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Why appraisers should use graphs

By on November 13, 2020   /  Leave a comment

Using graphs: why are they so important?

By George Dell, MAI

Excerpts: Graphs provide the way for the human brain and the computer to connect. And why is that important? Why appraisers should use graphs.

Computers are really good at certain things. They can handle lots of data and can quickly carry out complex instructions (algorithms) with no mistakes, with perfect memory. They also work well with no sleep. These are things the human brain does not do well.

Humans are good at other things. We make decisions and solve problems based on “massively parallel processing” systems. These are our ‘common sense’, instincts, and broad knowledge of the topic at hand.

These can be called imagination, creativity, and even belief-based inspiration.

“Computers can outperform humans on certain specialized tasks, such as playing [the game] go or chess, but no computer program today can match human general intelligence,”

To read more, click here

My comment: Great explanation of why graphs are important for humans, including AMCs if they have any human reviewers to see the graphs.

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

For Covid Updates, go to my Covid Science blog at covidscienceblog.com

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

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Posted in: Coronavirus, COVID, liability, real estate market, statistics, Strange homes
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Appraisal Cost To Cure

By on November 6, 2020   /  Leave a comment

Cost to Cure 

(Plus very funny handyman video)

Excerpt: On a regular basis, I appraise homes that need some type of repair. It may be as simple as replacing an outlet or as complicated as renovating a home. In the appraisal process, the appraiser has to estimate a cost to cure many types of repairs.

Why do appraisers use the term, cost to “cure” instead of a cost to “fix” a repair? Are appraisers just trying to use fancy vernacular to try and impress the reader of the report?

Appraisers think in terms of value. The term “cure” may make you think of someone who suffers from an illness for which a cure is desired. Appraisal Cost to Cure is very different.

To read more and watch the very funny 3-minute video near the end, click here.

My comments: Written for homeowners. This very good for appraiser marketing. But, there are lots of reminders and maybe some new ideas for appraisers.

The best part: The “Weird Al Yankovic” Handy 3 minute video at the end. Very, very funny. Total Escape!! Just what I needed for the election ;> I have been following Weird Al for decades.

Once Again, Jamie Owen finds the best photos, animated gifs, and videos. Extremely Creative!! 

Unfortunately, I cannot insert a video into these emails.

If you don’t have time to read the blog post, to watch the 3-minute video, click here

Appraisal Humor

Appraisal business tips

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Posted in: adjustments, Appraisal Foundation, liability, rental market
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Time Management for Appraisers

By on October 30, 2020   /  Leave a comment

Time Management – Appraisers Need This Skill

Excerpt: Results of a McKissock Survey

We recently asked our appraisal community, “What ONE business skill does every appraiser need to master?” By far, the most popular answer selection was “delegation and time management.” According to real-life appraisers, several business skills are important. But time management, in particular, is essential for building a successful career in real estate appraisal. Time Management for Appraisers is critical for success.

Delegation & time management (42%)

Others were Project management/Planning, Financial Management, Communication & Negotiation, Networking and Other.

Two of the comments on Time management

“I’ve watched my dad work for himself as an appraiser for the last 10+ years, and everything comes pretty easy to him except meeting deadlines. Organization and time management is key! Don’t let it be your downfall.”

“When researching a subject property, you’ve got to have a good feel for all the time involved—how long will it take to drive to the home, inspect it, research it and complete the report? You’ve got to use all of that information to appropriately plan your days so you meet your clients’ expectations.”

To get the full results and read more appraiser comments, click here

My comment: I have been writing about time management for appraisers since I started my monthly newsletter in 1992. Recently, I have been writing about it a lot as many appraisers are very busy with the refi boom. Every hour saved it an hour you can work on an appraisal and make more money. Or, take a short break!!

The October issue of the paid Appraisal Today newsletter had “Practical tips you can use today for getting more appraisals done and make more money.” The November issue has “Increase your productivity by managing your email”. See more below in my ad.

Appraisal Humor

Appraisal business tips

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What is Included in Appraisal Square Footage?

By on October 23, 2020   /  Leave a comment

Question: Can it count in the square footage?

Roof detail house

By Ryan Lundquist

Excerpts: Can you include it in the square footage? I get questions like this almost every week. Is it okay to count an accessory dwelling in the living area? What about a pool house? How about a man cave or she shed? Let’s talk about this.

The straight dope: It’s tempting to lump something else in the backyard into the square footage, but that’s not appropriate per ANSI measuring standards. Suppose you have to walk outside of the house into something else that is not directly accessible to the house. In that case, we’re really dealing with something that isn’t considered to be a part of the main house…

To read more, click here

My comments: Written for homeowners, but has some good remarks on square footage, such as “lumped square footage” in MLS. What is Included in Appraisal Square Footage can be tricky and controversial. It can also vary by geographic area.

