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This blog has all my free weekly email newsletters since 2012. Plus other topics. Please note that the original email newsletter subject line has been significantly shortened. To see the original email newsletters, click here to go to the newsletter archives. The newsletter has been sent out weekly since June, 1994. To subscribe to the free email newsletters and receive them on the date they are first issued, go to www.appraisaltoday.com and sign up in the big Yellow Box!!

Looking for a topic? Use Search box on the right side. There are hundreds of posts on this blog, starting in 2012. 

Every week I send out my FREE email newsletter with info on strange and weird homes and buildings, what Fannie, FHA, AMCs, UAPAP, etc. Hot topics important to appraisers. See info on the right column for topics.

I have also been publishing a paid Appraisal Today monthly newsletter since June, 1992 with in-depth articles on topics important to appraisers. This newsletter has detailed articles on appraisal topics such as Adjustments and Collateral Underwriter plus business topics such as fees, marketing tips, and productivity to get more appraisals done. Click below for more info!!

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Posted in: Uncategorized

FHA: Cosmetic vs. MPR Repairs

Cosmetic vs. MPR Repairs: Guidance for FHA Appraisers

By: McKissock

Excerpts: If you are appraising a property that needs some cosmetic repairs but meets FHA minimum property requirements (MPR) in its current condition, you should make the appraisal “as-is.” Here is some guidance on cosmetic repairs vs. MPR repairs.

Topics include:

  • When can an FHA appraisal be completed “as-is” vs. “subject to”?
  • Cosmetic repairs Examples
  • MPR repairs Examples
  • Conditions that require inspection Examples

To read more, click here

My comments: If you do FHA appraisals, read this blog post. Photos and lots of examples. I quit doing FHA appraisals in the mid-1980s because of the inspection requirements compared to conventional appraisals, that did not have the requirement.

Appraisal Business Tips 

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

NOTE: Please scroll down to read the other topics in this long blog post on appraisal “modernization”, bias hearing, bad appraiser, USPAP, unusual homes, mortgage origination stats, etc.

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Appraiser pleads guilty in $1.3B fraud scheme

Walter Roberts II of North Carolina faces five-year maximum sentence

Excerpts: An appraiser in North Carolina is set to face the music after conspiring in a massive $1.3 billion tax fraud scheme.

… Roberts faces a maximum of five years in prison and will be sentenced in six months.

The fraud started in 2008, one year after Roberts became a licensed appraiser, according to court documents and statements. In 2007, he started appraising conservation easements, which are specified areas of land earmarked for environmental conservation. Owners with conservation easements can claim an income tax deduction.

From 2008 to 2019, Roberts fraudulently inflated the value of at least 18 different easements by violating industry norms and making false statements. He also manipulated or used manipulated data to hit a target appraisal value communication by unnamed co-conspirators to achieve a certain tax deduction.

The impact of the fraud is staggering, especially since Roberts inflated the value of some appraisals by at least 70 percent…

To read more, click here

My comments: For more info, google his name and add appraiser. Conservation easement appraisals are a definite risk for appraisers. Over time, many have been significantly over-valued per the IRS. They are not easy to do. I decided not to do them many years ago. Best to do a lot of them and become an expert or none.

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Glorious Gilded Age Mansion for $29.9M Is Washington DC’s Most Expensive Home

Excerpts: Completed in 1881, the 23,600-square-foot mansion is divided among commercial spaces on the first two floors. A residential penthouse is situated on the top two floors.

A three-year renovation, ending in 2009, converted the upper floors into the 7,000-square-foot penthouse. The space offers four bedrooms, five full bathrooms, and lots of living and entertaining space.

“There’s an atrium, multiple sitting rooms off of the atrium, a humongous dining room, and a humongous living room, so yes, I would say there’s plenty of entertaining space,” Heider (listing agent) says.

“There’s nothing [else] in this city that offers a private rooftop pool overlooking one of the most charming circles in the city,” Heider says, adding that the pool and accompanying outdoor kitchen are only for Blaine Mansion penthouse residents.

