Do you check to see if permits were pulled on remodeling on subject properties?

By Ann O'Rourke on January 27, 2016 / 2 Comments

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POLL: Do you check to see if permits were pulled on remodeling on subject properties? January, 2016

Source: www.appraisalport.com

My comment: A controversial topic. I’m not surprised at the results. However, if permits are online and free I don’t know why appraisers would not get them. In my city, free online records only go back to about 1970. Most of the homes were built before 1940. It costs $15.25 to get a full permit history and it can take up to a week to get it. The old records are a bit flakey, such as “remodeling” or something else very obscure. Lots and lots of unpermitted work in my city. But, in nearby cities with a lot of tract homes built since 1950, work without permits is not done very often. I was told by a lender’s chief appraiser many years ago not to pull permits so the borrower would “not get into trouble”.For quite awhile, I have been pulling the old permits when needed and run the online permits on all properties. In other cities, if something does not “look right”, such as an addition, I pull the permits.

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Posted in: appraisal, appraisers, lender appraisals

Tags: appraisal, appraisers, lenders, square footage

Where VA loans are soaring. Are you doing VA appraisals?

By Ann O'Rourke on January 20, 2016 / 8 Comments

Excerpt:

With features including no required down payment or minimum credit score, the Department of Veterans Affairs mortgage guarantee program is a popular home finance choice for servicemembers and lenders alike. That trend continues in 2015, when 14 markets had more than $1 billion in VA mortgage lending during the first half of the year, compared to just five during the same time in 2014. From the Capitol region to Southern California – and many places in between – here’s a look at the top 10 markets for VA mortgage lending. The data, from RealtyTrac, is based on metropolitan statistical areas ranked by total VA originations during the first half of 2015, along with the year-over-year increase for that market.

http://www.nationalmortgagenews.com/gallery/10-cities-where-va-lending-is-soaring-1065688-1.html

My comment: Still not doing VA appraisals? They are the only client I know that has stated fees and no big hassles, scope creep, etc. I have an article on how to get on the VA panel, the plusses and minuses, etc. I spent a lot of time interviewing VA employees and fee appraisers. “VA is looking for fee appraisers! C/R fees and no AMCs!!” Read this article before applying for the panel or to find out why you can’t seem to get on the panel.It is in the June 2014 issue of Appraisal Today, available free to all paid subscribers.

From this week’s MBA loan volume report:

The FHA share of total applications is 13.7. The VA share of total applications is 10.8 percent . I have no idea why so many appraisers don’t want to work for VA but do FHA appraisals with the considerable inspection requirements!!

Posted in: AMCs, appraisal, appraisal business, appraisal management company, lender appraisals, va

Tags: AMC, appraisal, appraisal fees, appraisal management company, va

Meet Widget O'Rourke – our new Appraisal Today cat team member!!

By Ann O'Rourke on December 30, 2015 / 3 Comments

I am not sending our my Regular Thursday email newsletter this week. Just some fun photos of Widget O’Rourke!! More info after the photos.

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Trying to supervise the humans. They can never understand what I am trying to say!!	Exercise time – getting bored!
Waiting for my human chaffeur. I’m ready to go!!	I’m not sure about this neighborhood!!
Is that a mouse??	Checking out the overgrown landscaping for any rodents…
2 stories or 3 stories?	Checking for any foundation mouse holes
Measuring the house. The human makes me take the “dumb end” of the tape. I should be on the smart end!!	Finally back home. Nap time!!

More info:

Age: 5 months

Birthday: July 29, 2015

Weight: 4 pounds

Breed: Burmese

Language: Cattish with Siamese accent

Personality: very friendly, likes to travel and play, talks a lot, not afraid of anything except skateboards

About cats, cars and leashes

Cats are very easy to train. A popular method for all pets is clicker training. Just google it. Leash/harness training is best if started when a kitten. I brought Widget home October 31 (3 months old) and started leash and harness training the next week. She learned it within a day and I started taking her on “walks” in the back yard and on the sidewalk on my street.

