Blog - Appraisal Today

3-17-16 Newz .Pulling permits .Fannie FAQs .Refi revival

By Ann O'Rourke on March 17, 2016 / Leave a comment

Appraisal and Property Related Frequently Asked Questions (FAQs)

February 12, 2016

This FAQ document provides responses to common questions related to Fannie Mae’s property eligibility and appraisal policies. Following the FAQs, the Attachment on page 10 provides Guidelines for Using Market Conditions Addendum to the Appraisal Report (Form 1004MC).

https://www.fanniemae.com/content/faq/appraisal-property-report-faqs.pdf

My comments: This document does not have a lot of new material, but it is always good to read this so you can cut and paste some of Fannie’s comments into your reports as an explanation. In this month’s paid Appraisal Today I had two articles on the 1004mc form:

1004MC – the good, the bad, and what Fannie says

Statistical errors in the 1004MC by George Dell, MAI, SRA – He has been fighting with Fannie since the form was first required in April 2009

More articles are coming soon in the paid Appraisal Today on how to handle the issues.

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Tiny ‘Harry Potter-looking’ homes under construction in North Texas

Excerpt:

Builder Rudy Rivas’ newest house would fit inside the master bedroom of the custom homes he constructs in North Texas.

The average new home being built in America is more than 2,700 square feet – the biggest ever.

So why’s a Dallas custom builder starting a 180-square-foot house?

Read more!! →

Posted in: adjustments, AMCs, appraisal, appraisal business, Appraisal fees, appraisal management company, appraiser shortage, Fannie, fees, forecast, future, lender appraisals, Mortgage applications, mortgage loan volume, trainees

Tags: AMC, appraisal, appraisal business, appraisal fees, appraisal management company, AppraisalPort, appraiser shortage, appraisers, Fannie, forecast, future, lenders, mortgage lending, mortgage loans

Poll – Do you still enjoy appraisal work after all the new rules?

By Ann O'Rourke on March 12, 2016 / Comments Off

Poll: Now that we have been living for some time with all the new rules governing residential appraisal, do you still enjoy doing the actual appraisal work?

www.appraisalport.com

My comments: Hmmm…. All the analyses (Appraisal Foundation, Appraisal Buzz, etc.) about the appraiser “shortage” don’t seem to mention this. How many appraisers are working for AMCs? Low fees are mentioned sometimes. They also don’t mention the “brain drain” of experienced appraisers not willing to work for AMCs. Many appraisers that I know do little, if any, AMC work.

Who wants more appraisers? AMCs. Supply and Demand. The more appraisers there are, the more the fee competition, and the lower fees.

Once again, they also just look at “appraisers” There few problems with commercial appraiser “shortages” due to the issues above because they don’t work for AMCs, although fees are low in many areas, including where I live. Definitely no trainee problems.

Direct lenders have increased requirements, but you know what they are and don’t get 5-15 pages of “requirements” plus call backs. Yes, there are shortages in rural areas that are not close to a metropolitan area where appraisers travel from (less than 2 hour drive, one way, for example). Shortages of rural appraisers is nothing new. It has always been that way.

I wrote about this issue in the November 2015 issue of the paid Appraisal Today: “Staying positive with unreasonable fees and Scope Creep from AMCs”

I also spoke about it on a Dustin Harris 12/13/15 podcast, “How to Stay Happy as an Appraiser”

Click here to listen

http://theappraisercoach.libsyn.com/075-how-to-stay-happy-as-an-appraiser-with-ann-orourke

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Posted in: AMCs, appraisal business, Appraisal fees, appraisal management company, fees

Tags: AMC, appraisal business, appraisers, forecast, unusal homes

5-12-16 Newz – Geographic competency – Killing home values – Fair housing

By Ann O'Rourke on March 12, 2016 / Leave a comment

The Most Insane Property Description Ever

Short descriptions, click here for some humor!! Reminds me of the times I am driving to the subject, hoping the house ahead is not the one I am appraising… Probably not the Most Insane, but definitely reality-based!!

http://www.thebrokeagent.com/blog-1/2016/4/the-most-insane-property-description-ever

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These Neighborhood Amenities Can Kill Your Property Value

Excerpt: In real estate, the phrase “cash is king” is oft overused. However, if you’re struggling to sell a house in a bad ‘hood, then you already know that in reality, location is king. Purchasing a home in a great area, or an area that is up-and-coming, can help maximize the value of your home investment.

So what can tear your property value down faster than a tree through the roof? The following infographic from Realtor.com offers insight-and some will surprise you!

Link to original article:

http://blog.rismedia.com/2016/these-neighborhood-amenities-can-kill-your-property-value

My comment: Of course, the effect on value varies by location – cemeteries for example.

Read more!! →

Posted in: AMCs, appraisal business, appraisers, Fannie, fees, FHA, future, lender appraisals, Mortgage applications, mortgage loan volume, Strange homes, unusual homes, weird homes

Tags: AMC, appraisal, appraisal business, appraisal fees, appraisal management company, AppraisalPort, appraisers, collateral underwriter, Fannie, FHA, forecast, geographic competency, lenders, mortgage lending, strange house, unusal homes, unusual buildings

3-10-15 Newz – Pulling permits, Fannie FAQs, Refi revival etc.

