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Email archive - 6/2000
To get the very latest news,
sign up for our FREE weekly Appraisal Today e-news.
NOTE: some of the older links
may be out of date! For older emails go to the
links above.
For information on sponsoring
these weekly emails (sent to over 30,000 appraisers), contact Ann O'Rourke at ann@appraisaltoday.com
or call 800-839-0227.
Search for a topic using your browser's search function.
Go to Edit, then Find in Page. Some of them have been edited from the
original to correct typos and new information! I have been sending them since June, 1994.
6/28/00 Res database/Val2K/bad
brokers
New this week from Appraisal Today e-news
+ Natl. Assn. Of Mortgage brokers proposes registry of bad brokers
+ Money Store to close
+ Valuation 2000 - Aug. 11-13
+ AI residential database and $75 appraisals?
+ Appraisal Foundation board deadline Aug. 1
+ Rates and apps up and down
+ New HUD letters to lenders
+ What's in the Appraisal Today July 12-page newsletter
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>>> Natl. Assn. Of Mortgage brokers proposes registry
<<<
In his May 24 testimony before the House Committee on Banking and Financial
Services, Natl. Assn. Of Mortgage brokers (NAMB) President-Elect Neill
Fendly "envisions a universal registry of individual loan originators and
companies, each uniquely identified. Participants will report the
unscrupulous acts of any individual or company and the database will soon
identify all such bad actors." ... "Employers will be able to consult
the
registry and avoid hiring individuals who engage in improper practices.
Wholesalers and secondary market investors will refuse to do business with
individuals and companies with bad track records.""We believe this
effort
will go a long way toward eliminating abusive practices."
Hmm... any nominees???
To read the press release, go to http://www.namb.org/
and click on the link
to the May 24 press release. (Note: this link may not work. Try again.)
>>>>>>>>>>>>> MONEY STORE TO CLOSE
<<<<<<<<<<<<<
In March, 1998, First Union (a major bank) purchased the Money Store for
$2.1 billion. After hundreds of layoffs and major restructuring, First
Union decided to sell the Money Store. With no good offers, they are
closing the Money Store.
The Money Store was a long time home equity and B/C lender, founded in the
mid-1960s. Seems like other B/C lenders are on the block also. According to
National Mortgage News, New Century Mortgage may also be for sale. Their
chairman and CEO says they are profitable but looking for more capital.
Glad they don't owe me any money. FYI, if you hear about major
restructuring or sale of any of your clients, be sure you get paid while
there is someone there to process the invoices and write the checks!!
>>>>>>>>>>>>> VALUATION 2000 - AUG. 11-13
<<<<<<<<<<<<<
I will be at Valuation 2000 plus the ASB meeting the Sunday and Monday
before, staying at the LaQuinta Inn, across the street from the conference
hotel. I have been promised some new product unveilings, and I am hoping to
get lots of stuff for my newsletter.
If not, I'll just "lurk" in the hallways and women's bathrooms for
some
good tidbits. For you guys, women's bathrooms are a great place to network!
Too bad....
Not very many reporters will be attending, so I guess I won't have any
fancy media lunches sponsored by vendors (have to listen to PR spiel),
press briefings (more PR spiel), tours of gambling casinos (with PR people
on the bus), or press room stocked with food and free phones (staffed by PR
people). Oh well... I hope there are some good parties... I've been to some
great ones at MBA meetings... and at the Inman Tech conferences in San
Francisco.
I won't be checking my email while I'm gone...and will respond when I
return on late Aug. 13. No email, no cell phone, no pager. I love it!! I
used to lug around a laptop but found it was too much of a hassle.
For more info go to http://www.val2000.org
>>>> AI RESIDENTIAL
DATABASE AND $75 APPRAISALS <<<<
Looks like the Appraisal Institute's residential database (AIRDport) will
finally be launched very soon, although not fully operational until later
in the year.
Kenneth Harney had an interesting article this past weekend. Here's a
quote, "Alan Hummel, a Des Moines professional appraiser and board member
of the AIRD project, says he will be able to charge $75 to $100--not $300
to $400--when he can supplement an AVM estimate with appraisal data from
the new Web site."
Links to Harney's article (same basic article, different headlines) -
http://www.naplesnews.com/00/06/realestate/d443448a.htm
http://www.washingtonpost.com/wp-dyn/articles/A53064-2000Jun24.html
The Appraisal Institute sent an email to their members Tuesday, explaining
what was happening. Here are some of the questions answered:
Q: Will the average cost for residential appraisals drop from $300 to $400
compared to $75 to $100?
Q: Is the Appraisal Institute offering AIRD as competition for my services?
Q: Does AIRD violate USPAP?
Per the AI, a link to this info will be posted on their home page at
http://www.appraisalinstitute.org
today. Go to the bottom of the page and
look for the yellow "new" button.
Links to the vendor - http://www.fncinc.com
/ - developer FNC Inc - Bill
Rayburn's company
http://www.appraisalport.com/
link to AIRDport page.
I've been hearing about this for a long time and hope to see it "live"
at
Valuation 2000. I've got space saved for it in the August Appraisal Today
newsletter.
>>>> APPRAISAL FOUNDATION BOARD DEADLINE AUG. 1
<<<<
The deadline for applying for positions on the AQB and ASB is August 1,
2000. At least three positions are open on the ASB and two positions on the
AQB. Members of the boards are compensated for their time and travel
expenses.
There are also four At-Large vacancies on the Board of Trustees for those
not affiliated with sponsoring organizations.
For more information or to request an application package, please contact
Paula Douglas at 202.624.3048 or via e-mail at
mailto:paula@appraisalfoundation.org .
>>>>>>>>>>>>> RATES AND APPS UP AND DOWN
<<<<<<<<<<<<<
The Mortgage Bankers Association of America (MBA) released its Weekly
Mortgage Application Survey results Wednesday, reporting that mortgage loan
applications for the week ending June 16 decreased 1.0 percent on a
seasonally adjusted basis from the previous week. On a seasonally
unadjusted basis, applications decreased 1.8 percent, and were down 10.7
percent compared to the same week a year earlier.