How accurate is the reported square footage from the tax records in your primary service area?(Opens in a new browser tab)

Marketing and Management Tips for Appraisers

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Posted in: appraisal business, Appraisal fees, square footage
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AMC Fined for Appraisal Order Blast Violation

By on October 16, 2020   /  Leave a comment

AMC Fined for Appraisal Order Blast Violation

Excerpt: Consolidated Analytics, an AMC based in Anaheim California, was fined $3,000 for violating the Utah AMC Administrative Rules R162-2e-306 “Offering An Appraisal Assignment and Communicating with Two or More Appraisers About a Potential Assignment.

The specific part of this rule that pertains to broadcasting has been relatively effective in reducing the broadcasting of assignments. Clear Capital recently was fined $5,000 for failing to comply and there are additional complaints working their way through the system.

To read more, click here

My comment: Broadcast orders are bad for many reasons for both the AMC and the appraiser: goes to everyone on their list, no considerations about appraiser qualifications for the assignment including geographic. Hundreds of appraisers competing on fees when business is slow make it hard for appraisers to stay in business. There is always someone with a lower fee, in appraising, and any type of business.

When business is strong, such as today, AMCs have to take whatever warm body they can get. Many appraisers are way too booked up and not taking any more work.

Maybe you can get your state appraisal regulator to get a similar regulation!!

Working with difficult appraisal clients(Opens in a new browser tab)

Which Appraisal Clients are used the most?(Opens in a new browser tab)

Marketing and Management Tips for Appraisers

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Posted in: AMCs, appraisal business, appraisal management company, comp photos, Coronavirus, COVID, data, FHA, Freddie, Mortgage applications, unusual homes
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How to Fool the Appraiser

By on October 9, 2020   /  Leave a comment

By Jonathan Miller

Excerpt from Jonathan Miller: She recently promoted her video called Fool The Appraiser a catchy marketing phrase to promote dishonesty. She literally has no idea how offensive this is to the appraisal industry and how unprofessional this makes her look to the public and her peers.

Excerpt from the video: “So, the purpose of the game is to fool the appraiser into thinking that the property is worth the agreed upon purchase price.

Because if we follow the rules of the game, the homeowner has already accepted an offer greater than list price. So how do we get an appraiser to think that the property is worth? The agreed upon purchase price which is higher than list price.”

To read Miller’s article, watch the 1 hour 17 min. video, plus transcript and webinar handout, click here

Direct link to broker video and transcript Click here

Note: Registration is required to watch it and read the transcript, but you can always use your “alternative” gmail address. If you don’t have one, get one. I have one.

My comments: Great training for real estate agents. NOT!! But, maybe you will see someone doing this. This video and handout will let you know what they are up to!!

Which Appraisal Clients are used the most?(Opens in a new browser tab)

What Is An Appraiser?(Opens in a new browser tab) Humor

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Posted in: Coronavirus, COVID, fauci, FHA, mortgage loan volume, real estate market, Strange homes, trainees
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Tales of a Trainee at Appraisal Camp Sedona

By on October 8, 2020   /  Leave a comment

By Bryan Aldridge, Appraiser Trainee

“Why don’t you come on an inspection with me?”

It was February 2020, and there were rumors about a new virus beginning to get traction. I was in retail leadership in Sedona, Az and beginning to wonder if I wanted to work with the public during a pandemic. And eventually write this story, Tales of a Trainee at Appraisal Camp Sedona.

Julie Friess was one of my true “local” customers in a store that relies on international tourism that floods Sedona. I did not realize when she uttered those words that it would lead me to take the biggest risk of my life and becoming a member of Appraisal Camp Sedona.

Foto: Bryan on the right, Julie next to him, Jason Vargo on the left, with Tracy Terry next to him.
Julie and her 3 trainees!!

The response of friends and relatives

You can imagine the response I got when I told my friends and family that I was going to leave a secure job (health insurance, industry-leading pay, Covid-19 bonuses) to become a Real Estate Appraiser Trainee.

Read more!! →

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Fact Witness vs. Expert Witness Appraisers

By on October 2, 2020   /  Leave a comment

Excerpts: When a real estate appraiser is called to testify in a court, it could be as one of two types of witnesses. If you are called to testify as an appraiser, it’s important to determine at the time of the request which of the two types you will be: fact witness or expert witness appraisers.

A fact witness is one who testifies only to that of which he or she has firsthand knowledge and who describes only facts (as opposed to expressing opinions). There is no formal definition of a fact witness….

