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Strange Appraisal Terms(Opens in a new browser tab)Humor

Defiant vs. Compliant Appraisers?

By Ann O'Rourke on May 22, 2020 / adjustments, appraisal how to, FHA, george dell, Mortgage applications, mortgage loan volume, real estate market, Strange homes, unusual home, weird homes / Leave a comment

Tags: adjustments, appraisal how to, Fannie, FHA, real estate market, strange house, unusal homes

Excerpt: Believe or don’t believe. Is there a parallel between appraisals and how people respond to pandemic warnings? Defiant vs. Compliant Appraisers?

Appraisal reviewers decide whether an appraisal is “worthy of belief” (“credible”) or not. Similarly, people decide whether to believe in the need for public health orders.

Steven Dinkin (president of the National Conflict Resolution Center) recently had some observations on the public’s response to the pandemic, dividing people into two groups: defiant or compliant. What is interesting is that each group has a belief that their thinking is the right thinking. Their opinion is the right opinion.

Let’s look first at the “defiants.” Some of these are defiant out of economic necessity – money. The need to eat can trump health risk. (Especially if the health risk is to other nameless strangers. “They have to take care of themselves.”) Guess what – food on the table comes first…

To read more, click here

My comment: I see a lot of appraiser comments online on both sides of controversial issues, including sometimes “sharp words”. Fortunately, almost all online appraisal places I go are moderated. Very negative or “flaming” posts are deleted. Sometimes appraisers are removed from the group after a few warnings.

The June issue of the monthly Paid Appraisal Today will have an article on this topic: “How to connect with appraisers online. What’s the best way for you?” I last wrote about this in January 2018. There have been a lot of changes since then!!

George Dell had a much longer article in the May issue of the Paid Appraisal Today.

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

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

To read lots more in this appraisal post, click read more below!!

What is “retirement” for appraisers?

By Ann O'Rourke on December 13, 2019 / appraisal business, bifurcated appraisals, george dell, hybrid appraisals, Mortgage applications, unusual home, va / Leave a comment

Tags: appraisal business, appraisal waivers, bifurcated appraisals, George Dell, Hybrid appraisals, unusal homes, va appraisals

Appraising in Retirement

by Isaac Peck

Excerpt: According to the Appraisal Institute’s latest Valuation Professional Factsheet (Dec. 2018), over 70 percent of all licensed or credentialed appraisers across the U.S. are over 50 years old, with over 20 percent being over 66 years old. As appraiser demographics continue to shift older and grayer, some within the industry have predicted sharp declines in the number of practicing appraisers as they begin to retire. However, as the numbers show, appraising appears to be an optimal career to continue part time, in retirement.

Melvyn Wolf, a Certified Residential appraiser, licensed in Illinois and Wisconsin, is one such appraiser. Born in 1942, Wolf is 77 years old and has been a real estate appraiser for 33 years. He says he will continue appraising as long as he is physically fit and in good health. Here’s his story.

To read more, click here

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My comments: The July 2018 issue of Appraisal Today had my article: “Retirement for fee appraisers: when, why, and lots of options”. I discussed when to take social security, fixed costs, burnout, spouse retirement, etc. Also, for self employed people what does retirement mean? For appraisers, including myself, often you gradually cut back on appraisals. I am 76 and started Social Security at age 70. It is currently $3,470 per month and 85% taxable. It goes on top of my business income and puts me in a high marginal tax rate. I can’t cut back easily on my newsletter business, so I do fewer appraisals. What is “retirement” for appraisers?

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What is “retirement” for appraisers??

An Appraiser’s Full Circle

By Mike Foil

Excerpt: A couple of years ago, I asked my brother who had just closed his business, “How do you know when you are done and it’s time to retire?” He answered, “When it is time, you will know.”

There are considerations: health, finances, what to do, and the passion you still have for appraising. I’m turning 70 in a few months and enjoy good health. We see a path financially without the need for appraisal fees; however, having just received payment for the last file in accounts receivable did put a stamp of finality on the decision. I have ‘projects’ to work on: thinning trees and brush on four acres I want to split into three building sites, writing a study on “The Salvation of the Soul,” and family time (wife, kids, and 16 grandkids). As for my passion for appraising, it is gone.

To read more, click here

Covid-19 Residential Appraisers Tips on Staying Safe

Appraiser retirement plans?(Opens in a new browser tab)

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7 Ways to Not to Choose Appraisal Comps

By Ann O'Rourke on November 29, 2019 / appraisal business, appraisal how to, bifurcated appraisals, george dell, hybrid appraisals, Mortgage applications, real estate market, unusual homes, va, weird properties / Leave a comment

Tags: appraisal business, appraisal how to, bifurcated appraisals, Hybrid appraisals, mortgage loan volume, unusal homes, unusual buildings, va, weird properties

By Tom Horn

Excerpt: Here are three of the topics:

1) I’m taking what I think the home is worth based on the owners estimate and looking for sales in this price range

4) Using higher sales from another neighborhood when there are good sales within my own subdivision

6) Using price per square foot

To find out what Tom says and the other 4 ways, click here

My comment: written for real estate agents, Tom Horn’s primary referral clients, but useful for appraisers. Maybe it will help you explain about comps to agents, or why you did not use the comps they provided. I always take whatever sales and listings the agents have. Sometimes the MLS has it miscoded somehow and I miss it. Or, there is a “pocket” listing that sold but was never listed on the MLS. Also, I never want to miss a sale very close to the subject, if only to mention it and explain why I did not use it!! 7 ways to choose comps gives you some ideas.

