Can you check comps for me? I don't want to waste my borrower's time or money!

How many times have we ALL received that call from an out of town lender or broker that's either shopping for a value or MAYBE (I'll give them the benefit of the doubt) just in need of a little help on qualifying a borrower?

Stuart Fearer SRA of Tamarac, Fl (electronicappraisers.com) gets lots of those calls too, but rather than just blow them off, he's taken the approach of EDUCATING the callers on how they can get the information they need more efficiently:

"Any time you can get the requester to perform the comp check themselves, (ie; sending them to Fastweb, the County Assessors web site or zillow.com and tell them to print the comps from the screen after the zestimate) you avoid any appearance of wrongdoing or USPAP violation. I usually "sell" them on this by pointing out that they can get instant gratification instead of calling up a bunch of reluctant appraisers."

"I point out the time they save on this and all future requests and how they will be "empowered" by pulling up their own comps. Then I tell them to call me if it's in the range of the comps to place the order or even if it is close. I have actually gotten orders from doing this."

Click below to read Stuart's "Zillow Comp Check Instruction" email . . .

Dear Lender;

I am acknowledging your request for what I believe is a range of sales that is RELEVANT to the property listed above.

I am proposing a solution that, if taken seriously, can get you immediate results possibly or, failing that, put you on the track to a fairly rapid solution to your problem, not just for this one borrower but for all of them.

Why call appraiser after appraiser until you find one willing to do a comp search and then wait for him or her to find time to perform it for you when you can do it yourself INSTANTLY?

I possess the SRA designation from the Appraisal Institute and have 20 years of experience in appraising as well as almost 45 years in real estate. I advise you to print a copy of this e-mail for future use first.

If you are extremely busy when you read this, wait till you have a spare moment, maybe at home tonight. 

1. Go to zillow.com and enter the address. If you get a hit, then put your cursor on the little property house symbol for your subject. At this point you may want to click on and print the link that says “home details” so you have a point of reference for your comps.  Next look for “view comparable homes” and click on it. (Most people just look at the value displayed there for the subject and stop there. This is usually a big mistake.)
2. Enter the numbers you see on the next screen to get to the list of comps. Print this next screen immediately. This is your first indication of what the range of prices are over the last 6 months to a year. (If your subject was built in the last year or so or is a new condo conversion, you may not get a hit.) 
3. On single family detached homes, look at the aerial map where the comps are displayed and try to narrow it down to the similar lot sizes that may indicate which ones are in the same neighborhood or subdivision. If your property is on a dry site and the comp is on a lake or wide canal then be prepared for at least a 10% difference. If you call me back to go further I will need this list faxed or e-mailed to me.     (At this point you should have exactly what you asked me to do for you — a comp check!)      

a. Your target value fits right into the range and you should pick up the phone to call me and discuss the appraisal assignment.

b. Your target value is 15% or more above the range of prices and you may want to consider a different program with a higher LTV or go on to the next prospect.

c. Your target value is at the top of the range within +/- 7% or so and you’re not sure. 

In the case of C. you may want to consider going to Stage 2.

I have a product called a desktop appraisal in which I grid 3 or more sales that I consider are relevant and supportive of the final value based on the tax roll data of the subject and comps, recent MLS sales and a conversation with the borrower which will inform me of the important characteristics of the subject property. (Remember, this is desk top only and does not involve me visiting the property or comps.) I charge $95.00 for this and will email it right to you. At worst, if your minimum number does not look likely, and you walk away from the application, your borrower has only lost $95.00. In order to implement Stage 2, I must have a credit card payment from you or the borrower.

If on the other hand, if the result looks good for you, we can upgrade the job to a full 1004 URAR or 1073 Condo appraisal. (Or a 2055 drive by if your program permits.) My fee schedule is on my website at Electronicappraisers.com. I will only be looking for the balance of the fee over and above the $95 if we go ahead.

By the way, while you’re on my website, please print the home page with the list of cities I cover for future reference.

I hope this helps you and I wish you well. If you feel I have handled your request in a positive and constructive manner then please consider me for your next appraisal assignment in my area.

Stuart Fearer SRA
Tamarac, Fl
(8000 742 2830
electronicappraisers.com