As an expert witness appraiser, you are allowed to express opinions. In fact, your opinions are the very reason for your testimony. The opinions are to be based on the expertise afforded by “scientific, technical, or other specialized knowledge.”

Short and well written. Includes legal references. To read more, click here

My comments: This is a never-ending hot issue for many appraisers. They don’t understand the difference. The difference is you get paid a minimal fee as a fact witness (similar to a witness of an auto accident, for example). As an expert witness, you are paid very well for prep for expert witness testimony, depositions, waiting outside the courtroom, and testifying. I have written about this in my paid Appraisal Today newsletter.

Read more!! →

Posted in: appraisal business, appraisal how to, appraisal waivers, COVID, fauci, hybrid appraisals, Mortgage applications, Strange homes, weird homes
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Very unusual bathrooms for appraisers

By on September 29, 2020   /  Leave a comment

Have you ever had the experience of visiting a place and discovering that its restroom is actually an incredibly designed curiosity in and of itself? 

Maybe it had a really cool entrance hidden behind a false bookcase, maybe it’s a bathroom that’s become a historic landmark 15, or maybe the layout and design of the entire space were simply unforgettable.. See these very unusual bathrooms for appraisers from all over the world!

Scenic views, very odd interiors, etc. Lots more great fotos plus some interesting comments.

The top floor of The Shilla Hotel in Seoul has a bathroom with a view.

 

Men’s bathroom at the Madonna Inn in San Luis Obispo, California. Home of very, very uniquely decorated rooms!!

To read more  and see some great photos., click here

Appraising Weird Stuff is Challenging!(Opens in a new browser tab)

To keep up on what is happening in appraisal businesses, mortgage lending, USPAP, etc. , Plus humor and strange homes, sign up for my FREE weekly appraisal email newsletter, sent since June 1994. Go to Home on the left side of the menu at the top of this page or go to www.appraisaltoday.com
Sign up in the Big Yellow Boxes

I regularly write about hot topics in appraising and appraisal business management issues
in my paid Appraisal Today monthly newsletter.
$99 per year or (credit card only) $8.25 per month, $24.75 per quarter, or $89 per year.
For more info, go to https://www.appraisaltoday.com/products

 

Posted in: BATHROOMS
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Crazy Appraiser Stories!!

By on September 28, 2020   /  Leave a comment

What we all need… Here is one brief humorous escape!! 

Crazy Appraiser Stories!! You’ve all got them… The crazy car chases, the surprising living conditions, the exotic assignments, and the unique collectors….

 

The photo above is the Crazee Appraiser writing up his appraisal!

Here are a few stories

This was a beautiful 3,200 sq ft home with all the extras. After measuring, I was standing by the fireplace taking an interior photo being careful not to step on the expensive rug next to the hearth. The lady of the house looked a little alarmed, so I had to ask, “Is everything okay?”  “Oh yes, it’s just that the camera will have a click.”  I’ve heard weirder things, so after assuring her it was a very quiet click, the button went down, the picture was taken and the excitement started.

Something hit the back of my head; a soft, but very strong hit. The equivalent of a 10 mile an hour wind passed over my left shoulder and a shadow landed on the other side of the sofa which was 14’ in front of me. It seems that the fluffy 6’ rug was a once wild, African Savannah cat, stretching 6’ long as it napped on its belly. It looked like a leopard rug! With teeth longer than some fork tines, I was happy to let it hide in the bedroom, but she coaxed it out of hiding to demonstrate that it could easily jump 10’ high for a kitty treat.
– Carolyn S. Richards

Years ago I had an appraisal on a very exclusive island off the north shore of Long Island. There are about 100 homes at most and many celebrities and CEO’s live there. Homes are in the MULTI-million dollar range. When I arrived at the subject house, the owner answered the door. As I walked into a house, I noticed all the interior outer walls were covered with aluminum foil. When I gently asked the owner what the foil was for, he seriously told me that it was to keep out the rays from the aliens. It made for a very interesting valuation.
– Leigh Pollet

To read all the funny stories, click here

Appraising Weird Stuff is Challenging!(Opens in a new browser tab)

To keep up on what is happening in appraisal businesses, mortgage lending, USPAP, etc. , Plus humor and strange homes, sign up for my FREE weekly appraisal email newsletter, sent since June 1994. Go to Home on the right side of the menu at the top of this page or go to www.appraisaltoday.com
Sign up in the Big Yellow Boxes

I regularly write about hot topics in appraising and appraisal business management issues
in my paid Appraisal Today monthly newsletter.
$99 per year or (credit card only) $8.25 per month, $24.75 per quarter, or $89 per year.
For more info, go to https://www.appraisaltoday.com/products

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