Appraisal News and Business Tips

appraisal business

3-29-18 Newz//Last Minute Tax Tips, FHFA-Value of AMCs, Time Capsule Homes

New FHFA report says AMCs are not much different than direct lender appraisals – value added??

From the March 2018 paper (“Are Appraisal Management Companies Value-Adding? – Stylized Facts from AMC and Non-AMC Appraisals”:

“In this paper, we study whether there are any systematic quality differences between appraisals associated and unassociated with appraisal management companies (AMCs). We find that compared to non-AMC appraisals, AMC appraisals on average share a similar degree of overvaluation despite being more prone to contract price confirmation and super overvaluation.
“AMC appraisals also share a similar propensity for mistakes, despite employing a greater number of comparable properties. Our evaluation employs relatively simple statistical comparisons, but the results indicate no clear evidence of any systematic quality differences between appraisals associated and unassociated with AMCs.”

Note: FHFA is the Federal Housing Finance Agency, established by the Housing and Economic Recovery Act of 2008 (HERA) and is responsible for the effective supervision, regulation, and housing mission oversight of Fannie Mae, Freddie Mac (the Enterprises) and the Federal Home Loan Bank System, which includes the 11 Federal Home Loan Banks (FHLBanks) and the Office of Finance. Since 2008, FHFA has also served as conservator of Fannie Mae and Freddie Mac.

Read appraiser comments here:

Link to the report. Worth reading… or skimming ;>

Read more!!

3-1-18 Newz//”Just” a Residential Appraiser?, Turret Living, Price Fixing?

I Am Not “JUST” a Residential Appraiser

By Rachel Massey, SRA
Excerpt: There is no doubt that moving to obtaining a certified general appraisal license opens doors to varied and interesting work. If it is in one’s capacity to obtain this level, it is a great idea. That said, the idea of being “just” a residential appraiser has got to stop.

A good professional residential appraiser who studies the market, knows how to analyze and solve a problem, and can communicate effectively and succinctly, is a very valuable appraiser at that!

Worth reading, plus read the comments and post your opinion.
My comment: Rachel wrote a much longer, very interesting article for the paid Appraisal Today March issue: “What being designated means to me”
When I started appraising in the late 70s, residential was somehow considered “inferior”. I guess it has been going on for a very long time. I have always thought that residential appraisers are experts in one type of property: 1-4 units. If you are testifying in court on a single family home and the opposing attorney’s appraiser is an MAI who appraises a few times a year, you will blow them away!!

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2-22-18 Newz//ASB Meeting Live Streaming, McMansions, Risky Appraisal Alternatives

Who Ordered All the McMansions? 10 Cities Where They’re Piled Highest

Excerpt: You know them when you see them.

The imposing, ostentatious structures looming over surprisingly wee plots of land. The crazily mismatched architectural styles. The hipped roofs, gabled roofs, and pyramidal roofs-all on the same house! The bank columns. The front yard Romanesque fountains. The puzzling profusion of window sizes and types. The gigantic, two-story front doors.

Click here for more info and where there are lots of them:

https://www.realtor.com/news/trends/metros-with-most-mcmansions

Read more!!

1/24/18 News//New USPAP Q&A-Hybrids .Dying Appraisal Profession? .Cat Urine & Big Data

Is the Appraisal Profession Dying?

By George Dell
Excerpts: Yes. Appraisal as we know it is dying.
Can it be saved?  No.
So what should I do?  What should “we” do?

To answer these questions, we need to look at causes and conditions. Some of these are obvious.
– Judgment is good; Analysis is better.
– Human generalization is excellent; Computation is fast…

So what can we do? If we cannot be saved. If computers are faster. If we have complete data. If we too have software.  If we too can provide results instead of opinions…  Leads to an obvious question: Can an experienced appraiser do these things as well as, or better than those others?

Worth reading at:

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1-18-18 Newz//Hybrid Appraisal Rejected, Scope Creeping, UsPaP False Assumptions

Scope Creep – Head’em Off at the Pass!

By George Dell
Excerpt: Why do we have scope creep?
Possible answers include:
– The reviewer or clerk has to justify their existence;
– There is genuine concern about something;
– The work should’ve been there in the first place;

It’s important to remember that our entire system of appraisal production and review is belief-based.  It must be “worthy of belief.”  We have no objective standards.  Your work must be subjectively “credible” in the mind of the reader.

Read this short, interesting blog post at:

My comment: George Dell writes regularly for Appraisal Today. His articles are much longer than his blog posts, often expanding on a blog post.

UsPaP – A few of the more obvious false assumptions

By Barry Bates

Excerpt from blog post

The appraisal client is always the intended user.

A lovely concept out in the ether somewhere, but hardly ever the case in practice. The client (who engages the appraiser) is a lending technician or AMC drone; the intended user is an underwriter, servicer or portfolio manager. (This assumes the fact that only about 10% of appraisals are ever done for anybody other than a mortgage company.)

To read the full post, click here

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1-4-17// Newz .National MLS Database?, No college degree?, .AMCs in trouble?

A National MLS Database?

Excerpt: Instead of considering the consolidation of the governance and management structures of the MLS, thereby providing coast-to-coast cooperation among brokers, we should instead focus on MLS data and technology infrastructure, and support the movement toward a national database system.