She did not like being in the car inside the cat carrier. Cats like to look out. Finally figured out how to get her to ride in the car – purchased a raised seat with an attached leash.

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In my 20’s I took several long trips with my cat in a van I converted (traveled 3-6 months at a time). The cat was not on a leash and harness. Went in and out of the van. When I was backpacking she followed along running in the bushes. I am finally traveling with my cat again!!!

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I am not taking her out on inspections for now… she is very easily distracted ;> She loves traveling to take comp photos.

Posted in: appraisers, cat, pets

Tags: appraisers, cat, humor, pets

How to Stay Happy as an Appraiser

By Ann O'Rourke on December 16, 2015 / 1 Comment

How to Stay Happy as an Appraiser with Ann O’Rourke – Dustin Harris Podcast 12/13/15

In a recent paid Appraisal Today newsletter I wrote an article: “Staying positive with unreasonable fees and Scope Creep from AMCs”. In my article I go over many ways to be positive. These ideas are not new and have been around for many decades. I applied them to appraisers.

Whenever I do public speaking, I am much more “out there” than I am when I write. I am much more spontaneous, similar to when I am interviewed for podcasts.

I don’t think that there have ever been as many dissatisfied residential appraisers as there are now, primarily due to several factors:

– AMC and over-management of appraisers

– Low AMC fees for the work required

– Ever increasing requirements from investors and lenders

I know many long time residential appraisers who have quit appraising because they don’t want to work for AMCs. If I could only get work from AMCs, I would have quit also. But, I also know appraisers who do a lot of AMC work and they are satisfied with it. Dustin is a good example. They modified their businesses. I also know appraisers who do very little AMC work.

All successful business people have a positive attitude. Some of us are fortunate to be born that way. But, you can change your attitude.

Click here to listen

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

To subscribe or listen on other web sites, go to

– Android – http://www.stitcher.com/podcast/the-appraiser-coach

– iTunes – Subscribe to the podcast so you don’t miss any! I am a subscriber.

https://itunes.apple.com/us/podcast/the-appraiser-coach-podcast/id966765322

– Website – http://theappraisercoach.libsyn.com/

Posted in: AMCs, appraisal management company, forecast, future, lender appraisals, new appraisers

Tags: AMC, appraisal, appraisal fees, appraisal management company, Fannie, lenders

ID badges for appraisers? A controversial topic

By Ann O'Rourke on December 2, 2015 / 12 Comments

Excerpts:

Appraisers are not required to provide identification (in California), even a driver’s license, when they come to a house, do not always look the part and can cause alarm if not expected. One Orange County company says that is a problem.

Six months ago, Mission Viejo-based Comergence rolled out something the appraisal industry has never had – shiny ID badges.

Since the service started, just 22 of roughly 300 appraisers in San Diego County have signed up and the head of local industry group, the Appraisal Institute, says she thinks she knows why.

“A badge doesn’t identify you any differently than a business card does,” local Appraisal Institute president Susan Merrick said. “It’s pretty much typical operating procedure to give a business card when you go to the door… From a residential standpoint, it’s totally useless as far as I’m concerned.”

The state Bureau of Real Estate Appraisers says there is no law requiring appraisers to carry identification and has no opinion on Comergence.

Bureau head Jim Martin said he is not aware of any recent occurrences, at least in the last two years, of someone posing as an appraiser.

A San Diego commercial appraiser with 30 years experience, Gary Rasmuson, has pushed for a badge for the industry for years and even created his own.