“Imagine yourself being able to go out on your rooftop and be in the pool, drinking a margarita and overlooking DuPont Circle. Right now, nothing compares to it.”

The property also comes with 14-vehicle parking capacity.

To read more and see lots of photos, click here 

My comment: Really stands out from the modernized buildings nearby! I lived in Washington, DC, until I was 9 years old. My mom used to take me regularly to Dupont Circle to play. I don’t remember much about what it was like there, but I remember Dupont Circle Park.

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Purchase and Sale Agreements

By Tim Andersen, MAI

Excerpt: Should appraisers get a copy of the purchase and sale agreement?

Some appraisers feel that lenders should not provide them with the purchase and sale contract. Then that contract does not serve to color, cloud, or otherwise bias a value opinion.

Let’s take a look at it from basically both sides. Appraisers analyze the purchase and sale contract to amass and verify data to have detailed data to use in the analytics of future assignments.

Purchase and sale agreements are also a great source of data relative to the subject, which might serve as a verified and personally inspected comp in a future assignment. Remember, we rarely get to inspect comparables.

Over time, a great deal of research has indicated that well over 90% of appraisals come in at or above the purchase and sale contract. This suggests that appraisers are indeed letting that contract price function as a target the lender expects the appraiser to reach and then support.

We all know this is true.

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If this article helped you understand how to analyze purchase and sales agreements, it is worth the subscription price!

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If you have any comments or info on any topics, please hit the reply button!! I’m always looking for something new ;>

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Jonathan Miller testifies at ASC hearing on appraisal issues: bias and barriers to entry 

C-SPAN Video is approximately 3 hours with a 17-minute break

The Appraisal Subcommittee (ASC) held a second hearing on challenges facing the appraisal industry, including barriers for entering the profession and racial bias in home appraisals. The panel’s first hearing on such topics occurred in January 2023.

To listen and read the hearing transcript click here

My comments on the video: Usually, on these long hearings, it is hard to stay awake waiting until the section you want to hear. This video is very easy to use, plus text is available. You can search for people and speakers. 6 video segments on specific topics.

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Jonathan Miller on his experience at the hearing

Excerpts: On Friday morning, I was one of five expert witnesses (and the only as an appraiser) to testify on the topic of appraisal bias in front of the Appraisal Subcommittee (ASC). The witnesses waited together in the green room, plus additional TAF staff. We had a delightful conversation – everyone was very friendly and a pleasure to be with, given the adversarial nature of our looming testimony.

It’s a three-hour hearing, but if you are connected to the appraisal industry in any way, I encourage you to listen. You can hear my opening statement at about the 26-minute mark. The text on the C-SPAN website was generated from unedited closed captions. Here was my formal statement, but since the timing was strictly limited to 5 minutes, I read this abbreviated version, which in hindsight, was better and more to the point. (Editor note: links are in the text

Thoughts…

Morgan Williams, General Counsel, National Fair Housing Alliance – He was a compelling witness – he drove home that he wanted access to anonymized loan-level data to determine the potential valuation bias.

Angela G. Jemmott, Bureau Chief, California Bureau of Real Estate Appraisers, Member of the Association of Appraiser Regulatory Officials. She was a powerhouse of testimony, advocating practicum solutions in addition to PAREA.

To read a lot more of Jonathan Millers interesting comments, click here

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Rocket Mortgage offers new 1% down home-loan program

Excerpts: Rocket Mortgage recently introduced ONE+, a new 1% down home loan program that will dramatically increase access to homeownership for millions of low-to-moderate-income earning Americans, the company has announced.

With ONE+, Rocket Mortgage stated that a homebuyer is only required to make a down payment of 1% of the purchase price and they will cover the remaining 2% needed to reach the required threshold for conventional loans. In addition to reducing upfront costs, Rocket Mortgage says ONE+ completely eliminates the expensive monthly mortgage insurance fee for the client —which is traditionally required if the buyer places less than 20% down on their purchase.

