Appraisal News and Business Tips

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6-16-16 Newz//Appraiser Stalker -Mansion under $100,000 -Safest states -SBA loans

Mansion under $100,000

Mansions cost millions, right? Well, not necessarily. This week’s most popular home on realtor.com® is a mansion priced under a million. In fact, it’s priced below $100,000.

Yes, it’s in Toledo; and yes, it needs some work to bring it into fighting shape. But still, a mansion with a five-digit price tag is a rare beast indeed. The listing agent told us a recent open house attracted more than 1,000 people over two days. He added that this mansion would be worth millions if it were in a major coastal metro-making it a savvy purchase for a buyer who doesn’t mind summering on the Maumee River.

Scroll down the page to Number 1. FYI, Number 3 – Amityville Horror House for $850,000

http://www.realtor.com/news/trends/most-popular-homes-mansion-under-100k

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Twinkies Enabled the Sale of the Playboy Mansion

By Jonathan Miller

Excerpt:

It’s been a confusing week for me.

I’ve been trying to reduces the sugar in my diet and I actually feel much better. But then I was interviewed by the Wall Street Journal about the recent sale of the Playboy Mansion in Holmby Hills, Los Angles, California. Apparently the next-door neighbor who restarted the Hostess brand purchased the $200 million listing for more than $100 million but the price was not disclosed.

In other words, the sale of Twinkies made this all possible.

Read the full commentary and scroll down the page for interesting comments on free appraisals, purple formica, value of a bedroom, etc.

http://www.millersamuel.com/note/june-10-2016/?goal=0_69c077008e-bfd1d18c9f-116855313

Read more!!

6-9-16 Newz:: Expandable Space Station, Turn times, FHA news  

Time-lapse video of the International Space Station expandable habitat

Excerpt: On Saturday, May 14, NASA successfully completed the deployment of the first expandable habitat on the International Space Station. With help from the ground, NASA astronaut Jeff Williams began inflating the Bigelow Expandable Activity Module (BEAM) at 9:04AM ET.

He opened the valve 25 times to inject air into the module in short bursts, according to NASA. Time in between allowed the BEAM to expand and stabilize, as the NASA and Bigelow Aerospace teams monitored the module’s internal pressure. The BEAM was expanded to its full size seven hours later, at 4:10PM ET.

http://www.theverge.com/2016/5/30/11812844/this-time-lapse-video-of-the-beam-inflating-on-the-international-space-station-is-awesome

My comment: WoW!!!

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United States Spy Town Auction

It’s not the first time that an entire American town has gone on the auction block, but it might be the most unusual. Sugar Grove Station, West Virginia was originally a United States Navy military base to support part of the National Security Agency’s surveillance operation. Though the array of giant parabolic dishes that continue to track location and content of international telecommunications activity is still in operation and not part of the sale, they are completely obscured from view behind thick forest on their ridgetop one mile distant. When it became unnecessary to house related analytical staff at the base, it was retired in the fall of 2015 and put up for auction to the highest bidder over $1 million.

Built between 1960 and 2014, the fenced and gated rural town has private full-service utilities to support as many as 500 people on over 120 acres. Included are 80 homes on tree-lined residential streets in like-new condition, a swimming pool, bowling alley, youth daycare center, community center with fireplace which was designed to function as a restaurant with bar, a gym, full-sized indoor basketball court, tennis and racquetball courts, a football field, large playground with kiddie pool, and twelve guest cabins for visitors. There are also several large buildings for multiple use as well as a four-section hobby building for working on cars, woodworking shop and other creative pursuits. For community safety, a police station and fire station are already in place.

https://www.toptenrealestatedeals.com/homes/weekly-ten-best-home-deals/2016/06-06-2016/1/ 

https://en.wikipedia.org/wiki/Sugar_Grove_Station

Read more!!

5-26-16 Newz AQB college degree .Living tree architecture .AMC violations

8 Extraordinary Pieces of Architecture Grown From Living Trees

Excerpt:

We usually use trees as building material in the form of struts and planks. But all over the world, people have found ways to create dwellings, bridges, and sculptures out of trees without even cutting them down. Using trees to create living structures is much slower to build (read: grow) than traditional methods, but it creates some truly fantastical natural creations. Take a look at some of the world’s coolest feats of arbortecture.

http://www.atlasobscura.com/articles/8-extraordinary-pieces-of-architecture-grown-from-living-trees

My comment: All I can say is WoW!! Great photos plus some text info. Just Click On It!!

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Celebrity names not adding to appeal for home buyers?

