Appraisal News and Business Tips

appraisal waivers

4-5-18 Newz//Weird home interiors, Reduced AQB requirements and state regulators, Data analytical tools

The rage of Airbnb rentals (and stuff to keep in mind about value)

By Ryan Lundquist

Excerpts: The owner has a cash cow. Her second unit is bringing in $3,300 per month as an Airbnb rental, and it’s paying her mortgage. Since these types of rentals are all the rage right now, let’s talk about some important details to keep in mind from a value perspective. This isn’t meant to be exhaustive, but I wanted to share some things on my mind. I’d love to hear your take in the comments.

Topics:
1) Airbnb rent vs. market rent
2) Lenders and market rent
3) Investors & seller expectations
4) The fine print and a 12% tax

Click here to read the details, plus the appraiser comments:

My comment: This stuff gives me a headache ;> These seem to be everywhere now, especially room rentals. The Local Politics can be a mess. I look at the income as a business. Very different than renting by the month or year (at much lower daily rates), unless it is in a popular vacation rental market.

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3-15-18 Newz//$2,358 PSF Small Tract House, Water Heaters, Affordable Beach Towns

$2,358 per sq.ft. for small home in Sunnyvale CA

Excerpt: This home on Plymouth Drive in Sunnyvale, Calif. recently set the highest price per square foot ever recorded by the Multiple Listing Service. The two bedroom, two bath home – 848 square feet in size – sold in two days for $2 million. It had been listed for $1.45 million. That means it sold for $2,358 per square foot, which is the highest price per square foot in Sunnyvale recorded by MLS Listings which has data going back to Jan. 1, 2000.

My comment: It did have new paint inside and outside plus refinished hardwood floors ;> Check out the fotos for a boring tract house. I got Mine. I am sooo glad I bought my house in 1985 for $145,000, worth about $900,000 now!! Mine is twice the size of this one, but not close to Google or Facebook (30 miles away, but could take the employee Google bus which comes here.)

The World’s Best Affordable Beach Towns

Just For Fun!!

Excerpt:
Here are two, not too far away:
3. Tulum (Mexico) Luxury condos in new developments and single-family houses under $100,000
9. Dominical Beach (Costa Rica)

Check out all of them at:

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2-15-18 Newz//Fannie Appraiser Webinar, Magical Appraiser Wand, Refis Dropping

The Magical Appraiser Wand

By George Dell
 
Excerpt: Can you just give me some magical software which will calculate my adjustments?

I get asked questions like this often. Can you just show me how to do a graph a client wants? Can you just give me your class stuff so I don’t have to come all that way? So often, the question degrades into something like “Why does the regression software give stupid answers?” I pushed the magic button!

People do not like the answer. You’re paid to do an analysis, not wave a magic wand, or push a magical appraisal button. We have another name for that, it’s called an AVM.   In addition to a point value prediction, AVMs can be tested for reliability. This is called the FSD (Forecast Standard Deviation). The AVM. It gets results. It’s fast. It’s cheap. And it provides a measure of reliability – the FSD.

Why would a client want something slower and more expensive with no measure of reliability? Why hire a pesky appraiser?

Click here for the answer!!

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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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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.

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10-19-17 Newz// Appraisal Waivers, Crooked Houses, High-Low Home Prices

The Asymmetrical Charm of Crooked Houses

They’re like regular buildings, but with a twist.
Excerpt: THE BUILDINGS THAT OFTEN GET the most praise (one famed tower in Pisa not withstanding) are those that stand up straight, refuse to bend or bow over time. But those buildings are boring. The really compelling constructions are those buildings that, despite looking like they are slowly keeling over, continue to stand, and continue to be used.

Some whimsical tourist traps have been purpose-built at odd angles, but it’s the buildings that were never meant to lean that are far more fascinating. Whether due to construction errors, shifting ground, or just the accumulated weight of time, some buildings have become crooked masterpieces of architectural fortitude. Take a look at some of the most stunning crooked houses in the world.

My comment: Just For Fun!! Good fotos and descriptions.

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