Appraisal News and Business Tips

bad appraisers

2 GREAT ways to get into appraisal trouble. Tales From Barry Bates

If you really WANT to get in trouble here are 2 ways to do it, (eventually) guaranteed to succeed

Advertise your uniqueness!
More important than earning a living, providing support for your family or
serving the general public is to let the world know who you really are!
When meeting a homeowner or commercial building owner for the first time,
take a few minutes to explain your facial tattoos, your exotic mode of medieval
dress and your political positions as shown by the 188 bumper stickers on your car. Some straights are freaked out by creativity, so it’s worth taking the time to
calm them down.

When I was Chief Appraiser for The Money Store, I got a call from a
prospective borrower in one of the northern rural counties of California. I had just
added another appraiser to the panel in an effort to improve coverage. The borrower reported that although the appraiser was pleasant of demeanor and appeared to be knowledgeable, there was no question that she was living in her car.

When I called her, I had to cite that stuff in USPAP that talks about inspiring trust of appraisers among members of the public, and told her to reapply to the panel when she would be able to present a more conventional appearance. I didn’t hear from her afterwards, but, sure enough, she was a duly certified California appraiser.

Pump that value!
It’s a “win win” for everyone! I mean, you’d think so, right? What refi borrower
complains about a high appraisal? The lender sure won’t complain. Even in
appraising for a loan to purchase, it will flatter the owner and facilitate the
borrower’s deal, right?

Actually, wrongamundo, Buckwheat. By far, the most frequent complaint I
saw while at BREA (California Bureau of Real Estate Appraisers) was inflation of value, tendered by the lender, the buyer, the seller, etc.

I recall one respondent, who appraised exclusively for VA lenders, assuring
me that he considered it his duty to make sure that if the veteran really wanted the property and his valuation could make it happen, he would find legitimate
comparable sales to support that sale price.

What was unclear was his understanding of the word “legitimate”. I guess it’s tough when another couple of grand is added to the price just for the VA guarantee, but doable, certainly, for someone with such a holy mandate.

As an 11-year Army veteran myself, I let him know that I appreciated his
devotion to cause, but I had to tell him that he was a crook. And that he should
reexamine his assumption of duty during his license suspension, during which he
had to find 25 hours of courses on ethics.

Editor’s notes: this is a very brief excerpt from Barry’s article in the December 2017 issue of the paid Appraisal Today newsletter. Click the graphic below for more info on the newsletter. Barry has had a wide variety of appraisal jobs over the past 40+ years, including a state regulator investigator. He is now retired from appraising but still giving his opinions!! Contact him at barrettbates@gmail.com

12-21-17 Newz//: AMC appraisal fraud, Fannie Appraiser Update, CoStar vs Xceligent

The Three Most Fascinating Homes In 2017

Just For Fun!!

Very unusual… and two are very low priced ;>
You just gotta see this 2 minute FUNNY video!!
Death and Breakfast, House with Big Cave, and Very Old Historic House

https://www.realtor.com/videos/video-behold-the-most-fascinating-homes-of-the-year/db7fb804-6cd6-4556-887c-49410eb6d77a

The Appraisal Standards Board has issued new Q&As for December 2017, dated 12/19/17:

Note: personal property and M&E not included in the list below
– Communicating Assignment Results Without an Appraisal Report
– Workfile Requirements When Communicating Assignment Results
– Adding an Intended User
– Assignment Conditions versus Client Conditions
– Proposed Construction Employing an Extraordinary Assumption
– Proposed Construction Employing a Hypothetical Condition

https://appraisalfoundation.sharefile.com/app/#/share/view/seea70b822d24fa59?

Read more!!

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!!

8-31-17 Newz// Appraiser indicted, Hurricane Donations, Appraisers’ Future

Where to contribute to help people affected by Hurricane Harvey

a la mode Software’s Relief Efforts
From Dave Bigger’s (Founder, a la mode) recent email:
We’ve already set up our systems to defer payments for those of you in the storm-hit areas on the Gulf Coast.  We’re also ready to help anyone drastically affected rebuild in any way we can – whether it’s replacing damaged Distos, laptops, printers, or anything else, we’re here.
If you know appraisers, agents, mortgage pros, or inspectors who need help, let us know and tell them to call 1-800-ALAMODE or email relief@alamode.com.
 
We  are working on several relief projects, and we encourage you to join us.   Read the announcement here. 
Yesterday, we also donated $100,000 to the Greater Houston Community Foundation’s Hurricane Relief Fund.  We chose this organization because they’re local, working with many boots-on-the-ground non-profits.  They’re in rescue mode – focused on essentials like water, shelter, medical emergencies, and supplies. But our $100,000 is designed to just “prime the pump” for the broader real estate industry, including other technology companies, to step up as well.

We all need to act quickly, and show our commitment to our colleagues. Donate like we did to the Greater Houston Community Foundation’s Hurricane Relief Fund via our pass-through website, www.alamode.com/harvey . (When you donate through our site, you won’t pay credit card fees. We’ll cover those.) By coming through our portal, your donation will be grouped with other real estate professionals and vendors, showing solidarity as an industry.

Every gift makes a big difference – $10, $50, $100, or more.  Our goal is to gather enough funds within the real estate industry to at least match our donation, and preferably many times more.

Overworked and underpaid appraisers?

Excerpt: While most sectors of the industry managed the increased demand with few hiccups, the appraisal services segment of the industry did not fare as well. The uninterrupted appraisal demand throughout 2016 and into the first quarter of this year led to chronic fatigue that spread throughout the appraiser population.
This led to a number of service level issues, including missed deadlines, longer than customary turn-times, increased revision rates, unresponsiveness and higher appraiser fee demands, to name a few.
My comment: Low AMC fees are always a problem. But the “overworked” comments are out of date for my area. Low fee appraiser price competition has really heated up in the past few months. When I quote my standard fee from 2016 for estate work or don’t reply within a few hours or am not available to go out tomorrow, I don’t get the assignment. Earlier this year, prospects were glad I called them back. AMC fees are way down also.

Read more!!

8-17-17 Newz//Appraiser Goes to Jail, Mercury Network Bidding, $10,000 Lighthouse

Buy a lighthouse for $10,000

 Just For Fun!!

Excerpt:
Bidding is underway for six decommissioned lighthouses built before 1930 that the federal government has put up for auction. Five overlook the Great Lakes in Michigan, and the sixth is on the Chesapeake Bay.
It’s a tempting prospect, perhaps, for those who yearn for scenic surroundings – and who have the stamina to tackle periodic renovations.
Interesting article with photos and commentary
My comment: I Want One!!! A former lighthouse in San Francisco Bay was converted to a very popular B&B. Someday, maybe, I will stay overnight there ;>

How Air-Conditioning Conquered America (Even the Pacific Northwest)

Excerpt: Air-conditioning has been remarkably good at creating demand for itself.
 It enabled the sweeping postwar development of the South, where all new single-family homes today include central air. In automobiles, it made the commutes between air-conditioned homes and air-conditioned offices possible. In the Southwest, its arrival facilitated new methods of rapid construction, replacing traditional building designs that once naturally withstood the region’s desert climate.
Interesting graphs and analysis.

My comment: A timely topic in today’s increasing temperatures. I have never lived in a house with air conditioning, even in Oklahoma when I was a kid. But, I used to visit my aunt in Dallas in the summer – air conditioned house, car, etc. I always say that people here in California do not know what hot is: 85 degrees and 85% humidity when I lived in Oklahoma ;>

Read more!!