May. 16, 2016 – 3:00 – Douglas Elliman Broker Chris Leavitt on the challenges celebrities face trying to sell their homes.

Very funny commercial before the short 4 minute video – Fox news.

Another great one from Jonathan Miller. I guess he watches a lot of tv and tweetlings, when not doing lotsa graphs and other stuff ;>

http://video.foxbusiness.com/v/4895807387001/celebrity-names-not-adding-to-appeal-for-home-buyers

Read more!!

5-12-16 Newz .Geographic competency .Killing home values .Fair housing

The Most Insane Property Description Ever

Short descriptions, click here for some humor!! Reminds me of the times I am driving to the subject, hoping the house ahead is not the one I am appraising… Probably not the Most Insane, but definitely reality-based!!

http://www.thebrokeagent.com/blog-1/2016/4/the-most-insane-property-description-ever

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These Neighborhood Amenities Can Kill Your Property Value

Excerpt: In real estate, the phrase “cash is king” is oft overused. However, if you’re struggling to sell a house in a bad ‘hood, then you already know that in reality, location is king. Purchasing a home in a great area, or an area that is up-and-coming, can help maximize the value of your home investment.

So what can tear your property value down faster than a tree through the roof? The following infographic from Realtor.com offers insight-and some will surprise you!

Link to original article:

http://blog.rismedia.com/2016/these-neighborhood-amenities-can-kill-your-property-value

My comment: Of course, the effect on value varies by location – cemeteries for example.

Read more!!

What is the farthest you have traveled to complete an appraisal and still be considered geographically competent?

Poll from www.appraisalport.com

Thanks again to Steve Costello, AppraisalPort Relationship Manager, for sending me these Most Interesting weekly poll results

5-12-15 poll on distance-geog competent

My comments: Many commercial appraisers cover wide geographic areas. Some do the entire U.S and sometimes other countries. Fortunately, the “wing dippers” – appraisers flying in for a few days from other parts of the country to appraise a commercial property – definitely declined after licensing. I somehow had a “bad attitude” about helping them…

As we all know, distance from the subject is not the best “only” criteria. If you work in a rural area, usually you have to drive long distances.

But, I know many appraisers here in the San Francisco Bay Area who work in many counties. Travel distance does not always mean much if you work in a more urban area. Huge variations among all the cities. I cut down my area to be more profitable – driving time is lost money. Appraisers sell our time. I don’t work in San Francisco, 10 miles from my office. Very tricky to appraise. I decided not do appraisals that required crossing a long bridge.

5-5-16 Newz .Using listings .CU update .Low inventory and stats

Collateral Underwriter Update from Fannie Mae

Source: Appraisal Buzz

Excerpt:

The Buzz staff recently asked Zach Dawson, Director of Collateral Policy and Strategy, Fannie Mae, to provide appraisers with an update on the development of Collateral Underwriter.

A few of the questions:

– Buzz: Can you bring us up to date on CU? What have you learned from this data initiative?

– Buzz: Can you tell us more about AQM and the objectives of that project?

– Buzz: How many appraisers does Fannie Mae refuse to accept appraisals from?

https://www.appraisalbuzz.com/collateral-underwriter-update/

My comment: Definitely hits the Hot Topics!! Nothing much new, but good to directly from Fannie Mae, in writing…

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Can Living Near a Starbucks Boost Your Home Value?

Excerpt:

It seems that being close to a Starbucks does have a marked effect on home values, particularly in the East, according to a Zillow report.

Between 1997 and 2014, homes within walking distance, or one-quarter mile, of a Starbucks appreciated 96 percent. Compared to the national average for the same time period, 65 percent, it seems having a barista close by is a smart real estate move.

http://www.forbes.com/sites/zillow/2015/08/19/starbucks-boost-home-values/#4084f9eb2c70

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Does a new Whole Foods or Trader Joe’s in Your Neighborhood Increase Your Home Value?

Excerpt:

A 2015 study by the real estate information company RealtyTrac analyzed this trend. The study included 4 million homes located in a ZIP code with either a Whole Foods or Trader Joe’s location, finding that average property values in a ZIP code with Trader Joe’s appreciated by about 40 percent since they were purchased, while homes with a Whole Foods in the ZIP code appreciated by nearly 34 percent, which matches the national average increase according to the survey.

http://realestate.usnews.com/real-estate/articles/does-the-new-whole-foods-in-your-neighborhood-increase-your-home-value

Read more!!

Do your listing comparables have any effect on your final opinion of value?

Another great poll from www.appraisalport.com.
My comments: I have always looked at listings, pendings, expired, etc. to tell me what is happening in the market today. Sales are the past.