For more info, go to http://www.mbaa.org
If you want to follow rates, and do a little forecasting of your own, check
out these links from bankrate.com To learn more where the rates are headed,
read Michael Larson's weekly column at the following link:
http://www.bankrate.com/brm/news/mtga/20000622.asp
For this week's average mortgage rates and points in the top 10 markets, go
to http://www.bankrate.com/brm/news/mtg/top10_averages_062100.asp
>>>>>>>>>>>>> NEW HUD LETTERS TO LENDERS
<<<<<<<<<<<<<
- 00-22 Single Family Real Estate Owned (Property Disposition) National
Management and and Marketing Contracts
- 00-21 Credit Watch/Termination Thresholds - HUD is still trying to get
rid of sleazy lenders
to read these mortgagee letters online goto:
http://www.hud.gov/fha/mletters/mltrmenu.html
Click on the link to "2000
letters" on the right hand side of the page,
select the mortgagee letter you want to read from the list. Thanks to
Michael Cartwright for his HUD alert!!
>>> WHAT'S IN THE APPRAISAL TODAY JULY 12-PAGE NEWSLETTER <<<
-
How to get higher fees and increase your profits - yes, there - is a way...
- Getting business from the Internet
- I get business every week and you can too...
- How to use Adobe Acrobat 4.0 - great for reports but needs a little
tweaking
- Motion filed in Norwest/ValueIT lawsuit - another salvo
- Top credit union, subprime, and conventional lenders
- Mortgage lending forecast
Plus the details on other news stories, some of them briefly mentioned in
these emails.
6/21/00 Life stages virus/BOMA/FDIC/ASB/Dig. Cameras
New this week from Appraisal Today e-news
+ New virus - LIFE_STAGES.TXT.SHS
+ New BOMA office report available
+ FDIC report sees some commercial real estate problems
+ Digital camera review
+ Home starts decline in May
+ June 23 - last chance for USPAP comments
+ ASB June Q&As
+ Broadband software delivery
+ Free email vs. paid newsletter
>>>>>>>>>>>>> NEW VIRUS -
LIFE_STAGES.TXT.SHS <<<<<<<<<<<<<
Do not open the LIFE_STAGES.TXT.SHS attachment if you receive it. Big
trouble if you do.
This will probably be sent to you by people you know as it is propagated by
Outlook.
It may or may not begin with "Fw:". It will contain either "Life
stages",
"Funny" or "Jokes" and may or may not be followed by
"text". Examples would
be "Fw: Life stages", "Jokes text" or "Fw: Funny
text".
For more info http://www.symantec.com/avcenter/venc/data/vbs.stages.a.html
>>>>>>>>>>>>> NEW BOMA OFFICE REPORT
AVAILABLE <<<<<<<<<<<<<
The Building Owners and Managers Association (BOMA) International's
Experience Exchange Report (EER) – hit a major milestone in 2000,
surveying nearly one billion square feet of North American office space,
the largest sample of income and expense data for office buildings the
association has ever captured in its 70-plus year history of producing the
ERR.
The 2000 Experience Exchange Report will available in print in July. BOMA
members - $155; list price is $275. Call 1-800-426-6292. Or go to
http://www.boma.org/pubs/eer2000bk.htm
For more commercial info, go to my
Commercial Appraisal Page at
http://www.appraisaltoday.com/commercial.htm
>>> FDIC REPORT SEES SOME COMMERCIAL REAL ESTATE PROBLEMS <<<
In the FDIC's latest Report on Underwriting Practices, which covers the six
months ending March 31, 2000, examiners found that 17 percent of banks
actively making commercial (nonresidential) real estate loans were making
loans with minimal amortization terms and large balloon payments at
maturity either "frequently enough to warrant notice" or
"commonly or as
standard procedure."
The FDIC also noted that other data regarding commercial real estate
lending indicate that the new supply of office buildings exceeded the net
absorption rate for the first time since 1991. "This excess indicates a
potential problem in this type of lending," said Chairman Tanoue.
To read the report (PDF format), go to
http://www.fdic.gov/bank/analytical/report/2000mar/index.pdf
>>>>>>>>>>>>> DIGITAL CAMERA REVIEW
<<<<<<<<<<<<<
Go to http://home.cnet.com/consumerelectronics/0-3636-7-2045605.html
for a
recent digital camera review.
>>>>>>>>>>>>> HOME STARTS DECLINE IN MAY
<<<<<<<<<<<<<
Looks like higher interest rates are starting to have an effect on
residential real estate. New home production declined nearly 4 percent to a
seasonally adjusted annual rate of 1.59 million units in May, the Commerce
Department reported June 16. NAHB is forecasting approximately 1.5 million
housing starts for all of 2000, down from 1.67 million starts last year. To
read the full story, go to http://www.nahb.org/news/starts_may2000.htm
>>>>>>>>>> JUNE 23 - LAST CHANCE FOR USPAP
COMMENTS <<<<<<<<<<
This Friday is your last chance to comment on the proposed USPAP changes.
Check it out at https://www.appraisalfoundation.org/exdUSPAP5-4-00intro.htm
Check out the Appraisal Institute's response to the changes at
http://www.appraisalinstitute.org/Exposure_Draft_USPAP.htm
Here's a quote:
"Many of the proposed changes will diminish rather than enhance the
understandability and enforceability of USPAP. Both the concepts and the
language within the proposed changes are complex and confusing."
>>>>>>>>>>>>> ASB JUNE Q&AS
<<<<<<<<<<<<<
Here's the question topics - 1. Appraiser can't get copy of purchase
contract. 2. Intended use was intended use was "to learn the market value
of his home". Current purchase contract not disclosed to the appraiser. 3.
