There will be times when you'll get a hostile seller, Realtor, or other third party to a transaction who will become very defensive by saying the market value of the house is higher than what your appraisal comes in at for a pre-purchase appraisal; and lower than your market value estimate for a pre-listing for sale appraisal. You'll find that these types of people are all experts in everything, yet they have no facts or knowledge to back up their statements. Just don't be intimidated by anyone - not even the client. If you're knowledgeable enough, you'll have plenty of confidence. So don't let anyone "ruffle your feathers" while doing your appraisal reports.
You'll find that these types of people are all experts in everything, yet they have no facts or knowledge to back up their statements.
Once you learn this material well enough and you get 10 or so appraisals under your belt you'll start to get a lot more confidence. That's why you shouldn't let any know-it-all Realtors or other third party people try to contradict you on any of your appraisals. When I say know-it-all people, I'm talking about people involved in the transaction, other than your client.
You don't want to be arrogant or rude with your attitude. There will be times that you'll think you're right but you might find out later that you're wrong. You don't want to end up putting your foot in your mouth later. So just be confident, knowledgeable and honest. Don't imitate them by being a know-it-all yourself because two wrongs don't make a right. If that person is honest and sensible, they will realize that you are much more knowledgeable than they are. For example, lets say you're looking for good, comparable sales for the subject property that have sold within the last six months. Many times some Realtors and other third parties to the transaction will give you some comps to assist you in your report. After reviewing these comparables, you may feel that they aren't good enough to use in order to properly estimate market value for the subject property. You will want to look for some better comps yourself, or at least you have to try to find better sales to use in your report. You can't just take someone else's word that the comparables they give you are the only ales to use. After all, it's your neck that's on the line when you sign-off on that appraisal report!! This isn't uncommon and it happens all the time. Since the person giving you the sales comparables is not a State Certified Appraiser, then they don't know what you have to look for to properly evaluate the comparables you use in an appraisal report.
If this were the case, and you had a know-it-all person involved in the deal, they might say to you, "Well, I've been in the real estate business for 10 years now. I know this area like the back of my hand and these are the ONLY good comps you can use for that house." Just tell that person that if they want to guarantee to your client that these are the best comparable sales to use and if the market value estimate is inaccurate due to the sales comparables that they're giving you, then go ahead and put it in writing for my client. But don't expect me, the appraiser, to get stuck holding the bag in eight months after this guy buys the house or grants the loan and then finds out the estimate of market value was way off base! That type of comeback will usually put an end to any know-it-all's comments. Basically you're telling that person that if they know so much more about appraising than you do, then they should be willing to put their money where their mouth is. A know-it-all's reaction will be totally different when it's their neck and money that's on the line, as opposed to yours or your clients!
It's amazing to me when I come across Realtors who have taken a few basic classes related to aspects of real estate and - Abracadabra - they're instant experts in every aspect of real estate!!!!
It's amazing to me when I come across ignorant Realtors and other third parties who have taken a few basic classes related to some of the different aspects of real estate and - Abracadabra - they're instant experts in every aspect of real estate!! (Or at least they think they are.) They become legends in their own minds. They think that after they take a few real estate related classes and tests (that just about anyone with a pulse can pass), nd a few years of experience as a real estate agent, they instantly have more knowledge than: every home inspector, every real estate appraiser, every real estate investor, every real estate attorney, every home buyer and every seller. I don't know how they do it. They must be giving out some magical pills or secret potion at these classes!
You may also come across sellers that get hostile. Sellers can get hostile when you try to tell your client about some problem conditions and items that need to be repaired at the subject property. Don't let them ruffle your feathers. My first real estate attorney used to say that there are two things that you can't tell a man: One is: That his property is overpriced; The other is: ...(Well, I've decided that it wouldn't be appropriate for me to repeat the other item in this book. So I won't tell you. I'll just leave you in suspense.)