The Daily Ramble: Can the broker who meets you bring you comps?
The following question was posted on an appraisal board www.appraiserswatercooler.com This has always been a controversial issue, even more so today with the HVCC (Home Valuation Code of Conduct) a dubious and poorly thought out set of rules.
i am going to repost the question that the appraiser posed and my answer. I am sure some will disagree but so be it!
From the appraiser:
I was told by a broker yesterday, that their office told them that they were prohibited in bringing comps to the appraiser to a house that they were selling when they were meeting the appraiser who was doing the appraisal for the sale, due to the new home valuation code of conducts.
I told the broker what I tell all realtors who offer to bring me comps. I have the MLS, but if there is anything about any of the particular comps like layout problems, or condition that they thought I should know, by all means give it to me, but I do my own research and will ultimately use whatever comps I think are best.
I told her that as far as I knew, brokers were free to bring any appraiser any comps that they want, and the appraiser will still do his/her own research, and reach their own valuation conclusions. Am I wrong?
My response:
The broker who said that to you is absolutely dead wrong in my opinion. I know HVCC rules the roost today, (as FIRREA did in my day), but in my humble opinion it simply does not apply to my fiduciary obligations under Section 443 of the New York State Real Property Law.
You are of course correct in stating whatever information you are given by a broker, you are responsible for determining what goes into your appraisal, and insuring that you have satisfied yourself of the accuracy of the information. The point about additional information that the listing may lack, but the broker is aware of is also correct. MLS listings are good as far as they go, but certainly they do not convey the whole story about a property.
My perspective is that regardless if I am representing the buyer or seller, by the time the appraiser shows up essentially both parties are on the same page; get the deal done! Many times, especially with coops, even if I represent the seller, I try and be the broker that meets the appraiser. This is simply because since I was one for so many years I understand the challenges that appraisers face, and by providing annotated MLS sale sheets with more information about the property, I am in fact representing my client. Since under NY law I am always obligated to represent my client, I am comfortable in providing the information. Obviously the appraiser should take the steps necessary to verify what I provide, but since with HVCC so many appraisers come here who do not know the area, I feel that I have the obligation to educate them.
I have been doing this for years with no problems, except for one appraiser sent by the bank-owned “independent” AMC. All the rest understand.
In my view any broker that does not provide this information is not representing their client adequately. As long as the provided data is accurate, why not provide it and facilitate the process? Ultimately it is the appraisers’ call. Use it or throw it in the garbage. But I have done my job!
comments??
