Appraisal News and Business Tips

3-16-17 Newz: Appraiser indicted, Public records sqft, 3-D printed house

3D Map Shows America’s Most Expensive Housing Markets

Excerpt: Which U.S. housing market is the most expensive?
 It seems like the question should have a single, straightforward answer. But with varying definitions of what constitutes a housing market and with different ways of measuring home value, the question is not so clear cut.
Using data from Zillow, this 3D map shows the cost of housing by U.S. county. The height of each area represents the average price per square foot of its homes.
My comment: Fascinating graphic. Lots of counties well under $100 per sq.ft. My urban county: $477. Other CA rural counties under $150. Warning: Can Be Addictive ;> I love Microcosm graphics!!
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Top 10 Affordable Small Towns Where You’d Actually Want to Live, 2017 Edition
Excerpt: But does this (small towns) mean you have to trade excitement for enervation? As the city-dwelling comedian Lenny Bruce once said, “I hate small towns, because once you’ve seen the cannon in the park, that’s it.” So we focused on life beyond the cannons-small towns offering up rich cultures and a surprising amount of fun side diversions.

Top 3:
1. Mexico, MO
Median home price: $65,600
Unemployment rate: 3.6%
2. Guymon, OK
Median home price: $76,000
Unemployment rate: 3.1%
3. Decatur, IN
Median home price: $81,900
Unemployment rate: 3.1%
My comment: Very Interesting and Fun article!! Nothing on the east and west coasts, of course ;>

http://www.realtor.com/news/trends/most-affordable-small-town-youd-actually-want-to-live-2017

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House 3D-Printed On-Site In Under 24 Hours At A Cost Of Just $10,000 
Excerpt: While 3D-printing may have been faded away in recent years from the spotlight of core “disruptive” technologies, that may soon change again after a company managed to 3D-print an entire house in just 24 hours. Located in Russia, the following 400-square-foot home, or 37 square meters, was built in just a day, at a cost of slightly over $10,000.

My comment: This is the only house 3-D printed on site. Good video, photos and info. Click here for 30 Greatest 3D Printed Houses & Structures in the World https://all3dp.com/best-3d-printed-house-building/

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Tips for Dealing with Complex Residential Appraisals

By Joseph Lynch
 
All appraisers encounter complex properties. 
This article can really help!!
In the December 2016 issue of the
paid Appraisal Today,  available to all subscribers
Excerpt: Two of the many tips in this article 
Time
Time is your friend when dealing with a complex residential assignment. In general, time adjustments are the easiest and most reliable adjustments to make. Don’t limit your comparable search to the lender box of 3 months/6 months/12 months back. Go back as far as necessary to deal with your subject’s complexity.

Prior Sale of the Subject
A special case of going back in time for comparables is to consider the prior sale of the subject. Using the prior sale of the subject is a great way to deal with issues unique to the subject such as location or a physical characteristic. If you’re lucky, the subject has sold within a reasonable time frame and can be time adjusted forward to be used as a comparable. The prior sale of the subject can be your best comparable.

Even if you can’t use the prior sale of the subject as a direct comparable, you can use the prior sale of the subject to examine what your subject’s market is and what a possible adjustment for the factor might be. The last time the subject sold, what did other homes nearby sell for? Which ones appear to have been reasonably similar in characteristics and price? What was the subject’s competitive market? What did the listing agent for the subject say about the prior sale of the subject?
To read the full article, plus 2+ years of previous issues, subscribe to the paid Appraisal Today.
 
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If you are a paid subscriber and did not get the March 2017 issue, emailed March 1, 2017, please send an email to info@appraisaltoday.com  and we will send it to you!! Or, hit the reply button. Be sure to put in a comment requesting it.

