Unacceptable sq ft sources for MLS Listings

What are some unacceptable, not acceptable, can’t use some sources of square footage for MLS listings that’s Shana Acquisto, she’s a luxury real estate broker and she’s going to give them to us right now.

But the most important one right off the bat that is not acceptable as a source for MLS listings is previous appraisals.

So I had an MLS meeting this week and it was interesting because we’ve had our new matrix changes and that’s a whole other, you know, bucket of problems that we’re experiencing. But there’s going to be some changes in the appraisal, how the appraisals are done from the lender standpoint. Ok, so that’s going to take that’s going to be another topic. We don’t have enough time to get into that right now. However.

We have to be careful, and this is what I want all of you guys to know because this is how we’ve done business in the past, we always ask when we’re at a listing appointment, could we see your pre? What is the most recent measurement of your home?

Most likely, it is an appraisal because an appraisal has the square footage. The appraiser comes in and measures the property and provides that OK.

But we’re using that as a source. And now the problem is is that’s not ours, that’s not ours to give. You have to think of it kind of like photos, right? You can’t use somebody else’s photos. You can’t use somebody else’s appraisal. So. Where you can use the previous appraisal is if you contact that appraiser and get written permission, then you can use that as a source. Otherwise, you cannot use it as a source.

Ok, so we have to be very, very careful with that. So this is something you’re gonna have to educate and talk about with your sellers that you my suggestion just to keep everybody out of, you know, to reduce your liability here. I think you use your tax source,

You know, if it’s correct. How do you know?  So if you have an appraisal and it says one number that it was measured and then if you have your your survey or your tax

That’s in, you’ll see a big discrepancy like ours, for example, would have a discrepancy. Then my suggestion is, I mean, to save, you know, to to to save money there, contact the previous appraiser, ask him for written permission to use it as a source. They may or may not I don’t know how that’s going to work out. They may want a fee for it, right? They may want you to provide them payment for it.

I don’t know. Or there is an appraiser who will go out and measure the property and it’s a, you know, you pay a fee for that too. So you get an official square footage measurement that’s current. That’s probably your best option. But tax is going to reduce liability on you and your seller.

If your seller says, you know what, I’m not listing. It’s a huge difference. It’s going to put me in a different search category if I go with what this says, you know, with what my tax says, I want to use what I know. The square footage is, well, that’s beating the seller at a huge, huge risk and liability because something ever comes up.

Then he’s going to have an issue. So. Just plan on getting a verifiable and square footage source and previous appraiser appraisal. Yes, you can use, but you must get permission. Email is fine. He can email it. You can get an email approval. No problem. Or you just plan as part of your listing package that you’re going to have. You know, we use Eric VBI’s camp right now. I’m sure there’s others.

But Eric, this camp schedule him. He’s probably going to be completely bombarded, so you’re going to have to plan for that. Have him come out and give you an official square footage measurement.

So and about how much does that run? And sorry to put you on, it depends on the size, obviously, but I think it’s anywhere from one hundred and fifty to two fifty. Ok.

All right. And so I think this is a sales opportunity to show your professionalism in keeping them out of out of an issue so you can always take just about any issue that comes up and turn it into a positive. Ok. And what you’re doing is it’s you’re you’re the full professional and you’re taking the liability away from the seller. Hmm. Right. Because that appraisal, what was is it was licensed to somebody else and it’s a single use for that.

And you don’t have or they is that don’t have the right to re-use it. It’s done in the lender’s name, who was the one that requested the appraisal assuming it was for a loan? Correct. Now, if the individual happened to do that for some other reason, the reason that I could think of is maybe they need it for their CPA to do some type of financial statement or balance sheet reporting because they have a huge business and they need to update how much things are valued at on a regular basis.

Yeah, and they are the party that requested the appraisal. Then it would have their name on it. Yeah. And so there’s a name on the front of it on who it’s prepared for and it’ll have a name on there.

So kind of backtracking a little that I don’t want to get into yet is with the change in how lenders are going to be handling appraisals. There’s an opportunity that agents would be able to now do measurements. I think that’s a horrible idea, and I don’t want us doing that, so we’re going to have to talk about, you know, kind of just see how this plays out, but we’re going to have to get verifiable square footage and if it costs a fee, it costs a fee, right?

I mean, we’re just like, Yeah, my guess is the way that it all rolls down is this is a grab for appraisers to ensure that they get repeat business and get paid for their work when it’s used. And I think there’s normally a transfer fee if you move from one lender to another, they’re super good about it and they will transfer this and retype it. The only thing they change is the name on the front, and they typically had transferred it in the past.

I don’t remember today’s number, but seventy five one hundred bucks or something like that from one lender to another. My guess is that it runs into something like that where you call the appraiser and you’re like, Yeah, sure, we’ll retype it for you. It’s one hundred and twenty five bucks. Here’s the link. Please pay.

