6-30-16 Newz // Most dangerous roads-Fees going up-Brexit and mortgages

The most dangerous places to drive in the world

Take a break and check out these places…

Excerpt:

Driving can be dangerous, and every one of us who attempt to control those speeding steel boxes of ours will, at some time or another, experience a dangerous or life-threatening situation. But the truth is, despite the occasional error of judgement or climate, driving in the US is largely safe, and you will most likely get to your destination calm and in one piece (or just in one piece, because traffic, right?). The world, however, is not the US, or even western Europe. And as you will see, driving styles, laws, and road conditions vary so much, that what might be an everyday commute for a native of Afghanistan would be a death-defying (or outright death-inviting) thrill ride for a driver in the Land of the Free.

http://www.grunge.com/15503/dangerous-places-drive-world/

My comment: Guess I won’t complain (as much) about getting stuck between 2 giant big rigs on the freeway ;>

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Complaints about high appraisal fees and long turn times

RAISE YOUR FEES!!!

Appraisers Remain Under Siege – Jonathan Miller

(Scroll down the page past the second graph)

Excerpt:

Here is a series of feedback from Rob Chrisman in his must read newsletter on the mortgage industry. It is a heavily read source of in-the-trenches mortgage insights that I subscribe to. He gave me permission to share his recent content on the appraisal industry and will share more of it in the coming weeks. I inserted my thoughts following each quote:

“And appraisals are always a hot topic. I received this note from an originator. “Our appraisal environment is out of control. Appraisals we used to get in 1-2 weeks have quickly gone to 3-4 weeks. Appraisals that were just $400 are now $550 and sometimes up to $1,100 for FHA and conventional appraisals. With the rules regulating appraisers on how to become an appraiser and how appraisers have to monitor everything an apprentice appraiser does, it is causing our homebuyers hardship. With the appraiser’s current workloads and the amount of appraisers we have lost in recent years, there is no motivation to bring apprentices on (due to those regulations), leaving the current appraisers working night and day to keep up with their workloads. That is also causing them to keep moving up the appraisal fees (basically rush fees to keep pushing who can pay the most up the line).”

Miller’s comments

It’s called “market forces” and because the AMC movement has gutted the industry, there are much fewer competent appraisers left. And please lay off the “hardship” angle. It’s tired and worn out. Mortgage rates are at historic lows and with the Brexit they will likely stay that way for a while. As I have said before, there is not a shortage of appraisers, there is a shortage of appraisers willing to work for half the market rate.

Worth reading, especially for Jonathon’s comments. http://www.millersamuel.com/note/june-24-2016/?goal=0_69c077008e-ca10724b99-116855313

Link to Chrisman article – scroll down the page to “And appraisals are always a hot topic”

http://www.robchrisman.com/2016/06/11/june-11-letters-notes-on-password-protection-mechanics-liens-and-the-current-state-of-the-appraisal-business/

My comments

Why are complaints about appraiser fees and turn times increasing so much? Supply and Demand. AMCs and lenders not allowing trainees to sign on their own – no new appraisers. AMCs trained their appraisers to bid against each other. Now, they are getting payback.

The Appraisal Foundation is frantically trying to reduce requirements for appraiser licensing in response to the current appraiser shortage. But, the problem is that lenders will not allow trainees to sign on their own. There was no shortage in the last boom prior to 2008.

In all the previous boom periods, since lenders started using appraisers in the 1930s, the increase in volume was handled by hiring armies of trainees who left the profession when business slowed down. Prior to licensing, lenders did this. After licensing, fee appraisers did it. But, soon after 2008 lenders would not allow trainees to sign on their own, so there was no one to handle the increase in business.

When AMCs took over appraisal ordering, many experienced appraisers left the profession due to low fees, increasing lender requirements, hassles, etc. Some stayed, who had direct lender clients or were willing to work for AMCs.

The AMC fee model is a bidding system, with AMCs often looking for the lowest bid. Now, sometimes they spend days looking for an appraiser who will work for low fees. Some of us have finally adapted by significantly increasing our fees.

AMCs have trained us to bid against each other. Even when business is very strong, AMCs continue to try to get low fees. Finally, after 8 years of this, appraisers have realized that when there is a shortage of appraisers we can increase our fees. We finally learned about Supply and Demand. This never occurred before.