Recent articles below in the May 2016 issue of the Paid Appraisal Today discuss using listings, particularly in markets that are declining or increasing. Lenders, of course, are way behind. They are just now complaining about low appraisals on purchases and want appraisers to use pending sales. Also, having no closed sales higher than the listing price is ok!!

  • Practical tips on qualifying the 1004MC and preparing a Market Conditions Summary – most examples are declining markets
  • No man’s land & the aggressive real estate market
  • How to handle rapidly increasing prices in your market

4-21-16 Newz .Levitating houses .Murders in house .Unhappy appraisers

Levitating houses?

Excerpts:

… One architect’s proposed solution for low-lying cities that have trouble with flooding. Inspired by amphibious houses, Lira Luis’ concept asks: what if buildings could avoid flooding simply by not touching the ground at all?

As sea levels rise, some low-lying cities have started experimenting with floating buildings and amphibious houses. But one architect has another unlikely sounding suggestion: What if buildings could avoid flooding simply by not touching the ground at all?

Architect Lira Luis thought of the concept as she was working on another installation that happened to be on water and required invisible, easily removable attachments. She started using magnets for the attachments, and when she accidentally held the magnets the wrong way, she noticed that they repelled each other even through a layer of water.

Click here to read. A bit “techie” but fascinating.

http://www.fastcoexist.com/3058400/this-architect-is-trying-to-build-houses-that-can-levitate

Thanks to Matt Cook for posting this Most Interesting Link!!

My comment: This is very relevant for predicted increases in sea levels. I live in a low-lying coastal city in San Francisco Bay. Recently, part of the city’s flood maps were revised to 100 year flood levels, requiring flood insurance if you have a federally insured loan. As usual, all the complaints from owners were about having to buy flood insurance. My house is about 5-6 feet above typical high tide now. When there are very high “King” tides (high tide plus heavy rains), it is closer to high tides. Flood maps for all coastal areas in the country are being revised.


Read more!!

3-31-16 Newz .College degree .1004mc .Home price recovery

Man moves to San Francisco, pays $400 a month to sleep in wooden box in friends’ living room

Excerpts: With the median rent for a one-bedroom apartment at $3,670 a month, the city’s housing crisis has pushed frugal renters to the edge of their comfort limits.

From tents to trucks, the next logical step in San Francisco has taken shape – in the form of a literal box.

Very interesting!! Check out the comments, video, photos, and the rest of the article at:

https://www.washingtonpost.com/news/morning-mix/wp/2016/03/29/man-moves-to-san-francisco-pays-400-a-month-to-sleep-in-wooden-box-inside-friends-living-room/

My comment: I live 10 miles from San Francisco. Rents in my city are well below San Francisco’s, but have increased 50% over the past 3 years. I don’t know anyone living in a box, but I do have friends who left the state to find affordable housing. Many others are worried that their rents will go way up any day. I am very glad I am an owner, not a renter. San Francisco has strict rent controls, but I don’t know if it applies to boxes… I gotta increase the rents on my apartments!! Greedy (or Evil) landlord ;>

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College degree requirement misguided

By David Brauner

Excerpt: The college degree requirement seems more like a forced attempt at elevating the status of the profession by closing the club, and that strikes me as elitist. Not everyone has the opportunity, resources or aptitude to attend and/or flourish in college…

The requirement is even more dubious when you consider that a degree in any subject passes muster for becoming a Certified Appraiser, no matter how unrelated (think French Literature for instance), while someone with the skills to flourish in this business would be shut out for all intents and purposes without a degree.

Read more!!

3-24-16 NEWZ .What is a bedroom .GSE reform .Property taxes

 Shushtar (Iran) Historical Hydraulic System

This beautiful system of tunnels built into natural rock serves as a centuries old plumbing system.

Excerpt: The water streaming from the caves and tunnels of Iran’s Shushtar Historical Hydraulic System looks like it is flowing through ancient tunnels created by massive worms, but really, the elaborate system of waterworks was built by different civilizations over centuries of development.

Beautiful fotos. Very interesting!!

http://www.atlasobscura.com/places/shushtar-historical-hydraulic-system

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Most popular links from the past two weekly email newsletters:

3/17/16:

Philadelphia’s original tiny houses

http://www.atlasobscura.com/articles/philadelphias-trinity-houses-are-the-original-tiny-houses

Repurchase Demands and Unacceptable Appraisal Practices by Rachel Massey

http://www.workingre.com/repurchasedemands/

Read more!!