Are Human Appraisers Being Phased Out?

Are Human Appraisers Being Phased Out? Federal Regulators Vote to Loosen Requirements

Excerpt: What’s that drone doing hovering over a property?

Soon that sight may be the norm on homes for sale.

The days of human appraisers may be coming to an end for homes priced under $400,000, if regulation proposed by the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp. and the Federal Reserve gets approved.
Previously, only homes valued under $250,000 could be purchased or sold without the use of a human appraiser. That threshold is potentially being raised to $400,000, opening up more business for drone-monitored and computer-generated home valuations. The vote is nearly there, awaiting expected agreement from the Federal Reserve before the regulation takes effect.

While the appraisal industry is concerned the change could negatively impact real estate at large, the brokerage side of the business predicts the threshold hike should have minimal effects on homeownership and the home-buying experience.

Comments from many sides of the issue and lots of comments by readers.

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Appraising Hobbit Houses

Hobbit Houses in Charlevoix, Michigan

Just For Fun!!

Excerpts: Growing up in northern Michigan in the early 1900s, Earl Young was obsessed with boulders. Glacial boulders, to be exact-ones moored in fields, forests, and on lake coastlines across the state thanks to the slow march and retreat of glacial ice during the Precambrian age. Appraising Hobbit Houses in Michigan is a challenge.
The homes he designed will stop you in your tracks, as one did the last time I was there, passing by on a bike. Call them “mushroom houses,” “hobbit houses,” “boulder houses”; everyone has a different name for them. They’re often described concisely, if vaguely, as “organic.” Though some see Frank Lloyd Wright’s influence, they’re distinctly Young.

Fascinating! Lots of fotos and info at:
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Lord of the Rings – Hobbit houses from the movie(Opens in a new browser tab)

Hobbit House of Montana(Opens in a new browser tab)

Appraisal Business Tips 

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Women in Appraising

Women in Appraising

Karen Mann: An accidental encounter turns into a lifelong career in the appraisal industry

Excerpts: Karen Mann is a Certified General Appraiser in Discovery Bay, CA. In her 39-year tenure, Karen has made it her mission to help continue the evolution of the industry – serving on several national and local committees for both the Appraisal Institute and the American Society of Appraisers.

Karen’s success in the industry started with a fortuitous event that turned into a successful career and a lifelong friendship. Even today, she remains close to two of the mentors that helped her get started. Her leadership and activism in the industry have helped guide others just getting started, and her acceptance of technology has aided in her success.

“Becoming an appraiser has changed my world. I’ve now been in quite a few leadership roles in and outside the appraisal industry. And, I feel that I’ve had a very fortunate career. I’ve worked really hard, but for the whole 39 years (so far), it’s been an honor to be an appraiser.”

My comment: I have known Karen for over 30 years. She is a lot of fun also. I will never forget when Karen and I plus a couple of other women got on stage and dancing and doing karoke at a national Employee Relocation Conference (social event). Appraising interferes sometimes with cruising on her big power boat ;>
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Maggie Hambledon, ASB member since 2011

Maggie is president of Hambleton, Inc., a real property appraisal firm in Columbus, OH. She has been in practice for over 40 years, specializing in the valuation of residential properties, with an emphasis on litigation support.

She got started by Sheer luck. “I answered an ad to work as an assistant for an appraisal department in a corporation.  The luck was I had two pioneer male appraiser mentors who believed in upward mobility and this was in 1968! I was able to learn from the time a potential assignment was logged in through the entire process and to travel to other states to participate in large multi-property appraisal assignments.”

https://www.appraisalbuzz.com/international-womens-month-part-3/

My comment: How did I get started? After 7 years I was bored working in labs, started when I graduated from college. In 1975 I saw an ad for “Engineering Aide” at the county’s assessor’s office. It said “work in the field” (verifying county records before switching to automated valuation). Previously I worked on the 1970 census in the field and really liked it. I had never heard of appraising and got an appraisal book at the library. Have been appraising ever since!

Appraisal Business Tips 

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Appraiser conflict: objective/impartial vs. what clients want

Do You Have Two Appraiser Brains?

By George Dell
Excerpt: One appraiser brain says you must be “independent, impartial, and objective.” (USPAP) It wants to be good. It wants integrity and to sleep peacefully at night.

But there’s another brain. It’s primal and wants to survive. It has other responsibilities: meet the bills, feed the family, pay the mortgage, and pay government taxes/fees. And recorded in this brain is that part of the standards which say: Do what your clients expect; do what everyone else does. As paraphrased, the sole guides to an acceptable scope of work.

Worth reading. Short. Plus the comments.

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5-17-18 Newz//New Fannie Forms. Appraisal Waiver saves up to 2 weeks. Golden State Killer House Survey

$1 listing prices

Excerpts: A $1 house listed in Edmond, OK, has stirred up a huge hubbub among home buyers, home sellers, real estate agents, and others: Come on, is that even real? There must be a catch.

In other words: After less than a week, the home is under contract. While Hukill won’t share specifics until the deal is officially done, he says, “we ended up a little bit above what the sellers initially thought they’d get.”