We’ll retype it and you’ll have it in 48 hours and they change the name. Then you can. Then that would be able to be used as a source, but that’s my guess.

Yeah. You know, we just have to be careful. So I want to answer. Stacy had a question is do we choose assessor or public record its assessor if you use tax that is from the tax assessor. So we’re going to use assessor on that. Well, yeah, finding those results?

So this is kind of a thing. So when my dad was doing appraisals, you know, they get paid a very small amount for what they really are. The amount of work that they have to do, they have to drive, go out schedule, take pictures, do the measurements and they have to come back and put together a whole report.

And it’s it’s really in depth for what, four hundred bucks? And then, you know, I don’t know. So I think everyone calls and complains

This is a result of not addressing that problem way back years and years ago and letting them progress like everyone else. And you know. I don’t know the cost of their appraisal, so now I mean, it’s I don’t know now what the problem is, is we don’t have enough appraisals appraisers to keep up with the demand here and it’s causing delays and this and that.

So now they’re coming up this crazy idea that we’re just going to do like a desktop appraisal and agents can now measure and and take care of that part.

The measurement is definitively an issue until it’s further reviewed, we our policy has been that we don’t allow you as an agent to provide a measurement. You know, that’s going to open up a monster issue liability. There is no question about it. Our current policy is no agents cannot do measurements for some nominal fee,

And that’s going to fall under the legal issues, insurance issues, how that’s handled or covered. If you have claims and I yeah,

You don’t want to do that. No, you don’t want to accept like 40 bucks to do a measurement from somebody and drive out there and do that and open yourself up for like hundreds of thousands of dollars

Of whatever you want to be an appraiser, then go through the course and become an appraiser. But we, we we should not be doing that. It’s just another liability for us and we’re going to opt out.

Ok, so and honestly, think about it if we’re saying we’re opting out for that same thing. Think how hard it is for appraisers to do it right for their income?

Well, if I was an appraiser, I’m just saying. I would much rather just go give you an official square footage, then have to go through all the other hoopla of the reporting, and if you can get one hundred and fifty or two hundred dollars where you were getting four hundred for doing all of it well, so they don’t actually get four hundred and that’s actually the problem.

So what happened is you used to be able to request an appraisal directly from an appraiser and you’d assign it directly to them and they would get the full amount. Now they have to go through a management company with air quotations

And what but most of the men that is randomly assigned. So it takes the bias out and the opportunity for people to get in cahoots, so to speak, to say, I need this house to appraise for this number.

Thank you. Two thousand Seven Yeah. So that was kind of the issue there. So when that happened is the management companies became very powerful. And they said, if you want an appraiser or an appraisal sent to you as a licensed appraiser, then you have to pay us this rather large fee and they would hundred.

It’s getting they would chop it to like two fifty. So they would say we’re going to pay two fifty to the appraiser and we’re going to keep the other one fifty for themselves, for managing and assigning the correct person to it to randomly assign the correct person, right?

So now they’re only making really in that situation, 250. So like you’re saying, should they just go out and measure themselves, I’m going to drive and charge 250. Yeah. So if they just measure, they’ll probably get paid to fifty.

Right, so I see that, you know, yeah, if you take it from them, they’re going to eventually find a way to get it back. And that’s about what happened. So there’s the issue and what I was saying earlier with there’s a way to turn it and spin it. And what that would be is we’re going to keep you out of liability.

Yes, and this is the right way to do it. If somebody else did not say that, then they’re not keeping on a liability. That’s our main job is to get the highest and best price and to represent their best interest. And that includes definitely staying out of legal problems.

And I would also think that if you are representing a buyer and you go in and you’re also relying on their information, you should ask the question Is this been, you know, have you been approved to use this, you know, and do your due diligence there because if you accept it and this person, you know. Didn’t get approval, and now you accept it, I don’t know the liability there either, right?

Did you ask, did you do your due diligence and ask if it was approved? So we just the thing that I don’t actually know is with the approval, is it approving you as the agent, the brokerage? Is it approving?

Well, everything I think falls under the broker. So the broker has to get the approval to use it broker, not even the client, who’s the homeowner.

So if we’re doing that, we need to be copied. We’ll talk to Stacey. We’ll get a plan. There has to be a specific way that it’s read.

I just wanted you guys to be aware of this because we have listings coming up and we’ve always done that way in the past. I, you know, I always think, well, that’s the most accurate square footage that we have.

But now going forward, they can totally just take and do a search and see who use this as a source and have huge, yes and huge huge lawsuits in value.

So I’ll give you a hint to something else we’ll be talking about very soon. Is the surveys. Is it a copyright violation?

Episode Links

CPA , MLS , Mike Acquisto , Shana Acquisto , TNT 

Episode Recorded Live on YouTube 03.04.22

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