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NOTE: Please scroll down to read the other topics in this long blog post on unusual homes, Fannie ANSI requirements, mortgage rate forecast, mortgage origination stats, etc.
ANSI Z765-2021 Information Resources – CLICK LINK BELOW FOR MORE
To download and read Fannie’s Standardized Property Measuring Guidelines
click here. This one-page document answers many questions. READ IT!!
Purchase the ANSI standards, “Square Footage – Method for Calculating: ANSI Z765 2021,” for $25 and read lots more about who is on the committee, appraiser comments, meetings, etc. When you read the 16-page document, there are only 4 pages of changes. The rest of the document is diagrams and explanations. The process started in 2019.
To read more about how the standards were developed and/or purchase the
READ THIS SHORT ARTICLE: Here comes Santa Claus, here comes Santa Claus … no, wait! It’s Fannie Mae. To read, click here Short and well written by Bryan Reynolds, an “insider,” who was on the ANSI Consensus Committee.
PODCAST: The Appraisal Update – Episode 95 | Here Comes Santa…No Wait, It’s Fannie Mae! 27 minutes. To listen, click here
WEBINARS AND CLASSES
FREE RECORDED WEBINAR 12-21-21 I listened to this.
The Appraisal Report Webinar | Fannie Mae and ANSI
12-21-21 1 hour, 23 min.
Conversational format with three appraiser speakers: Bryan Reynolds, John Dingeman, and Hamp Thomas. The Fannie sent the notice 12-15-21. The following week, this webinar was live. It rambles somewhat but is worth listening to as the main appraiser issues are discussed. I will never forget Bryan’s comments on how to get to a 7 ft. height in a sloped ceiling by taking out the carpet and the wood paneling on the ceiling! Lots of Q and A at the end. Hamp Thomas has been teaching and writing about ANSI measurements for a while. His goal was to get a measurements method. He will be updating his ANSI book for 2021 changes. Info on Hamp. www.housemeasures.com
To watch the webinar and read the appraiser comments, click here
WEBINAR – $99.95. Live Zoom: 4 hours with CE credit 1-27-22
Measuring with ANSI & the 2021 ANSI Update
In-depth training on measuring residential square footage using the 2021 edition of the ANSI® Measurement Standard. Thursday, January 27 | 12PM – 4PM CDT
FREE VIDEO with Bryan Reynolds 12-29-21 28 minutes. Appraisal Buzz. I listened to this video. Mostly background but some fun stories by Bryan.
The Fannie Mae Requirement Impacting All Appraisers in 2022
Excerpt: Fannie Mae is requiring appraisers to use ANSI standards starting April 1. What does that mean for appraisers, and how can they correctly follow all the new guidelines? These questions and much more will be answered.
My comment: I’m not sure how this affects appraisers who don’t do any residential lender appraisals, such as myself. I will be doing some research on this.
ONLINE 7-hour class Available now.
7 hours CE credit $119. ANSI, Home Measurement, & the Power of Price-Per-Square-Foot Created Exclusively for Residential Appraisers based upon Square Footage-Method for Calculating ANSI Z765-2021
This course was created to provide a broad overview of basic techniques and procedures for measuring single-family residential dwellings. The measurement and area computation methods are based upon the American National Standards Institute Square Footage-Method for Calculating ANSI Z765-2021. The course explains the updates in the 2021 edition of ANSI and reviews all measurement issues. Suitable for Trainees or 20-year veterans. In every residential transaction, at some point and time, a home’s “size” will impact the perception of value.
Standardizing appraisal sq. ft. has to start somewhere. Fannie has chosen ANSI.
On December 15, when I read Fannie’s email, my first reaction was negative, similar to many appraisers. I don’t do lender residential appraisals, so why should I care? Many of the homes I appraise don’t conform to the standards. ANSI works best on rectangular tract homes. But, after using some of the resources above, I changed my opinion.
The ANSI standard was developed in 1996 by the National Association of Home Builders to standardize new home sq. ft. I don’t know if any appraiser input was used. Commercial standards, such as BOMA, have been used for much longer. I don’t know of anything developed for appraisers.
I agree with Fannie (see their video above) that standardization is needed. They see it when comparing sq. ft. of the same house done by different appraisers. Who is right?
Sq.ft. is a primary reason for E&O and state board complaints.
The standards are not very complicated, as compared with USPAP or other Fannie Guidelines. The primary issues are counting stairs on both levels and sloped ceilings. Both are handled in ANSI. There are no standards now for appraisals on sloped ceilings. Another issue is using inches or decimals, which is easy for appraisers to change.
An issue for appraisers is that very few MLS’ require ANSI so how can you use ANSI? My MLS mostly uses the assessor’s sq. ft., which may, or may not, be the same as the sq. ft. in my appraisal. Appraisers deal with this a lot.