Designed to help everyday Americans achieve homeownership, Rocket Mortgage stated that ONE+ is available to homebuyers purchasing single-family homes—including manufactured homes—whose income is equal to or less than 80% of their area median income (AMI). With this expansive AMI eligibility, the company estimates that more than 90 million people can meet the income requirements for this program—based on publicly available income data.

To read more, click here

My comment: Hopefully, they will use full appraisals because of the increased risk!

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The Next Generation of Appraisals: Revolutionizing Real Estate Valuation with Computer Vision

By Tony Pistilli

Excerpts: Before you get too worried and quit reading, let’s all agree computer vision is unlikely to replace appraisers. I believe it will only make them more accurate and more efficient. Think of computer vision as a calculator. Sure, you can use pencil and paper and divide 1,024 by 82 and come to the correct number, but there are calculators that allow us to do that much faster and with more consistent accuracy – that’s what computer vision will do for appraisers.

While computer vision holds tremendous potential for real estate appraisers, I believe several potential challenges need to be addressed. The need for standardized data formats is paramount, consistent taxonomies in MLS, and between inspection forms and appraisals. Additionally, ensuring the proper use of computer vision technologies and maintaining transparency in the valuation process are critical aspects that should be carefully addressed by state, federal and financial institution regulators and also addressed in USPAP.

To read more, plus the 20+ most negative appraiser comments, click here

My comments: The accuracy of any AI depends on the data.

As we all know, MLS, Public records, etc. are not always accurate for a property. AI has to be trained on good data.

MLS videos and photos taken by agents tend to leave out any defects or problems. They are sales persons, of course. They disclose them in the seller’s disclosure statement, hopefully! I wonder if the home would be overvalued?

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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, click here.  

Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.

My comments: Rates are going up and down. Some appraisers are very busy, and others have little work. Varies widely around the country.

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Mortgage applications decreased 4.6 percent from one week earlier

WASHINGTON, D.C. (May 24, 2023) — Mortgage applications decreased 4.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 19, 2023.

The Market Composite Index, a measure of mortgage loan application volume, decreased 4.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5 percent compared with the previous week. The Refinance Index decreased 5 percent from the previous week and was 44 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 4 percent from one week earlier. The unadjusted Purchase Index decreased 5 percent compared with the previous week and was 30 percent lower than the same week one year ago.

“Mortgage applications declined almost five percent last week as borrowers remained sensitive to higher rates. The 30-year fixed rate increased to 6.69 percent, the highest level since March,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Since rates have been so volatile and for-sale inventory still scarce, we have yet to see sustained growth in purchase applications. Refinance activity remains limited, with the refinance index falling to its lowest level in two months and more than 40 percent below last year’s pace.”

Added Kan, “Investors remained attuned to the uncertainty around the U.S. debt ceiling and communication from several Federal Reserve officials last week, which sent Treasury yields higher, along with mortgage rates. Economic data released over the past week have also pointed to a still-resilient economy. The housing market received positive data on new residential construction – which is seen as a key solution to the lack of housing inventory.”

The refinance share of mortgage activity remained unchanged at 27.4 percent of total applications from the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.7 percent of total applications.

The FHA share of total applications increased to 12.5 percent from 12.0 percent the week prior. The VA share of total applications increased to 12.5 percent from 12.2 percent the week prior. The USDA share of total applications increased to 0.5 percent from 0.4 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.69 percent from 6.57 percent, with points increasing to 0.66 from 0.61 (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 $726,200) increased to 6.57 percent from 6.46 percent, with points increasing to 0.57 from 0.38 (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 6.56 percent from 6.39 percent, with points increasing to 1.24 from 0.97 (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 6.15 percent from 5.96 percent, with points increasing to 0.72 from 0.68 (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 increased to 5.73 percent from 5.71 percent, with points increasing to 1.19 from 1.10 (including the origination fee) for 80 percent LTV loans. The effective rate increased 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.