New prospective bank client wants appraiser to use their banking services.
To read the full questions, and the answers, go to
https://www.appraisalfoundation.org/2000-6qa.htm
"Paper" copies of the June Q&As will be sent with the paper/PDF
Appraisal
Today monthly newsletter.
>>>>>>>>>>>>> BROADBAND SOFTWARE DELIVERY
<<<<<<<<<<<<<
The May 19 issue of the Wall St. Journal had a very interesting article on
broadband Internet software - Play Now. For $9.99 per month you can get 100
titles of children's software. It is only available in limited areas now.
The service delivers "streaming" content and requires DSL or cable.
You
download a small program on your computer.
for info, go to http://www.intonet.com/
>>>>>>>>>>>>> FREE EMAIL VS. PAID
NEWSLETTER <<<<<<<<<<<<<
I am frequently asked about the difference between these emails and my
monthly newsletters.
The two are quite different, but have some overlap. For example, in these
emails I just give a link and you have to do the work. In my monthly
paper/PDF newsletter, I tell you what is there. Every month I run out of
room in my 12 page paper/PDF newsletter, so I put the less "hot"
stories
and links here.
Long emails don't work well. So, these emails don't have this month's
extensive article on Transferring appraisals over web sites instead of
email and "Where to get E&O insurance" article, and next month's
articles
on "How to increase fees" and a "How to get business from the
Internet."
Emails do work well for very time sensitive news such as virus alerts and
the last day to comment on USPAP!
6/18/00 Appraisals for trusts and estates - a growing market
Many appraisers are worried about their future - will appraisers be needed
5, 10, or 20 years in the future? Most appraisals are done for lending
purposes. Lending has been changing to placing much more emphasis on the
credit worthiness of the borrower than the value of the collateral.
Even if there are problems in the future requiring appraisals, lending is a
notoriously cyclical business. Why not try working for other types of
clients, who provide a more stable source of income?
An excellent option for both commercial and residential appraisers is
appraisals for estate, trust, and gift purposes.
***************** SPONSOR AD *******************
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Transamerica/Intellitech
(more alliances coming)
Get more bang for your buck, get with FEEAPPRAISER.COM!
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AOL Users: <a href=http://www.irs.gov> Click Here</a>
or Call toll free (888)407-7557
*************************************************
---------------------------------
When are appraisals needed?
Although we usually think of appraisals for estate taxes when someone dies,
actually many appraisals are needed for other purposes.
As an overview, a non-exhaustive list of when an appraisal could be needed is:
1. Sale to a relative
2. Partitioning an estate among the heirs or beneficiaries
3. Sale to a non-relative
4. Prior to listing the home for sale
5. Partial interests
6. Federal or state estate tax returns
7. Gifts and gift trusts
8. Determining the basis for capital gains tax
9. Family limited partnerships and other types of trusts/partnerships
---------------------------------
Who orders the appraisals?
For residential appraisals (up to a few homes or small income properties) I
am often called by the executor who gets my name from a real estate agent
or out of the Yellow Pages. Usually the attorney or accountant asks the
executor to obtain an appraisal. For larger estates, the appraisals are
typically handled by attorneys.
1.Attorneys (estate distribution, tax issues)
2.Accountants and enrolled agents (tax returns)
3.Beneficiaries of gift trusts
4.Executors and administrators
5.Trustees
---------------------------------
What about fees?
Executors have a fiduciary responsibility to spend money wisely. Many want
to be sure they don't overpay for services such as appraisals.
When you receive a call, be sure not to just quote a fee. I always ask
about their situation.
For example: What is the date of value? (I have been doing appraisals for
20 years and am familiar with the past.) Do they plan on selling the home?
(I can offer advice on fixing it up, the current market, good local agents,
etc.) Are the heirs local or distant? (I can provide a report with lots of
information for out of the area heirs, if needed.)
How many properties do they need appraised? (I can handle all of them and
will find qualified appraisers to do the nonlocal appraisals.)
If the caller insists on lower fees, remember that your turnaround time can
be long, so you can use the appraisals to fill in the slow periods.
I almost always require payment up front or upon delivery of the appraisal.
I will bill attorneys I have dealt with before who paid promptly.
---------------------------------
Some problems with estate appraisals
Problems I have encountered include:
- Not clear on effective date of the appraisal. (I call the accountant or
attorney.)
- "Crazy" heir calling me night and day. (I returned the full fee. I was
the third appraiser to do so.)
- No estate checkbook set up for payments. (I require payment in full in
advance or at delivery of the appraisal. They can be reimbursed from the
estate.)
- Bounced check from estate checkbook. (I inquire when the account was set
up and how money will be put into the account if it is recent.)
- Relative occupying the property who doesn't want to move out. (Similar to
a tenant being evicted, but worse. I try to move as fast as possible during
the inspection and try to get them to allow me to take interior photos.)
- Relatives fighting over jewelry, glasses, etc. (I just try to ignore them.)
- Want to pay really low fees. (I tell them to try calling someone else.)
---------------------------------
What geographic area is best for this work?
I live in the San Francisco Bay Area, which is a prime market for this type
of work. The population greatly increased after World War II and many of
those who moved here then are setting up trusts or passing away.
Home values have increased substantially in the past 2-3 years, with many
areas increasing over 50% in value. Real estate prices are high, with the
average price of homes in the low $300,000s. More and more people are over
the $675,000 estate tax exemption. Education levels are higher and more
people are setting up trusts for their assets.
What if you're in an area with lower priced real estate? Your potential
market will be smaller, but there are always out of state heirs who need to
find out what their property is worth, charitable donations, etc. With the
recent run-up in stock prices, more people will be over the $675,000
exemption level. If one spouse passes away today, it is safer to get an
appraisal to establish a new basis, as the property and other assets could
be much higher when the other spouse dies. Even if homes are selling for
$80,000, if the person has investment real estate such as a large apartment
building, their total value could be over the exemption.
