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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Do You Have Two Appraiser Brains?
By George Dell
Excerpt: One appraiser brain says you must be “independent, impartial, and objective.” (USPAP) It wants to be good. It wants integrity and to sleep peacefully at night.
But there’s another brain. It’s primal and wants to survive. It has other responsibilities: meet the bills, feed the family, pay the mortgage, and pay government taxes/fees. And recorded in this brain is that part of the standards which say: Do what your clients expect; do what everyone else does. As paraphrased, the sole guides to an acceptable scope of work.
Worth reading. Short. Plus the comments.
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 9-27-18 long blog post with many topics, click Read More Below!
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To Form or Not To Form? What will it be? A new 1004?By George Dell
Excerpt: What’s the difference between a form and a data entry page? Will “forms software” even be necessary? Will the result require less appraiser expertise – or more? Will it encourage the “form-filler” people, or will it require some real understanding of problem identification, data selection, predictive methods, and communication? Will the transmittal require both an electronic data stream and human actionable views?
Will it require appraisers at all? Or will the “data analysts” simply create the ultimate model.
These are big questions. From my point of view, some of the answers are obvious. But first, let’s outline how we can even ask the right questions . . .
My comment: Fannie Mae has been planning on revising the forms. I have known George for quite a while, heard him speak and taken his class. Looks like people are finally starting to pay attention to what he says about stats, data, etc.!! His blog posts are fine, but sometimes you want more. The September issue of the paid Appraisal Today will have George’s 6 page article, “Why, Why, Why? Why do we put “stats”, “graphs”, “data,” and “science” together?”
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 8-30-18 long blog post with many topics, click Read More Below!! ===========================================
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Schizophrenic Adjustments
By Dave Towne
Excerpt: Appraisers, I’ve written in the past about what I believe are strange ways to report adjustments in appraisals, and suggested ’rounding’ is a perfectly acceptable way to report them. This is largely due to buyers and listing agents thinking and listing in $100 increments – not down to exact dollar amounts.
During the past couple of weeks, I ‘came in contact with’ two separate appraisals done by different appraisers on totally different properties, in different market areas.
What struck me was the incredibly precise adjustments made for only certain items in these reports, while the rest of adjustments were ’rounded’ to even dollars. Here are the examples:
Click here to read more:
My comment: I love the image at the top of this post….. sorta creepy but very appropriate ;> Who do you think it represents?
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 8-23-20 long blog post with many topics, click Read More Below!!
Certifications: Understanding What You’re Signing
By Tim Andersen, MAI
Excerpt: Next is another declaration to aid in the transparency of the analyses behind the appraisal. “I have performed no (or the specified) services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.” Here, the intent is to prevent the client from perceiving the appraiser is in any way biased for or against the subject property by disclosing any relationship the appraiser may have with the property.
Occasionally appraisers appraise the same property numerous times for different entities. This component of the Certification discloses the appraiser has received knowledge of the property from having provided a past service involving the property. Because of the use of the word services, it is clear if the appraiser has provided any services relating to the property, the appraiser must disclose them.
My comment: When I used to teach USPAP (before the Appraisal Foundation mandated what to teach) I always spent time on the 1004 certifications. I suspect that was the first time that attendees read them. I make my own certifications for my non-lender appraisals.
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 8-9-18 blog post with many topics, click Read More Below!!
The best appraisal ad I have ever seen – cats playing instruments, song appraisal re-title contest, etc.Just For Fun!Short Excerpt: … submit a favorite song title– be it classical, jazz, rock, religious, country, or whatever- adapted to the appraisal business. Here are a few examples for starters (with a little literary license):
Subject line: Wednesday Wild Ideas from Intercorp
If you didn’t open it, or “opted out” of getting ads, Click here to read the full “ad” and see the cats!!