Which begs the question: Should more home sellers consider pricing their home at $1?

My comment: interesting discussion of the pros and cons.

Appraisal Waivers save up to 2 weeks time

From Fannie Mae’s May 15 2018 Selling News
Save your borrowers time and money with a PIW

Did you know that a property inspection waiver (PIW) can save you up to two weeks in loan cycle time while saving your borrower the expense of an appraisal? A PIW can both reduce costs and shorten the loan origination process by eliminating the need to obtain and review an appraisal, removing the chance of any appraisal-related delays.
Exercising a PIW offer will also give you Day 1 Certainty®, freedom from reps and warrants on property value, condition, and marketability. Learn more about these benefits and more on the PIW page.
My comment: And I was thinking that Hybrid Appraisals were a big market… No way to beat No Appraisals…

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4-12-18 Newz//What’s a Comp? Multiple offers way over list. Rotating House

What’s a comp?

 
By George Dell, MAI, SRA

Excerpts: Our education tells us a comp is similar and competitive. So how do we measure “comparability”? If our job entails studying market data to get an answer … might it be important to know exactly how to describe a comp?

So what’s the issue? Why should we care? I am a highly trained expert. I have a license. “Trust me. I know a good comp when I see one.”

My comments: George is writing a longer article than his blog posts for the May issue of the paid Appraisal Today. I often wish his blog posts were longer, but they are designed to be short ;>

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7 Strange home remodeling projects for appraisers

7 Strange home remodeling projects for appraisers
Excerpt: There’s a huge difference between decorating for your own pleasure and spiffying up your home to sell. If you’re staying put and pining for a purple bathroom, go for it! The resale value of your eclectic tastes don’t apply.
3. Too much purple or yellow
4. Too much cold white
7. A statement door that makes too much of a statement
To see all of them plus photos and details click here:

Appraisal Business Tips 

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Covid-19 Residential Appraisers Tips on Staying Safe

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NOTE: Please scroll down to read the other topics in this long blog post on data, weird interior design, mortgage origination stats, Covid tips for appraisers, etc.

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7 “Small”Home Problems – Appraisal Adjustments?

7 Small Home Flaws That Can Be Big Deals for Buyers

Excerpt: Here are a few:
2. Ripped window screens
3. The location of your laundry room.
4. Sticky door locks. Live in a house long enough, and you’ll encounter a malfunctioning door latch or lock. That may be no big deal to you, but it may alarm buyers big-time.
5. Your bathtub or shower. Some people prefer showers, others want baths (particularly parents who must clean up small kids). So if you’re missing one or the other, watch out.

Interesting and worth reading at:

My comment: Any adjustments for these?? ;> It may help explain why some homes sell and some don’t or sell low. In my area, almost all listings are fixed up and staged. I will never forget selling my house in 2008. I fixed all the stuff that had been bad for years. I did not want to sell it!!!

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

For Covid Updates, go to my Covid Science blog at covidscienceblog.com

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

To read more of this long blog post with many topics, click Read More Below!!

NOTE: Please scroll down to read the other topics in this long blog post on waterfront home, independent contractors,, mortgage origination stats, Covid tips for appraisers, etc.

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National MLS Database for Appraisers?

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.

NOTE: THIS WAS PUBLISHED IN 1-18. THEY KEEPT TRYING IN 2020!!

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…

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

For Covid Updates, go to my Covid Science blog at covidscienceblog.com

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

To read more of this long blog post with many topics, click Read More Below!!

NOTE: Please scroll down to read the other topics in this long blog post on bath tubs, new appraisal forms,, mortgage origination stats, etc.

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8-10-17 Newz// Fannie-Appraiser Future, AMC goes down, Delightful Domes

A Tour of the World’s Most Delightful Domes

17 half-spheres that do round right. Just For Fun!

Excerpt: Employing massive hemispherical roofs first became popular with the ancient Romans-most famously the iconic Pantheon, built in the 2nd century. Since then, the feature has taken many forms across the globe, providing cover for everything from ancient tombs to futuristic houses. The circular nature of domes has special significance in religious houses such as churches and mosques, where it represents the eternal, with no beginning and no end.

http://www.atlasobscura.com/lists/domes-architecture-world-tour 

TC Valuations (AMC) Ceasing Operations!

Paying appraisers $ .25 on the dollar!!

Excerpt from letter sent to appraisers: It is with much regret, that I write this letter to inform you that TCV has commenced an orderly wind up and liquidation of operations. Unfortunately a significant downturn in revenue and the loss of part of our volume with two key clients in the second quarter of 2017, has forced the company to wind up its operations.
Read the full letter plus lots of comments at

My comment: There will be more AMCs going down, particularly small ones. In 1993, when the appraisal business crashed and I had way too many employees, I almost went out of business. But, I had no uncollected billings, even from mortgage brokers. Why? I always carefully monitor my accounts receivable. My assistant called all my clients every day until they paid. My husband, a very large man, wearing black clothes (Gangsta style ;>), went to a local mortgage broker’s office and left with a full payment check. It may be time to write a collections article for the paid Appraisal Today…  predictions are for more small AMCs Going Down.

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