How to Fool the Appraiser

By Jonathan Miller

Excerpt from Jonathan Miller: She recently promoted her video called Fool The Appraiser a catchy marketing phrase to promote dishonesty. She literally has no idea how offensive this is to the appraisal industry and how unprofessional this makes her look to the public and her peers.

Excerpt from the video: “So, the purpose of the game is to fool the appraiser into thinking that the property is worth the agreed upon purchase price.

Because if we follow the rules of the game, the homeowner has already accepted an offer greater than list price. So how do we get an appraiser to think that the property is worth? The agreed upon purchase price which is higher than list price.”

To read Miller’s article, watch the 1 hour 17 min. video, plus transcript and webinar handout, click here

Direct link to broker video and transcript Click here

Note: Registration is required to watch it and read the transcript, but you can always use your “alternative” gmail address. If you don’t have one, get one. I have one.

My comments: Great training for real estate agents. NOT!! But, maybe you will see someone doing this. This video and handout will let you know what they are up to!!

Which Appraisal Clients are used the most?(Opens in a new browser tab)

What Is An Appraiser?(Opens in a new browser tab) Humor

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Fact Witness vs. Expert Witness Appraisers

Excerpts: When a real estate appraiser is called to testify in a court, it could be as one of two types of witnesses. If you are called to testify as an appraiser, it’s important to determine at the time of the request which of the two types you will be: fact witness or expert witness appraisers.

A fact witness is one who testifies only to that of which he or she has firsthand knowledge and who describes only facts (as opposed to expressing opinions). There is no formal definition of a fact witness….

As an expert witness appraiser, you are allowed to express opinions. In fact, your opinions are the very reason for your testimony. The opinions are to be based on the expertise afforded by “scientific, technical, or other specialized knowledge.”

Short and well written. Includes legal references. To read more, click here

My comments: This is a never-ending hot issue for many appraisers. They don’t understand the difference. The difference is you get paid a minimal fee as a fact witness (similar to a witness of an auto accident, for example). As an expert witness, you are paid very well for prep for expert witness testimony, depositions, waiting outside the courtroom, and testifying. I have written about this in my paid Appraisal Today newsletter.

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80 ft. long train car is part of home: appraisal?

80-Foot-Long Train Car Is Part of Washington Home: appraisal?

Excerpts: The former passenger-train car is about 80 feet long, 12 feet wide, and has been incorporated into the rest of the residence.

“[The first owners] connected it to the house, so you walk from the kitchen out into this train,” Anderson explains.

“You walk past the kitchen island and into a hallway where there is stained glass—and you walk into the train.”

To read more and see lots of interesting photos click here:

My comment: Sorry, I would Just Say No on this appraisal. Too busy now is my excuse. But really the appraisal would drive me crazy!!

Appraisal Process Challenges(Opens in a new browser tab)

Appraising Weird Stuff is Challenging!(Opens in a new browser tab)

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Appraisal Process Challenges

The Most Challenging Part of the Appraisal Process

Appraisal Process Challenges
Excerpts: Number 1: Data analysis (34%)

“When comps are limited, or when sales prices vary by as much as 50% for what appear to be very similar properties in the same neighborhood (which seems to be more and more common in the Denver metro area), selecting the best comparable properties can be a very time consuming and stressful process.”

Number 2. Site value opinion (17%)

“I choose ‘Site Value Opinion’ as the most challenging since there are very few vacant land sales in the areas that I appraise in. With very few sales, it’s very difficult to provide an opinion of value for many sites.”

To read more comments from appraisers and the other 7 challenging parts of the appraisal process click here

My comment: Lots of good appraiser comments. Data Analysis is my number one choice also. Tract homes are sorta boring but can be a welcome break from all the non-tract homes I appraise. Also, with Covid, I don’t connect with real estate agents every week at open houses to find out what is happening (behind the data).

Appraising Weird Stuff is Challenging!(Opens in a new browser tab)

Common Appraiser Violations(Opens in a new browser tab)

What to Do When Your Appraisal Is Under Review(Opens in a new browser tab)

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Appraising Weird Stuff is Challenging!

How to Handle the Weird Stuff: Appraisal Methods from an Experienced Florida Appraiser

Excerpt: Going further away or back in time

One method is to go further back in time for comparable sales.. Another method is to use sales that are more distant to find data to utilize. Both of these techniques have long been available to appraisers. When using these appraisal methods, most often a comparison is made between properties with similar characteristics to the question at hand to extract a ratio/percentage which is then brought current or to the locale and applied. This could work for the above illustration with only four houses on leased land and no similar nearby sales. Most appraisers are familiar with and have utilized these techniques… Appraising Weird Stuff is Challenging!

Well written and worth reading. To read more, click here

My comments: Lots of good tips. All of us are asked to appraise the “weird ones”. Of course, sometimes we don’t know a house is weird until we drive up and see it!! A very good discussion of methods. I have used all of them except the depreciated cost, which is a good method. Plus, lots of tips on doing them for lenders. Of course, sometimes I just say “no” as it will take too long.

I have learned that they often are money losers due to the increased time. This is what can happen with lender UAD appraisals for AMCs due to the excessive amount of questions and trying to fit the appraisal on the form. I sometimes accept the weird ones for non-lender work with no time pressures. They can be very interesting and challenging.

Appraisal Process Challenges(Opens in a new browser tab)

Common Appraiser Violations(Opens in a new browser tab)

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Should Appraisers Pay to Be on AMC List

By Dustin Harris

Excerpt: Should appraisers pay to be on an AMC’s approved appraiser list? Is this one way to get new clients? If an AMC solicited you, would you check it out?

Now, I work for some AMCs that, frankly, you might not choose to work for. That’s fine. It’s a choice we all make. Understand that most of the areas I work are rural, so AMCs are generally willing to pay more because of this. Some AMC are very demanding. Yet, when I meet those demands, I get a lot of well-paying jobs from them.

To read more, plus lots of appraiser comments, and listen to the podcast, click here

My comment: A never-ending very controversial topic ever since AMCs took over residential lender appraisals after the mortgage crash around 2008!

Which Appraisal Clients are used the most?(Opens in a new browser tab)

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