Why Agents Might Not Cooperate With Sacramento Appraisers

Well, Sacramento appraisers are not gonna like this blog, I can tell you, but I think agents will find it interesting. Let’s say, for example, that there are two different listing agents at Lyon Real Estate. Both of these agents list identical condos. Same square footage, same type of location, similar amenities, and identical sales price. The first condo sells at list price. Shortly after that condo status changes to pending, the second condo comes on the market and that seller goes pending in 3 days. We later discover it went pending at a lower price than the first condo. I know, sounds strange and peculiar that the seller accepted a lower price. Especially after only 3 days on the market.

In any case, fast forward to the first condo is getting ready to close escrow. The appraiser goes over to appraise that sale. The appraiser then calls the other Lyon agent and asks this agent to disclose confidential information about the pending sale. The second Lyon agent, not thinking probably, blurts out the condo sold for less than list price. Shares the exact price. Due to limited inventory, the appraiser uses this pending sale as a comp and discounts the appraisal for the first condo seller. Yup, one could reasonably conclude that the appraisal came in low because a Lyon agent blabbed.

Two condos. Same company. Lyon Real Estate is a huge company in Sacramento. 17 offices and almost 1,000 agents. The likelihood of this scenario happening is very high. So likely that it did happen.

Let’s just say I am not that second agent. For one thing, I would suggest to a seller that she counter a lower offer like that. Especially when the condos sell so quickly in a hot market. But I’m not privy to that second contract or transaction so I have no idea, really, what went down. Do not mean to point fingers.

But I do know this situation has opened my eyes. Especially concerning dual representation of more than one seller. From now on, helping out Sacramento appraisers by providing more information than they are really entitled to know could be a very bad move. I suppose I could ask Sacramento appraisers if their transaction involved a Lyon agent on either the selling or buying side and then refuse to disclose. But it seems to make more sense not to disclose any confidential information that could affect a sale or harm other parties.

Sacramento appraisers can find everything they need to know in MLS and at the County Recorder’s Office. Good risk management says it’s wise to limited exposure to potential lawsuits.