---------------------------------
Accountant market
Accountants filing estate tax returns want to be sure there are no
problems. They will often try to get the taxpayer to get an appraisal from
a qualified appraiser if the estate is over the current $675,000 exemption.
Many accountants are aware of the stepped up basis issues and will try to
get a current value even if no estate tax return is filed. You need to
persuade them that an appraisal is more credible to the IRS than a letter
from a real estate agent or the owner's opinion of value.
You could try a mailing before tax lien dates. Or, advertising in a local
accountant newsletter or state publication. Networking with local CPAs can
also work.
---------------------------------
Non-profit market
Organizations that administer gift trusts, such as hospitals, colleges, and
other non-profit groups, need appraisals. Contact them directly. Many
advertise in local newspapers or magazines.
---------------------------------
Attorneys
Attorneys are the source of most estate and trust appraisal assignments, if
only because they tell the executor to get an appraisal.
Marketing to attorneys is primarily by referrals, but you can also send
brochures and letters to attorneys who specialize in this work. Get a copy
of your local Bar association's directory to see who specializes in estate,
trusts, and probate.
Contact any attorneys you know and tell them you're interested in doing
appraisals for estates and trusts. Ask them which attorneys specialize in
that market.
Join a local chapter or group of attorneys specializing in this type of
work. You will get more work if you are active.
Once you get work from an attorney, you can form a relationship for future
work.
---------------------------------
Yellow Page advertising
For me, Yellow Page ads works best. I advertise in two local city
directories, and the Pacific Bell directory. In the past 6 months I
eliminated all ad copy except for "Estate and Trust" for my three space
ads. My estate/trust work has tripled.
---------------------------------
Referral sources
Referrals for estate, trust, and gift appraisals can come from just about
anywhere. Most of my referrals come from real estate agents. Some come from
local accountants, a neighbor, my husband's business contacts, Chamber of
Commerce members, etc.
For more information on referrals, go to my referral article at
http://www.appraisaltoday.com/client.htm .
AOL Users: <a href=http://www.appraisaltoday.com/client.htm> Click Here</a>
---------------------------------
Should you do this type of work?
I don't really know why so few appraisers do work for estates and trusts.
There are seldom much turnaround pressure, few or no payment problems, and
reasonable fees. Any value pressures, if any, are typically much less than
for lenders. Also, you don't risk losing a regular lender client if you
"come in" too high or too low.
If you are in an area with lower priced properties, doing appraisals for
estate and probate purposes may not give you a lot of work, but does
provide an excellent diversification opportunity. Also, sometimes there are
multiple properties to appraise.
Many appraisers don't like to do litigation and/or divorce work because of
the hassles and court testimony. Appearing in court is very unlikely for
this type of work, unless it's a very complicated and large estate and it
ends up in tax court. Even if you do have to testify, it won't be in front
of a jury, just a judge.
In the past, many residential appraisers didn't like to do work for
one-time non-lender clients. But the market has changed, and non-lender
work can keep you going when the lender market is down.
Most of the business is by referral, so you need to get your name well
known in the legal, accounting, and real estate communities.
---------------------------------
Where to get more information
The IRS web site at http://www.irs.gov is a "Gold Mine" of information.
Search for estate tax.
AOL Users: <a href=http://www.irs.gov> Click Here</a>
In this brief email article I can only touch on some of the most important
points.
I wrote 5-page article in the April, 2000 issue of Appraisal Today. I have
an older article (November, 1994) posted at
http://www.appraisaltoday.com/estate_work.htm
.
6/14/00 - Appraisals for trusts and estates - a growing market
- Special email
Many appraisers are worried about their future - will appraisers be needed
5, 10, or 20 years in the future? Most appraisals are done for lending
purposes. Lending has been changing to placing much more emphasis on the
credit worthiness of the borrower than the value of the collateral.
Even if there are problems in the future requiring appraisals, lending is a
notoriously cyclical business. Why not try working for other types of
clients, who provide a more stable source of income?
An excellent option for both commercial and residential appraisers is
appraisals for estate, trust, and gift purposes.
***************** SPONSOR AD *******************
Which on-line appraiser directory do you trust to market your appraisal
services?
FEEAPPRAISER.COM is the best known appraiser directory in the mortgage
industry and is the only one that GUARANTEES you results.
Feeappraiser.com recently announced strategic alliances with:
eZDesk.com
LendingHut.com
LenderBase.com
LendingIntelligence.com
B4Usellyourhome.com
Domania.com
Transamerica/Intellitech
(more alliances coming)
Get more bang for your buck, get with FEEAPPRAISER.COM!
Click on the link below
http://www.Feeappraiser.com
AOL Users: <a href=http://www.irs.gov> Click Here</a>
or Call toll free (888)407-7557
*************************************************
---------------------------------
When are appraisals needed?
Although we usually think of appraisals for estate taxes when someone dies,
actually many appraisals are needed for other purposes.
As an overview, a non-exhaustive list of when an appraisal could be needed is:
1. Sale to a relative
2. Partitioning an estate among the heirs or beneficiaries
3. Sale to a non-relative
4. Prior to listing the home for sale
5. Partial interests
6. Federal or state estate tax returns
7. Gifts and gift trusts
8. Determining the basis for capital gains tax
9. Family limited partnerships and other types of trusts/partnerships
---------------------------------
Who orders the appraisals?
For residential appraisals (up to a few homes or small income properties) I
am often called by the executor who gets my name from a real estate agent
or out of the Yellow Pages. Usually the attorney or accountant asks the
executor to obtain an appraisal. For larger estates, the appraisals are
typically handled by attorneys.
1.Attorneys (estate distribution, tax issues)
2.Accountants and enrolled agents (tax returns)
3.Beneficiaries of gift trusts
4.Executors and administrators
5.Trustees
---------------------------------
What about fees?
