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Covid-19 Residential Appraisers Tips on Staying Safe

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Posted in: Appraisal Foundation, Appraisal Qualifications Board, appraisal regulations, Appraisal Standards Board, bifurcated appraisals, evaluations, Fannie, fees, hybrid appraisals, lender appraisals, Mortgage applications, real estate market, rental market, Strange homes, unusual homes

Tags: appraisal fees, Appraisal Foundation, Appraisal Qualifications Board, appraisal regulations, Appraisal Standards Board, Fannie, mortgage loan volume, new appraisers, rental market, unusal homes

Appraiser Mistakes

By Ann O'Rourke on September 7, 2019 / Leave a comment

Can Smart Appraisers Make Dumb Mistakes?

By George Dell, ASA, MAI, SRA

Excerpt: I am a smart and educated, award-winning appraiser. It is not possible for me to be irrational. Of course not. You can see that. I can see that. But appraiser mistakes are not good.

A high IQ and education won’t necessarily protect you from highly irrational behavior—and it may sometimes amplify your errors. David Robson, in an Excerpt from The Intelligence Trap

Oh No! Who is this guy!? Doesn’t he know how smart I am? Why, even my peers have said I am smart. I pride myself on my critical thinking. Even my kids say that! What more proof do you need? Let’s get this straight: I am rational, smart, of high IQ and extremely educated, especially in my chosen field!

Recently, scientists have started to measure what things go with irrationality. There is even a name for this field of study, this measure: dysrationalia. The studies roughly parallel the studies of dyslexia and dyscalculia (difficulty in dealing with number things).

Understandable, Well Written and Interesting!! To read more, click here

Covid-19 Residential Appraisers Tips on Staying Safe

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Posted in: adjustments, bifurcated appraisals, george dell, hybrid appraisals, Mortgage applications, mortgage loan volume, real estate market, weird homes, weird properties

Tags: adjustments, bifurcated appraisals, Hybrid appraisals, mortgage loan volume, real estate market, unusual buildings, unusual homes, weird properties

99.99% price drop from $1 billion. Appraisal Challenge

By Ann O'Rourke on August 30, 2019 / Leave a comment

Once listed for $1 billion. Sold for $100,000. What just happened?

Excerpt: A heated court battle, a last-second offer and a sparsely attended auction behind a fountain in Pomona — this chapter of the famed Mountain of Beverly Hills ends not with a princely sum but a sale price more like that of a sports car. 99.99% price drop from $1 billion. Appraisal Challenge.

Touted as the city’s finest undeveloped piece of land, the 157-acre property redefined the luxury market when it listed for a record $1 billion last year. On Tuesday, it sold for a mere $100,000 at a foreclosure auction, a fraction of the $200-million loan outstanding on the property.

A markdown of 99.99%, of course, comes with some fine print. Any other buyer would have been on the hook to repay that loan — and this buyer has to eat that loss

To read more, click here

My comment: Quite a story!! Only in LA, of course!! FYI, I am in Northern CA… very different here. We think we are superior to LA ;>

Covid-19 Residential Appraisers Tips on Staying Safe

Appraising Weird Stuff is Challenging!

Appraisal Process Challenges

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Posted in: appraisal how to, AVMS, Mortgage applications, real estate market

Tags: appraisal how to, AVM, bifurcated appraisals, mortgage loan volume, real estate market, unusal homes

Zoning in the Appraisal Process

By Ann O'Rourke on August 23, 2019 / Leave a comment

Highest and Best Use – Residential Appraisers Need To Understand It!

Excerpt: There are many valuation products out there. CMA’s, BPO’s and AVM’s to name a few. What you will likely not see in those kinds of valuations, is the specific zoning class for the property being valued. Why? Zoning in the Appraisal Process is very important.

With these types of valuations, a highest & best use (HBU) analysis is generally not made. However, if you hire an appraiser to value your home, we will perform this analysis. What is a highest & best use analysis? Why is it important in the development of an opinion of value? How is zoning involved?

