Comments on: Builder Tricks Part 3! Independent Appraisals & Fiduciary Duty http://blog.franklyrealty.com/2007/08/builder-tricks-part-2-independent.html Fri, 27 Jan 2012 18:42:01 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: patty http://blog.franklyrealty.com/2007/08/builder-tricks-part-2-independent.html/comment-page-1#comment-4715 patty Fri, 15 Jul 2011 05:47:46 +0000 http://franktempblog.wordpress.com/2007/08/22/builder-tricks-part-3-independent-appraisals-fiduciary-duty/#comment-4715 I AGREE ON ALL COUNTS. not to mention they only post there hard to sell or built homes for over one year on MLS and then they do not put them all on the MLS which I believe is in violation of all bylaws and articles in the MLS association rules I AGREE ON ALL COUNTS. not to mention they only post there hard to sell or built homes for over one year on MLS and then they do not put them all on the MLS which I believe is in violation of all bylaws and articles in the MLS association rules

]]> By: FranklyRealty.com Trust Me I’m A REALTOR » Beware of Inflated Appraisals: 1st Major Lawsuit http://blog.franklyrealty.com/2007/08/builder-tricks-part-2-independent.html/comment-page-1#comment-3384 FranklyRealty.com Trust Me I’m A REALTOR » Beware of Inflated Appraisals: 1st Major Lawsuit Sun, 31 May 2009 04:38:11 +0000 http://franktempblog.wordpress.com/2007/08/22/builder-tricks-part-3-independent-appraisals-fiduciary-duty/#comment-3384 [...] first wrote on this topic of inflated appraisals: Builder Tricks Part 3! Independent Appraisals & Fiduciary Duty. I showed why builders try to require “in house lenders” that happen to have appraisers [...] [...] first wrote on this topic of inflated appraisals: Builder Tricks Part 3! Independent Appraisals & Fiduciary Duty. I showed why builders try to require “in house lenders” that happen to have appraisers [...]

]]> By: APELLA http://blog.franklyrealty.com/2007/08/builder-tricks-part-2-independent.html/comment-page-1#comment-2376 APELLA Sun, 26 Aug 2007 06:31:00 +0000 http://franktempblog.wordpress.com/2007/08/22/builder-tricks-part-3-independent-appraisals-fiduciary-duty/#comment-2376 It is very hard sometimes to explain a 50,000 dollar concession and when it is gave as an incentive to use the builder's lender, who a lot of the times is the builder, with that said, an appraiser has their work cut out for them. I always ask how much it really cost to build, also competing new developments need to be reviewed. Because it is very hard to compile the worth of a builder “add on” package an appraiser is almost required to compare the basics. <br/><br/>Whats funny is just Friday on CNBC I saw an interview where the person was stating the difficulty of getting an appraisal value to come in due to the appraisers being more conservative and that he was unclear if it was stemming from the lenders or the appraisers. <br/><br/>Bet a Georgia based builder wish they disclosed more and maybe more should watch that case closer. It is very hard sometimes to explain a 50,000 dollar concession and when it is gave as an incentive to use the builder’s lender, who a lot of the times is the builder, with that said, an appraiser has their work cut out for them. I always ask how much it really cost to build, also competing new developments need to be reviewed. Because it is very hard to compile the worth of a builder “add on” package an appraiser is almost required to compare the basics.

Whats funny is just Friday on CNBC I saw an interview where the person was stating the difficulty of getting an appraisal value to come in due to the appraisers being more conservative and that he was unclear if it was stemming from the lenders or the appraisers.

Bet a Georgia based builder wish they disclosed more and maybe more should watch that case closer.