Executors have a fiduciary responsibility to spend money wisely. Many want
to be sure they don't overpay for services such as appraisals.
When you receive a call, be sure not to just quote a fee. I always ask
about their situation.
For example: What is the date of value? (I have been doing appraisals for
20 years and am familiar with the past.) Do they plan on selling the home?
(I can offer advice on fixing it up, the current market, good local agents,
etc.) Are the heirs local or distant? (I can provide a report with lots of
information for out of the area heirs, if needed.)
How many properties do they need appraised? (I can handle all of them and
will find qualified appraisers to do the nonlocal appraisals.)
If the caller insists on lower fees, remember that your turnaround time can
be long, so you can use the appraisals to fill in the slow periods.
I almost always require payment up front or upon delivery of the appraisal.
I will bill attorneys I have dealt with before who paid promptly.
---------------------------------
Some problems with estate appraisals
Problems I have encountered include:
- Not clear on effective date of the appraisal. (I call the accountant or
attorney.)
- "Crazy" heir calling me night and day. (I returned the full fee. I was
the third appraiser to do so.)
- No estate checkbook set up for payments. (I require payment in full in
advance or at delivery of the appraisal. They can be reimbursed from the
estate.)
- Bounced check from estate checkbook. (I inquire when the account was set
up and how money will be put into the account if it is recent.)
- Relative occupying the property who doesn't want to move out. (Similar to
a tenant being evicted, but worse. I try to move as fast as possible during
the inspection and try to get them to allow me to take interior photos.)
- Relatives fighting over jewelry, glasses, etc. (I just try to ignore them.)
- Want to pay really low fees. (I tell them to try calling someone else.)
---------------------------------
What geographic area is best for this work?
I live in the San Francisco Bay Area, which is a prime market for this type
of work. The population greatly increased after World War II and many of
those who moved here then are setting up trusts or passing away.
Home values have increased substantially in the past 2-3 years, with many
areas increasing over 50% in value. Real estate prices are high, with the
average price of homes in the low $300,000s. More and more people are over
the $675,000 estate tax exemption. Education levels are higher and more
people are setting up trusts for their assets.
What if you're in an area with lower priced real estate? Your potential
market will be smaller, but there are always out of state heirs who need to
find out what their property is worth, charitable donations, etc. With the
recent run-up in stock prices, more people will be over the $675,000
exemption level. If one spouse passes away today, it is safer to get an
appraisal to establish a new basis, as the property and other assets could
be much higher when the other spouse dies. Even if homes are selling for
$80,000, if the person has investment real estate such as a large apartment
building, their total value could be over the exemption.
---------------------------------
Accountant market
Accountants filing estate tax returns want to be sure there are no
problems. They will often try to get the taxpayer to get an appraisal from
a qualified appraiser if the estate is over the current $675,000 exemption.
Many accountants are aware of the stepped up basis issues and will try to
get a current value even if no estate tax return is filed. You need to
persuade them that an appraisal is more credible to the IRS than a letter
from a real estate agent or the owner's opinion of value.
You could try a mailing before tax lien dates. Or, advertising in a local
accountant newsletter or state publication. Networking with local CPAs can
also work.
---------------------------------
Non-profit market
Organizations that administer gift trusts, such as hospitals, colleges, and
other non-profit groups, need appraisals. Contact them directly. Many
advertise in local newspapers or magazines.
---------------------------------
Attorneys
Attorneys are the source of most estate and trust appraisal assignments, if
only because they tell the executor to get an appraisal.
Marketing to attorneys is primarily by referrals, but you can also send
brochures and letters to attorneys who specialize in this work. Get a copy
of your local Bar association's directory to see who specializes in estate,
trusts, and probate.
Contact any attorneys you know and tell them you're interested in doing
appraisals for estates and trusts. Ask them which attorneys specialize in
that market.
Join a local chapter or group of attorneys specializing in this type of
work. You will get more work if you are active.
Once you get work from an attorney, you can form a relationship for future
work.
---------------------------------
Yellow Page advertising
For me, Yellow Page ads works best. I advertise in two local city
directories, and the Pacific Bell directory. In the past 6 months I
eliminated all ad copy except for "Estate and Trust" for my three space
ads. My estate/trust work has tripled.
---------------------------------
Referral sources
Referrals for estate, trust, and gift appraisals can come from just about
anywhere. Most of my referrals come from real estate agents. Some come from
local accountants, a neighbor, my husband's business contacts, Chamber of
Commerce members, etc.
For more information on referrals, go to my referral article at
http://www.appraisaltoday.com/client.htm
.
AOL Users: <a href=http://www.appraisaltoday.com/client.htm> Click Here</a>
---------------------------------
Should you do this type of work?
I don't really know why so few appraisers do work for estates and trusts.
There are seldom much turnaround pressure, few or no payment problems, and
reasonable fees. Any value pressures, if any, are typically much less than
for lenders. Also, you don't risk losing a regular lender client if you
"come in" too high or too low.
If you are in an area with lower priced properties, doing appraisals for
estate and probate purposes may not give you a lot of work, but does
provide an excellent diversification opportunity. Also, sometimes there are
multiple properties to appraise.
Many appraisers don't like to do litigation and/or divorce work because of
the hassles and court testimony. Appearing in court is very unlikely for
this type of work, unless it's a very complicated and large estate and it
ends up in tax court. Even if you do have to testify, it won't be in front
of a jury, just a judge.
In the past, many residential appraisers didn't like to do work for
one-time non-lender clients. But the market has changed, and non-lender
work can keep you going when the lender market is down.
Most of the business is by referral, so you need to get your name well
known in the legal, accounting, and real estate communities.
---------------------------------
Where to get more information
The IRS web site at http://www.irs.gov is a "Gold Mine" of information.
Search for estate tax.
AOL Users: <a href=http://www.irs.gov> Click Here</a>
In this brief email article I can only touch on some of the most important
points.