My comments: This is controversial among appraisers. Many years ago, the chief appraiser for a lender told me that appraisers should not give a business card to the borrower. Of course, I didn’t agree. I have always give out business cards as that is a good source of referrals for me for non-lender work. I also want to be seen as a professional.

http://www.sandiegouniontribune.com/news/2015/nov/06/appraiser-id-system-california/

Posted in: appraisal, appraisal business, appraisers, ID badges, lender appraisals

Tags: appraisal, appraisers, ID badges, lenders

7 Things an appraiser has to be thankful for

By Ann O'Rourke on November 25, 2015 / 6 Comments

NO WORKING ON THANKSGIVING!! USPAP VIOLATION!!! THE APPRAISAL POLICE ARE WATCHING YOU!!!

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7 Things an appraiser has to be thankful for

Most Excellent comments By Tom Horne on his blog

I didn’t have time to contact Tom for permission to read his entire blog posting. It is worthwhile reading.

It’s easy to get caught up in the negative parts of our jobs, however I would guess that if we all thought about it we would find more positive Things an appraiser has to be thankful for things than negative. It’s always nice to have something like Thanksgiving to help us reassess our situation. Appraisers are no different than anyone else.

Relaxed work schedule- The majority of appraisers work for themselves and enjoy a relaxed work schedule.
You can pick and choose your clients.
You’re in total control of your success.
Good blend of working in and out of the office. I like my job because I don’t have to sit at my desk all day. I am able to work outside of the office during appraisal inspections which helps me to not get bored with what I am doing.
You have control over how much money you make. A good part of owning your own business is that you are in charge of everything you do.
Current trends in grassroots efforts. … some positive changes that have resulted from this is the trend in appraisers starting to take control of the situation and make themselves heard through the use of social media and state coalitions.
Better tools for doing our job.

Read the details at:

http://birminghamappraisalblog.com/appraisal/7-things-an-appraiser-has-to-be-thankful-for/

Posted in: appraisal, appraisal business, appraisers

Tags: appraisal, appraisers

Appraiser income and expenses

By Ann O'Rourke on November 11, 2015 / 6 Comments

APPRAISER INCOME AND EXPENSE POLLS

Appraisalport poll, 11-15, www.appraisalport.com

Considering all aspects of completing an appraisal (research, driving, inspection, writeup, etc.) what response do you think best represents your hourly wage?

My comment: Of course, this is gross, before any expenses, auto, insurance, MLS, software, etc. etc. I wonder about those making less than $25 per hour.

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In the past year, have your operating expenses:

My comment: Expenses going up, nothing new. See above poll for hourly income. What is happening with your expenses?

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

Tags: appraisal business, appraisal fees, AppraisalPort, appraisers

Very funny appraiser commercial!!

By Ann O'Rourke on November 6, 2015 / 3 Comments

The podcast, The Wits End Broadcast, is very “off the wall”, including “fake” commercials. I suggested including an appraiser commercial. It is hilarious!!

Episode 4, the most recent, has the appraiser commercial – appraiser Candy Cotton, short – only 7 minutes long for the entire episode. Hits a lot of appraiser “hot buttons” ;>

You gotta listen to it!! Plus, check out her other 3 posted podcasts. Please post a comment on iTunes or Stitcher.

Stitcher:

http://app.stitcher.com/browse/feed/75222/details Can link to social media, post a comment, get an app to subscribe on your iphone or android phone, etc.

iTunes:

https://itunes.apple.com/us/podcast/the-wits-end-broadcast/id1048415737?mt=2 The best if you use iTunes. iTunes has labeled the podcasts as “explicit”. Sorry, not much in them except for a brief very humorous reference to group sex in an early episode ;> My iphone has Gigabytes of podcast from subscriptions, including this one. I gotta take off a week to listen to them!!

Libsyn:

http://thewitsendbroadcast.libsyn.com/ – very easy to use but not many features such as comments, social media links and subscriptions.

About the podcast author: The podcast author and speaker is Lucinda Ryan, who edited my paid Appraisal Today newsletter for a few years when I first started it in 1992, and knows about appraisal issues. She is a former newspaper reporter and editor. Lucinda loves comedy writing and always wanted to do more, including writing for a few Famous Comedians and making lots of money ;> Maybe her podcasts will take off and I can say that I knew her “back in the old days”.

