“Death Stairs” for Appraisers

By on November 22, 2024   /   appraisal, climate change, forecast, GSEs, liability, modernization, Mortgage interest rates, New URAR, retirement, ROVs, zillow   /   Leave a comment
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Newz: New URAR Training, “Death Stairs”, Catastrophe and Climate Risk

November 22, 2024

What’s in This Newsletter (In Order, Scroll Down)

  • LIA Buyer says value too high
  • The Rise of the ‘Death Stairs’! Inside ‘Perilous’ Home Trend Taking the Internet by Storm — and How To Conquer It Safely
  • Infinity Symbol-Shaped Circular House Hits the Market for the Unique Price of $3,399,888
  • ARCC (Appraisal Regulation Compliance Council) Podcast with Guest Mark Calabria – AVMs, GSEs, and more
  • NAR Chief Economist Lawrence Yun Forecasts 9% Increase in Home Sales for 2025 and 13% for 2026, with Mortgage Rates Stabilizing Near 6%
  • Catastrophe and Climate Risk Is Only Increasing – Lender and Servicer issues
  • New Uniform Residential Appraiser Report Training (for lenders but useful for appraisers)
  • Mortgage applications increased 1.7 percent from one week earlier

 

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The Rise of the ‘Death Stairs’! Inside ‘Perilous’ Home Trend Taking the Internet by Storm—and How To Conquer It Safely

Excerpts: Thrill-seekers who are in desperate need of an adrenaline boost need look no further than their own home for their next dose of action—that is, if they are (un)lucky enough to be in possession of a set of “death stairs.”

While walking down a flight of stairs has not historically been considered the most death-defying of acts, one group of social media users is on a mission to change that misconception by highlighting the most dangerous, baffling, and downright weird step designs across the world, starting in their own homes.

In a now-viral Facebook group, which is named “Death Stairs,” hundreds of users have been sharing images of the most mind-boggling steps they have come across, from those so steep that few would dare to descend them, to edgy designs that appear near-impossible to mount.

To read more, Click Here

My Comments: Appraisers see some strange stairs. I have seen many. Usually DYI. I really hate the very narrow spiral staircases – often the only access to a part of the home. And old exterior wood stairs with very shaky hand rails.

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Freddie Mac Appraisal Advice

By on July 26, 2024   /   bias, climate change, liability, ROVs   /   Leave a comment
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Newz: Freddie Mac Insights, HUD Bias charges against Appraiser, Lender and AMC, ROV Guidance

July 26, 2024

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What’s in This Newsletter (in Order, Scroll Down)

  • Judicial Appraiser Panels
  • Appraisal Insights With Freddie Mac
  • HUD Charges Appraiser, Appraisal Management Company, and Lender with Race Discrimination
  • Agencies Finalize Interagency Guidance on Reconsiderations of Value for Residential Real Estate Valuations
  • ‘Twisters’ Begs the Question: Can You Truly Tornado-Proof a Home? A Reality Check
  • Southernmost House in Continental U.S. Is for Sale in Key West (It’s Next to the Buoy) for $18.5 million
  • Mortgage applications decreased 2.2 percent from one week earlier

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Thanks to our Sponsor!!

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Appraisal Business Tips 

Humor for Appraisers

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Appraisal Insights With Freddie Mac

by Scott Reuter, Freddie Mac

One of the goals at Freddie Mac is to help lead the way toward a more transparent and equitable housing finance process. Across our many priorities, we’re committed to offering trends, best practices and insight to the industry. As strategies continue to develop and evolve, we believe it’s important to engage and communicate with stakeholders, so here are three key items we believe appraisers should keep top of mind in 2024.

1. More Objective Appraisals

An important component to transparency is ensuring that appraisal reports for loans sold to Freddie Mac are free of subjective or potentially biased language…

2. Market Conditions Analysis

Market conditions analysis is the backbone of an appraisal. It’s a necessary step in developing credible reports. This analysis is the study of market area conditions and the changes in price levels over time…

It’s important to note from a development perspective that market conditions must be analyzed on every appraisal assignment. Market adjustments should not be viewed as a filler adjustment. Market conditions adjustments are technically among the first modifications that should be made, before accounting for physical differences. Taking shortcuts here diminishes the reliability of the adjustments that follow and the overall credibility of the appraisal report.