This would create a vast information network available to application developers who, until now, couldn’t offer tools to agents and brokers without expensive and time-consuming customization for every individual MLS.

My comment: The author is vice president of Business Development for Realtors Property Resource® (RPR®), created by NAR. More info at www.narrpr.com . Very interesting and worth reading. Poor real estate data has been a problem forever. Non-standardized MLS data is a nightmare for appraisers. This database would be accessible to appraisers, CU, and AVMs I assume. Of course, we all know how accurate MLS data is…

No bath tubs?

Excerpts: For years, the common wisdom among both brokers and designers was that every home needed a tub. But changing lifestyles and the demand for more space are now driving some homeowners to swap out their tubs for chic, high-end showers.

There is no definitive data on whether ripping out a tub could harm resale value – or any way to quantify how many people are doing that – said Jonathan J. Miller, president of the appraisal firm Miller Samuel. But “for a young family, not having a tub is an issue,” he added, “so the risk of impacting the value rises as the apartment size rises.”

My comment: Just something to think about… I often see bath tubs that are seldom used. But rarely see a home with no tub.

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12/28/17 Newz//Home prices since 1870, Change your templates!!, Very unusual airports

CHANGE YOUR TEMPLATES!!, computer folders, etc.

  • Appraisal template(s) forms, and narrative appraisals, proposals/bids, etc.
  • Set up new (sub) folders on your computer for 2018, such as 2018fotos and 2018appraisals. Every year, starting January 1, I keep using 2017 on my personal checkbook. I am setting up  about 10 checks with the year already on them so I finally will get this right ;>
  • Note: this depends on what you have already set up. Or, maybe it is time to think about setting up folders if you have difficulty finding files.

RECORD YOUR 1/1/18 AUTO ODOMETER READING AND DON’T LOSE IT!!

For your mileage log. I also always go to my mechanic for oil change, etc. to get an “official” odometer reading, which the IRS prefers. I learned a lot after miserably failing my IRS audit of my “recreated” mileage log as I did not have one.

Is Your Life Integrated? – George Dell

Tools for work, tools for life.

Excerpt: This time of the year for many is a time of reflection and hope. My reflection today is how some principles of our profession may be principles of a successful life; what those principles may be, and how they’ve contributed to my joy and sense of satisfaction and service.

Very interesting. Worth reading!!

My comment: I have known George for many years. He has appraisal ideas I have never seen anywhere else. He is a regular contributor to the paid Appraisal Today.

Read more!!

11-22-17 Newz//Thanksgiving Thoughts For Appraisers

Thanksgiving Thoughts For Appraisers

My Comments: I wrote up my usual Thanksgiving comments about family, friends, etc. which is what we all think about at Thanksgiving time. But, yesterday I received this from an old friend. It “spoke” to me, especially as an appraiser and business person. This is a different, very personal, way to look at what we can be thankful for in our daily lives. Feel free to forward this to whomever you want, changing the subject line if needed.

Be Thankful  

These words from an unknown poet remind me to be thankful on Thanksgiving and all the other days, too.

Be thankful that you don’t already have everything you desire.
If you did, what would there be to look forward to?

Be thankful when you don’t know something,
for it gives you the opportunity to learn.

Be thankful for the difficult times.
During those times, you grow.

Be thankful for your limitations,
because they give you opportunities for improvement.

Be thankful for each new challenge,
because it will build your strength and character.

Be thankful for your mistakes.
They will teach you valuable lessons.

Be thankful when you’re tired and weary,
because it means you’ve made a difference.

It’s easy to be thankful for the good things.
A life of rich fulfillment comes to those who are also thankful for the setbacks.

Gratitude can turn a negative into a positive.
Find a way to be thankful for your troubles, and they can become your blessings.

I love the thought that Thanksgiving is less of a meal and more of a mindset. May your Thanksgiving be filled with friends, family, love and all that is important to you.
Gray
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Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
2033 Clement Ave. Suite 105
Alameda, CA 94501 Phone 510-865-8041
Fax 510-523-1138
Email   ann@appraisaltoday.com

11-16-17 Newz//:Value Of Additional Bedrooms, 13 Animal-Shaped Homes, Timber Towers

Architectural menagerie

13 animal-shaped buildings

Just For Fun!!
Excerpt: Novelty architecture can take on many fantastical forms – think municipal water towers done up like peaches and soft serve-shaped ice cream stands – but animal-shaped buildings are in a league of their own.

Often built as roadside attractions meant to lure motorists off the highway, these completely functional structures serve a greater purpose than just kitschy ornamentation. Some are truly mimetic – that is, the building is representative of its original purpose be it a poultry shop, seafood restaurant or woolen clothing boutique. Others are more symbolic, which is probably a good thing.

Here are a few:
– Big Sheep Wool Gallery – New Zealand
– Turtle Building – Niagara Falls
– Crocodile Hotel – Australia

Good fotos and write-ups at:

Why Timber Towers Are On the Rise in France

Excerpt: Spurred by concerns over climate change and the negative impacts of concrete manufacturing, architects and developers in France are increasingly turning to wood for their office towers and apartment complexes.

Concrete was praised through much of the 20th century for its flexibility, functionality, and relative affordability. In France, the material ushered in an era of bold modernist architecture including housing by Auguste Perret and Le Corbusier. Today, however, wood is lauded for its smaller environmental footprint and the speed with which buildings can be assembled.

Read more!!

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