I wrote 5-page article in the April, 2000 issue of Appraisal Today. I have
an older article (November, 1994) posted at
http://www.appraisaltoday.com/estate_work.htm
.
AOL Users: <a href=http://www.appraisaltoday.com/estate_work.htm> Click
Here</a>
======================
This email just has brief information on this topic. My monthly "paper"
Appraisal Today newsletter has the "full story."
If you don't already subscribe .... To subscribe to my monthly "paper"
Appraisal Today newsletter for $99 per year ($149 for 2 years), call
800-839-0227 or fax 800-839-0014 (credit card orders) or send your check
(made out to RECR) to 2015 Clement Ave., Alameda, CA.
To order a FREE sample issue or get more information, go to
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or call 800-839-0227 or fax
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For an order form, go to http://www.appraisaltoday.com/orderfrm.htm
. AOL
Users: <a href=http://www.appraisaltoday.com/orderfrm.htm> Click Here</a>
Ann O'Rourke, MBA, SRPA, SRA
Appraiser and Publisher of Appraisal Today newsletter
2015 Clement Ave.
Alameda, CA 94501
mailto:ann@appraisaltoday.com
phone: 800-839-0227//fax: 800-839-0014
http://www.appraisaltoday.com for appraisal news, info, and a few jokes!
6/14/00 AVMs-NOT/email/office fun
New this week from Appraisal Today e-news
+ Email attachment paranoia
+ Free comml. loan info from Costar
+ Appraisers On The Move
+ Office fun toy
+ 6 years of weekly emails
+ AVMs - NOT
+ Loan apps, rates, and PMI
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>>>>>>>>>>>> EMAIL ATTACHMENT PARANOIA <<<<<<<<<<<<<
Most of us are getting more and more paranoid about opening attachments,
particularly if send by someone using Outlook, executable files, and Word
files. Some of are deleting all attachments. But sometimes we need them.
Here are a few tips from an article in my local newspaper (San Francisco
Chronicle, June 12, Technology Page, written by Henry Norr) -
- Open .doc files in Wordpad - Word virus macros will not be activated. I
love this tip!
- Open files using QuickView (comes with Windows 95/98) or purchase
QuickViewPlus at http://www.jasc.com/ Scroll to the bottom of the page
- Install Microsoft's Outlook "fixit." at http://officeupdate.com/
- But... there are
some problems with the fixit, mostly inactivation of features you may want.
For more info, go to
http://www.woodyswatch.com/office/archtemplate.asp?v5-n24
FYI, Mac and Linux have security problems also...
To read this excellent article, go to
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2000/06/12 /BU64469.DTL
To read a a short article, "Virus protection gets trickier," go to
http://realtytimes.com/rtnews/rtapages/20000601_virusprotection.htm
>>>>>>>>>>>>> FREE LOAN INFO FROM COSTAR <<<<<<<<<<<<<
Some very interesting free info from Costar - a list of commercial mortgage
deals including loan amount, rate, appraised value, and other info. Check
out at http://www.costargroup.com/body/regions/collateral/default.asp
Thanks to http://www.realwired.com and their weekly email newsletter
(current and back issues are available on their web site)
>>>>>>>>>>>>> APPRAISERS ON THE MOVE <<<<<<<<<<<<<
Every few months someone contacts me about putting a notice in my Appraisal
Today paper/PDF newsletter about opening a new office, a new employee, or a
promotion. But I don't have enough room in my 12-page newsletter. Finally,
it came to me. Put it on my web site on an Appraisers On The Move page!
Send me your notices, info, etc. to mailto:ann@appraisaltoday.com
Many thanks to Dave Raskin, National Review/QA Manager for First
American/eAppraiseIT for giving me this idea!!
>>>>>>>>>>>>> OFFICE FUN TOY <<<<<<<<<<<<<
My assistant, Nicky, got me a great gift last week - a small plush toy
called a SillySlammer. Mine is the "office" model - when you throw it on a
desk it says one of three messages:
- You're fired
- Blah, blah, blah
- I want it NOW!
There are lots of other SillySlammers - Dilbert, Aliens, a college series,
sports, etc. Yes, you can hear the "slams" on the web site!
Check it out at http://www.sillyslammers.com/
>>>>>>>>>>>>> 6 YEARS OF WEEKLY EMAILS <<<<<<<<<<<<<
Saturday, June 17 is the 6th Anniversary of this weekly email!! On June 17,
1994, I sent out my first weekly email update to Tracy Taplin, Bruce Hahn,
Tom Cryer, and John Warr. Only Tracy Taplin is no longer a subscriber! (I
somehow lost her email address.) The topic was FIRREA/deminimus. I missed a
few weeks (computer problems, traveling) but subscribers became "hooked" on
their weekly news, jokes, rumors, and tidbits! The distribution list is
over 30,000 appraisers now.
>>>>>>>>>>>>> AVMs - NOT <<<<<<<<<<<<<
Good article on the pitfalls of using an AVM for determining the value of
your home, "Should Computers Replace Appraisers? , written by Peter G.
Miller. Here's a quote "In the effort to create paperless transactions and
cut closing costs we're getting rid of appraisers. That sure sounds like
a good use of technology -- unless knowing the value of a home is important
to you." Read the article at http://www.ourbroker.com/columns/zcolumn.htm
Everyone I know, knowledgeable on AVMs, would say that AVMs are not really
a good product to use for finding out what to sell your home for... Many of
the web sites offering online free homeowner products don't do a very good
job of explaining their limitations.