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Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
1826 Clement Ave. Suite 203 Alameda, CA 94501
Phone 510-865-8041
Email  ann@appraisaltoday.com
www.appraisaltoday.com

Posted in: bad appraisers, bias, FHA, lender appraisals, USPAP

Chat GPT For Fannie Form Appraisal Reports

Chat GPT For Fannie Form Appraisal Reports

By Dustin Harris

Excerpts: The world of real estate appraisal is constantly evolving (much to our dismay sometimes), and as professionals in this field, it is crucial to stay ahead of the curve by embracing innovative tools and technologies. ChatGPT is an advanced AI language model developed by OpenAI that can be used to streamline the appraisal writing process.

Can ChatGPT, and other AI models, actually assist appraisers in writing summary appraisal reports? The answer is, Yes! Here are some examples of real-life prompts I have used with success.

“Rewrite the following description of a house and property using brevity and professional language”

“Summarize all of these property descriptions into one, easy-to-read format with a professional tone for a real estate appraisal report.”

“I am a real estate appraiser completing an appraisal. For my square footage adjustment, I used a combination of paired-sales and sensitivity analysis to determine $65 a square foot was appropriate, but I did not adjust for differences between the subject and comparables if the difference was less than 100 square feet. Write a description of where the adjustment came from that I can use in the report.”

To read more, click here

My comments: Thanks to Dustin for writing this! I have been reading about using Chat GPT for appraisal marketing and narrative reports, but this is the first I have read about form reports.

Appraisal Business Tips 

Humor for Appraisers

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NOTE: Please scroll down to read the other topics in this long blog post on hybrid appraisals, business tips, UAD info from Freddie, Fannie modernization, non-lender appraisals, unusual homes, mortgage origination stats, etc.

To read more of this long blog post with many topics, click Read More Below!!

Read more!!

Posted in: appraisal business, Fannie Forms, hybrid appraisals, non-lender appraisals, UAD

Data Collectors: Appraisers vs. Uber Drivers

Certified Appraisers vs. Unlicensed Data Collectors

By Jonathan Miller

(13-minute video) Here’s a great take on the difference between Certified Appraisers vs. Unlicensed Data Collectors by Leigh Brown, President of the NC Association of REALTORS. Fannie Mae has been working hard to get rid of appraisers for years. Their latest twist is to re-categorize many appraisers as “Unlicensed Data Collectors.”

Fannie Mae will end up creating more instability for the trillions in the bond market – investors will have to process millions of valuations with the physical attributes of the home collected by unlicensed, uninsured, and unprepared individuals getting paid $10-$25 per inspection.

This is to follow up on a meeting Appraisal Institute representatives held in Washington, D.C. with members of the Federal Housing Finance Agency Divisions of Housing Mission and Goals and Fair Lending March 8 to discuss the new Value Acceptance program released by Fannie Mae…

Of particular concern is the encouraged development of an alternative workforce of property data collectors that may negatively impact aspiring appraisers’ ability to enter the appraisal profession…

To read more and watch the video, click here

To sign up for his weekly Housing Notes, click here I have been a subscriber for many years.

My comments: Miller tends to be negative about the AI, but this excerpt from his weekly email is worth reading especially the video!

This is the future of GSE using appraisers. Inspection or desktops are fine, but fees may be low and many don’t want to do them. Full appraisals only on the “though appraisals” where Fannie’s AI does not work.

Many appraisers are retiring or quitting. If you make it through this downturn there will be few appraiser competitors left for the next big upturn in business.

Appraisal vs Zillow vs AVM which is best

Appraisal Business Tips 

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

NOTE: Please scroll down to read the other topics in this long blog post on humor, non-lender appraisals, mortgage  forecast, staying positive when you’re slow, unusual homes, mortgage origination stats, etc.

To read more, click below

Read more!!

Posted in: appraisal business, Appraisal fees, data, Fannie, future, humor, non-lender appraisals

What Are Fannie’s New Appraisal Online Formats?