By Ann O'Rourke on March 10, 2016 / Leave a comment

Appraisal and Property Related Frequently Asked Questions (FAQs)

February 12, 2016

https://www.fanniemae.com/content/faq/appraisal-property-report-faqs.pdf

1004MC – the good, the bad, and what Fannie says

Statistical errors in the 1004MC by George Dell, MAI, SRA – He has been fighting with Fannie since the form was first required in April 2009

More articles are coming soon in the paid Appraisal Today on how to handle the issues.

Read more!! →

Posted in: AMCs, appraisal, appraisal business, Appraisal fees, appraiser shortage, Fannie, fees, FHA, forecast, future, lender appraisals, Mortgage applications, mortgage loan volume, Strange homes, trainees, Uncategorized, unusual home, unusual homes

Tags: AMC, appraisal business, appraisal fees, appraisal management company, AppraisalPort, appraiser shortage, appraisers, Fannie, FHA, forecast, future, new appraisers

Newz 3-3-15 Abandoned places, Late appraisal, Cost vs value, Fees

By Ann O'Rourke on March 3, 2016 / Leave a comment

Spam blockers are going wild!!! I have made some changes in subject line and some changes in newsletter content so more subscribers will get this newsletter. I can’t even mention some of the changes as using the words may send this email to spam!!!

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17 abandoned places around the world

Take a break from your appraisals with these Interesting Links!!

Here are a few:

1. House of the Bulgarian Communist Party – Mount Buzludzha, Bulgaria

9. Michigan Central Station – Detroit, Michigan, United States

10. Sarajevo Olympic Bobsleigh and Luge Track – Sarajevo, Bosnia and Herzegovina

Good for taking an appraisal break!!

Here’s the link!!

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Read more!! →

Posted in: AMCs, appraisal, appraisal business, Appraisal fees, appraisal management company, Fannie, fees, lender appraisals, Mortgage applications, mortgage loan volume, state appraiser regulators, Strange homes, unusual home, weird homes

Tags: AMC, appraisal, appraisal business, appraisal fees, appraisal management company, appraisers, collateral underwriter, future, lenders, mortgage lending, mortgage loans, state appraiser regulators, strange house, unusal homes, unusual buildings, USPAP

Newz 2-25-16-True cost of low fees, FHA appraisals, Worst street names, Appraisers with guns

By Ann O'Rourke on February 25, 2016 / Leave a comment

20 worst street names

Excerpt:

I’m sure the folks on Cannibal Road are lovely people, I just won’t be attending any of their dinner parties. These are the streets that you don’t want to find yourself driving down – trust us, no good can come from a stroll on Buckets of Blood Street. Proceed with caution..

http://heavy.com/comedy/2012/12/the-20-worst-street-names/

Thanks (again) to Jonathan Miller for this great link!!

What are the strangest street names you have seen?

POST YOUR STRANGE STREET NAMES BELOW AND READ OTHER COMMENTS!!

My comment: Yes, there is an O’Rourke Street in a nearby city!!

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How many appraisers are doing FHA appraisals now?

From www.appraisalport.com

My comment: I suspected that most appraisers will do them even with all the additional work required. Only 13% have given up FHA appraisals.

Read more!! →

Posted in: AMCs, appraisal business, Appraisal fees, appraisal management company, appraisers, Fannie, fees, FHA, forecast, future, lender appraisals, Mortgage applications, mortgage loan volume, state appraiser regulators, Strange homes, unusual homes, weird homes

Tags: appraisal, appraisal business, appraisal fees, appraisal management company, appraisers, FHA, forecast, lenders, mortgage lending, strange house, unusal homes, unusual buildings

The True Cost of lower appraisal fees

By Ann O'Rourke on February 24, 2016 / 11 Comments

By Ryan Lundquist www.sacramentoappraisalblog.com

I do lots of private appraisals. Lately my ratio is probably 80-90% private easily. I have a pretty good sense of what the market will bear for private work, namely estate appraisals. In no way am I saying to charge more or fix prices, but remember that consumers are used to putting down a good chunk of change for mortgage appraisals. We know the appraiser does not see the full fee, but the consumer pays the full fee. Thus I find it puzzling why an appraiser would quote well below the market rate.

One other thought. There are always clients who want to pay less. I used to put up weekly posts on Craigslist years ago to try to attract private work. But you know what I found? Everyone and their mom wanted a big discount. It was like I was competing for the lowest bid, so I stopped posting their entirely. The moral of the story? As business owners and professionals, we choose our clients and we are in charge of our fees too. Just know the market and price accordingly (which is what we would tell Realtors to do with their listings).

Here is an image I made to help show the real cost of accepting lower fees from AMCs as well as undercharging for private work. Again, this is not about price fixing, but rather the financial consequences of the current AMC situation, accepting lender work at a below market rate, and charging under market rate for private work. There is a huge cost. When looking at the numbers, if we charge below market, we might end easily working for weeks more each year (some well over one month). Yikes.