A significant issue is what to do with finished areas, recognized in the market as living areas, that don’t conform to ANSI, such as below grade. There can be conforming and non-conforming areas. But, at least there is a standard for ANSI conforming areas. There are no standards now.
More comments: Humans, including appraisers, don’t like change. Like most of us, I do what I was taught in the assessor’s office in the 1970s: measure to the nearest ½ foot. I use 5 ft. for sloped ceilings.
It looks like Fannie ANSI sq. ft. will be on the GLA line, and non-ANSI sq. ft. (i.e., below-grade) will be on another line. More info next week from Fannie, hopefully.
Fannie’s requiring ANSI April 1, 2022, is nothing compared to all the changes from UAD, etc.!
I’m working on articles on ANSI changes for the February issue of the monthly Appraisal Today, including reviewing the resources above, guest authors, and interviewing “insiders”. The last time I wrote about ANSI was in 1995 in an article on ANSI and EDI when Fannie was trying to figure out how to standardize appraisal data, which ended up with UAD.
ANSI has not been a big topic for appraisers as few states require it. Some appraisers use it, and some don’t.
America’s Most Affordable Ski Towns, 2021 Edition: Black Diamonds for Less Green
Just For Fun!!
Excerpt: “There are markets where you can find an affordable ski home in every region of the country,” says Danielle Hale, chief economist of Realtor.com. “Getting a ski home that costs less means more left over to spend on skis or other things to help you enjoy your time at your mountain home—or [buyers can] save it for a rainy day.”
What we found were smaller towns, mostly in the East and Midwest, where buyers can still find bargains. These lower-priced mountain meccas tended to be small, remote cities that built resorts as a means to replace fading industries. While skiers here may not get the same experience as, say, skiing the Swiss Alps, fewer tourists and miles of untrammeled nature mean bargains abound.
My comments: I don’t see any listed for the West Coast. Way too expensive. I live 2 hours from Lake Tahoe ski resorts, but home prices are very high!
Your last chance to get tax writeoffs for purchases and donations for 2021 is Today!!
You can use a credit card by midnight or check dated 12/31/21. I do this every year on December 31 as I am a procrastinator!! I donate to local charities such as Alameda Meals on Wheels. Amazon donates a 0.5% percent of certain of my purchases to this charity. I set this up many years ago. Set up your favorite charity!
New in the January 2022 Monthly Appraisal Today Newsletter
Construction Progress Reports by Claudia Gaglione, Esq. Very risky as we all know!
Does My Neighborhood Really Need to be Analyzed? Part 1 By Tim Andersen, MAI The best neighborhood analysis I have ever read. Focuses on Fannie’s requirements. USPAP does not discuss neighborhoods.
New Year’s resolutions. Set goals for 2022 and plan how you will accomplish them. Lots of tips. I do this every year.
When the best comps are four years old by Ryan Lundquist Good example with graphs.
Book Review: 36 answers you need now! To help you master neighborhood analysis by Tim Andersen, MAI
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8 Mortgage rate forecasts – which one do you think is the best, if any!
Excerpt: We interviewed eight mortgage, housing, and finance professionals to get their mortgage rate forecasts for 2022.
These industry experts predict 30–year fixed mortgage rates could rise to between 3.4% and 4.1% by the end of next year. When it comes to 15–year mortgage rates, they predict an average between 3.0% and 3.5%.
Average interest rate predictions put 30-year fixed rates at 3.88% and 15-year fixed rates at 3.27% in 2022.
To read more, including comments of the 8 persons interviewed, and see the comparison graph, click here
My comments: Appraisal volume is driven by refis, which depend on mortgage interest rates. I looked at many different forecasts, but this one has 8 forecasts with a graph. What do I think? If I knew, I would be very rich and get a Nobel Prize (maybe)!! I (probably) would not be writing this weekly newsletter as I would be playing a lot of pickleball!
S-House, Designed by Yuusuke Karasawa Architect
Excerpts: Tokyo-based Yuusuke Karasawa Architects designed a glazed, split-level house in Japan’s Saitama prefecture that explores the owner’s interest in the networks formed by space and nature.
The thin, fluoropolymer-painted steel plate that forms the primary structure of the S-House extends beyond the glazed perimeter. Privacy curtains allow for views out but not in.
My comment: Definitely not written by a real estate agent trying to sell the house ;> Architecture magazines and websites have fascinating descriptions and photos. The comments are sometimes difficult to understand, but you can look at the photos.
No MBA weekly report this week. I remember the days when I was an employee and took off work Christmas to New Year. Now, I work almost every day!!
Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. I have been following this data since 1993. For more information or get a FREE sample issue go to https://www.appraisaltoday.com/products.htm or send an email to email@example.com . Or call 800-839-0227, MTW 7 AM to noon, Pacific time.
Excellent rate table.
To download MBA mortgage stats and forecasts from 2021 to 2024 (PDF)