AMC Fined for Appraisal Order Blast Violation

By on October 16, 2020   /   AMCs, appraisal business, appraisal management company, comp photos, Coronavirus, COVID, data, FHA, Freddie, Mortgage applications, unusual homes   /   Leave a comment
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AMC Fined for Appraisal Order Blast Violation

Excerpt: Consolidated Analytics, an AMC based in Anaheim California, was fined $3,000 for violating the Utah AMC Administrative Rules R162-2e-306 “Offering An Appraisal Assignment and Communicating with Two or More Appraisers About a Potential Assignment.

The specific part of this rule that pertains to broadcasting has been relatively effective in reducing the broadcasting of assignments. Clear Capital recently was fined $5,000 for failing to comply and there are additional complaints working their way through the system.

To read more, click here

My comment: Broadcast orders are bad for many reasons for both the AMC and the appraiser: goes to everyone on their list, no considerations about appraiser qualifications for the assignment including geographic. Hundreds of appraisers competing on fees when business is slow make it hard for appraisers to stay in business. There is always someone with a lower fee, in appraising, and any type of business.

When business is strong, such as today, AMCs have to take whatever warm body they can get. Many appraisers are way too booked up and not taking any more work.

Maybe you can get your state appraisal regulator to get a similar regulation!!

Working with difficult appraisal clients(Opens in a new browser tab)

Which Appraisal Clients are used the most?(Opens in a new browser tab)

Marketing and Management Tips for Appraisers

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Fact Witness vs. Expert Witness Appraisers

By on October 2, 2020   /   appraisal business, appraisal how to, appraisal waivers, COVID, fauci, hybrid appraisals, Mortgage applications, Strange homes, weird homes   /   Leave a comment
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Excerpts: When a real estate appraiser is called to testify in a court, it could be as one of two types of witnesses. If you are called to testify as an appraiser, it’s important to determine at the time of the request which of the two types you will be: fact witness or expert witness appraisers.

A fact witness is one who testifies only to that of which he or she has firsthand knowledge and who describes only facts (as opposed to expressing opinions). There is no formal definition of a fact witness….

As an expert witness appraiser, you are allowed to express opinions. In fact, your opinions are the very reason for your testimony. The opinions are to be based on the expertise afforded by “scientific, technical, or other specialized knowledge.”

Short and well written. Includes legal references. To read more, click here

My comments: This is a never-ending hot issue for many appraisers. They don’t understand the difference. The difference is you get paid a minimal fee as a fact witness (similar to a witness of an auto accident, for example). As an expert witness, you are paid very well for prep for expert witness testimony, depositions, waiting outside the courtroom, and testifying. I have written about this in my paid Appraisal Today newsletter.

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Appraisal Process Challenges

By on September 11, 2020   /   appraisal business, appraisal how to, Coronavirus, COVID, fauci, Mortgage applications, unusual home   /   Leave a comment
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The Most Challenging Part of the Appraisal Process

Appraisal Process Challenges
Excerpts: Number 1: Data analysis (34%)

“When comps are limited, or when sales prices vary by as much as 50% for what appear to be very similar properties in the same neighborhood (which seems to be more and more common in the Denver metro area), selecting the best comparable properties can be a very time consuming and stressful process.”

Number 2. Site value opinion (17%)

“I choose ‘Site Value Opinion’ as the most challenging since there are very few vacant land sales in the areas that I appraise in. With very few sales, it’s very difficult to provide an opinion of value for many sites.”

To read more comments from appraisers and the other 7 challenging parts of the appraisal process click here

My comment: Lots of good appraiser comments. Data Analysis is my number one choice also. Tract homes are sorta boring but can be a welcome break from all the non-tract homes I appraise. Also, with Covid, I don’t connect with real estate agents every week at open houses to find out what is happening (behind the data).