Many thanks to Ryan for these great comments and graphs. He posted this on Facebook and an appraiser email chat group.

Posted in: AMCs, appraisal business, Appraisal fees, fees

Tags: appraisal business, appraisal fees

20 worst street names

By Ann O'Rourke on February 24, 2016 / 15 Comments

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 appraisal business management issues
in my paid Appraisal Today monthly newsletter.
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For more info, go to https://www.appraisaltoday.com/products

Excerpt:

http://heavy.com/comedy/2012/12/the-20-worst-street-names/

Thanks (again) to Jonathan Miller for this great link!!

What are the strangest street names you have seen?

POST YOUR STRANGE STREET NAMES BELOW!!

My comment: Yes, there is an O’Rourke Street in a nearby city!!

Posted in: unusual home, unusual homes, weird homes

Tags: unusal homes

Newz: 2-18-16 No amcs – Banks fined – College degree

By Ann O'Rourke on February 18, 2016 / Leave a comment

Toronto’s Half House

Willy Wonka would love this weird half-a-home

Excerpts:

No, this isn’t a trick of Photoshop. Nor is it the world’s nastiest spite house; rather, this bonafide half-home shares more with its nail house brethren after witnessing a history of blight and zoning changes.

The lone row home at 54 1/2 Saint Patrick Street dates back to Toronto’s slums in the late 19th century. Built somewhere between 1890 and 1893, this bay-and-gable relic from a bygone era once was a one of six identical, structurally intertwined homes on what was then known as Dummer Street

This begs the question: how does half a building cleave away so cleanly only to leave the rest of it standing?

Read more at: Be sure to click on photo full screen to see it better

http://www.atlasobscura.com/places/toronto-s-half-house

More photos and info at: Click here Link was too long to post…

Read more!! →

Posted in: AMCs, appraisal business, Appraisal fees, appraisal management company, Appraisal Qualifications Board, appraisers, Fannie, fees, FHA, forecast, future, lender appraisals, Mortgage applications, mortgage loan volume, state appraiser regulators, Strange homes, unusual homes, weird homes

Tags: AMC, appraisal, appraisal business, appraisal fees, appraisal management company, Appraisal Qualifications Board, AppraisalPort, appraisers, collateral underwriter, Fannie, FHA, forecast, lenders, mortgage lending, strange house, unusal homes, unusual buildings

AQB – possible changes to college degree, practicum, alternative experience, etc.

By Ann O'Rourke on February 17, 2016 / 12 Comments

AQB wants comments on possible changes to college degree, practicum, alternative experience, etc.

Comments deadline March 31, 2016

College degree – alternative for licensed upgrade to certified

My comments: I keep hearing from appraisers that college graduates have lots of high paying opportunities. But, these types of jobs are only for engineering, computer science, etc. jobs. Some with business degrees from highly rated schools can get “Wall Street” jobs. Not for the vast majority of graduates with degrees in English, psychology, etc. I don’t know how realistic it is to offer a route from Licensed to Certified with no 4 year degree required since few lender clients will accept licensed appraisers and their numbers have dropped significantly.

Practicum – alternative experience up to 50%

My comment: I studied science in college and spent many afternoons in labs. When I graduated I was ready to go to work and needed no training. This is a significant problem for appraisers.

The only appraisal class I ever had with practical experience was a junior college appraisal class taught by a real estate agent. We all appraised his home using Fannie forms. A practicum was offered awhile ago by the AQB but was too difficult to set up and none were ever offered. Hopefully, these new requirements will be easier and, more important, include hands-on appraisal experience.

Click here to read the full document

https://appraisalfoundation.sharefile.com/d-s7cb15ac769e4cf4b

My comments: Lender appraising has been a boom and bust business since Fannie and Freddie started securitizing loans in the 1960s, requiring armies of new appraisers during the booms with most laid off during the busts. Everyone seems to forget this. The current licensing system does not consider it.

Of course, the biggest problem today is lenders not allowing trainees to sign on their own. Lenders can solve this problem now. The draft recognizes this problem. But, AMCs (low fees and Scope Creep) are the most significant reason for the “brain drain” of experienced residential appraisers leaving the profession since 2008. Retiring baby boomers is another factor.

Who is worried about an appraiser shortage? The Appraisal Foundation’s income will go down. AMCs will have fewer appraisers to broadcast cheap fees. Finding appraisers in rural areas will be more difficult, but this has always been a problem. Lenders are hoping maybe they can use AMCs or “alternative products” because of the shortage. Of course, not much of this applies to commercial appraising, only to residential AMC work.

Posted in: AMCs, appraisal management company, Appraisal Qualifications Board, fees, future, lender appraisals, new appraisers, state appraiser regulators, trainees

Tags: AMC, appraisal, appraisal business, appraisal fees, Appraisal Foundation, appraisal management company, Appraisal Qualifications Board, Fannie, forecast, future, lenders, mortgage lending, mortgage loans, new appraisers, state appraiser regulators