What AI Means For Appraisers

Newz: AI and Appraisers, FHA Handbook Updated,
History of Residential Appraisal Regulations

August 22, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Should I consider this an actual claim?
  • 7.5 Things Appraisers Can Do That Artificial Intelligence Cannot, By Mark Buhler
  • Home Made Entirely Out of Shipping Containers Hits the Market for $5.2 Million in New Hampshire
  • FHA Handbook Updated
  • The New Appraisal Report: How One Company Is Rethinking Appraisal Software
  • A Primer on Regulations and the Practice of Residential Property Appraisal
  • Mortgage applications decreased 1.4 percent from one week earlier

AI and Appraisals – the Future

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7.5 Things Appraisers Can Do That Artificial Intelligence Cannot

By Mark Buhler

Excerpts: Artificial intelligence is making waves in nearly every industry — and real estate appraisal is no exception. Computer generated algorithms and valuations promise quick results and lower costs, and some headlines are already asking the question: “Will appraisers be replaced by AI?”

The short answer? Not even close.

What appraisers can do

1. Judge Condition and Quality

An AVM might see a listing that says “4 bedrooms, 3 baths, 2,400 square feet.” What it won’t know is that one of those bedrooms hasn’t been updated since the Nixon administration and still sports avocado-green shag carpet. Appraisers evaluate condition, quality of construction, level of maintenance, and updates — all of which have a direct impact on value. Without physically inspecting a property, AI misses these nuances entirely.

2. Interpret Unique Features

3. Spot Red Flags the Data Misses

4. Smell the House

5. Explain and Defend Adjustments

6. Testify in Court

7. Apply Professional Judgment

7.5 Half Point: Remember to Knock

How to Start Leveraging AI in Your Practice – 7 ways

AI won’t replace appraisers — but appraisers who embrace it will leave others behind. Here are a few easy ways to get started:

1. Use AI‑Driven Comp Tools: Platforms now exist that can quickly identify potential comparables based on similarity scoring. Use them to save time — but always vet the comps yourself.……………

To read more, Click Here

My comments: Worth reading the entire article. What AI can do.

What Appraisers can do, with and without AI.

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Home Made Entirely Out of Shipping Containers Hits the Market for $5.2 Million in New Hampshire

Excerpts: 4 bedrooms, 5.5 baths, 5,120 sq.ft., 141 acre lot, built in 2024

Made entirely from 15 shipping containers. “The homeowners carefully calibrated the home taking into consideration the quiet character of the town,” says Corriveau. “The home is meticulously crafted using an alternative construction method of being built from 15 retrofit steel cargo shipping containers that have been seized, anchored, reinforced, and supported by top-grade building components and highest standards of trade practices, to create a luxury mountaintop home.”

… modern details, built-ins, exposed industrial metals and materials, superior lines and angles, and all the amenities, luxuries, and comfort you didn’t know you needed.”

To read more, Click Here

To see the listing with 60 photos and virtual tour, Click Here

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FHA Handbook Updated

8-13-25 FHA has updated the 4000.1 Handbook that incorporates the changes in Mortgage Letter 2025-18 – Rescission of Outdated and Costly FHA Appraisal Protocols, 6-27-25, Effective Immediately. Contains details of appraisal changes.

To read the Mortgage Letter 2025-18, Click Here

The page numbers have changed, so ensure you are referencing the latest information.

To read the full updated handbook, Click Here

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From UAD 2.6 to 3.6. What appraisal software vendors are doing

In the July 2025 issue of Appraisal Today

Excerpts:

Why did the GSEs go to UAD 3.6?

The GSEs wanted more and better structured data for their analytical

software. They also want structural data capture and eliminating inconsistency in appraisals. In UAD 2.6, the GSEs started using codes/abbreviations which helped some.

They also wanted “dynamic” reports that only include what is relevant to the

appraisal. For example, if the Cost Approach is not used it does not appear in the report.

Many appraisals had long addendums. GSEs could not obtain data from it.

In UAD 3.6, text fields are located next to the topic.

Why are the software vendors doing the new software?

