Buyer in Watercolor

[Smiling JOe]

...eventually those bailouts will be looking for those people that didn't actually buy into the crap that your industry was selling and actually have some money in the bank for the day a purchase of property actually makes sense beyond speculation... maybe to live in!

"my" industry was selling real estate. You can call it crap if it makes you feel better, but I think of it as being something contrary to crap. If you have complaints with the lenders and appraisers, that is one thing, but I'm tired of being lumped into the group of people pushing crap. When you make blanket statements, you affect many people who were not involved in schemes of any sort. You do make the distinction of saying, "if you fed the frenzy your part of it..." but many people will read right past that, thinking that everyone involved in real estate is an evil person who is out to con people over. I can name many Realtors in our area who are good, trustworthy, honest, hard-working people, whom you would be proud to know and call your friend. You can find crooks and fraud in every industry which exists -- real estate just happens to be at the forefront of the National press right now.

Sorry for the rant, but that needed to be said.

 

[Busta Hustle]

this thread is starting to remind me of on old george Burns saying that went something like...what people want is sincerity, and if you can fake that you've got it made.

 

[scooterbug44]

to borrow a phrase from the early 1900's which might be called the buyer's lament: "In 04-05 we trusted in 07-08 we busted."

 

[Mango]

Appraisers were nothing but the market's Biyatches according to their testimony before the Senate Banking Committee in June 2007:


http://banking.senate.gov/_files/hummel1.pdf

.

First of all, Shumer is on the committee that this was presented to and he is on a bent against WAMU for what he claims is appraisal steerage from a couple of e-mails of so called evidence. Secondly, in Hummel's testimony he states loan officers signed ordered and signed off on loan decisions, but Brokers made up 71% of the industry that pressured appraisers???? (Tells you something about his statistics)
Mortgage brokers do order the appraisal from Bank approved lists, but NEVER has any sign off ability of any type, the underwriter at the Bank does. This guy sounds like a girly man, I'm sorry. Boo hoo, someone told me they wouldn't send me business if they didn't get the value. The appraisers I have done business would never violate their code of ethics and standards of practice. I'm not saying there weren't guys like this, but if you weren't one of them, get a backbone already.
The only idea that Hummel presented that made any sense was enacting Federal regulations regarding intimadation and coercian.

 

[scooterbug44]

IMO a sale is a sale is a sale. I don't care WHY they had to sell it, or the method of selling, it is still a sale. All the different conditions and variables just sound like fuzzy math to me!

 

[Smiling JOe]

IMO a sale is a sale is a sale. I don't care WHY they had to sell it, or the method of selling, it is still a sale. All the different conditions and variables just sound like fuzzy math to me!

Scooter, you make a point, but an Appraiser has other standards to which they must adhere, and they are the ones who do the appraisals. An appraiser might reply to your idea of a sale is a sale is a sale, with the following thought to ponder. What if a mother wanted to sell a property to her loving son, at a discounted price. She bought the Gulf front property in 1970 for $30,000 and now similar properties sell at $3million, but because she loves her son and doesn't need the money, she agrees to sell it to him for $1 million, making a ton of profit, and getting her son a heck of a buy. Should this sale, which is non-arms' length, be used as a comp for an appraisal?

 

[scooterbug44]

Yes, it should be factored in and I should be given the son's phone number .

I realize that an appraiser must take into account many variables and shouldn't use anomalies. My point was that if you pick and choose your data to reflect what you think it should be you won't get a true comparable either.

 

[Bobby J]

I always understood from RE training that the value of a piece of property is created by what a buyer is willing to pay. The appraiser is hired by the bank to determine if the contracted price is valid. The value is set by the buyer. An appraisal is simply the process of creating an opinion about value by the use of accepted practices.

 

[Smiling JOe]

That is the way that I understand it, too. The appraiser is calculating the "appraised" value of the property. The subjective nature of appraisals is the reason why you will typically get three different values for one property, if you hire three different appraisers.

 

[steyou]

Therefore,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,318 sq ft in Watercolor is a comp because that is what someone offered and that is what the Seller accepted. If the builder was attempting to reduce his inventory, that's great. All of Walton County is attempting to do that. Should we wait until our inventory is substaintially reduced to start calling these transactions comps because they are selling for under what they used to? This is liken to, but maybe not as bad, Nortel stock selling at $89 per share and a few months later I picked it up at .64 per share. It is reality.