My comments: I have been doing ads for my newsletters since 1992. Boring. Boring. Boring. Yesterday’s Intercorp ad was the best I have ever seen!! Of course, my favorite is the cat playing cello. I play electric cello so I can amplify and use effects in my experimental music band, playing together for 8 years ;> Here’s link to a gig: https://www.youtube.com/watch?v=Dk8zXPJ6hVA |
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Great Spaces: Lakefront Living Goes LuxeJust For More Fun!Excerpt: To celebrate summer, in this month’s edition of Great Spaces, we’re highlighting some seriously serene lakefront properties, from Minnesota all the way to sunny Florida.
Click here to see the fotos:
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| The Most Popular Article From Last Week’s Newsletter: Former Appraiser’s Hot Dog Stand!! FYI, unusual and weird stuff is very popular with appraisers ;> |
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Three-story Single-family Homes and TownhomesExcerpt: Of the 729,000 single-family detached homes started in 2017, a little over 18,000 (2.5 percent) had three or more stories, according to National Association of Home Builder tabulation of recently released Census data.
In contrast, the 23,000 3-plus story townhomes represent 22.0 percent of single-family townhome starts.
More info here:
My comment: 3 story detached homes are not popular in very many areas. It is a long walk up to the 3rd floor. I have appraised them (attic conversions of a classic older home to a master bedroom, for example). I always look to see if an elevator can be added – usually has to be on the exterior of the home. Definitely a functional problem. I rarely see them on existing homes, except for attic conversions. Some newer detached homes have a small room on the 3rd story – family room, extra bedroom, etc.
For townhomes, I have seen a significant increase in 3 story new construction townhomes in my city (within the past few years) and other Bay Area cities. The first floor is a garage plus entry, second floor living room and kitchen, bedrooms on 3rd floor. Very profitable for home builders, especially in areas with high land prices and infill tracts. I have appraised them and the owners did not object to the 3 floors. There are sometimes a few townhomes that are 2 story. My first apartment when I moved to San Francisco in my 20s was a third floor walkup. I vowed Never Again ;> |
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It’s not all about square footage in real estateBy Ryan Lundquist
Excerpt:
Myth: Extra square footage is always worth more.
Factors:
1) Single story vs two story
2) 55+ Community
3) Layout
4) Dangerous to always adjust
Worth reading, plus appraiser comments at:
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Goofy Buildings: Revisiting the Heyday of California’s ‘Crazy’ Novelty Architecture – Giant hats, portly pigs, and drive-thru donuts.Just For Fun!!Excerpts: In the 1930s, a British traveler in Southern California wondered if the local architects had gone a little nuts. It was either that or he had stumbled into a fantasy universe. There was something trippy about the roadside shops he saw along the way…
The unusual businesses he saw weren’t on some Hollywood backlot, but were California’s classic coterie of mimetic architecture-that is, buildings shaped like, well, anything but buildings. According to Cristina Carbone, a professor of art and architectural history at Bellarmine University in Louisville, Kentucky, the practice dates back to at least the Renaissance.
Fascinating!! Lots of photos and interesting comments at:
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It’ll never sell that high (but then it did)Excerpt: There’s no way it’s going to sell that high. Have you ever thought that in real estate? Well, let’s talk about a property that many said would never sell at $4.1M, but then it did. I definitely have some takeaways about this lofty condo in Downtown Sacramento (CA), and I hope non-locals will relate to the commentary. (My note: median home sale price is $367,500)
Details and lots of graphs at:
My comment: The median home sale price is $367,500. This is definitely an outlier for the area.
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A floating Pacific island is in the works with its own government, cryptocurrency and 300 housesJust For Fun!!Excerpts: The Floating Island Project plans to create off-shore housing that uses its own currency and operates outside of government regulations.
– The project is a pilot program in partnership with the government of French Polynesia.
– A long-term vision for the project is hundreds of new countries floating on the ocean.
As well as offering a home for the displaced, the self-contained islands are designed to function as business centers that are beyond the influence of government regulation.
Check out the video and lots more details at:
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