Fannie’s New Appraisal Online Formats

By Brent Owen

Excerpts:

To Be Or Not To Be (a form), That Is The Question

The first thing to notice is that the ‘form’ isn’t really a form anymore. It is more of a complex decision tree or flow chart, where ‘yes/no’ questions trigger new sections and required data and supplements. For instance, answering ‘yes’ to a question about noted deficiencies will create a new section where details are needed regarding the deficiency which include further questions about whether or not repair is required and if so, the estimated costs of those repairs and section to provide a photo of the deficiency. All of that is integrated into the URAR itself. It is through the use of this decision tree model that the GSEs are able to use the same ‘form’ for almost any residential property type conceivable.

The Never-ending Story

It is also apparent that the report will be far longer than its predecessor. Appendix D-1 contains a sample URAR of a simple single family residence with no site value, cost approach, or income approach, with only 3 sales and very limited commentary and no additional addenda (with photos, maps, and graphs integrated into the URAR). The report was 21 pages, and would still be at least double the length of the current URAR without the integrated photos, map, and graphs.

That in and of itself isn’t necessarily a problem. After all, my typical reports are more than 40 pages long. It’s not the length of the report which is of ultimate importance, it is the time necessary to develop the appraisal that is key. My sense so far is that there will be some additional time necessary (beyond the expected additional time necessary to become proficient with the new format and associated technology).

To read more plus appraiser comments, click here

My comments: Read this article! A good analysis in one location. I have read lots of very short comments, but this one is much longer. Unfortunately, Fannie has not provided separate information for appraisers. The announcement included many pages as it was for everyone: appraisers, forms vendors, lenders, AMCs, etc., with lots of very detailed information.

Appraisers – The Past and The Future

Appraisal Business Tips 

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

NOTE: Please scroll down to read the other topics in this long blog post on Appraisal Institute President, non-lender appraisals, Changing state appraisal laws, Fannie modernization, unusual homes, mortgage origination stats, etc.

To read more of this long blog post with many topics, click Read More Below!!

Read more!!

Posted in: appraisal business, Fannie Forms, state appraiser regulators

Appraising Solar Panels

Appraising Solar Panels

By Mark Buhler

Excerpts: You drive up to the property. There they are, on the roof: those shiny black rectangles that are just about to turn a simple assignment into a headache. What to do? Put the car in reverse and slowly back away? Call the client and have them re-assign the order?

Those are certainly options. But in today’s tight market, with orders as scarce as hens’ teeth, let’s explore some other approaches to solving this problem.

First: How do appraisers value any amenity of a property?

Appraisal 101 would suggest the matched pairs analysis. So our first task is to find a property with solar panels that’s similar to the subject.

That search quickly comes to a screeching halt. (I can almost smell the brake dust.) There are no comps with solar panels in the area. So when we type the report, a comment like this might slip past the reviewer and underwriter: “A thorough search of the subject’s marketing area revealed a scarcity of sales comparables with solar panels.”

So far, so good. Now let’s continue with that reasoning: “Due to a lack of comparables with solar panels, no contributory value can be extracted.”

This supports a zero (0) adjustment, right?

Well … maybe. A savvy underwriter or reviewer might wonder why the appraiser didn’t consider the cost and income approaches…

To read more click here

My comments: Good, practical advice. The article is worth reading. Solar for homes is everywhere now. I recently spoke with Mark. I asked some technical questions about financing solar and electric companies lowering what they pay to homeowners with solar. He knew everything! Taking a webinar or class from him is definitely worth the price. He has been teaching the classes for a long time.

Complex Residential Properties for Appraisers

Appraisal Business Tips 

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

NOTE: Please scroll down to read the other topics in this long blog post on unusual homes, mortgage origination stats, etc.

To read more of this long blog post with many topics, click Read More Below!!

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Posted in: adjustments, appraisal business, appraisal how to, Fannie

State Appraisal Boards – What Do They Look For?