Appraising Weird Stuff is Challenging!(Opens in a new browser tab)

Common Appraiser Violations(Opens in a new browser tab)

What to Do When Your Appraisal Is Under Review(Opens in a new browser tab)

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Should Appraisers Pay to Be on AMC List

By on August 28, 2020   /   adjustments, AMCs, appraisal business, appraisal management company, cost approach, COVID, Fannie, fauci, new appraisers   /   Leave a comment
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By Dustin Harris

Excerpt: Should appraisers pay to be on an AMC’s approved appraiser list? Is this one way to get new clients? If an AMC solicited you, would you check it out?

Now, I work for some AMCs that, frankly, you might not choose to work for. That’s fine. It’s a choice we all make. Understand that most of the areas I work are rural, so AMCs are generally willing to pay more because of this. Some AMC are very demanding. Yet, when I meet those demands, I get a lot of well-paying jobs from them.

To read more, plus lots of appraiser comments, and listen to the podcast, click here

My comment: A never-ending very controversial topic ever since AMCs took over residential lender appraisals after the mortgage crash around 2008!

Which Appraisal Clients are used the most?(Opens in a new browser tab)

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So Many Appraisal Cost Approach Questions

By on August 21, 2020   /   appraisal business, COVID, hybrid appraisals, Mortgage applications, Reviews, state appraiser regulators, statistics, unusual home, unusual homes, va   /   Leave a comment
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So Many Appraisal Cost Approach Questions!
So Few Answers! Such Low Fees!

By Tim Andersen, MAI

Excerpt: It is clear most appraisers do not like to do the Cost approach. Generally, we are not too familiar with it. So, it is clear that most appraisers, because of this, do not appreciate the deep analytical power the Cost approach really has. So Many Appraisal Cost Approach Questions!

Therefore, I’m going to ask you 10 questions on the Cost approach (and stuff related to it). After you’ve finished reading them, you probably will still not like to tackle the Cost approach. Nevertheless, you just may have a better understanding of, and appreciation for, its powerful analytical capacities.

First Question: On the 1004 form is the indication that Fannie Mae does not require the Cost Approach to Value. Where does the form instruct the appraiser not to complete the analytics of the Cost approach?

To read the other questions and answers click here

My comment: Appraisers, including myself, seem to have a love/hate relationship with the Cost Approach. But, it can be useful. Tim’s much longer article “But Fannie Mae says I don’t have to do the Cost Approach!!” will be in the September issue of the paid Appraisal Today.

Appraisal Process Challenges(Opens in a new browser tab)

Which Appraisal Clients are used the most?(Opens in a new browser tab)

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What to Do When Your Appraisal Is Under Review

By on August 14, 2020   /   appraisal business, Coronavirus, cost approach, COVID, liability, state appraiser regulators, unusual homes   /   Leave a comment
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Excerpts: Residential appraisers will often — if not just about always — have their work reviewed by another appraiser. Usually, this is a routine procedure that the original appraiser barely notices. Sometimes, the review appraiser will come back with requests for extra information, or doubts, that the original appraiser might find annoying. To be sure, the reviewer’s questions might sometimes seem nit-picky, and answering them can distract from other work. However, the issues the reviewer raises almost always turn out to be legitimate. What to Do When Your Appraisal Is Under Review

We asked review appraiser Doug Nakashima (Glenview, Illinois) for advice on how to make reviews as painless as possible if you’re the one being reviewed.

Topics:

  • Remember that reviewers are on your side
  • Look out for these common points of contention
  • Avoid future revision requests

To read more, click here

My comments: Sorry, no comments section for ranting, etc. ;>

If you’re doing AMC work, the tough appraisals tend to go to reviewers. The first “reviews” are from underwriters, clerks, computer software, etc.

I don’t know of any other profession where almost all reports are reviewed by clients. Personally, I think it has resulted in appraisers being overly critical of other appraisers’ work, state boards sometimes being too aggressive, etc. Worse, some appraisers try to send in reports with as as few “problems” as possible, to minimize call backs and doing whatever it takes.

Review appraiser liability(Opens in a new browser tab)

Appraisal Process Challenges(Opens in a new browser tab) Read more!! →

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Which Appraisal Clients are used the most?

