How is Appraisal Gonna Change?By George Dell
Excerpt: What new “appraisal methods and techniques” have we seen? As I speak to reviewers who see valuations from around the country, there seems to be a degradation of quality. Less analysis rather than more. Less explanation rather than clearer logic. More “trust me” and less “see my reasoning.”
What does the world really need? Trust my opinion-or see the result? Trust my comps-or see market parameters.
Competitors for valuation, risk, and investment needs want “better, faster, cheaper.” For now, lets just look at “better.” What is “better?”
“Better” is actually fairly simple. There are only three parts: 1) is the right question being asked; 2) is the result true (accurate); and 3) how sure (precise) is the result? So, let’s look briefly at each of these needs, and how each can be helped with today’s technology.
https://georgedell.com/how-is-appraisal-gonna-change/ Covid-19 Residential Appraisers Tips on Staying Safe To read more of this long blog post, click Read More Below!! —————————————————————————- |
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Tips for choosing comps on a unique home (straw-bale house)
By Ryan Lundquist
Excerpt: It almost sounds like the big bad wolf story, but there really are homes built from straw. Literally. Today I want to mention a few things about this type of construction, share some photos of a local straw-bale house, and then talk briefly about how I approached appraising this one.
Worth reading to find out what Ryan did!!
My comment: Very good tips on appraising unique homes. No lender issues as the appraisal is pre-listing and not for a lender… Sacramento is a Very Strange place for a straw-bale home!!
Covid-19 Residential Appraisers Tips on Staying Safe
For Covid Updates, go to my Covid Science blog at covidscienceblog.com
To read more of this long blog post, click Read More Below!!
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The problem of giving too much weight to previous sales (or not enough)By Ryan Lundquist
Excerpts: It must be worth more than it sold for in the past, right? In many cases, YES. But sometimes NO. Let’s talk through some things to consider when pulling comps and noticing a previous sale. I find many of these points coming up lately in conversation, so I hope this is helpful.
8 issues are discussed.
Here are a few
2) Unique property:
3) Unicorn buyer overpaid
8) Not penalizing because it sold too low
Closing advice: I recommend paying close attention to previous sales to get clues to understand how a property fits into the market. But don’t get so stuck that you don’t see the most important thing – current comps.
Good topic I have not seen discussed in detail before. Worth reading. Lots of comments!!
Covid-19 Residential Appraisers Tips on Staying Safe For Covid Updates, go to my Covid Science blog at covidscienceblog.com To read more of this long blog post, click Read More Below!! —————————————————————–
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Digitally-doctored listing photos are on the riseExcerpts: It will cost $2.40 for a paint job, $24 to replace flooring, and $40 to remove a wall or add a swimming pool.
Digital photo manipulation has become so widespread and cheap that home sellers are increasingly using the technology to spruce up their listings, the Wall Street Journal reported. This has the potential to create new headaches for end users, investors, appraisers and brokers…
Furthermore, with federal regulators pushing for automated appraisals that will make use of online listings, the hazards of doctored images could be spread to the general public.
My comments: How do AVMs and CU deal with this? Appraisers can always contact the agent to confirm what the home looked like. CU robo emails/calls to agents and somehow integrate this into the data?
Lenders and AVMs are now using agent MLS comments. I recently spoke with an appraiser where the lender disputed one of her comps because the MLS mentioned it was “close to shopping” and she did not. Yes, it was very close to a historic shopping street, but there was little to no off street parking on this street, as it was taken up by employees in the stores. The comp had 9 off street parking places for 2 units and sold for a premium price. Typically there is 1 or 0 parking spaces per unit in the historic apartments on the comp’s street. I recently tried to go to an open house on the street. The closest parking space was 3 blocks away. I skipped the open house. The agents often mentioned “close to shopping” to say something positive about their listing’s location. Covid-19 Residential Appraisers Tips on Staying Safe For Covid Updates, go to my Covid Science blog at covidscienceblog.com To read more of this long blog post, click Read More Below!! —————————————————————– |
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To Drive or Not To Drive, That is the Question!!Excerpt: The argument of using MLS photos or shooting your own photos has been debated by appraisers for the last few decades. You, as appraisers, want to be sure the comparables you are using are of the correct house and also look as the MLS illustrates. Most importantly, you want to make sure the house is still standing. The listing agent’s job is to sell the house. As the salesperson they will highlight all the positives and leave the negatives up to the imagination. This is one of the main reasons it is extremely important to not solely rely on MLS when utilizing comparables.