The State Appraisal Board Wants to Throw Me Under the Bus, Right?

by Barry Phillips and Tim Andersen

Excerpts: So, what do the investigator and the state board look for as part of their investigation? Again, simply put, the investigator and board look to see if the appraisal meets the requirements of USPAP’s Standard 1, and if the report meets the requirements of USPAP’s Standard 2. Everything else in such an investigation is merely an elaboration of the answers to these two questions.

Nevertheless, there is a warning due here. Increased numbers of state appraisal boards are looking at complaints against appraisers from the standpoint of the consumer, rather than that of the client and/or the intended user(s).

This, to a great extent, is a function of the current political climate. As all appraisers are aware, the consumer has no standing with the appraiser (assuming the consumer is not the named client or intended user). Nevertheless, state boards tend to favor the consumer (the complainant) over the appraiser (the respondent).

To read more, click here

My comments: Good analysis of how state boards work and what they look for. Tim Andersen, MAI, is definitely “The” USPAP Expert.

Appraisal Business Tips 

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

NOTE: Please scroll down to read the other topics in this long blog post on Fannie Modernization, non-lender appraisals, liability, lender bias, unusual homes, mortgage origination stats, etc.

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Posted in: bias, Fannie, liability, non-lender appraisals, state appraiser regulators

Appraising Fixer Uppers

Appraising Fixer Uppers

Excerpts: We’re all familiar with the term “fixer-upper.” For many different reasons, properties can come on the market in less-than-par condition. The degree and cost to cure becomes an issue to buyers and sellers, and a challenge for appraisers. At some point it’s no longer “normal market value minus cost to cure equals as-is value.”

The terms “entrepreneurial incentive” and “entrepreneurial profit” are typically discussed in terms of investment property, but the principles involved can also be applied to the many fixer-uppers—whether the buyer is a “purely investor type” or an “owner occupied investor type.” Maybe a couple new terms should be discussed: “sweat equity incentive” and “sweat equity profit.”

The rest of the post is a very good case study

To read more, click here

My comments: I have appraised many fixer-uppers. My overall ratings are: Unlivable with holes in wall or ceiling, kitchen, and bath not functional, not lendable, etc. ) In my MLS “contractor special” is often used.  Liveable: needs work but functional kitchen and bath.

Most of my appraisals are for estates, and fixers are relatively common. There are few comps as almost all homes are fixed up for sale. There are some good ideas in this post. Even if you have comps, there is often a very wide range of conditions.

Appraisal Business Tips 

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

To read more of this long blog post with many topics, click Read More Below!!

NOTE: Please scroll down to read the other topics in this long blog post on liability, appraisal errors, non-lender appraisals, Fannie non-appraisal options, unusual homes, mortgage origination stats, etc.

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Posted in: adjustments, appraisal how to, Fannie, liability, non-lender appraisals

Appraisers: How to Manage Your Emails

The Mailbox is Full and Cannot Accept Any Messages at this Time. Goodbye. How to Manage Your Emails

By Paul Ryll

Excerpts: My mother told me today that she called last night and was greeted with, ‘The mailbox is full and cannot accept any messages at this time. Goodbye.’

I get a few telemarketers’ messages. Rarely is there a message from a friend or family member. I would say about 90% of the voicemails that I receive are from an irate homeowner worried about a rate lock or a stressed out realtor wondering if they are going to close on time.

AMCs

Assuring that the appraiser has the correct contact information for an inspection is very important. There have been numerous instances in which I have not been able to get ahold of a contact for an inspection only to find out weeks later that the AMC gave me the wrong contact information.

Communicating quickly with the lender is an issue with the appraisal process. I’ve requested guidance on assignments from the lender in which the answer came after the due date. Most recently, I had a detached condo that was ordered on a 1004 which needed to be switched to a 1073. The closing date came and went before I got the go-ahead from the lender.

Have one point of contact for an assignment. Nothing is more frustrating than 17 people calling me on one revision because the employees of the company don’t research to see if I have been contacted or read the notes in the assignment.