Many appraisers (and other business owners) have great difficulty turning down work, even with low fees. After years of telling appraisers to raise their fees, finally some appraisers are listening.

Read more!!

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!!

5-19-16 Newz: Fannie CU 3.2 – Inflated appraisals – Professional attire

5 of the oldest homes in the country (listings) Video

Worth waiting for the commercial to end. Very short video. All were built before George Washington was born, back to the 16th century.

http://www.realtor.com/videos/video-time-travel-through-five-of-the-oldest-homes-in-the-u-s-/17cbb54f-71b3-4170-a8af-17864c820fde?playlist_id=ec2ed8e8-16a1-46f8-a91e-c6753b0417e0

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Professional attire for appraisers from Dave Towne, of course…

Recommended new attire to please all AMC’s who demand that ‘we’ dress professionally.

But this actually looks best with white shorts and silver edged flip flops!


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!!

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

4-28-15 Newz .Revision requests .Stunning churches .FHA letters

Stave Churches Are All Wood, Dragons, and Beauty

These austere churches mix Nordic dragons with Christian saints.

Excerpt:

Some of the most stunning churches in the world are also some of the simplest. Stave churches are wooden houses of worship that combine the austere, peaked architecture of Christianity with the Nordic designs and motifs of a Viking great hall.

Stave churches are characterized by the “staves,” or thick wooden posts, that hold them up. Using the same woodworking prowess that made the Vikings such adept shipbuilders, traditional stave churches were often built using nothing more that expertly crafted joints and joins, with no nails or glue. The only stones used were in the base of the structures.

Take a break from appraising and Check out the beautiful fotos and interesting article at:

http://www.atlasobscura.com/articles/stave-churches-are-all-wood-dragons-and-beauty

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Game of Thrones-style mini kingdom in Oregon

Excerpt:

Let’s set the scene: You’re perched overlooking the mountains in your own 8,881-square-foot castle set on 700 acres dotted with trees and natural rock formations. All you can see for miles is your own lush, unspoiled property – this is your mini-kingdom. Your home, an ode to nature with curved walls and cloud-shaped windows, is easily a setting from an episode of Game of Thrones. But you aren’t the Lord of Winterfell, you’re certainly not scheming like CerseiLannister, and this home for sale in Ashland, OR, is not in the Seven Kingdoms but instead a fantasy-worthy getaway called Shining Hand Ranch.

Read more!!

4-14-16 Newz .Bad Banks .10 Very special homes .Future of appraising

Poll: Generally speaking, how accurate do you find MLS data in your area?

 

This week’s poll: “Now that we have been living for some time with all the new rules governing residential appraisal, do you still enjoy doing the actual appraisal work?” Go to www.appraisalport.com and vote!!

My comments: I have no idea why so many people think that MLS data is correct!! Of course, it does vary a lot among MLSs. In my area it is “reasonably accurate”, except public records data is often used (and the source disclosed). For example, on the weekly open house tour last week, an agent had 2 bedrooms in the listing, because “that is what public records says”. The second bedroom was tandem with another bedroom and very small. We all know how (inaccurate) public records are. Somehow, everyone, including some appraisers, think it is accurate. Or, worse, try to make their appraisals match public records to avoid callbacks.

To make a comment, scroll down to the post below and read other appraisers’ comments and post your own!!

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10 homes that changed America (PBS – April, 2015)

Excerpt: In its 10 Homes That Changed America, a three-part series, PBS discusses the many ways that America has been shaped by its iconic and important architecture. According to series host Geoffrey Baer, narrowing the millions of houses across America down to ten examples was a challenge. The tv show tours the ten homes that have not only passed the test of time but also paved the way for those that followed.

Here are a few, with photos and brief descriptions at the link below:

– Taos Pueblo, New Mexico (circa 15th century)

– Glidehouse, Novato, California (2004)

– Mid-19th Century Tenement, New York City

http://www.architecturaldigest.com/gallery/tour-10-homes-changed-america-pbs

My comment: Fascinating!! The first one of the 3-part series has already aired. Be sure not to miss the rest. I will let you know when the first one is available for viewing online.

Read more!!