2-28-20 Newz: Adjustments – Appraiser Personalities – Data Standards

The One Personality Trait Every Property Appraiser Must Have

Excerpt:

Unbiased (46%)

“As an appraiser, you MUST give an unbiased opinion of value based on the data you have collected and your experience for it to be valid.”

“If you can’t be unbiased you should not be an appraiser. It is the hallmark of what an appraiser does.”

“Every appraiser needs to be unbiased. You can have knowledge, experience, patience, and all the credentials in the world, but if you are biased in either direction you are doing your client a disservice whether it benefits you or them.”

To read the other top traits and other interesting comments, click here

My comment: I was trained at an assessor’s office. When I first started working there I was told never to even have a taxpayer pay for your lunch. We were trained to be unbiased. Lending was a big shock for me later, with the pressure for values and non-disclosures. Most say that ethics come from within you. But, maybe fear of losing your appraisal license could be a motivator.

I don’t think that USPAP, licensing, regulations, etc. has done much about this. All it does is make us pay for a new USPAP book and class every other year. Plus way too many changing regulations. Plus very uneven state board enforcement. Before licensing, lenders knew who on their panels were ethical. When I started worked at a biotech company doing real estate management, I knew which local commercial appraisers were ethical and who was not after making a few phone calls. Of course, to many AMCs, all appraisers are the same, are sorta stupid and maybe unethical.

Read more!!

2-14-2020 Newz: FIRREA Under Attack – Spectacular Spirals – Lending Up to 2005 Levels

FIRREA Under Attack!

Excerpt: Congresswoman Maxine Waters and Congressman William Lacy Clay request a formal study/investigation into Title XI (FIRREA) and the recent dilution of its intent by the Federal Agencies. The letter to Gene Dodaro, Comptroller General, Government Accountability Office, addresses threshold increases, regulatory exemptions, appraisal waivers, the North Dakota appraiser certification waiver and evaluations in lieu of an appraisal. It is clear the Chairwoman of the House Financial Services Committee and Subcommittee Chairman on Housing, Community Development and Insurance see the issues surrounding the recent events.

To read the press release and appraiser comments, click here

My comment: finally someone in Congress is noticing what is happening and complaining to the GAO!!

Read more!!

2-7-20 Newz: Obsolete Appraisers – Apartment AVMs – Outlier Sales

Not getting distracted by outlier sales

By Ryan Lundquist

It’s been a record-breaking couple of years. In New York we saw the highest residential sale ever in the United States at $238M. Then a couple months ago California got a new record with the Beverly Hillbillies mansion at $150M. And now there’s a listing in Bel-Air that just hit the market at $500M. The truth is it’s easy to get distracted by the bling of outlier sales because of how lofty the prices are, but here are a few things to keep in mind….

1) These sales don’t pull the market up: Outlier sales don’t pull the rest of the market up, and they have nothing to do with the entry-level market or affordability for the average person.

2) I just gotta have it: My observation with the highest sales is sometimes cash buyers offer prices that seem disconnected from what looks reasonable on paper. This doesn’t happen in all situations, but sometimes it does where the buyer simply says, “I just gotta have it.”…

For lots more tips, plus a few graphs, click here

My comment: When doing any type of statistical analysis, it is important to look at the outliers, high or low, so you can eliminate them in your data set. Very easy to do.

Read more!!