To read more, click here

My comments: Slow now? Work on organizing your emails. I have many email folders with automated inbox filtering, which helps a lot. Very good tips in the article. Written in 2-22 but is still very relevant today. I don’t see much written about appraisers and emails. I have always had a landline for business calls and a cell phone for personal calls. Having both on one cell phone is chaos, IMHO.

Appraisal Business Tips 

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

To read more of this long blog post with many topics, click Read More Below!!

NOTE: Please scroll down to read the other topics in this long blog post on ROVs, non-lender appraisals, appraisal business, unusual homes, mortgage origination stats, etc.

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Posted in: adjustments, appraisal business, lender appraisals, non-lender appraisals

What Do Appraisers Look For in a Sales Contract?

What Do Appraisers Look For in a Sales Contract?

Why must an appraiser be given a copy of the sales contract? First and foremost, Standards Rule 1-5 in the Uniform Standards of Professional Appraisal Practice (USPAP) states that we are to: “analyze all agreements of sale.” That’s the real reason why—because USPAP says so.

Secondly, the appraiser is likely familiar with the local real estate contract forms, customary terms, and conditions of real estate transactions in the area, and might be able to identify irregularities and comment on them.

Thirdly, and more importantly, there may be provisions in the contract that identify concessions, non-real property items included in the sale, or other unusual conditions that would give the appraiser the opportunity to comment on or explain in the appraisal report as to why there is a difference between the indicated market value of the subject property and the contract price.

To read many practical tips, click here

My comments: Worth reading. Answers a lot of appraiser questions. Of course, I have always preferred not knowing the sales price as it seems like a conflict for an objective, unbiased appraisal.

Appraisal Business Tips 

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NOTE: Please scroll down to read the other topics in this long blog post on Fannie Update: UAD and New “Forms”, concessions, non-lender appraisals,  unusual homes, mortgage origination stats, etc.

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Posted in: adjustments, appraisal, appraisal business, appraisal forms, appraisal how to, Fannie Forms, non-lender appraisals, UAD

The Power of Praise for Appraisers and Clients 3-24-23

The Power of Praise

By Rachel Massey, SRA, AI-RRS, CDEI

Excerpts: …I received a really nice compliment from a reviewer with the Farm Credit Bureau. I had completed a complex appraisal assignment and was expecting multiple revision requests, but instead, got a note saying how thorough my appraisal report was and thanking me for the work. A couple days later, I got a call from a relocation company reviewer on another mind-boggling relocation assignment. Again, I was expecting multiple questions about the report since it was complex and atypical for the area. Instead this reviewer proceeded to tell me that it was one of the most detailed and well-developed reports he had seen in all his years reviewing relocation work. Boy I wish I had that one in writing!

Granted, I tend to be a bit verbose because I like to write, and I believe that it is important that my work be understandable, and not just now but in the future. I tend to put a similar amount of effort into the communication side for all clients, and like to think that my work product is solid. This begs the question of why two reviewers went out of their way to compliment my work, when it seems that almost every mortgage assignment that I complete for a production group, comes back with stipulations.

Stipulations that I forgot to add a listing which was a requirement of the engagement agreement (yes, I missed that) or that I didn’t put a sketch of an unfinished basement in the report (yes, I missed that as well). No words of thank you for an otherwise job well done. I missed something, fix it.

To read more, click here

My comments: Rachel is one of my favorite appraisal authors. She has seen all sides of the residential appraisal profession. Rachel has shifted between lender staff appraiser and reviewer and fee appraisals. Currently, she is a reviewer for a large lender. You could send a link to this article to a Very Picky or Very Supportive reviewer.>

Why Appraisers Love Appraising!

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NOTE: Please scroll down to read the other topics in this long blog post on non-lender appraisals and liability, sharing comps, Fannie Update, unusual homes, mortgage origination stats, etc.

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Posted in: appraisal, appraisal how to, Fannie, lender appraisals, liability, non-lender appraisals