3. Quality vs. Condition

While most appraisers demonstrate a solid understanding of the quality and condition ratings, Freddie Mac still sees inconsistencies in the way these are reported. As might be expected, most of the issues for reported condition fall between the definitional lines of C3 to C4 and C4 to C5.

Also, there seems to be a notion by some appraisers that a C3 condition is equal to “average.” Please be mindful that a C3 home is described as generally well-maintained and showing minimal physical depreciation from regular wear and tear. In contrast, a C4 condition applies to a home that’s adequately maintained, has slight deferred maintenance and minor physical wear and tear, and may need cosmetic or minor repairs.

The author, Scott Reuter is single-family chief appraisal officer for Freddie Mac. He is a certified general appraiser with more than 30 years of experience in valuation, appraisal and collateral risk management concerns.

To read more, Click Here

My comments: Well written and practical. Worth reading, with good tips and links for all the topics. If you do residential lender appraisals, read this article.

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How to select appraisal comps

By on March 22, 2024   /   appraisal business, bias, climate change   /   Leave a comment
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Dos and Don’ts of Selecting Appraisal Comps

Excerpts: Follow these dos and don’ts to help ensure that relevant comparable sales are established:

Here are a few topics

  • Do welcome relevant comparable sales from real estate agents
  • Don’t limit the number of comparable sales to three
  • Do consider objective characteristics when selecting competing neighborhoods

Don’t use appraisal comps based on price

As an appraiser, you must provide an unbiased opinion of value. Selecting comparable properties based on price may inadvertently favor properties within a predetermined price range, rather than those genuinely similar to the subject property in terms of location, size, condition, and other relevant characteristics. To maintain objectivity and credibility, you should evaluate sales based on criteria that most accurately reflect comparability, rather than focusing on price.

Do focus on characteristics of the property

Identify properties with comparable square footage (including finished basements), number of bedrooms and bathrooms, lot size, view (e.g., waterfront), and amenities. Prioritize features that are highly sought-after in the property type and market. For instance, in the subject’s market, a mountain view could significantly impact the demand and marketability of a vacation condominium home.

To read more, Click Here

My comments: Worth reading. Good analysis of factors in comp selection.

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NOTE: Please scroll down to read the other topics in this long blog post on Fannie March Update, Bias and not using time adjustments, Climate change effects on risk and values, answer your phone if you want more appraisal business,  unusual homes, mortgage origination stats, etc.

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SFR with ADU or Two Units?

By on September 29, 2023   /   ADUs, climate change, future, non-lender appraisals, real estate market, retirement, va   /   Leave a comment
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How to Identify a Single-Family with ADU vs. Two-Family Property

By McKissock

Excerpts:

The presence of an additional living unit can complicate the appraisal process. It may make it difficult for you, the appraiser, to know how to classify the subject property. How do you know whether you’re dealing with an accessory dwelling unit (ADU) or a second unit?

Topics include:

  • ADU meaning and types
  • What is a two-family property?
  • How to tell if it’s a single-family with ADU vs. two-family property
  • It’s more likely to be a two-family property vs. single-family with ADU if:
  • It’s more likely to be a single-family with ADU vs. two-family property if:

To read more, click here

My comments: ADUs have been a controversial topic for a long time in California as state and local governments kept changing their ADU requirements. Finally, what they are and where they can be built became standardized. Today, they are becoming popular to get extra rentals in markets low on housing. Most recently, there is a possible regulation to sell them separately from the main house. Another tricky HBU issue in California!

Check the regulations in your state, county, or city.

Appraisal Business Tips 

Humor for Appraisers

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NOTE: Please scroll down to read the other topics in this long blog post on  non-lender appraisals, VA, flood and fires no insurance, retirement,  few lender appraisals, unusual homes, mortgage origination

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Very Funny appraisal commercials

By on December 27, 2019   /   adjustments, appraisers, climate change, FUN, humor, Mortgage applications, new appraisers   /   Leave a comment
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Very Funny appraisal commercials
Just For Fun (and maybe some ideas)

Here are a few titles:
  • Hire An Appraiser… Avoid Getting Into A Stinky Situation!
  • Looking For An Appraiser? Ask Any Cat!
  • Homeowners, Don’t Get Eaten Alive By The Shark

To read more and see the Fun Videos, click here

My comment: I love the humor at https://clevelandappraisalblog.com Fun animated gifs and video commercials!!!

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

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

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