So they can stay in business.

Why are appraisers learning how to use the new software?

So they can stay in business..

The GSEs included the data they wanted. If you want to do GSE appraisals

you must use UAD 3.6.

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The New Appraisal Report: How One Company Is Rethinking Appraisal Software

How are appraisal software providers retooling their products for UAD 3.6? One provider, Jeff Bradford, shares his thinking.

By Bryan Reynolds

Excerpts: In the Appraisal Update podcast, I’m always talking about the “train of change” coming to the appraisal world. If you’re an appraiser, you probably rolled your eyes. We’ve heard this before, right? For years, people have said “change is coming,” but then… nothing. Same forms, same software, same grind.

But it’s real this time. The train is pulling into the station.

I want to talk about a video from late last year that’s gotten a lot of attention, even from the GSEs. I think it struck a chord. So let’s talk about what it is, who created it, and why.

A couple of years ago, when the GSEs first announced the new UAD rollout, they effectively hit the reset button for everyone in appraisal tech. Software companies had been in the business of form-filling: They helped appraisers build reports by filling in forms, attaching images, adding addendums, and producing a PDF.

Suddenly, the software companies are staring down a whole new paradigm.

To read more , Click Here

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Bradford has a new video showing how his new software works – Appraising Imagined

I had live demos of what 3 software vendors are doing: SFREP, a la mode, and Bradford, for an article in the July,2025 issue of Appraisal Today: From UAD 2.6 to UAD 3.6. What appraisal software vendors are doing. See excerps above from the article.

I was able to see what Bradford was working on using two test addresses I provided. But, I was not able to write about the details of this new software because it was not completely ready to go.

The software has links to many data sources, such as permit history which are used to see what is happening before you go to the inspection.

Fortunately now you can see what Bradford has done from accepting the order to producing the appraisal reports at:

www.bradfordsoftware.com/NIGHTHAWK/ 18.5 minutes long.

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A Primer on Regulations and the Practice of Residential Property Appraisal from 1900 to now, March 2024

Excerpts: When a significant amount of money is involved in the ownership transfer of an asset, the principals to the transaction might appreciate an independent opinion of the asset’s value. So, as the demand for single-family homes grew in the United States during the early 1900s, residential appraisal slowly blossomed from a job into a profession and became an important occupational specialization. Despite their important role in the mortgage origination process, throughout most of the 20th century appraisers escaped the attention (and regulation) that Congress devoted to other parties in the process, especially commercial banks and other suppliers of mortgage funds.

In the United States, the real estate appraisal industry operated largely under the radar of state and federal regulatory authorities for over a century. Real estate appraisers worked closely with mortgage loan originators who were the frequent target of the United States Congress and the agencies it created to monitor and regulate them. Appraisers, on the other hand, were left to their own devices to provide informed property value estimates without the benefit of government-imposed rules and regulations.

Nobody knows with certainty the reason(s) behind the formation of every one of the numerous professional appraisal associations, formed during the 20th century, each claiming they would be the best organization to represent the interests of appraisers. Hopefully, each association organizer was motivated by a sincere desire to benefit the appraisal industry. Some, however, may have been motivated for less altruistic reasons. In any event, these professional associations helped stave off government regulation by setting and enforcing rules on their membership.

To read the full report Click Here

My comments: The academic analysis has text, data tables and links to more information. Starts in 1900. Very interesting (for appraisers especially). Today, appraisal regulators are in the news, such as “Senators Say Appraisal Regulator ‘Chaos’ Risks Undermining Real Estate Markets” July 25, 2025.

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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, Click Here.

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 go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.

My comments: Rates are going up and down. We are all waiting for rates to drop in 2025.

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Mortgage applications decreased 1.4 percent from one week earlier

Mortgage applications decreased 1.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 15, 2025.

The Market Composite Index, a measure of mortgage loan application volume, decreased 1.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2 percent compared with the previous week. The Refinance Index decreased 3 percent from the previous week and was 23 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 0.1 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 23 percent higher than the same week one year ago.

“Mortgage rates increased slightly last week, with the 30-year fixed rate now at 6.68 percent. Applications were down as a result, driven by a 16 percent decrease in VA applications, which are typically a volatile segment of the market,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.

“FHA refinance applications increased over the week, as the FHA rate, at 6.39 percent, remained competitive relative to other loan types. Purchase applications were little changed over the week but were at the strongest pace in four weeks and continued to run well ahead of last year’s pace. Prospective homebuyers remain more active compared to last year despite economic headwinds and uncertainty and affordability challenges.”

The refinance share of mortgage activity decreased to 46.1 percent of total applications from 46.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.6 percent of total applications.

The FHA share of total applications increased to 19.1 percent from 18.4 percent the week prior. The VA share of total applications decreased to 13.4 percent from 14.2 percent the week prior. The USDA share of total applications increased to 0.6 percent from 0.5 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) increased to 6.68 percent from 6.67 percent, with points decreasing to 0.60 from 0.64 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) decreased to 6.64 percent from 6.70 percent, with points increasing to 0.60 from 0.56 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.39 percent from 6.40 percent, with points decreasing to 0.66 from 0.77 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.96 percent from 5.93 percent, with points increasing to 0.70 from 0.63 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 6.01 percent from 5.80 percent, with points decreasing to 0.63 from 0.67 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.

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Ann O’Rourke, MAI, SRA, MBA

Appraiser and Publisher Appraisal Today

1826 Clement Ave. Suite 203 Alameda, CA 94501

Phone: 510-865-8041

Email:  ann@appraisaltoday.com

Online: www.appraisaltoday.com

Humor What is an appraiser?

What is an Appraiser? Humor, Upzoning,
New UAD Quality Ratings

August 15, 2025

What’s in This Newsletter (In Order, Scroll Down

  • LIA AD: A Family feued and Intended Use
  • Upzoning: What It Is and What Appraisers Need to Know
  • Off-Grid ‘Stilt Home’ That Hovers Above a St. Augustine Beach Hits the Market for $1.35 Million
  • What Is An Appraiser? Humor
  • The New UAD Quality Equation: Interior + Exterior = Overall Rating
  • The Harbor Model: Where Appraisers Take the Helm
  • Mortgage applications increased 3.1 percent from one week earlier,

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Upzoning: What It Is and What Appraisers Need to Know

Excerpts: Upzoning is a powerful but often misunderstood tool in urban planning and real estate. In this post, we’ll break down what upzoning is, why it’s becoming more prevalent, and what appraisers need to know about its potential impact on property values.

What Is Upzoning?

Upzoning is the process of modifying zoning laws to allow for higher-density development in areas that previously had stricter land-use regulations. This might include permitting multi-family housing where only single-family homes were allowed, increasing building height limits, or reducing minimum lot sizes. The goal is often to promote more efficient land use and address housing shortages.

What to Be Aware of as an Appraiser

It’s important for real estate appraisers to stay informed about changes in local zoning laws, as these can significantly affect property valuations. Upzoning, in particular, can alter what is legally permissible on a parcel of land, shifting development potential and land use expectations.

When upzoning occurs, the highest and best use of a property may change—from a single-family home to a multi-family development, for example—requiring appraisers to reassess the property’s value accordingly.

How to Address Upzoning in Your Appraisal Report

If you find that a property has been upzoned, how do you tackle that in your actual appraisal report? “I think the place to start is building permitting,” says Dobbs. “A lot of cities have pretty decent permitting websites. You can go in there and look at what types of permits are being pulled in the area.”

More topics:

  • How to Address Upzoning in Your Appraisal Report
  • Opportunities for Real Estate Appraisers
  • How to Prepare for Future Upzoning

To read more, Click Here

My comments: Excellent, understandable article about this important topic. There are rental housing shortages in many areas in U.S. Today there is pressure to allow upzoning to make more rental housing available.

Residential appraisers did not receive much education on this topic. You don’t want to get into trouble with the state board by using the incorrect highest and best use on a property or not recognizing and reporting on upzoning.

I do commercial appraisals. HBU issues occur regularly in my city, so I keep up on zoning changes.

Don’t forget local regulations. In my city, regulations (not in zoning regs) restricts the number of rental units on a property (downzoning) after many Victorians were demolished and ugly modern apartment buildings constructed in the early 1960s. Appraisers only looking at zoning for HBU would make a very big mistake.

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Off-Grid ‘Stilt Home’ That Hovers Above a St. Augustine Beach Hits the Market for $1.35 Million

Excerpts 4 bedroom 3 baths,3,374 square feet, 0.41acre lot, built in 1980

Beachfront homes that offer instant access to white sand and a crystal-clear ocean are a rare find—but even rarer is a dwelling that sits directly atop that beachfront, mere feet away from the water.

Yet one such property has just washed ashore in St. Augustine, FL, listed for $1.35 million, 19 years after it last changed hands for less than a sixth of that price.

This unique dwelling is situated on large wooden stilts that have been hammered into the sand, providing the perfect perch overlooking the water, ensuring 24/7 beach access—a rare amenity that comes with its fair share of complications.

Unsurprisingly, given its location, the home is classified as being at “extreme” risk of flooding, according to the Realtor.com® Flood Factor rating, which notes that the dwelling has a “100% risk of flooding” over the next 30 years.

Additionally, the “stilt house” has an extreme wind factor rating, as well as an extreme risk of hotter-than-average temperatures.

To read more Click Here

To read the listing with 59 photos and a video tour, Click Here

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What Is An Appraiser? Humor

An appraiser is one who compiles and analyzes voluminous data of problematical accuracy from sources of dubious veracity and derives therefrom a numerical quantification of unquestionable necessity,

analogous to a nebulous and euphemistic concept representational of value commensurate with ambient configurations of the open market

and promulgates thereby a precise written declamation which delineates his observation, deliberations and conclusions all done while he feigns absolute ignorance of the avaricious machinations of Buyers, Sellers, Brokers and Lenders, compensated only by that penurious stipend known as the professional fee.

This joke is from Bill Sparks. Bill doesn’t know where this joke originated, but Thanks for sending it to us!

My comments: We all need a little appraiser humor!

Read more!!

12 APPRAISAL MYTHS

Newz: 12 Appraisal Myths, Appraisal Bias Lawsuit

August 8, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Legal Request for Old Appraisal
  • 12 Common Appraisal Myths/Misconceptions by Tom Horn
  • $750K Hobbit-Style Bunker in Tennessee Puts a Unique Spin on Underground Living
  • The Appraiser’s Market Compass: Navigating the Summer 2025 Housing Landscape By Kevin Hecht, Appraiser and Economist
  • Appraiser questions answered: Interview with Craig Capilla, Attorney
  • No, Appraisers Didn’t Cause America’s Racial Wealth Gap by Jeremy Bagott
  • Mortgage applications increased 3.1 percent from one week earlier

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12 Common Appraisal Myths/Misconceptions

By Tom Horn

Excerpts:

1. Appraisers Rely Primarily on Price Per Square Foot

This is probably the most common misunderstanding I run into.

Yes, price per square foot is one of many tools we use to analyze value—but it’s not the whole story.

2. Appraisals Are Just a Quick Comparison of Recent Sales

Some folks think appraisers pull the three most recent sales and call it a day.

In reality, it’s much more involved. We look at a wide range of comparable sales, analyze market trends, make adjustments for differences between properties, and apply professional judgment.

3. Appraisals and Home Inspections Are the Same

This is a big one for homeowners and buyers.

Home inspections focus on the condition and function of the property—things like the roof, HVAC, plumbing, and safety issues. The inspector is looking for problems.

Appraisals, on the other hand, are focused on value. We observe the overall condition, yes, but we don’t test systems or check for code compliance.

4. Automated Valuation Models (AVMs) Like Zillow Zestimates Are Equivalent to Appraisals

Zillow can be helpful for a ballpark estimate, but it’s not an appraisal.

AVMs use algorithms, public data, and sometimes outdated or incorrect info. They don’t know if your kitchen was remodeled last year or if the neighbor’s home was a distressed sale.

5. The Purpose of the Appraisal Changes the Value

This one trips people up sometimes.

They’ll ask, “What’s the value for a refinance?” or “How much is it worth for a divorce?” as if the answer changes depending on why we’re appraising it.

To read the details and all 12 reasons, Click Here

My comments: Read this blog post. It can help you keep out of hassles and problems when appraising. When you get asked these questions you will know how to respond.  Written for real estate agents, buyers, sellers and many other people but excellent tips for appraisers.

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$750K Hobbit-Style Bunker in Tennessee Puts a Unique Spin on Underground Living

Excerpts: 3 bedrooms, 3 baths, 3,024 sq.ft., built in 2010, 38.84 acre lot

When you think of a bunker, you probably don’t imagine a three-bedroom abode that’s brimming with modernity—which is just one of the reasons that a newly listed dwelling in Tennessee comes as a surprise.

Tucked into the hillside like a doomsday bunker, this Bethel Springs residence was originally built in 2010, yet it boasts a historic Hobbit-style feel akin to the quaint homes depicted in J.R.R. Tolkien’s picturesque Shire.

But much like Tolkien’s books, this home should not be judged by its cover.

Despite its bunker-esque setting and Hobbit-inspired exterior, inside the dwelling is a modern marvel, having been thoughtfully remodeled by its current owners to include an open floor plan and design-forward finishes like granite countertops and luxury vinyl plank flooring.

To read more plus photos, Click Here

To read the listing with 50 photos, Click Here

Read more!!

What’s a comparable property for appraisals?

Newz: Q2 Fannie Appraiser Update, Appraiser Wins Discrimination Lawsuit

June, 13, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: Am I Still on the ‘Do Not Use’ List?
  • What’s a comparable property? Or a “comp,” as we say more informally? By Bryan Reynolds
  • Rotterdam’s Yellow Cube Homes
  • Q2 2025 Fannie Mae Appraiser Update – UAD 3.6
  • A Back to the Future Housing Market By Ryan Lundquist
  • Case Dismissed: Ohio Appraiser Wins Discrimination Lawsuit by Isaac Peck
  • Mortgage applications increased 12.5 percent from one week earlier

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Real Estate Agents and Comparable Sales – Tips for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news

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What’s a comparable property? Or a “comp,” as we say more informally?

By Bryan Reynolds

Excerpts: Let me give you an example of an appraisal report I saw recently, which is why I’m asking this question: There are 65 comparable properties currently offered for sale in the subject’s neighborhood, ranging from a price of $330,000 to $5,400,000. The report also states that there are 44 comparable sales in the subject’s neighborhood within the past 12 months, ranging from $152,000 to $2.2 million. That’s a big range. Are you comfortable putting that in your report?

What does the term “comparables” even mean? Let’s go to the authoritative sources. Here’s one: The Dictionary of Real Estate Appraisal, published by the Appraisal Institute. It defines comparables as “a shortened term for similar property sales, rentals, or operating expenses used in the comparison in the valuation process and best usage. The thing being compared should be specified.” In other words, are you looking at comparable sales, comparable rentals, or comparable listings?

Lastly, I’m going to pull up the Encyclopedia of Real Estate Appraising. It’s a great big book, and it has a whole section on this. I highlighted one part of it because I like it: “What is a comparable property? It is one that would be a reasonable alternative for most prospective buyers who would be interested in the subject property.”

What is a comparable property? It is one that would be a reasonable alternative for most prospective buyers who would be interested in the subject property.” —Encyclopedia of Real Estate Appraising

That’s very simple, and it invokes some good, common sense

To read more, Click Here

My comments: Lots of opinions on this topic!

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29008552 – innovative yellow cubic houses built in rotterdam

Rotterdam’s Yellow Cube Homes

Excerpts: Both a popular tourist attraction and a strange architectural experiment, the cluster of 39 homes stands out amongst the city’s mostly modern architecture. However, that is what makes these “cube-perched-on-a-point” homes all the more interesting.

he elevated cubes are essentially houses supported on hexagonal piers; this design frees up the ground space for public use. Each cube measures 72 feet in height with each side measuring 25.5 feet. While the pillars and floor are made from reinforced concrete, structural wooden skeletons from the base for constructing the cubes were mounted on the floors’ edges. Interestingly, cement panels with rockwool insulation in the middle resulted in cutting down on almost all exterior sounds.

Inside, the complicated form meant that the interior walls were angled at 54.7 degrees with the floor. The consequences of this construction detail is that 25% of the almost 1,100-square-feet of living space is unusable because of the angular walls. The interior is divided into three floors that are connected by a narrow wooden staircase. The ground level houses in the living room and an open kitchen with plenty of windows. The second floor has two bedrooms, a bathroom, and a small living area. Finally, the third floor is a three-sided pyramid that can be used as a bedroom or an office.

To read more and see interior photos and floor plans, Click Here

My comments: Fascinating, with very good photos.

Read more!!

Comparable Sales for Appraisals

Newz: Curiosity and Appraisers, GSEs future, Sideline AMCs

May 23, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Your Role as a Judge’s Appraiser
  • On Comparable Sales By Timothy Andersen, MAI
  • Futurist Architect’s Funky Spaceship-Inspired ‘Starcastle’ Hits the Market in Connecticut for $1.5 Million
  • Why Curiosity Matters in Appraisals
  • Mortgage Bankers Association head addresses ‘elephant in the room’
  • Bye Bye AMC: A Script to Sideline Appraisal Middlemen
  • Mortgage applications decreased 5.1 percent from one week earlier

Real Estate Agents and Comparable Sales – Tips for Appraisers

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On Comparable Sales

By Timothy Andersen, MAI

Excerpts: This short article raises issues related to what constitutes or defines a comparable sale. While it may seem arrogant to take on a topic of this import, it is necessary, since there is not currently a formal definition. There are descriptions of what a comparable sale is. But there is no formal, universally recognized definition¹. However, does there need to be? Do we have enough technical information to understand the concept of a comparable sale? This article suggests the descriptions are sufficient.

It is common for the GSEs to criticize appraisers’ poor choice of comps. Under some conditions, the GSEs’ have the justification to level these critiques. Yet, given the wealth of descriptions there are in the available literature about what constitutes a comparable sale, why do appraisers ignore those descriptions to their own peril?

To read more, Click Here

My comments: Good analysis by Tim, The USPAP Expert. GSEs vs. USPAP goes on and on. I hate it when GSEs tell me how to do my appraisals. I am so glad I quit working for them in 2005. Non-lender appraisals rarely have special requirements and reviews.

Read more!!

Appraisers: Advice On Staying Current

Newz: AMCs Fee Skimming Lawsuit, Appraising a Hobbit Hole

February 28, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: Disclosing Identity of Complaining Party
  • On Staying Current By Timothy Andersen, MAI
  • Futuristic $177 Million Bel-Air Megamansion With Its Own Private Jazz Club Hits All the Right Notes
  • Appraising a Hobbit Hole: The Property Value of Bag End
  • AMCs Deceptive Fee Skimming Exposed in Lawsuit
  • The 10 Most Expensive Home Listings and Home Sales in the U.S.
  • February 21, 2025
  • Mortgage applications decreased 1.2 percent from one week earlier

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On Staying Current

By Timothy Andersen, MAI

Excerpts: In this monograph, we discuss the absolute necessity of developing more than one skill set as part of becoming a competent and professional real estate appraiser.

Real estate appraising is a complex practice that requires a diverse range of skills and knowledge, from understanding current market conditions to understanding and interpreting complex legal and financial documents. If you want to be your own boss, it also requires business acumen.

At its core, real estate appraising involves the due diligence necessary to form a credible opinion of the market value of a particular property. This requires a deep understanding of the appraiser’s local real estate market, as well as of the physical, legal, and economic factors that influence property values in it. However, becoming a successful real estate appraiser requires more than mere market knowledge.

It also requires a range of other skills, including the ability to conduct thorough research, analyze mountains of data, communicate persuasively and effectively with and to other professionals, and manage complex projects. These are all aspects of being an appraiser they do not teach us in appraisal school.

Most importantly, successful appraisers must adapt to changing market conditions and trends. Currently there are so many of these ongoing, especially as the GSEs are about to inaugurate UAD-2 to replace their archaic appraisal reporting forms. This means continually learning and developing new skills to stay ahead of the curve.

To read more, Click Here

My comments: Good analysis of appraising. I have been appraising for 50 years and I still love it. I am easily bored, but every property is different and market conditions change regularly where I work. I am always learning something new.

If this seems overwhelming to you or other post-licensing appraisers, it is not your fault. Unfortunately, after licensing started many trainees hired other trainees. Almost all had poor training and classes. I was unable to refer wannabes to professional associations as they only wanted classes for members, not for new appraiser. Changing what you learned when you started is very difficult to do. I was very fortunate as I started before licensing and had very active local chapters of AIREA and SREA predecessors of the Appraisal Institute. The appraisers I met had lots of experience. They helped me whenever I had any questions. I learned how to lender appraisals plus many types of non-lender appraisals correctly from them.

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Appraising Unique Homes

Newz: GSE Privatization, 2025 Forecasts, Unique Homes

January 10, 2025

What’s in This Newsletter (In Order, Scroll Down)

My comments on topics: This newsletter is long. Almost all the news items I have received are 2025 Forecasts, so I have included some of them in this newsletter.

    • LIA: Disclosing Identity of Complaining Party
    • Why Selling a Unique Home Is Challenging — and Can Leave Some Owners Feeling ‘Stiffed
    • 2025 Housing Market Predictions: Key Insights for Real Estate Appraisers The National View
    • Real estate trends to watch in 2025 – The Local View
    • Appraisal Industry Outlook Under Trump Administration
    • Will Homeowners Finally Sell in 2025? Here’s What the Experts Say, Amid a Glimmer of Hope
    • GSE Privatization A ‘Herculean Task’
    • Mortgage applications decreased 3.7 percent from one week earlier

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!

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Why Selling a Unique Home Is Challenging — and Can Leave Some Owners Feeling ‘Stiffed’

Excerpts: When Ann Levengood decided to let go of her beloved double-dome home two hours outside of Seattle, she thought she did everything a seller needed to do to get a good price.

“We built a new garage and completely did the heavy work with a $50,000 new roof, new drainage, new retaining walls, landscaping (including removal of alder trees), interior was completely redone, new lighting, new skylights, you name it. We had zero tasks upon inspection,” she tells Realtor.com®

“The inspector had never seen such a clean house.” But when it came time to price the Poulsbo property, Levengood and her agent didn’t see eye to eye. While the proud owner wanted to price the house at $425,000, the cautious agent listed it at $339,000.

The problem? The house, with its double domes, was unusual.

Even so, the home took only two months to close a sale at full price, leaving Levengood with the lingering feeling that she had been stiffed. “I couldn’t even get agents to come out and see it,” she says.

Not only can it be more difficult to find the proper buyer for such a home, but it is also challenging to find comps.

To read more, Click Here

My comments: Worth reading the article. All appraisers appraise unique homes, which are often very challenging, especially for comps and market analysis. This article helps appraisers understand the difficulties in selling unique homes. I have never read about this important topic.

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Q4 2024 Fannie Appraiser Update

Newz: Q4 Fannie Appraiser Update, 2025 Mortgage Rates Forecasts Are Now Wrong

December 27, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: Disclosing Identity of Complaining Party
  • Q4 2024 Fannie Mae Appraiser Update
  • Dramatic Concrete-and-Glass Santa Monica CA Masterpiece Designed by Famed Architect Ray Kappe Lists for $4 Million
  • Is Ethics a Spiritual Principle By George Dell, SRA, MAI, ASA, CRE
  • All those 2025 mortgage rates forecasts are now wrong
  • The New Con: Hybrids, Waivers & AMCs Threaten Public Trust
  • MBA: No data released until January 2, 2025

CHANGE THE YEAR ON YOUR TEMPLATES NOW TO 2025!
DON’T WAIT UNTIL AFTER 1/1/25!

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Mortgage forecast – loans predicted to drop 30% in 2014

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Appraising Unique Properties

Unique Properties, Rocket Mortgage Sues HUD, Trump Shifts in Housing Market?

December 13, 2024

What’s in This Newsletter (In Order, Scroll Down)

    • LIA ad – Each appraisal is unique
    • The Ultimate Guide to Unique Property Appraisals
    • America’s Most Expensive Property Is Sitting in a Flood Zone—Will Anyone Buy the $295 Million Estate?
    • Rocket Mortgage Sues HUD Over Regulatory, Enforcement Discrepancies
    • Donald Trump’s Second Term Could Bring ‘Significant Shifts’ to the Housing Market
    • Report: What’s Driving the Recent Refi ‘Boom?’
    • Mortgage applications increased 5.4 percent from one week earlier
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The Ultimate Guide to Unique Property Appraisals

Excerpts: When faced with a truly unique property, the standard approach of pulling recent comparable sales from the neighborhood simply won’t cut it.

These properties require a real estate appraiser with a different mindset and a more creative approach to valuation.

Here’s a quick break down of exactly how unique property appraisals differ from traditional approaches:

Breaking Down the Time Barrier

One of the most common misconceptions is that we can only use recent sales. For unique properties, this simply isn’t true. Here’s why:

Expanding Geographic Boundaries

Location matters, but for unique properties, finding truly comparable homes often requires the appraiser to look beyond the immediate neighborhood:

The Bottom Line

Appraising unique properties requires breaking free from traditional constraints while maintaining professional standards.

To read more, Click Here

My comments: Good summary of the issues. Read the details plus a table comparing traditional and unique properties. Almost all appraisers appraise unique properties, if only occasionally. This is written for real estate agents, but very useful for appraisers.

I regularly hear about AMCs trying to find an appraiser to do one of these properties. They keep shopping for low fees and fast turn times. After a while they finally go with the appraiser who can do them at a good fee and reasonable turn times.

If you can appraise unique properties you have a substantial advantage over less experienced appraisers. Now is an excellent time to try doing one, especially if your business is slow now.

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10 Appraisal Myths

Newz: 10 Appraisal Myths, AMCs – Appraiser Ripoffs –  AMC Junk Fees

November 29, 2024

What’s in This Newsletter (In Order, Scroll Down)

  • LIA – Intended Use and User
  • Don’t Fall for These 10 Real Estate Appraisal Myths
  • Extraordinary 4-Story Megamansion With Rooftop Putting Green and 2 Pools Lists for $78 Million
  • Now What? On a New Trump Administration
  • Outrage Over Connect by ValueLink’s New Monthly “Junk Fee”
  • Mortgage applications increased 6.3 percent from one week earlier

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10 Real Estate Appraisal Myths

By Tom Horne

Excerpts: In this week’s post, I dispel some common appraisal myths that have been around for years.

10 Appraisal Myths

Myth #1: All real estate appraisers are the same

Myth #2: Appraisals are the same as the Zillow Zestimate

Myth #3: The appraisal always comes in at the contract price

Myth #4: The appraiser is working for the buyer

Myth #5: Cost always equals value

Myth #6: Comps must be within one mile of the subject property

Myth #7: Agents and appraisers cannot talk

Myth #8: Appraisals and home inspections are the same

Myth #9: Assessed value will equal market value

Myth #10: The “new” appraisal methods are better than the old

To read more, Click Here

My comments: I’m sure you have heard some, or all, of these questions. I have heard them. Read the full post to see the answers you can use.

This blog post is written for newer real estate agents, but a good reminder of what many other people think. For example, when I say I am a real estate appraiser, many people ask if I have any listings. They think I am an agent and don’t know what appraisers do. Unfortunately, that is the main reason appraisers have difficulty when trying to communicate appraisal issues. Few listened to appraisers speaking out about fraud before the 2008 crash. What did we residential lender appraisers get to “fix” the problem? AMCs.

I don’t know why the appraisal associations have never done much to let people know about what appraisers do.

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