Posted in: appraisal business, appraisers, humor

Tags: appraisal, appraisal business, appraisers, humor

Fannie is tracking photos from appraisals

By Ann O'Rourke on October 28, 2015 / 2 Comments

“(Bob) Murphy (Fannie Mae) does acknowledge that Fannie Mae is able to track photos in each appraisal, a practice many appraisers have long suspected, which means that Fannie Mae is able to detect when appraisers reuse comparable photos in different appraisals and flag appraisals which contain outdated photos as deficient.”

http://www.workingre.com/fannie-mae-warning-letters-rise/

My comment: I have been hearing for awhile about appraisers who use the same smoke alarm photo in all their appraisals. Be careful out there. Fannie is watching!!

Posted in: adjustments, appraisal, Collateral Underwriter, lender appraisals

Tags: adjustments, appraisal, collateral underwriter, lenders

What are the most frequent adjustments that appraisers make?

By Ann O'Rourke on October 21, 2015 / 2 Comments

Source: Corelogic

Excerpts:

Using a national sample of approximately 1.3 million appraisal reports between 2012 and 2015, new analysis from CoreLogic shows which home features are being adjusted the most frequently, as well as which are being adjusted for the most money, thereby having the greatest impact on appraisal values.

So what is being adjusted and how often? CoreLogic analysis reveals that some type of adjustment was made on 99.8 percent of appraisal reports reviewed. Figure 1 shows the various features adjusted on appraisal reports in relation to how often that adjustment was made, as well as the financial impact, or value influence, it had on the appraisal report.

Differences in Living Area was the most adjusted feature at 96.4 percent. Other features that were adjusted on 50 percent or more of appraisal reports were Room, Car Storage, Porch and Deck, Overall Condition and Site Area. It is significant to point out that the frequency of an adjustment is indirectly correlated to the financial impact, as four of the top five most adjusted features resulted in relatively low average dollar adjustments. For example, Room adjustments were very common at 70.4 percent but had minimal value influence, recording an appraisal adjustment of only $2,246 on average. Conversely, a Quality Rating adjustment had the highest value influence, with an average adjustment of $14,748, but accounted for only 18.7 percent of all adjustments.

Although the adjustment features that result in the highest value adjustment levels (Condition, Quality and Location) are harder to quantify, appraisers are professionals who can do this and adjust their reports appropriately to reflect the most precise appraisal for the home.

My comment: Interesting results. The actual dollar amounts don’t mean much as they are aggregated from all over the country. But, the frequency of adjustments and their relative amounts are worth checking out. What I see is that too many adjustments are being made for items that don’t affect value much and are hard to support. Savvy appraisers are not making adjustments for items such as porches and deck. Many are putting 0 in the grid to indicate that no adjustment is needed. Some appraisers only make adjustments for market conditions and GLA. Other differences, such as condition and location, are considered in the reconciliation. For example, if the subject has superior condition as compared to the comps, a value on the higher end of the range of adjusted comps is selected.

Fannie is focusing on adjustments in the new CU 3.0. They have been focusing on Q and C ratings. I will be writing about what all this means in the November, 2015 issue of the paid Appraisal Today.

Click here to see the adjustments graph and full article. Very interesting and worth checking out.

http://www.mortgagenewsdaily.com/10192015_appraisals.asp

Posted in: adjustments, appraisal, Collateral Underwriter, lender appraisals

Tags: adjustments, appraisal, collateral underwriter, lenders

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The FHA share of total applications is 13.7. The VA share of total applications is 10.8 percent . I have no idea why so many appraisers don’t want to work for VA but do FHA appraisals with the considerable inspection requirements!!

NO WORKING ON THANKSGIVING!! USPAP VIOLATION!!! THE APPRAISAL POLICE ARE WATCHING YOU!!!