>>>>>>>>>>>>> LOAN APPS, RATES, AND PMI <<<<<<<<<<<<< T
he Mortgage Bankers Association of America (MBA) released its Weekly
Mortgage Application Survey results last Wednesday, reporting that mortgage
loan applications for the week ending June 2 decreased 7.3 percent from
last week. Compared to the same week last year, loan applications were down
2.9 percent. The MBA seasonally adjusted Purchase Index increased from
302.8 the previous week to 356.6; the seasonally adjusted Refinance Index
increased from 294.4 the previous week to 328.4. Other seasonally adjusted
index activity included the Conventional Index, which increased from 373.0
the previous week to 454.0 and the Government Index, which increased from
182.3 the previous week to 183.0. For more info, go to http://www.mbaa.org/
For historical data back to 1990 and a graph, go to http://www.appraisaltoday.com/mbastats.htm
Mortgage interest rates keep going up and down. My PMI business
has picked up quite a bit as borrowers are choosing to keep their low
interest rate loans instead of refinancing to remove PMI. For info on PMI,
go to PMI basics and marketing tips at
http://www.appraisaltoday.com/pmi.htm
6/7/00 leeches/OH flips/marketing
For the past 7 days I have been in Canada, speaking at the National
Conference of the Appraisal Institute of Canada in Winnipeg, plus a few
days of sightseeing... So... this email newsletter was written last Tuesday. I hope I haven't
missed too much hot news!!
New this week from Appraisal Today e-news
+ CA legislative info
+ Resource leeches
+ Northern CA seminars - OREA and SBE approved
+ Marketing tip of the week - thank you notes
+ Flipping in Ohio
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complete the online application. We will provide a response within two
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>>>>>>>>>>>>> CA LEGISLATIVE INFO <<<<<<<<<<<<<
The Southern California Chapter of the Appraisal Institute (AI) has a link
to the AI's lobbyist, California Advocates, with all current legislation
that may affect appraisers. Go to http://www.sccai.org/
, scroll down the
left side frame, and click on Cal Advocates Web Site.
Info on current possible new laws includes -
- LLCs for professional services and one member LLCs
- home offices in Los Angeles
- various eminent domain/condemnation issues
- reporting of elder abuse by agents of financial institutions
- many other issues
>>>>>>>>>>>>> RESOURCE LEECHES <<<<<<<<<<<<<
Do you ever have to reboot your computer? Or, a better question, how many
times a day do you have to reboot even though you have lots of RAM and CPU
horsepower?
How many little icons do you see in the lower right of your screen? If
you're like me, you've got stuff you don't want. I recently installed AOL
4.0 on my home computer to test my web sites and email links and it
installed an icon there. (Plus, of course trying to take over my current
version of Internet Explorer - no way am I installing AOL 5.0!).
So what? These little icons are for programs that take up RAM. (Can you say
RealAudio? I finally got rid of that one!)
Windows Magazine has two great short articles on these leeches, written by
guru Fred Langa at http://www.winmag.com/fixes/leech.htm
- system tray
fixes (This one helped me get rid of that annoying AOL button.)
http://www.winmag.com/columns/explorer/2000/11.htm
- good article on
resource leaks - Resource Leaks, Part 1, May 22
Don't forget to sign up for Langa's Langa List free email! Go to
http://www.langa.com/
>>>> NORTHERN CA SEMINARS - OREA AND SBE APPROVED <<<<
I just finished up my second week of Northern CA seminars and have
scheduled them again for August and September. 70 Hours of OREA approved
Continuing Education and 56 Hours of SBE (assessors) approved CE. All the
instructors are local and are experts in their fields.
70 hours of OREA approval and 56 hours of SBE approval. (They didn't
approve my two appraisal business management classes.)
For more info and a registration form, go to
http://www.appraisaltoday.com/no__ca_seminars.htm
or call 800-839-0227.
--------------------------------
August 14 - USPAP for the Practicing Appraiser - 7 hours credit - OREA
#95865C104 - Instructor - Deane Wilson, ASA - You will NOT go to sleep! A
dynamic and entertaining presenter.
-----------------------------------
August 15 - Title and escrow for Appraisers - 7 hours credit - OREA
#00804C110 - Boring title but fascinating, per attendees. Instructor Corina
Rollins gets top rating from her students.
---------------------------------
August 16 & 17 (2 days) - Residential Appraisal Problem Solving - 14 hours
credit - OREA#00804C107 - Problems all appraisers face - the huge house in
a tract of small homes, illegal units, etc etc. Instructor Alison Teeman
specializes in the "tough ones." --------------------------
Sept 6 - Computers for Appraisers - 7 hours credit - OREA #00804C108 - All
you wanted to know and more. Instructor - Mary Dum, "the" computer expert
for appraisers. Has written about computers and appraising for over 15
years.
-------------------------------
Sept 7 - The Internet for Appraisers - 7 hours credit - OREA #96804C101 -
We're all on the Internet but how do we use it? Instructor - Mary Dum,
"the" Internet expert for appraisers. This class was a sellout the last
time it was offered.
-------------------------------------
Sept 8 - California Architectural Styles for Appraisers - 7 hours credit -
OREA #00804C109 - Remember those dry descriptions of home styles when you
took basic appraising? Once you've attended this class, pre-1940 homes will
never be the same! Instructor Mark Wilson is a real estate agent and
architectural historian. His presentation style is unique. No one will go
to sleep - zone out for a few minutes and miss an entire fascinating
history tidbit!! This class was a sellout the last time it was offered.
--------------------------------------------
Sept 13 - Profitable Appraising, How to Maximize Profits in Your Appraisal
Business - 7 hours credit - OREA #96804C102 Collection problems? Looking
for good new clients? Instructor - Karen Mann, ASA, SRA is a dynamic
presenter and owns a successful appraisal business.
--------------------------------
Sept 14 - Income Opportunities for Residential Appraisers - 7 hours credit
- OREA #97804C105. Worried about the future? Tired of the mortgage broker
rat race - fast, cheap, and gimme what I "need"? Lots of practical ideas
for new business. Instructor - Karen Mann, ASA, SRA is a practicing
appraiser and owns of a successful appraisal business. You won't go to
sleep! -----------------------------
Sept 15 - Real Estate Fraud and the Appraisers Role - 7 hours credit -
OREA#99885C101. Appraisers in jail and how to avoid getting involved in
mortgage fraud. Instructor - Steve Smith, MAI, SRA has given this seminar
all over the country. The topic may seem a bit dry but Steve has a great
sense of humor and is able to get quite a few laughs.
