Lake Lanier Blog
OFFER PAD, OPEN DOOR ARE THEY WREAKING HAVOC ON THE MARKET
April 22nd, 2019 11:46 AM
With all the alternatives to selling Real Estate, Companies like Open Door, Offer Pad, Knock.com, etc. have entered our market. So what does this mean FOR the market and appraisals?
One could argue they are creating a NEW market. This is BAD news for other sellers because we all know that they purchase homes at below market values to make a profit on resale. But what if they infiltrate our market and Appraisers have no other sales to use when they are appraising other properties? This could be a problem. Hopefully when they resell the home they do so quickly and at market value and not still under market because they made such a great buy. They typically freshen up the homes with new paint, carpet, maybe appliances, if needed, but not always.
You can relate to this back when we had more foreclosures than true arms length sales after the market crashed. When that happened, foreclosures dominated the market and Appraisers did use these as comparable sales because that was the reality of the current market at that time.
So what is an Appraiser to do? What is a Realtor to do? Make sure that the Appraiser does not miss the fact that there was a sale in your listing's neighborhood which sold via Open Door or Offer Pad and go further to show proof it was indeed a below market sale, compared to other sales in the area. Appraisers should not be using below market sales when there are other sales that prove current market value is higher.
Appraisers should catch the fact that a sale involved Offer Pad or Open Door, because we are supposed to review both the current and prior sales in the past year for the comparables and the 3 year history of any sales for the Subject. The name of the owner should be apparent in courthouse records, but as a Realtor or Seller you need to point this out to the Appraiser whenever possible.
I wanted to make sure I was speaking from experience
on these below market sales, so I actually had Offer Pad and Open door provide me with an offer on our home. Open Door was 10% below
value of our home. Offer Pad was a whopping 30% below! I filled out their forms and sent photos of my home. I sent fewer photos to Offer Pad, but that should not have made that much of a difference.
We also have local Realtors like Mark Spain who by his own commercial says..."Bypass the market and sell your home to him" Not a good idea to bypass the market, when that is the VERY thing Appraiser's are trying to analyze to determine market value for lenders, sellers and buyers!
Sellers who use these companies may be impacting the market for their neighbors. I know they may not care, but they should be informed.
Both of these companies charged MORE service fees than Realtors do with their commissions. Plus they hit you with repair items that could get costly. Your NET may be far less than you think as a seller. I get it, some people under certain circumstances need to sell now or don't want to go through the showing process and negotiations, etc. Other than that, why people use these companies is beyond me.
Bottom line is:
Appraisers SHOULD steer clear of these below market sales in a flourishing market like we have now. They should have other sales that they can use, which are truly market value sales. If they have no option but to use a sale such as this, they need to make appropriate market based adjustments for this below market sale. If they can prove for example that it is 10% below market, then they can make that upward adjustment for that sale. But until these types of sales dominate our market, then there should not be a huge issue here.
: You need to work hard to prove why sellers should NOT use these companies. They need your expertise and local knowledge and the protection that you provide to the Sellers and Buyers out there. Otherwise these companies will continue to increase in numbers and run you out of business!
Zillow, Redfin.....the list goes on and on....
Good luck out there and find the things in your business that
set you apart
and you should be successful. Be a specialist for your Sellers & Buyers.
Thanks for stopping by and feel free to SHARE!
DOES OPEN DOOR PAY MARKET VALUE
DOES OFFER PAID PAY MARKET VALUE
APPRAISER EXPOSES OPEN DOOR AND OFFER PAD
Posted by Mary Thompson on April 22nd, 2019 11:46 AM
Post a Comment
Subscribe to this blog
Leave a Comment
Characters from the image above:
Subscribe To My Blog
Characters from the image above:
APPRAISERS ARE MEASURING HOMES DIFFERENTLY NOW
Desk Top Appraisals Direct impact on Realtors, Homeowners. Just Say NO!
COVID'S IMPACT ON MARKET VALUE AND APPRAISALS
The Anatomy of Comparable Sale Selection
OFFER PAD, OPEN DOOR ARE THEY WREAKING HAVOC ON THE MARKET
Why get a Pre-Listing or Post Listing Appraisal from Lanier Appraisal Service
Lanier Appraisal Service interviewed by WDUN Radio
PIW PROPERTY INSPECTION WAIVERS...GOOD NEWS????
Mary Thompson 5 Star Review Appraiser
INTRINSIC VALUE VS. MARKET VALUE. WHAT IS THE DIFFERENCE, WHY DOES IT MATTER?
How we appraise lake lanier properties in this drought.
LAKE LANIER TAX VALUES
Lanier Appraisal Service on WDUN Radio Talk Show
Lanier Appraisal Service voted best Real Estate Appraiser in Hall County, GA
SQUARE FOOTAGE IN APPRAISALS...NOT IMPORTANT?
The Perfect Real Estate Listing from an Appraiser's Perspective
How will appraised values catch up to current market trends?
10 Rules of Engagement with Appraisers that CAN impact values.
What Value do Appraisers Give for certain Home Amenities?
Realtors have more Control over Appraisals then they think!
Building Permits and How Lack of One Impacts Appraised Values
Why Buyers and Sellers NEED Realtors from an Appraisers Perspective.