To read more and see the fun animated gifs click here

My comments: My Most Frequent Residential Appraisal Rant!! I started at an assessor’s office in 1975. The First, and Most Important, Question was “What is the highest and best use?” In 1986 I started doing residential lender work. The form was just a check box for HBU. If you checked No, it was a big problem for the lender. Many residential appraisers don’t check the zoning, general plan, etc. One good way is to just drive around and see what is happening. For example, lots of small homes being torn down and McMansions being built. Or, lots of houses on a busy street converted to office uses. Or, a small house on a big lot with apartments all around it. A common residential issue is a possible lot split.

Don’t forget the General (Or Specific) Plan. It tells you what the city wants today and in the future for land use, which is not discussed in this article.

I have appraised a lot of older commercial properties for lenders, which often had a HBU different than the current use. I discussed it in my appraisals.

When there is a big difference in value between two appraisals, it is often due to a difference in opinion of HBU. Don’t get into trouble. Be sure to think about HBU!! If you’re not sure, contact an experienced appraiser, particularly one who does a lot of non-lender work and/or commercial appraisals.

In the Feb. 2017 issue there is an excellent article written for residential appraisers by Denis Desaix, “Residential Highest and Best Use Analysis: more than Just a “Check box” available to paid subscribers. See below.

Covid-19 Residential Appraisers Tips on Staying Safe

Appraisal Process Challenges

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Posted in: appraisal how to, deminimus, Fannie, Mortgage applications, unusual homes, weird properties, zillow

Tags: appraisal how to, deminimus, Fannie, mortgage loan volume, strange house, weird properties, zillow

Measuring Bi-level homes square footage

By Ann O'Rourke on August 16, 2019 / Leave a comment

GLA Issues When Appraising Split & Bi-Levels… Where The Ground Meets the Wall

Excerpt: When it comes to appraising split-level and bi-level dwellings, trying to calculate the gross living area (GLA) can be tricky. If you’re trying to figure out what the gross living area of one of these types of homes is, there are some important things to consider. For example, where the ground meets the exterior wall of a particular level. Measuring Bi-level homes square footage is tricky.

In real estate, the line at which the ground intersects with the foundation of a home, is called a grade or grade line. Did you know that where the ground meets the exterior wall of a level, can have a direct impact on value? How so? Let’s get down to the nitty gritty of it, shall we?…

To read more, click here

My comment: Very comprehensive, well written, article. Don’t miss the fun “split” video at the end. Hint: be sure to watch until 1 minute mark.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 issue go to https://www.appraisaltoday.com/products.htm or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 7AM to noon, Pacific time.

Covid-19 Residential Appraisers Tips on Staying Safe

Why Don’t Real Estate Agents Measure Houses? Humor

What is Included in Appraisal Square Footage?

Tax records and Square Footage in Appraisals

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Posted in: adjustments, appraisal business, AVMS, evaluations, square footage, zillow

Tags: adjustments, appraisal business, appraisal fees, mortgage loan volume, real estate market, zillow

Real Estate Appraisers Self Employment Humor

By Ann O'Rourke on August 9, 2019 / Leave a comment

9 Very Funny Quotes for the Self-Employed Appraiser

Just For Fun!!

Some great, very funny, animated gifs ;> We All Need Real Estate Appraisers Self Employment Humor!!

Here are a few comments:

“The crappy thing about being self-employed is I never believe myself when I call in sick.”

“Things people say: ‘It’s Friday!’ Things self-employed people say: ‘It’s Friday?’”

To read more, click here

My comment: We all need some appraiser humor! Something for everyone in this blog post!! Unfortunately, animated gifs usually don’t work well in these email newsletters. You Just Gotta See Them!!

Covid-19 Residential Appraisers Tips on Staying Safe

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Posted in: appraisal how to, appraisal regulations, Appraisal Standards Board, bifurcated appraisals, evaluations, FHA, Google, Mortgage applications, USPAP

Tags: appraisal, appraisal business, appraisal how to, appraisal regulations, Appraisal Standards Board, evaluations, FHA, humor, mortgage loan volume, USPAP

Property inspection issues for appraisers

By Ann O'Rourke on August 4, 2019 / Leave a comment

Nothing New Under the Sun: The Varied Face of Appraisal Property Inspections

By Joshua Walitt

This article focuses on property inspections, which – to an outsider – might seem to be a straight-forward topic. However, given current changes in the valuation space, nothing is further from the truth: valuation, specifically the collection of data that supports a valuation method, has never been one-size-fits-all. There are many property inspection issues for appraisers

Excerpt: Sample of the questions about data sources:

The appraiser determines physical characteristics of the subject structure from limited-data county records, recent family photos showing two rooms, and a 15-year old appraisal.