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How Big, Really… Size Matters… Suggestions
Very often the public records are dead wrong…
By Dave Towne
Excerpt: In every report, add the statement that YOU measured the dwelling to determine the GLA used in the report. Also state that your measurement is considered more accurate than other sources.  (Add this to your starting template or ‘master’ report.
Compare your measurement with public records. When there is a difference, state the public records larger or smaller amount in either a percentage or actual s/f difference.
My comment: Read the article for his other suggestions. I was trained at an assessor’s office in the 1970s in California. We did not use ANSI, Fannie, or any other guidelines except from the State of California’s. Also, properties were not re-appraised after 1979 unless there was a sale or significant improvements (Proposition 13). A few years ago, a local real estate agent showed me an appraisal where the appraiser had a totally incorrect drawing so it matched the assessor’s sq.ft. That is the worst thing an appraiser can ever do – LIE !!!
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Banks Make Regulations Onerous By Over-Interpreting Them
By Jonathan Miller
Excerpt: With all the talk about revisiting, gutting or eliminating Dodd-Frank, a significant part of the problem with mortgage appraisal related lending actually exists within the bank risk management themselves. Their over-interpretation of what the regulations require gives outsiders the impression that appraiser related regulations or standards are more onerous than they actually are.
My comment: Another good analysis by Miller on his Matrix Blog. Discusses Fannie and trainees and Reporting “Material Failures” to State Boards. Be sure to subscribe to his Blog – click on the link (bottom of page).
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Appraiser Indicted for Using Non-Licensees to Expand Capacity 
Excerpts: According to the indictment, in 2015, Garner began an illegal and deceptive practice of using uncertified and unlicensed surrogates, including two individuals identified in the indictment as GD and ZG, to perform the appraisals…  He paid the surrogates a portion of his appraisal fee.
The indictment further alleges that Garner instructed his surrogates to pretend to be him if questioned by anyone during the appraisal process and he provided them with his own business cards to provide to others, if necessary.
My comment: If you want to get the latest news on mortgage industry bad boys and girls, subscribe to www.mortgagefraudblog.com . I have subscribed for many years. Not many appraisers show up in this blog now, but there were a lot of them after 2008. Also, please remember that, in this country, accused are presumed to be not guilty, until proven otherwise.
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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, go to www.mbaa.org 
Note: I publish a graph of this data every month in my printed newsletter, Appraisal Today. For more information or get a FREE sample issue go to https://www.appraisaltoday.com/products.htm or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.
Mortgage applications increased 3.1 percent from one week earlier
WASHINGTON, D.C. (March 15, 2017) – Mortgage applications increased 3.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 10, 2017.
The Market Composite Index, a measure of mortgage loan application volume, increased 3.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 4 percent compared with the previous week. The Refinance Index increased 4 percent from the previous week. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 3 percent compared with the previous week and was 6 percent higher than the same week one year ago. 
The refinance share of mortgage activity increased to 45.6 percent of total applications from 45.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.2 percent of total applications, the highest level since October 2014.
The FHA share of total applications decreased to 11.1 percent from 11.8 percent the week prior. The VA share of total applications decreased to 11.1 percent from 11.6 percent the week prior. The USDA share of total applications remained unchanged at 0.9 percent from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to its highest level since April 2014, 4.46 percent, from 4.36 percent, with points decreasing to 0.37 from 0.44 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased to its highest level since April 2014, 4.44 percent, from 4.27 percent, with points increasing to 0.28 from 0.26 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to its highest level since January 2014, 4.29 percent, from 4.18 percent, with points increasing to 0.39 from 0.32 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.66 percent from 3.57 percent, with points increasing to 0.45 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs decreased to 3.45 percent from 3.48 percent, with points increasing to 0.24 from 0.20 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.
1 Comment
  1. RE: Appraiser Indicted for Using Non-Licensees to Expand Capacity 

    Lovin’ you, Ann-

    You stated “Also, please remember that, in this country, accused are presumed to be not guilty, until proven otherwise”.

    I suck at quoting chapter and verse, but I read a lot of stuff, and I recently read an article written by a highly designated Real-Smart-Guy who explained that because state-related complaints are not of a criminal nature, the assumption is Guilty until Proven Innocent regarding the State boards.

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