, at least they're citing a source now for GLA.  But let's be honest, they're really just messing up our MLS photos.

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Meatloaf

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Reply with quote  #4 
They are shooting themselves in the foot.  ONce it sells, the appraiser will look at the picture and it will devalue anything it is used as a comp for.

What good does it do to call the agent... if they will lie about the photo they are going to lie about the condition as well.

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BillDing

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Reply with quote  #5 
Quote:
Originally Posted by Meatloaf
What good does it do to call the agent... if they will lie about the photo they are going to lie about the condition as well.

Call the selling agent.

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Meatloaf

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Quote:
Originally Posted by BillDing

Call the selling agent.


Here is the real problem.

You get on the phone with the selling agent and you are discussing the house and then you get off the phone and realize that the agent you were speaking with wasn't the right selling agent.... She was discussing a sale that she didn't make about a house that she may not have ever gone into all while believing she was being truthful.

They don't pull out the file to LOOK and verify nothing... They simply tell you what they remember and that may be accurate but might be about the wrong house.  You never know....

It usually starts like this... Oh... That house was immaculate... Totally re-done throughout... and you look at the listing and it says needs TLC and shows pictures of a crack-house.  You call the listing agent who says the same thing.  Yet, the MLS shows a house in average condition at best with a sale price 20% below where it should be.  Then you realize that neither one of them had any blooming idea which house they were talking about.

Agents don't remember houses like we do.... They remember people.  They remember the guy with the 7 kids or the gay couple or the fellow moving here from bangledesh.  They don't really pay attention to the details of the house all that much.  They send over a professional photographer and maybe a stager.

But they will always remember if the appraisal came in short and who did the appraisal....

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BillDing

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Reply with quote  #7 
I have not found that to be the case, Jody. You state their client's name, the address and the description of the house and they typically remember it.
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Meatloaf

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Quote:
Originally Posted by BillDing
I have not found that to be the case, Jody. You state their client's name, the address and the description of the house and they typically remember it.


Are you sure?

Hell, there is more than one agent that can't keep her current listings straight.

They all look basically the same, some have upgrades and some have fences and some have open foyers or two story dens.  The agent knows the house by lot number and the street address may or may not be accurate on the listing or the tax card.

My issue is that while it may appear that they "remember" the house you can generally guarantee that they didn't take the time to actually look it up in their files and if they are basing it off of memory is it or is it not reliable?

They generally have no idea that they are giving you information about a different house and once you get contradictory information from the MLS sheet you have no idea either and are then forced to accept and use what the agent verbally told you which may or may not contradict the MLS sheet.  Meanwhile, other agents, buyers, sellers, etc rely on the printed info whether it is correct or not and it becomes more relevant than whatever the truth may be.

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BillDing

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Reply with quote  #9 
One may confuse it with another house, but both listing and selling agent verification will show that.  And if they say something wacky like "it was completely updated" but the photos show a C4, then you say, no, I'm talking about the Smith's house with the green shag carpet that hasn't been updated in 20 years.
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Meatloaf

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Reply with quote  #10 
Quote:
Originally Posted by BillDing
One may confuse it with another house, but both listing and selling agent verification will show that.  And if they say something wacky like "it was completely updated" but the photos show a C4, then you say, no, I'm talking about the Smith's house with the green shag carpet that hasn't been updated in 20 years.


Works real great when the listing and selling agent are the same person.... and actually their assistant did all the work.

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BillDing

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Reply with quote  #11 
yep...in cases like that, it is best to pick another comp.  If you use it, disclose and weigh it appropriately.
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Meatloaf

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Reply with quote  #12 
Quote:
Originally Posted by BillDing
yep...in cases like that, it is best to pick another comp.  If you use it, disclose and weigh it appropriately.


Sure... use a less similar comp because the listing/selling agent are unreliable... Yet all the info you need is written on the MLS sheet.... Nevermind the fact that the listing agent has all the houses in the subdivision listed and 95% of the sales.

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BillDing

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Reply with quote  #13 
Is it really a good comp?  That's an extraordinary assumption.  Not only was the agent the agent for both sales, which in itself is suspect...they may be related to the buyer...or included a nice boat in the deal....or maybe the buyer and seller are related. Who knows...you certainly don't.
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Meatloaf

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Reply with quote  #14 
IN my area we have hundreds of agents.  About a couple dozen of them do a significant quantity of the work.  It is highly common for an agent to have both sides of the deal.
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PeterLake

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Reply with quote  #15 
I have never understood why hearsay has been made to be so important in this profession...

My experiences are similar to Meatloaf.  The agent, property owner or tenant on the other end of the phone references no documents or records, and speaks from memory.  Quite often, that conversation doesn't jive with what has been written into an official, recorded document such as a deed or tax return (in the case of income and expense verification).

In those cases, I tend to lean toward relying on the recorded documentation, rather than something somebody told me over the phone.
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Meatloaf

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Reply with quote  #16 
Yeah... Not saying I would ever try to do something fraudulent but if someone wanted to that could be their first line of defense....

Yes, Your honor... I know the listing said it was 3000 sf and recently remodeled but my conversation with the agent said it was only 2000 sf and needed a million dollars worth of work... I didn't mean to over-value the subject but I was just doing my duty to verify with a party to the transaction... Blah Blah Blah...

Like that person is ever going to remember.

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