By on August 7, 2020   /   adjustments, appraisal business, appraisal how to, Coronavirus, COVID, Fannie, Mortgage applications, unusual home   /   Leave a comment
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Survey: Which Appraisal Clients Make Up the Majority of Your Client Base?

Excerpt: What types of clients do property appraisers serve? Do most of their assignments come from lenders vs. non-lenders? To help answer these questions, we recently asked our real estate appraisal community, “What type of appraisal client makes up the majority of your client base?” Or, which Appraisal Clients are used the most?

While most appraisers said that the majority of their work comes from lenders (most often through AMCs), some said the bulk of their client base is made up of other types of appraisal clients, such as attorneys or private individuals.

To read the results and appraiser comments click here

Marketing and Management Tips for Appraisers

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COVID Risk When Appraising Apartments and Commercial Properties

By on August 6, 2020   /   appraisal business, Coronavirus, COVID   /   Leave a comment
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Primary Risk Rules for All Types of Properties

  • Outside is Good. Inside is Bad.
  • Vacant rooms are Good. Crowded rooms (and outdoor spaces) are Bad.
  • Assume you, and everyone else, is infected.
  • You get infected by breathing another person’s breath, primarily.
  • Wearing a face mask is Good. No face mask is Bad.
  • Air flow is good. Poor (or no) ventilation is bad.
  • Time you spend in a risky space: as little as necessary.
  • You decide your own risk level.

The August issue of Appraisal Today, sent Monday, August 4, 2020, focused on appraising homes. The risks for appraising other types of property is similar when inspecting the interiors. The newsletter discusses many of these issues in more detail. To download a copy, go to www.appraisaltoday.com/coronavirus.

For lots more information, go to my new Covid blog covidscienceblog.com

Some of the factors for all properties:

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Covid-19 and Appraisers FREE Newsletter

By on August 4, 2020   /   appraisal business, Coronavirus, COVID   /   Leave a comment
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In the August 1, 2020 Issue of the monthly paid Appraisal Today Newsletter

Lots of tips for keeping safe in Covid-19 and Appraisers FREE Newsletter in the August 1, 2020 Issue: Covid-19 and Appraisers FREE Newsletter

  • How to keep safe from COVID-19, including tips for appraisers
  • The Vaccine Race
Click here to download the 1 column version, easy to read on your computer, laptop, or tablet.
You can scroll through the article sections with titles, looking for the topics that you want. I have done lots of research and give you short summaries with where to get more information, similar to these email newsletters.
Or, go to appraisaltoday.com/coronavirus to see a full table of contents and download the free newsletter.
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Please forward this email to anyone who may be interested. It focuses on appraisers who go inside homes, but much of it is relevant to anyone.

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Interview with The “Millionaire Appraiser”

By on July 31, 2020   /   appraisal business, Fannie, humor, hybrid appraisals, Mortgage applications, unusual homes   /   Leave a comment
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Excerpt: How does one reach such a milestone? Terrence dropped out of school at what age? What advice can he offer to appraisers? These questions and much more will be answered by Terrence Bilodeau as he shares about his life’s journey and how he runs his business. The 23-minute Interview with The “Millionaire Appraiser”, Terrence Bilodeau, includes 2-minute introductory comments and a brief ad. Very good interview.

Read the appraiser comments below the video on the Vimeo website. (not many comments on Buzz web site).

Interview with The “Millionaire Appraiser”. I wrote about him in the June 19 issue of this email newsletter, using a recently published CNBC article. He was grossing $280,000 per year. It was very popular with my subscribers. Link to the article I used click here:

To read more, click here

My comment: This guy works way too hard!!

Which Appraisal Clients are used the most?(Opens in a new browser tab)

What Is An Appraiser?(Opens in a new browser tab) Humor

Which Appraisal Clients are used the most?(Opens in a new browser tab)

Appraisal Process Challenges(Opens in a new browser tab)

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