------------------------------
Seminar location: Airport Inn, 1355 North Fourth Street, San Jose, CA
95112, Phone (408) 453-5340, Fax(408) 453-1717 Information on the hotel:
www.airportinn.com /
Price: Prices: One day: $135, 2-3 days -$125 each day, 4+ days: $115 each
day
------------------------
For more info and a registration form, go to
http://www.appraisaltoday.com/no__ca_seminars.htm
or call 800-839-0227.
>>>>>>>>>>>>> TIP OF THE WEEK - THANK YOU NOTES <<<<<<<<<<<<<
Include a thank you/marketing note or a customer feedback form with each
appraisal. It takes only a few seconds and can really pay off!!
For more marketing tips go to http://www.appraisaltoday.com/marketing.htm
.
>>>>>>>>>>>>> FLIPPING IN OHIO <<<<<<<<<<<<<
The May 31 Columbus Dispatch had an article on flipping of two apartments,
"Flipping' couple's investment dream now Nightmare." The lawsuit alleges
that the appraisals for both properties (14 units and a double) were
negligent or fraudulent. Two appraisers were named. Per the article, one
said he didn't do the appraisal and the other "stands by his appraisal."
To read the article, go to http://libpub.dispatch.com/
and search for
flipping. Thanks to Lawrence R. Hamilton, IFA for posting this info on the
AI email forum!
Ann O'Rourke, MBA, SRPA, SRA.traveler to the North Appraiser and Publisher of Appraisal Today newsletter
2015 Clement Ave. Alameda, CA 94501
mailto:ann@appraisaltoday.com
phone: 800-839-0227//fax: 800-839-0014
http://www.appraisaltoday.com for appraisal news, info, and a few jokes!
5/31/00 Janet Simons/Snout homes/inflated values
New this week from Appraisal Today e-news
+ VIRUS ALERT - JANET SIMONS RESUME
+ Getting too much email?
+ Oregon city First to Ban "Snout Homes"
+ Fee splits - too high or too low?
+ realwired email newsletter
+ Inflated values - bad for consumers
+ Loan apps down
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************************************************
>>>>>>>>>>>>> VIRUS ALERT - JANET SIMONS RESUME <<<<<<<<<<<<<
Beware emails with "Resume -- Janet Simons" subject line. The email has a
doc attachment and replicates itself by using Outlook (of course). It
appears to be a letter from Janet Simons, addressed to the head of sales,
and asks the reader to click on the .doc attachment. DON'T CLICK ON THE
ATTACHMENT!!
I sure am glad my name isn't Janet Simons!!
>>>>>>>>>>>>> GETTING TOO MUCH EMAIL? <<<<<<<<<<<<<
Getting too much email? Is your inbox getting clogged up? A few ideas are:
- filter - delete spam without reading - stationery files
I do all of the above, and more, to handle my 150+ per day emails!
For a short, well written article, go to
http://www.rismedia.com/news.page/24/11279
I have some tips at http://www.appraisaltoday.com/webfaqs.htm
. Scroll down
the page to the email section
>>>>>>>>> OREGON CITY FIRST TO BAN "SNOUT HOMES" <<<<<<<<<
Portland Oregon became the first major U.S. city to declare war on
oversized garages, and the first to officially ban what is dubbed as
"snout-houses," or garage-forward designs in newly-built homes. Full Story:
http://realtytimes.com/rtnews/rtcpages/20000526_snouthomes.htm
>>>>>>>>>>>>> FEE SPLITS - TOO HIGH OR TOO LOW? <<<<<<<<<<<<<
O'Rourke's Two fee split rules:
If you're paying the fee split, it's too low. If you're receiving the fee
split it's too high.
Factors to consider
1. Your competitor's fee splits.
2. Availability of appraisers.
3. Employee vs. independent contractor.
4. Clerical support.
5. Experience.
6. Marketing.
7. Production.
8. Timing of commission payment.
9. Benefits.
To read an article I wrote about fee splits, go to
http://www.appraisaltoday.com/fee_splits.htm
>>>>>>>>>>>>> REALWIRED EMAIL NEWSLETTER <<<<<<<<<<<<<
To receive a free weekly commercial real estate newsletter from realwired,
go to http://www.realwired.com and scroll down the left side of the page.
The newsletter features a sales/marketing tip, a few commercial real estate
deals, web sites, and other news.
The newsletter is for real estate professionals including brokers and
appraisers.
For a limited time, listings in the RealWired Professionals Directories is
free.
>>>>>>>>>>>>> LOAN APPS DOWN <<<<<<<<<<<<<
The Mortgage Bankers Association of America (MBA) released its Weekly
Mortgage Application Survey results last Wednesday, reporting that mortgage
loan applications for the week ending May 19 increased 8.1 percent from
last week. Compared to the same week last year, loan applications were down
9.7 percent.
>>>>>>>>>>>>> INFLATED VALUES - BAD FOR CONSUMERS <<<<<<<<<<<<<
Interesting article about how loans made on overinflated appraised values
can harm consumers.
"Appraisers can bust your bubble by inflating the value of your home" By
Michael D. Larson at http://www.bankrate.com/brm/news/mtg/20000525.asp
Ann O'Rourke, MBA, SRPA, SRA, owner of a Snout Home!!
Appraiser and Publisher of Appraisal Today newsletter
2015 Clement Ave., Alameda, CA 94501
mailto:ann@appraisaltoday.com
phone: 800-839-0227//fax: 800-839-0014
http://www.appraisaltoday.com for appraisal news, info, and a few jokes!
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