]]> By: Jay -- Arlington Virginia Condos http://blog.franklyrealty.com/2007/08/builder-tricks-part-2-independent.html/comment-page-1#comment-2375 Jay -- Arlington Virginia Condos Thu, 23 Aug 2007 15:11:00 +0000 http://franktempblog.wordpress.com/2007/08/22/builder-tricks-part-3-independent-appraisals-fiduciary-duty/#comment-2375 Frank, great post as usual. I would also take any figures Builders give regarding # of units sold or left for sale with a grain of salt. At 1800 Wilson they told me they had 5 units left to sell implying that was the end of their inventory. Of course I realized soon that 5 was the amount of units they had left to sell because they were only referring to the 8 that were released originally(number pulled from hat). After those were sold they'd release more and only have several units left for purchasers to get in on if they hurried....Bait and switchy to say the least. Frank, great post as usual. I would also take any figures Builders give regarding # of units sold or left for sale with a grain of salt. At 1800 Wilson they told me they had 5 units left to sell implying that was the end of their inventory. Of course I realized soon that 5 was the amount of units they had left to sell because they were only referring to the 8 that were released originally(number pulled from hat). After those were sold they’d release more and only have several units left for purchasers to get in on if they hurried….Bait and switchy to say the least.

]]> By: jason http://blog.franklyrealty.com/2007/08/builder-tricks-part-2-independent.html/comment-page-1#comment-2374 jason Wed, 22 Aug 2007 20:33:00 +0000 http://franktempblog.wordpress.com/2007/08/22/builder-tricks-part-3-independent-appraisals-fiduciary-duty/#comment-2374 Great post! I am gonna share it with my own blog readers at jason.landbrokr.com ! Thanks. Great post! I am gonna share it with my own blog readers at jason.landbrokr.com ! Thanks.

]]> By: FRANK LL0SA Va Broker- BLOG.FranklyRealty.com http://blog.franklyrealty.com/2007/08/builder-tricks-part-2-independent.html/comment-page-1#comment-2373 FRANK LL0SA Va Broker- BLOG.FranklyRealty.com Wed, 22 Aug 2007 16:18:00 +0000 http://franktempblog.wordpress.com/2007/08/22/builder-tricks-part-3-independent-appraisals-fiduciary-duty/#comment-2373 <b>To all,</b><br/>If you do get an appraisal, try and get it <b>BEFORE they get an appraisal.</b> And ideally from somebody on their list of approved appraisers (ask another lender in that company). To all,
If you do get an appraisal, try and get it BEFORE they get an appraisal. And ideally from somebody on their list of approved appraisers (ask another lender in that company).

]]> By: Sara Goodwin - Portland, Oregon Appraiser: http://blog.franklyrealty.com/2007/08/builder-tricks-part-2-independent.html/comment-page-1#comment-2372 Sara Goodwin - Portland, Oregon Appraiser: Wed, 22 Aug 2007 14:59:00 +0000 http://franktempblog.wordpress.com/2007/08/22/builder-tricks-part-3-independent-appraisals-fiduciary-duty/#comment-2372 I love when builders would randomly jack the prices of pre-built homes in a development just because 'area prices had increased'. That's simply not going to fly in an honest appraisal that counts on historic sales data of the subject's development. <br/><br/>Friends of mine were about to purchase a home in a new development. The construction company kept adding unreasonable pricing for the house they were interested in until they finally backed out. The construction company simply shrugged it off and sold it to the next interested buyer. Perhaps (hopefully) that is a sign of the past with current inventory. <br/><br/>I like Mortgage Fraud Watchlist for news and reporting of fraudulent acts.<br/><br/>Great post... and welcome! I love when builders would randomly jack the prices of pre-built homes in a development just because ‘area prices had increased’. That’s simply not going to fly in an honest appraisal that counts on historic sales data of the subject’s development.

Friends of mine were about to purchase a home in a new development. The construction company kept adding unreasonable pricing for the house they were interested in until they finally backed out. The construction company simply shrugged it off and sold it to the next interested buyer. Perhaps (hopefully) that is a sign of the past with current inventory.

I like Mortgage Fraud Watchlist for news and reporting of fraudulent acts.

Great post… and welcome!