A determination must be made whether appliances and utilities are functional and/or whether the property meets local codes

An appraiser performs an Exterior-from-street appraisal and reports a value opinion of $500,000; the next week, she performs a Exterior-and-Interior appraisal on the same property and reports a value opinion of $630,000.

To get the answers and more questions click here

My comments: Worth reading. Summary of a recent presentation by Walit. Lots of different scenarios presented. Note: I publish a graph of mortgage orgination data every month in my paid monthly 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 7AM to noon, Pacific time.

Covid-19 Residential Appraisers Tips on Staying Safe

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Posted in: appraisal business, george dell, Mortgage applications, real estate market, statistics, unusual homes, weird homes, weird properties

Tags: appraisal business, mortgage loan volume, real estate market, unusal homes, unusual buildings, weird properties

Appraisal vs Zillow vs AVM which is best

By Ann O'Rourke on July 26, 2019 / Leave a comment

Appraiser vs. AVM vs. Zestimate… Ten Properties

Excerpt: On a regular basis, my opinion of value of a property I am appraising, is frighteningly similar to an AVM’s value. While that is the case, as you will see in this article, that is not always the case. You might be wondering what an AVM is? AVM stands for Automated Valuation Model. It is a computer program that uses mathematical modeling to derive a value based upon the data it is provided.

In this article I differentiate the typical AVM from Zillow’s Zestimate because Zillow claims to be more accurate than other AVM’s, due to the technology they use. Zillow’s Zestimate is an AVM.

To read more, click here

My comment: Try this on appraisals you have recently done and see the accuracy in your market. Read the article comments and leave your comment.

Covid-19 Residential Appraisers Tips on Staying Safe

Automated Valuation Models for Appraisals

Zillow (in) accuracy

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Posted in: adjustments, AVMS, deminimus, FHA, forecast, future, Mortgage applications, real estate market, weird properties, zillow

Tags: adjustments, deminimus, FHA, weird properties, zillow

Appraising the White House

By Ann O'Rourke on July 20, 2019 / 1 Comment

18 Historic Homes that Would Be Fascinating to Appraise

Excerpt: Historic homes make for complex and interesting appraisal subjects. As one appraiser said, “I love unusual properties, and the challenge they present to appraise. I have always loved appraising large, older properties. They take us back to another world back in time.” We recently asked our appraisal community, “What famous historic home would you want to appraise?” Here’s what they said.

A few of the homes:

Frank Lloyd Wright’s Fallingwater

The White House

Norman Bates “Psycho” House

Graceland

To read the full list plus many comments click here

My comment: For me, none of the above ;> Too difficult!

Covid-19 Residential Appraisers Tips on Staying Safe

Appraising Weird Stuff is Challenging!

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Posted in: AMCs, appraisal classes, AVMS, bifurcated appraisals, Mortgage applications, state appraiser regulators, statistics, weird homes

Tags: AMC, appraisal business, appraisal management company, Hybrid appraisals, state appraiser regulators, statistics, unusal homes

Neighborhood Names and Appraisals

By Ann O'Rourke on July 12, 2019 / Leave a comment

How much is a neighborhood name worth?

Excerpt: Despite some anecdotal examples, there’s little statistical evidence supporting the notion that a neighborhood’s brand or name contributes to a higher sales volume or a premium on price, according to Jonathan Miller, chief executive of the appraisal firm Miller Samuel.

“You’ll see buildings trying to hook into adjacent, better-known neighborhoods as a marketing ploy, but we don’t see that translate into a premium or more sales for doing that,” Mr. Miller said.

To read more, click here

My comment: Some interesting stories. I’m not sure if “renaming” works, but I do know that in some older established neighborhoods in the Bay Area, including my city, the name does make a difference in value.

Covid-19 Residential Appraisers Tips on Staying Safe

Appraisal Neighborhood Analysis

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