Click here to read the full post, plus over 50 comments from appraisers. Add your own comments!!
My comment: this issue has been going on for decades and is still controversial. Especially in rural areas!! Note: the post is a sorta promo for proxpics, a photo taking service, but the appraiser comments are great. 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!! To read more of this long blog post, click Read More Below!! |
The Ugly (and Filthy) Truth About Wearing Shoes in the HouseExcerpts: “Shoes off, please.” A reasonable request? Or are those fightin’ words?
Arguably, no other three monosyllabic words have ever led to more irritated house guests, resentful homeowners and thriving sales of shoe racks, slippers, and sing-songy, passive-aggressive signs. (“Since little fingers touch our floor, please remove your shoes at our door!”)… “So many germs and bacteria can be brought in from your shoes, including toxins and E. coli,” Mitzner explains…
“So, if one removes their shoes,” he asks, “what about all the potential bacteria on their socks?” Plus, even if you abide by a strict rule of “no shoes,” you can’t escape the fact that the interior of your home is still covered in germs, Adalja says. How reassuring.
While there are scientific arguments both for and against pulling off footwear the moment you enter the front door, experts do seem to agree on one thing: To minimize the risk of getting sick, go out of your way to keep a clean home.
My comment: I hate taking off my shoes in a house!! I have to put them, or disposable booties, back on when going in and out of the house. But, since reading this article, I am so glad I have hardwood floors with no carpets and no small children ;> Of course, the bottom line: it is their house and they can decide. 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!! |
Buy This Book!! Valuation by Comparison, Second Edition by Mark Ratterman, MAI, SRA
I reviewed it in the July, 2018 issue of the paid Appraisal Today.
One of the best books I have ever read for residential appraisers. (There are only a few that I recommend.)
More info and how to purchase at:
Appraisal Adjustments Yes, No, Maybe(Opens in a new browser tab)
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!!
To read more of this long blog post with many topics, click Read More Below!
Do Tandem Bedrooms and Garages Impact Value?
Excerpt: There is less privacy in the one bedroom because it must be walked through to get to the other bedroom. This is considered to be functional obsolescence.
This type of situation is most often found in older homes. I have seen this type of situation many times on the second floors of many bungalow or cape cod style dwellings I have appraised. Although, it can exist in any style home.
My comment: I see tandem rooms a lot and sometimes tandem garages. I think I have finally convinced the local agents not to call them bedrooms. Of course, some insist on using Assessor data, which has not been updated since 1979, when Prop 13 passed and re-assessments stopped unless there was a sale or new construction.
ADD LINKS FOR HUMOR AND BIZ TIPS
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!!
To read more of this 10-11-18 long blog post with many topics, click Read More Below!!
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A Spoon Full of Sugar (when dealing with annoying borrowers, AMCs, neighbors, etc.)Excerpt: Remember when you were a kid? No, not a goat. You know, a young human. Remember your parents giving you that thick, pink, nasty tasting medicine, called an antibiotic? While we hated the taste, we needed the medicine. And, after a few days, we began to feel better.
When it comes to appraisals, the information they provide can help to protect us from making a bad financial decision. However, there are times when the results of an appraisal may leave a bad taste in the mouths of those reading the report.
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!! To read more of this long 10-4-18 blog post with many topics, click Read More Below!!
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