]]> By: D'Ann http://blog.franklyrealty.com/2007/08/builder-tricks-part-2-independent.html/comment-page-1#comment-2371 D'Ann Wed, 22 Aug 2007 12:39:00 +0000 http://franktempblog.wordpress.com/2007/08/22/builder-tricks-part-3-independent-appraisals-fiduciary-duty/#comment-2371 An interesting fact in our market...as of October 1st, new home sales reps in Maryland are required to be licensed agents. An inside source tells me that they are pushing a lot of ethics training on these salespeople during their pre-licensing courses and making it clear that they will be held to the same standards as other agents in the market...Interesting to see how this will all shake out.<br/><br/>One thing I know (having started my real estate career in New Home Sales), it can be difficult to comp a new property in a new neighborhood sometimes...There were many times where there were no comparable properties - the closest even close to new neighborhood was several miles away and the neighborhood we were building was surrounded by old homes. The first few homes in those neighborhoods were always a challenge to get independent appraisers (as well as the builder's preferred lender's appraisers) to appraise.<br/><br/>I always recommend to my clients who are considering new construction to get independant inspections and appraisals and to shop the loan they are offering you. Compare apples to apples on a GFE and make sure you are getting the best deal...separate of any incentives the builder is offered that are tied to using their lender.<br/><br/>D'Ann Faught<br/>EXIT Capitol Realty An interesting fact in our market…as of October 1st, new home sales reps in Maryland are required to be licensed agents. An inside source tells me that they are pushing a lot of ethics training on these salespeople during their pre-licensing courses and making it clear that they will be held to the same standards as other agents in the market…Interesting to see how this will all shake out.

One thing I know (having started my real estate career in New Home Sales), it can be difficult to comp a new property in a new neighborhood sometimes…There were many times where there were no comparable properties – the closest even close to new neighborhood was several miles away and the neighborhood we were building was surrounded by old homes. The first few homes in those neighborhoods were always a challenge to get independent appraisers (as well as the builder’s preferred lender’s appraisers) to appraise.

I always recommend to my clients who are considering new construction to get independant inspections and appraisals and to shop the loan they are offering you. Compare apples to apples on a GFE and make sure you are getting the best deal…separate of any incentives the builder is offered that are tied to using their lender.

D’Ann Faught
EXIT Capitol Realty

]]> By: Anonymous http://blog.franklyrealty.com/2007/08/builder-tricks-part-2-independent.html/comment-page-1#comment-2370 Anonymous Wed, 22 Aug 2007 05:21:00 +0000 http://franktempblog.wordpress.com/2007/08/22/builder-tricks-part-3-independent-appraisals-fiduciary-duty/#comment-2370 Frank. <br/><br/>It would, indeed, be helpful for a buyer to get an independent appraisal. <br/><br/>But, what is the buyer going to be able to do if the appraisal is below contract price??<br/><br/>What the consumer can do is limited with no financing contingency in new home contracts, getting a low appraisal isn't going to do much for the buyer except perhaps make them want to walk away. <br/><br/>Some builders might negotiate late into a contract.<br/><br/>I'm just wondering, from the perspective of most buyers, what is the benefit of a low appraisal?<br/><br/>Remember back in the good old days of 2004 when a new home appraisal would come in $100,000 above the contract price? That's over with. Frank.

It would, indeed, be helpful for a buyer to get an independent appraisal.

But, what is the buyer going to be able to do if the appraisal is below contract price??

What the consumer can do is limited with no financing contingency in new home contracts, getting a low appraisal isn’t going to do much for the buyer except perhaps make them want to walk away.

Some builders might negotiate late into a contract.

I’m just wondering, from the perspective of most buyers, what is the benefit of a low appraisal?

Remember back in the good old days of 2004 when a new home appraisal would come in $100,000 above the contract price? That’s over with.

]]> By: FRANK LL0SA Va Broker- BLOG.FranklyRealty.com http://blog.franklyrealty.com/2007/08/builder-tricks-part-2-independent.html/comment-page-1#comment-2369 FRANK LL0SA Va Broker- BLOG.FranklyRealty.com Wed, 22 Aug 2007 05:13:00 +0000 http://franktempblog.wordpress.com/2007/08/22/builder-tricks-part-3-independent-appraisals-fiduciary-duty/#comment-2369 Hey Nick,<br/>Yes buyers need to watch out for seller concessions and the reinvented (it was an old trick long ago) <b>"decorator allowances"</b>. Hey Nick,
Yes buyers need to watch out for seller concessions and the reinvented (it was an old trick long ago) “decorator allowances”.

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