How FMLS listings Can and Do IMPACT Appraised Value.
FHA Loans and What homes Qualify for FHA Financing. What Appraisers Look For.
Letter to Sellers regarding benefits of Pre-Listing Appraisals
Lanier Appraisal Service has started a Monthly Newsletter
Thank you Realtors for your Referrals! Keep them Coming!
VISIT MY OTHER BLOG ON THE INTERNET...ACTIVE RAIN
Are Appraisals Delaying Closings or are Lenders. Read On!
How do Building Permits or Lack thereof Affect Appraisals
Mary Thompson's Blog Page
UAD, Uniform Appraisal Dataset, Effective September 1st. How it affects you!
FDIC Sues LSI & CoreLogic LSI one of the largest AMC's out there!
Does Perceived Value Equal Market Value? You Decide!
Usual & Customary Fees for Appraisers are posted. Appraisers need to stand firm with AMC's
FANNIE MAE & FREDDIE MAC HEADING FOR DISSOLUTION? FHA LOANS WILL SEE DECLINE IN 2011 AND BEYOND
Lake Lanier Photo January 2011
Lake Lanier Sales Stats for First Half of 2010
HAPPY 60TH BIRTHDAY BUFORD DAM - MONDAY 3/1/10
Lake Lanier Boat Dock Permit Lottery has ended. No more dock permits available
Mary Thompson to be Interviewed By The WEATHER CHANNEL
Lake Lanier hits full summer pool Today, after over 4 years!
FHA to adopt HVCC as of January 1, 2010.
Lake Lanier Sales Statistics for 2009 First Half...We have hit bottom!
Mary Thompson Featured in Pink Ladders August Newsletter
LakeLanier.com well known business website helps Lakefront Radio come back in full swing!
Realtors YOU can take control over the New HVCC ruling in your sales contracts!
Why Appraisers use Foreclosures to value your property
Realtors if you are conducing-BPOs for lenders to value property you are breaking GA Law!
2008 Lake Lanier Sales Statistics second half of year.
Happy Valentines Day, the bailout may provide some hope for Lake Lanier
What would the White House Appraise for? Is it in a declining market?
Happy New Year
2008 year in review
New Venture Custom Slide Show Creations
1071 Coalition Meeting Tuesday 12/9/08
Mary Thompson selected as North Georgia Real Estate Examiner
1071 Coalition Formed to Fight Lake Lanier Drought Issues and Water Releases down south.
WGST and the AJC interviewed Mary Thompson regarding the Drought
The Weather Channel doing a Story on Lake Lanier
Lesli Smith Needs Your Help! Lake Lanier Realtor
Lake Lanier Real Estate News
Ever Heard of Active Rain Website? Yours Truly is listed in the top 15 of Appraisers Nationwide!
Will the courts decide that Drinking Water was not a planned Use for Lake Lanier?
Lake Lanier Sales Stats for First Half of 2008
Mary Thompson Number 1 in Hall County on Active Rain Network
Tim Russert Dies at age 58 of Heart Attack
Mary Thompson in top 25 on Active Rain Website
How to Say Thank you to our Troops
Lake Lanier Water Release News
Lake Lanier Sailing Club Commodore, Jim Chinik interviewed by Lakefront Radio
LakeFront Radio interviews Lake Lanier Sailing Club
Lake Front Radio Interviews Aqualand Marina General Manager
New HVCC regulations will have impact on Appraisers
Lakefront Radio Interviews the DNR
Interview with the Army Corps of Engineers
Lake Lanier Pending and Closed Sales First Quarter 2008
Lakefront Radio New Venture
Lake Lanier is Rising
Lake Lanier is Back in Swing!
Freddie Mac and Fannie Mae Agree crack down on lender pressure and mortgage fraud!
Lake Lanier Activity Picking up in 2008!
Lake Lanier Still has boat dock permits left!
Recession and Lake Levels On Lanier
There are Boat Docks Left
March 2018 (1)
February 2018 (1)
November 2017 (1)
July 2016 (1)
April 2016 (1)
November 2015 (1)
April 2015 (1)
March 2015 (2)
October 2014 (1)
April 2014 (2)
March 2014 (3)
August 2013 (1)
November 2012 (1)
June 2012 (1)
May 2012 (1)
August 2011 (1)
June 2011 (2)
February 2011 (2)
January 2011 (1)
July 2010 (1)
February 2010 (1)
October 2009 (3)
September 2009 (2)
August 2009 (2)
March 2009 (3)
February 2009 (3)
January 2009 (1)
December 2008 (3)
November 2008 (1)
October 2008 (5)
August 2008 (2)
July 2008 (1)
June 2008 (5)
May 2008 (5)
April 2008 (3)
March 2008 (3)
February 2008 (2)
January 2008 (2)
December 2007 (2)
Appraisal loan process (1)
Appraisal Valuation (3)
Appraised Values (2)
COVID IMPACT ON REAL ESTATE (1)
Pre Listing & Post Listing Appraisals (1)
Real Estate Appraisal Information. (2)
Real Estate Appraiser Reviews (1)
Real Estate Listings (1)
My Favorite Blogs:
Sites That Link to This Blog: