Time Adjustment Changes for Appraisers

Newz: Time Adjustments, 2025 ASC Appraiser Data Analysis, Fannie Fraud

April 25, 2025

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

  • LIA ad – Weather Impact
  • I Went Down to the Crossroads – Time Adjustments By Tim Andersen, MAI
  • Occidental Treehouse Named California’s Most Wish-Listed Airbnb
  • Analysis of 2025 ASC Appraisal License Data By Chase Pursley
  • Fannie Mae Fraud and Abuse Exposed By Jeremy Bagott, MAI
  • Appraiser Growth and Profitability: Key Things to Focus On By Isaac Peck, Publisher
  • Mortgage applications decreased 12.7 percent from one week earlier

————————————————————————————————

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


—————————————————————————————-

I Went Down to the Crossroads

Time Adjustments

By Tim Andersen, MAI

Excerpts: Is real estate appraisal, with the issue of more detailed time adjustments, at another cross roads now? In the past, appraisers simply smoothed changes in sales prices over time by measuring prices as of January 1st, then again as of December 31st. If they went up an average of six percent (6%) annually, then the appraiser made a one-half percent adjustment each month.

This protocol inflates prices at six percent (6%) per year, true. But it does not reflect the fact that for the first three quarters of the year prices may have increased at twelve percent (12%) per year, then in the last quarter went flat with a zero percent (0%) price change.

In this example, consider that a comparable sale going under contract at the beginning of the fourth quarter of the year would merit no time adjustment whatsoever. Nevertheless, the appraiser using the smoothing technique will adjust that sale upward at one-half percent per month over a time span when the market is actually flat. That appraiser is merely filling forms, not appraising. How so?

To read more, Click Here

My comments: Very good article on the “new” time adjustment techniques. Interesting music analysis and how it applies to appraising.

—————————————————————————————-

Occidental Treehouse Named California’s Most Wish-Listed Airbnb

Excerpts: Nestled among towering redwoods in western Sonoma County, the Spectacular Spyglass Treehouse in Occidental has earned the title of California’s most wish-listed Airbnb, part of the vacation rental platform’s roundup of top-trending stays in each U.S. state.

Perched high in the forest canopy, the Spyglass Treehouse — designed and built by Artistree Home — offers guests the rare chance to sleep among the redwoods without sacrificing luxury.

The one-bedroom retreat features a king-size bed, high-speed Wi-Fi, floor-to-ceiling windows with panoramic forest views, a cedar hot tub and an indoor infrared sauna.

To read more, Click Here

My comments: A cabin near the redwoods was one of the first places I lived after moving to San Francisco from Oklahoma in 1968. I became fascinated with redwoods. Very close to my cabin was a small redwood grove. I used to go there and lie down to watch the trees. Later I traveled and saw redwoods that were much larger. I am now living about 5 miles from redwood groves to visit

—————————————————————————————-

Analysis of 2025 ASC Appraisal License Data

By Chase Pursley

Using data from the Appraisal Subcommittee’s (ASC) Federal Registry, we’ve analyzed the licensing of real estate appraisers across the United States. Our analysis covers approximately 66,715 active appraisers holding over 91,000 licenses, examining certification types, geographic distribution, and licensing tenure. This report provides insights into how appraisers are licensed and where they practice in 2025.

As of 2025, there are approximately 66,715 unique active appraisers holding 91,290 active licenses across the United States. This difference in numbers reflects appraisers holding multiple licenses, either across state lines or at different certification levels.

A significant portion (35.2%) are relatively new to the profession

A large group (27.8%) has extensive experience (20+ years)

There’s a noticeable gap in the 5-15 year experience range, suggesting reduced entry during the post-2008 period

Virginia leads in appraiser density with 35.4 appraisers per 100,000 residents (one appraiser per 2,827 residents)

New York has the lowest appraiser density among top states with 16.7 appraisers per 100,000 residents (one appraiser per 5,999 residents)

Some states (FL, IL, PA) have seemed to phase out the Licensed Residential category (or never had this type of license)

Certified General percentages vary significantly, from 34% (CA) to 50% (GA)

Population served per appraiser ranges from about 2,800 to 6,000 residents, suggesting varying levels of market coverage and potential opportunities

To read more and see many tables, Click Here

My comments: This is the best comprehensive analysis of ASC data I have seen. Plus the author explains in detail how he used the data. Of course, I am interested in the number of appraisers per 100,000 population, a wide range, to see what competition is like. I remember before licensing when no one knew how many appraisers there were.

—————————————————————————————-

Are you getting too many ad-only emails?

4 ways to get only the FREE email newsletters and NOT the ad-only emails.

1. Twitter: https://twitter.com/appraisaltoday Posted by noon Friday

2. Read on blog www.appraisaltoday.com/blog Posted by noon Friday. You can subscribe to the blog in the upper right of each blog page. NOTE: the popular ads with liability tips are below the first topic on my blog posts.

3. Email Archives: https://appraisaltoday.com/archives

(posted by noon Friday) The link is above and to the left of the big yellow email signup form. Newsletters start with “Newz.” Contains all recent emails sent.

4. Link to the 10 most recent newsletters (no ads) at www.appraisaltoday.com. Scroll down past the big yellow signup block. The newsletters have abbreviated titles, taken from their blog posts.

To read more about the 4 ways, plus information on why I take ads, etc.

Click here

—————————————————————————————-

New URAR What It Means for Appraisers, Part 1

In the April 2025 issue of Appraisal Today

Coming in the May issue: Review of New URAR class. I took the class

April 10.

Excerpts:

What skills you need to have before April 26, 2026, when use of the new software is mandated by lenders

Learning to use mobile appraisal software on a tablet is strongly

recommended as the number of fields will be much greater for the new URAR. Use your current forms software mobile app to practice and use it for your current appraisals.

A tablet is recommended because of the large number of fields.

The new URAR reporting process using UAD 3.6 involves so many

additional data points that an appraiser inspecting without a tablet likely will

overlook necessary items while in the field, and may have to make one or more additional trips out to collect the required data. This will be especially problematic for the comparables if MLS data is minimal or lacking.

Quality and condition ratings are vague; will the new UAD help

address?

Yes, the new UAD has updated quality and condition rating definitions that make the distinction between the ratings clearer. Further guidance will be provided with the ratings definitions to assist the appraiser in determining a more objective rating.

To read the full article with more on the new Class and the New URAR, plus 2+ years of previous issues, subscribe to the paid Appraisal Today at www.appraisaltoday.com/order .

Not sure if you want to subscribe?

Sign up for monthly auto renewal for $8.25!

Cancel at any time for any reason! You will receive a prorated refund.

$8.25 per month, $24.75 per quarter, and $89 per year (Best Buy)

or $99 per year or $169 for two years

Subscribers get FREE: past 18+ months of past newsletters

What’s the difference between the Appraisal Today free Weekly email newsletter and the paid Monthly newsletter? Click here for more info.

————————————————————————-

If you are a paid subscriber and did not receive the April 2025 issue emailed on Tuesday, April 2 , 2025 please email info@appraisaltoday.com, and we will send it to you. You can also hit the reply button. Be sure to include a comment requesting it.


Fannie Mae Fraud and Abuse Exposed

April 18, 2025

History of waste, fraud & abuse at this rogue organization…

by Jeremy Bagott, MAI

Excerpts: Fannie Mae reported this week it had fired more than 100 employees for unethical conduct, including facilitation of fraud. Expect more such news as the truth emerges about this organization’s activities over the past half-decade.

At the beginning of the decade, under the protective camouflage of its federal conservatorship and Covid-19, Fannie began eliminating critical checks and balances in a radical experiment with U.S. taxpayers’ money and the U.S. economy. The mortgage giant began scrapping or weakening long-accepted underwriting safeguards like standard FICO scoring, title insurance, mortgage insurance, down payments and appraisals.

Fannie and Freddie have been making bad loans and then dumping the notes for pennies on the dollar to venture capital firms and crony nonprofits. The buyers are not putting foreclosed homes back on the market. The homes are instead being rented out. The restrictions in fine print placed on the purchasers of Freddie and Fannie’s nonperforming loans offer a big clue as to what the twins are up to in hiding botched mortgages. Since Covid, Fannie alone has auctioned off pools of nonperforming and so-called delinquent “reperforming” loans. The twins have been quietly purging the mortgages from their books or holding the loans under misleading labels, such as “reperforming.”

To read more plus some interesting appraiser comments, Click Here

My comments: I really like the appraiser comment: MAGA – Make Appraisals Great Again!

I have subscribed to Bagott’s emails for a long time. I reviewed his first book “Cosmic Cobra Breeding Farm” and interviewed him. Before becoming an appraiser he worked for newspapers. He wanted to do in depth research on issues as an investigative Journalist. Now he does it and is also practicing appraiser.

—————————————————————————————-

Appraiser Growth and Profitability: Key Things to Focus On

by Isaac Peck, Publisher

The last few years have been extremely difficult for the majority of appraisers. Historically low transaction volume has translated into an unprecedented slowdown that has led some appraisers into retirement and others to take on a second job.

Appraisers who have been around for a few market cycles know that the ebb and flow of a market is normal, but that’s little consolation to the pain in the marketplace right now.

For those appraisers who have survived the slowdown thus far and are looking ahead—to 2025 and beyond—and are earnestly asking how they can maintain, diversify and even grow their businesses, Working RE sat down with Dustin Harris, The Appraiser Coach, to discuss exactly that.

The last few years have been extremely difficult for the majority of appraisers. Historically low transaction volume has translated into an unprecedented slowdown that has led some appraisers into retirement and others to take on a second job.

Appraisers who have been around for a few market cycles know that the ebb and flow of a market is normal, but that’s little consolation to the pain in the marketplace right now.

For those appraisers who have survived the slowdown thus far and are looking ahead—to 2025 and beyond—and are earnestly asking how they can maintain, diversify and even grow their businesses, Working RE sat down with Dustin Harris, The Appraiser Coach, to discuss exactly that.

Understanding Financials

Another critical area of focus is understanding financials. This is not something every business owner especially likes to do or is especially good at. And although accounting can be outsourced, Harris thinks the person with the vision should also know at least the basics about the numbers.

Harris emphasizes the importance of knowing balance sheets and profit and loss (P&L) statements. “If you don’t know how to do a P&L, there are plenty of YouTube videos out there,” he says. “To run a successful business, you have to understand at least the fundamentals of accounting. Yes, it’s boring, but you need to understand where your starting point is and what your profit/loss looks like.”

Harris himself went to school for teaching but now feels that studying marketing and accounting would have been beneficial for his business. He suggests setting up a system that allows for regular financial reviews.

There are always unknowns in the appraisal profession, as there are in the housing market as a whole. For Dustin Harris, controlling what you can control, and stacking the deck in your favor by consistent outreach and growth, is the key to success in an often-unpredictable field. By focusing on areas such as strategic planning, financial literacy, systematic operations, relationship building, and continuous outreach, appraisers can invite good results and professional growth. Harris hopes his insights provide a set of guidelines for long-term growth, and implementation of people’s visions, in the appraisal profession.

To read more, Click Here

My comments: I started appraising in 1975 at an assessor’s office. I had a B.S. in Biology but had never taken any business classes such as economics. I got my MBA in 1980, before starting my appraisal business in 1986. It made me a much better appraiser, both residential and commercial. I knew how to run a business. I also used my MBA to start my monthly Appraisal Today in 1992, including business related articles such as doing non-lender appraisals. I have always done non-lender appraisals and have written many articles about them. Today, my goal is to help appraisers get out of the AMC mess with non-lender appraisals.

—————————————————————————————-

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.

Mortgage applications decreased 12.7 percent from one week earlier

WASHINGTON, D.C. (April 23, 2025) — Mortgage applications decreased 12.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 18, 2025.

The Market Composite Index, a measure of mortgage loan application volume, decreased 12.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 11 percent compared with the previous week. The Refinance Index decreased 20 percent from the previous week and was 43 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 7 percent from one week earlier. The unadjusted Purchase Index decreased 6 percent compared with the previous week and was 6 percent higher than the same week one year ago.

“Overall mortgage application activity declined last week, as rates increased to their highest level in two months. The 30-year fixed rate rose for the second straight week to 6.9 percent, an almost 30-basis-point increase over two weeks,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “These higher rates drove a 20 percent drop in refinance applications, especially for higher balance loans, with the average loan size falling substantially. The refinance share of applications at 37.3 percent was the lowest since January. Similar to the previous week, economic uncertainty and rate volatility impacted prospective homebuyers as we saw a 7 percent decline in purchase applications. Both conventional and government purchase activity fell relative to the week before, but the overall level of purchase applications was still 6 percent higher than a year ago.”

The refinance share of mortgage activity decreased to 37.3 percent of total applications from 41.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.5 percent of total applications.

The FHA share of total applications increased to 16.7 percent from 15.8 percent the week prior. The VA share of total applications decreased to 13.4 percent from 13.7 percent the week prior. The USDA share of total applications decreased to 0.4 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 6.90 percent from 6.81 percent, with points increasing to 0.66 from 0.62 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) increased to 6.90 percent from 6.84 percent, with points increasing to 0.45 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.56 percent from 6.52 percent, with points remaining unchanged at 0.82 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 6.20 percent from 6.11 percent, with points decreasing to 0.58 from 0.62 (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 decreased to 6.01 percent from 6.11 percent, with points decreasing to 0.48 from 0.56 (including the origination fee) for 80 percent LTV loans. The effective rate decreased 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.

——————————————————————–

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

Appraisers and Firearms

Newz: Appraisers and Firearms,Future of Home Finance and GSEs, Q1 2025 Fannie Mae Appraiser Update – New URAR

April 4, 2025

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

  • LIA ad: A Family Feud and Intended Use
  • Experiences with Firearms as an Appraiser: When Tenants Behave Unexpectedly in “Their Area”
  • Billionaire Opendoor Founder’s Three-Winged ‘Propeller Home’ Hits the Market for $40 Million
  • Appraisal Institute Scandal – Widespread Fraud Uncovered
  • Housing Market Shows Early Signs of Spring By Kevin Hecht, SRA
  • Reshaping Home Finance: The Future of Fannie Mae, Freddie Mac, and U.S. Mortgage Policy By Rob Chrisman
  • Originator jobs; Stated income loans; DOGE shifts its attention; Fannie lawsuit; clear path for rates By Rob Chrisman
  • Q1 2025 Fannie Mae Appraiser Update! – New UAD Sample Reports and Ratings, Time Adjustments
  • Mortgage applications decreased 1.6 percent from one week earlier

 

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

——————————————————————————–

————————————-

Experiences with Firearms as an Appraiser: When Tenants Behave Unexpectedly in “Their Area”

Excerpts: Appraisers often find themselves in a wide variety of settings and situations. I mean, we are entering people’s homes, somewhere that most people see as their comfort zones and a place they are not open to having a stranger poke around in. We as professionals understand this and usually try to make it as quick and painless as possible. There are those moments where it turns into a “memorable experience” and homeowners or tenants feel like they must make it known we are not welcome.

I personally am batting .1000 this year on multi-family properties, where tenants have felt it was necessary for me to get the message, by brandishing a firearm. I will share the following two situations, how I personally managed it, explain why I do not personally carry a concealed firearm, and ask you readers to tell me if this is common or for similar memorable experiences.

For more information and to read the appraiser comments, Click Here

My comments: My first appraisal-related job was with the Monterey (California) County Assessor’s office. It was transitioning to computerized valuation. I was a temporary “appraiser assistant” hired to go to properties to see if the county appraisal records needed updating.

In those days (mid-1970s), properties were reappraised regularly to increase the assessments and property taxes were increased.

I knocked on the door and was met with a man carrying a shotgun. He said: Go away assessor! I don’t remember the city, but it was not in a rural area. I left and told my supervisor to find someone else to do the inspection.

I have never owned a firearm and would never carry one. No one I knew owned a firearm except for my husband, who had firearm training when he was teaching horticulture at a state prison. I would not allow a firearm in our house but still keep a baseball bat by my front door “just in case”.

But, recreational firing at a target was on my “bucket list”. An appraiser friend took me to a local firing range. I tried handguns, rifles and shotguns. Some worked like machine guns with many bullets fired at one time. I really liked it the best. Next time I go to Las Vegas I will try out real machine guns. Trying to hit a target did not appeal to me. Ya never know until you try!

Of course, I have had many encounters with dogs. One was when I was appraising the house of an appraiser I knew. I was met with small dogs biting my ankles. When the owner put the dogs away I continued with the appraisal. Another time, in a rural area, 3 large Dobermans broke down the door of a mobile home and ran toward me. I managed to get in my car. I told the lender to get another appraiser.

When markets crashed I did a lot of foreclosure appraisals. I made a lot of noise opening the door and loudly saying I was an appraiser for the lender and needed to come inside. I never had a problem. But some appraisers requested that a police officer accompany them when the home looked “sketchy” to them from the outside.

Read more!!

Finding Comps with Few Sales for Appraisers

Newz: Pulling Comps in 2025, Appraiser Union? AMCs Overcharging Consumers

March 7, 2025

  • What’s in This Newsletter (In Order, Scroll Down)
  • LIA ad: Problem with An Affidavit
  • The struggle of pulling comps in 2025 By Ryan Lundquist
  • Op-Ed: Why An Appraiser Union Would Never Work By Dustin Harris
  • The Full Measure: February 2025 Housing Market Snapshot for Appraisers By Kevin Hecht
  • The Trump Administration’s Regulatory Overhaul: The Impact on CFPB, FHA, and the Housing Industry By Rob Chrisman
  • Homebuilders Warn of Rising Building Costs as Trump’s Tariffs on Canada and Mexico Take Effect By NAR
  • AMCs Overcharging Consumers? Morgan & Morgan Investigates
  • Mortgage applications decreased 1.2 percent from one week earlier

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

 

——————————————————————-

 

———————————————————————————-

The struggle of pulling comps in 2025

By Ryan Lundquist

Excerpts:

1) SALES TELL US ABOUT THE PAST

Comps aren’t easy today. The problem is there aren’t that many sales, so it’s not so simple to figure out value. Lately, I’ve been getting a ton of questions about this, so I wanted to share some things I’m doing on my end….

2) TWO OPTIONS TODAY

We have two choices for comps. Go back further in time in the immediate neighborhood, or go out further to competitive areas. Why not do both?…

3) HOW FAR AWAY CAN YOU GO FOR COMPS?

It’s not how far you can go, but where you should go. Read that again. This is true in any market. And where would buyers go for comps? That’s also a viable question. No matter where you’re getting comps, be sure they are a good substitution…

To read lots more plus see graphs and read appraiser comments, Click Here

My comments: Read This Article! Few sales are common in many areas. I prefer going back in time. I have been doing time adjustments since 1975, when prices were going up 5% per month in a semi-rural Northern California county. The GSEs seem to be making it way more complicated. I do them on every appraisal. If not needed, I always comment that the market is stable. It is the only adjustment I make on my non-lender appraisals, except for features that are unusual.

I have no idea why the GSEs complain that many appraisers are not doing them when needed. Maybe the appraisers never learned how? Many dollar adjustments are needed on the grid and can be much more difficult than time adjustments.

Read more!!

Appraisals and the Cost Approach

Newz: DEI and Appraisers, New GSE Market Analysis Deadline Feb. 4

January 31, 2025

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

  • LIA AD: Weather Impact
  • What is the Cost Approach to Real Estate Appraisal?
  • ‘Unparalleled’ 3-Mansion Compound on Miami’s Exclusive Palm Island Splashes Onto the Market for $150 Million
  • DEI and Appraisers
  • Fannie and Freddie Forecasts

  • Fannie, Freddie: New Market Analysis Requirements February 4th

  • Mortgage applications decreased 2.0 percent from one week earlier

 

———————————————————————————–

What is the Cost Approach to Real Estate Appraisal?

By Kevin Hecht

Excerpts: When to Use the Cost Approach

There are circumstances when it’s necessary to use the cost approach, for example, unique properties and new construction. The cost approach can also be used to support the sales comparison approach.

Fannie Mae only accepts the sales comparison approach as its primary valuation tool. However, that does not preclude an appraiser from also using the cost approach to substantiate their findings. And there are other lenders who may accept the cost approach over other real estate appraisal methods for certain properties or situations…

Some Disadvantages of Using the Cost Approach

There are inherent benefits of using the cost approach, especially when you’re tasked with challenging properties that have little or no comps. But there are also some downsides.

One of the primary disadvantages is the assumption that land is available for purchase to build an identical property. Land is a scarce resource. When comparable land sales are not available, the value must be estimated.

The bigger issue here is undervaluing the land costs based on scarcity. In real estate, location is everything. A small ocean-front cottage has its value because of the land it sits on, not necessarily its four walls…

Other disadvantages include how to depreciate an older property or find costs for similar building materials. This can be particularly tricky when using the reproduction method of the cost approach or appraising a historic home.

Appraisers should consider whether the cost approach is the best tool to use. In many situations, it’s best used in tandem with the sales comparison approach.

Tips for Using the Cost Approach

As part of our monthly survey series, we asked our community of real estate appraisers, “What’s your best tip for using the cost approach to appraise?” They shared many helpful comments, including common pitfalls to avoid as well as general advice and recommendations. Here’s what they said:

“Use and research valuable comps and educate yourself on the surrounding market.”

“Call local developers for better support on cost estimates. Make friends with builders.”…

To read more, Click Here

My comments: When I saw the article topic I thought it would be boring. Not! When I read it I realized it was one of the best on the Cost Approach I have read! If you only do GSE appraisals, you probably don’t use the Cost Approach very often, except for new construction. This article explains when and why. It also includes “basic” info such as reproduction vs. replacement. Keep it as a reference for the future when you may need to use the Cost Approach.

When I first started appraising in a Northern CA assessor’s office in 1975, the Cost Approach was the only approached used for decades for all properties. My supervisor devised a table based on square footage for homes which we used.

In the Oakland CA firestorm in 2021, many of the homes had reproduction replacement in their insurance policies. Many were historic homes with features that were very difficult to reproduce, assuming you could find anyone who still knew how to build them. The home owners with reproduction costs got very large payments from their insurance companies. Many had larger homes built with sometimes very unusual designs. The insurance companies learned their mistake and never offered reproduction again.

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


 

—————————————————————————————-

3-Mansion Compound on Miami’s Exclusive Palm Island Splashes Onto the Market for $150 Million

Excerpts: 3 homes, 92,00 sq.ft. 300 linear ft. of water frontage

The pricey property, which initially debuted in 2023, was relisted in 2024 at the same price. Now, with Florida’s luxury housing market experiencing a major boom, the compound is back on the market with the same sky-high price.

“Potential buyers might include high-profile individuals like celebrities or CEOs, investors, entertainers or hosts, or luxury lifestyle seekers,” he tells Realtor.com®.

“This offering appeals to those who prioritize exclusivity and are willing to invest significantly for a unique, turnkey luxury compound.”

The trio of homes was assembled by owner Jorge Luise Garcia and the Adria, Maria, Adrian Almeida Trust. They were purchased separately over a period of 17 years.

The first of the three mansions was purchased in 2004 for $3.45 million, the second in 2019 for $13.9 million, and the third in 2021 for $17 million, for a total of $34.35 million, according to property records.

To read more, Click Here

Read more!!

Market Condition (Time) Adjustments for Appraisals

Newz: Appraiser Loses License, Fannie Market Conditions Deadline

January 17, 2025

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

  • LIA AD: Your Role as a Judge’s Appraiser
  • Market Condition Adjustments: A Comprehensive Guide for Appraisers By Jim Amorin
  • The Crocker Mansion, New Jersey 50,000 sq ft $ $33,000,000
  • LA: Both Ends Burning By Jonathan Miller, Appraiser
  • How a Chink in Your Armor Can Create an Ugly Outcome by Richard Hagar, SRA
  • Colorado Revokes Appraiser’s License, $97,500 fine
  • Mortgage applications increased 33.3 percent from one week earlier

———————————————————————————————

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

——————————————————————————–

Market Condition Adjustments: A Comprehensive Guide for Appraisers

By Jim Amorin, MAI, SRA, AI-GRS

Excerpts: To effectively support market condition adjustments in line with recent Fannie Mae guidelines, appraisers can use a variety of market analysis techniques. These methods provide a solid foundation for demonstrating how changing market conditions affect property values over time. Below is a detailed explanation of each technique to ensure the adjustments are well-supported and align with market trends.

The goal is to make sure every adjustment is defensible, based on empirical evidence, and can withstand scrutiny from all stakeholders involved in the appraisal process. By applying these methods, appraisers can provide reliable, accurate valuations that reflect current market conditions and ensure the appraisal’s credibility and acceptance.

Author’s note: I may use time adjustments and market conditions adjustments interchangeably. This is shorthand that every experienced appraiser knows and understands – please don’t @ me

Market Condition Adjustments Illustration

Fannie Mae guidelines emphasize that adjustments made to comparable sales are based on market changes between the contract date of the comparable sales and the effective date of the appraisal. Depending on when the comparable sales occurred, adjustments can be positive, negative, or zero within the same appraisal report. Understanding these nuances is crucial for ensuring that time adjustments accurately reflect changing market conditions.

SEE GRAPH BELOW. FANNIE DOES NOT REQUIRE THiS TYPE OF GRAPH.

Additional Topics:

  • Paired Sales Analysis
  • Market Trends and Regression Analysis
  • Indexing Methods
  • CoreLogic’s Home Price Index (HPI)
  • S&P CoreLogic Case-Shiller Index
  • Use of Listings and Pending Sales
  • Subdivision or Neighborhood Analysis
  • And More

To read more, Click Here

My comments: READ THIS ARTICLE! Understandable with excellent illustrations. Goes over many topics. The best article I have read on this topic that is not too complicated and/or long.

—————————————————————

From Fannie: Lenders are encouraged to implement these appraisal policy changes immediately but must do so for appraisals dated on or after March 1, 2025.

Source:

© 2024 Fannie Mae SEL-2024-08 Selling Guide Announcement (SEL-2024-08) Dec. 11, 2024

Fannie Announcement:

Time adjustments in appraisals

“We added clarifying language to remind lenders and appraisers the use of home price indices (HPIs), statistical analysis, modeling, paired sales, or other commonly accepted methods are acceptable for supporting appraisal time adjustments. Fannie Mae encourages the use of these tools to provide supporting evidence for market trends and conditions.“

“Failure to make market-derived time adjustments when indicated by market data is an example of an unacceptable appraisal practice. Appraisal reports must summarize all supporting evidence and should include a description of the data sources, tools, and techniques used to determine the overall valuation. “

To read the Fannie notice: Click Here

Read more!!

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!

—————————————————————————————


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.

Read more!!

Construction Code Violations and Expertise Appraisals

Newz: Appraiser Humor, Mortgage Rate Changes, New GSE Time Analysis

January 3, 2025

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

  • LIA – Code Violations and Expertise
  • Mortgage Rate History Since 1971 What about 2025?
  • Hurricane-Proof $600K Dome Home on Florida’s Space Coast
  • Lyle Radke of Fannie Mae with George Dell, SRA, MAI, ASA, CRE to discuss upcoming changes by the GSEs on Time Analysis
  • Backers of most U.S. mortgages (GSEs) have done little about climate risks
  • Top Ten Reasons Why It Is Great to be an Appraiser – Humor
  • Mortgage applications decreased 21.9 percent from two weeks earlier

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

—————————————————————–

————————————————————–

Mortgage Rate History Since 1971 What about 2025?

Excerpts: For many homebuyers, the last few years have felt like a perfect storm of challenges—soaring home prices and climbing mortgage rates colliding to limit affordability. It’s left many wondering if 2025 will finally calm the waters. Will rates dip low enough to bring some relief, or is another wave of increases on the horizon? While there’s no magic compass to navigate these market shifts, a look back at mortgage rate history can offer clues—and maybe even some hope for those waiting to make their move.

Despite the Federal Reserve’s 25-basis-point rate cut in November, mortgage rates have remained in the high 6% range, offering limited relief to borrowers. However, optimism persists in the market as many believe rates could continue to ease in the months ahead, potentially sparking renewed interest among buyers and homeowners.

While the history of mortgage rates provides valuable context, it’s important to recognize that average mortgage rates are just a benchmark. Borrowers with healthy credit profiles and strong finances often get mortgage rates well below the industry norm.

Current rates are more than double their all-time low of 2.65% (reached in January 2021). But if we take a step back and look at the history of mortgage rates, they’re still close to the historic average since 1971 of 7.73%

To read more and see the graphs and many links to more info, Click Here

Read more!!

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

————————————————————————————

——————————————————————————————-

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.

Read more!!

AI and Appraisers

Newz: AI Limits, VA News, New UAD,
Hurricane Risks

October, 11 2024

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

  • Intended Use and User (LIA Ad)
  • The Limits of AI: When the intelligence is artificial, common sense is a superpower
  • Vila Siena In Bel-Air CA Is The Most Insane Mega-Mansion EVER at $177,000,000
  • The New UAD: Opportunity, Confusion or Threat?
  • What’s New at the VA? A Q&A With Its Chief Appraiser
  • Effects of Hurricane Helene
  • Is Anywhere Safe From Hurricanes? The 10 States With the Lowest Risk of Damage
  • ————————————————————————————–
  • Appraisal Business Tips 

 


The Limits of AI: When the intelligence is artificial, common sense is a superpower

By John Russell

Excerpts: At some point, all of us will integrate AI tools into our business practices. Whether it automates mundane and repetitive tasks, generates narrative text, or assists with analyses, the power of AI to save time is real.

The good news for valuation professionals is they have lots of experience spotting data points that don’t jibe with what they know. Another way to say this is that they have common sense. It’s a basic requirement for doing the work. Of course this 3-story overbuilt McMansion is probably not a comparable for a Cape Cod two miles away. That sale was under atypical conditions and, at minimum, needs adjustments to even be considered. You get the idea.

Do I trust what the AI is telling me?

Accepting AI outputs without any skepticism is a recipe for disaster. Approach AI like a detective interviewing witnesses: trust, but verify. Basic internet searches can quickly fact-check results — or raise enough red flags that you reject what is being offered. No state board will accept the argument, “But ChatGPT said,” and neither should you….

Should I be using AI for this task?

Just because you can doesn’t mean you should — commit this phrase to memory. You will have to own everything in your report, and if too much of the product is driven by AI tools, you may be asked: “Well, what exactly did you do here?”…

Common sense is a superpower that can protect you from dire consequences as you experiment with AI. It’s tempting to be spellbound by new AI tools that seem miraculous — and to let down your guard of common sense. Instead, I recommend a heightened sense of caution: The tools are only as good as the people who craft them and the inputs provided by the users. AI hallucinations are still unpredictable, inevitable failure points, which means any “facts” and analyses it supplies should always be verified — it’s just common sense

To read more, Click Here

My comments: Good, practical analysis of AI for appraisers.


—————————————————————————————-

Read more!!

Appraisal Value Vs. Sale Price

AI and Appraisal Success, Cindy Chance Terminated (Appraisal Institute CEO)

September 20, 2024

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

  • Using Trainees, the Safe Way
  • Appraised Value Vs. Sale Price
  • Converted $500K Minnesota Bank With Historic Vaults and Bulletproof Glass
  • How AI Tech is Reshaping Appraisal Success
  • From Panic to Profit: One Appraiser’s Story of Survival and Growth
  • Cindy Chance Terminated (Appraisal Institute CEO)
  • Mortgage applications increased 14.2 percent from one week earlier

Appraised Value Vs. Sale Price

Excerpts: Property sellers often ask professionals who are performing appraisals for mortgage lending, “Why is an appraisal even needed? The buyer and I have already agreed on a sale price.” However, when it comes to appraised value vs. sale price, they are not the same thing.

What is Value?

Value is defined in the Uniform Standards of Professional Appraisal Practice (USPAP) as:

“The monetary relationship between properties and those who buy, sell, or use those properties, expressed as an opinion of the worth of a property at a given time.

Comment: In appraisal practice, value will always be qualified—for example, market value, liquidation value, or investment value.”

What is Sale Price?

Unlike value, price is not an opinion. It is a fact. Price is defined in USPAP as:

“The amount asked, offered, or paid for a property.

Comment: Once stated, price is a fact, whether it is publicly disclosed or retained in private. Because of the financial capabilities, motivations, or special interests of a given buyer or seller, the price paid for a property may or may not have any relation to the value that might be ascribed to the property by others.”

What’s the Difference Between Sale Price and Appraised Value?…

If a property is under contract for purchase at $450,000 and an appraiser provides a market value appraisal of $425,000 for the property, the $450,000 sale price is a fact, while the $425,000 appraised value is the appraiser’s opinion. The $450,000 price is what the property is actually selling for. The $425,000 market value opinion is what the property should sell for, under the specific conditions of the definition of market value.

The Appraiser’s Role

Properties don’t always sell for what they should. Depending on many factors, including the motivations and negotiating skills of the parties involved, a property might sell for more than its value, less than its value, or right at its value.

To read more, Click Here

My comments: Short and worth reading. Good analysis – for newer and more experienced appraisers.

——————————————————–

Appraisal Business Tips 

Humor for Appraisers

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

Read more!!