Covid-19 Residential Appraisers Tips on Staying Safe

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Join the National Appraisers Online Forum

By Ann O'Rourke on November 8, 2019 / Appraisal fees, bifurcated appraisals, Fannie, fees, george dell, Mortgage applications, weird properties, zillow / Leave a comment

Tags: appraisal fees, bifurcated appraisals, Fannie, George Dell, mortgage loan volume, unusual buildings, weird properties, zillow

National Appraisers Forum

By Dave Towne

Excerpt: Appraisers, if you would like to learn from highly qualified peers (other than me! :), post questions, or offer your own comments, consider joining the FREE group, National Appraisers Forum (NAF). Use this link.

This is one of the best appraiser groups as all commentary is respectful. While not everyone always agrees with certain points, the discussions are not demeaning. There is a wealth of info participants share freely on a wide number of topics. The group has several moderators who monitor the posting activity.

One key point, NAF participants are not anonymous. You must use your name (at a bare minimum) when participating, which is required when signing up… Moderators are asking that anyone who wants to join should give their name as licensed, the state they are in, and their license number.

To read more, click here

My comments: This is my favorite appraiser online group! I get many emails from various sources for this newsletter and have been a member of many online communication places. Before the internet was widely available, I hosted live chats on aol and compuserve. Since then I have watched many online places. Unfortunately, just like any other topic, sometimes the groups end up doing lots of “flaming” (attacking another participants, etc.), negative comments, off topic, politics, etc. I quit going to these places.

Of all the groups I have subscribed to, National Appraisers Forum is the best for me. I have been a member since it started, or soon after. No complaining about AMCs, off topic, trolling and flaming, etc. The founder, Steve Smith, and the moderators keep it this way. Regular contributors are “high end” appraisers with many years of experience. Hot topics are often discussed.

There are well-managed appraisal groups on Facebook, but it is too hard for me to follow the threads, so I don’t go there very often. But, it may work for you. Join the National Appraisers Online Forum!

Another major factor is that you must use your real name, so we know who is commenting. Allowing anonymous postings can easily decay into a mess.

I will be updating my article ” How to connect with other appraisers online. What’s the best group for you? ” in a future issue of the paid Appraisal Today discussing other email chat groups, how to find other groups or start your own, Facebook, etc.

Covid-19 Residential Appraisers Tips on Staying Safe

How to communicate with appraisers online

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When 1,000 square feet doesn’t count in an appraisal

By Ann O'Rourke on October 4, 2019 / adjustments, appraisal, appraisal waivers, bifurcated appraisals, evaluations, george dell, Mortgage applications, real estate market, square footage, unusual home / Leave a comment

Tags: adjustments, appraisal, appraisal waivers, bifurcated appraisals, Hybrid appraisals, mortgage loan volume, strange house

When 1,000 square feet doesn’t count

By Ryan Lundquist

Excerpts: One of the most interesting homes I’ve seen just sold. It was brand new, four stories, and a halfplex. Oh, and on paper it was 3,000 sq ft, but about 1,000 sq ft didn’t count in the square footage. This is definitely a conversation piece, so I’m thankful Realtor Brian McMartin agreed to do a Q&A. I hope this will be valuable and interesting. Any thoughts? This is an example of When 1,000 square feet doesn’t count in an appraisal

Quick points:

This house has 1,000 sq ft that is not permitted as square footage. The “non-conditioned” space looks just like square footage.

Understanding permits really does matter…

Interview with selling agent plus Ryan’s (and appraisers’) comments. Worth reading.

To read more, click here

My comment: I see non-permitted areas in homes a lot in my city, typically converted basements. Fortunately, I can get the permit info easily from the city and the property owner does not “get into trouble” because of my inquiry. I am lucky.

Covid-19 Residential Appraisers Tips on Staying Safe

What is Included in Appraisal Square Footage?

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5 things to remember about “low” appraisals

By Ann O'Rourke on September 20, 2019 / appraisal business, Fannie, george dell, Mortgage applications, real estate market, unusual home, weird properties / Leave a comment

Tags: appraisal business, mortgage loan volume, real estate market, unusal homes, unusual buildings

Low appraisals, weed, & rent control

13516718 – white wood texture with natural patterns

By Ryan Lundquist

Excerpt: I’ve been getting lots of phone calls and emails about low appraisals over the past couple months. Is something in the water? What’s going on? Let’s talk about this briefly. Then I have some quick thoughts on weed and rent control.

Excerpt: 5 things to remember about “low” appraisals:

1) This is common when the market slows.

2) This is even more common in a declining market.

3) It should happen if the contract is too high.

4) It can spur negotiation instead of kill a deal.

5) The value of course is too low sometimes.

To read more To read more, click here

My comment: Keep a close watch on your market. Don’t miss it when prices start going down!! But, No One Knows when the peak occurs!! I tell people that If I knew, I would be rich and probably not writing this newsletter ;>

On the other side, people ask me all the time about our very high prices (median around $900,000). I tell them to wait for the inevitable crash. I have been through three here when prices in my city dropped 30-40%. Other nearby cities were up to 80% declines. They stay down for a long time. Unfortunately, few buy then. “Herd” mentality, I guess. Do what everyone else is doing – not buying. The last property I purchased in 1995 for $375,000 I got 100% seller financing. It had been on the market for two years. I sold it in 2004 for $1,000,000. It recently resold for $1,700,000. Crazee price changes!!

Covid-19 Residential Appraisers Tips on Staying Safe

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Appraiser Mistakes

By Ann O'Rourke on September 7, 2019 / adjustments, bifurcated appraisals, george dell, hybrid appraisals, Mortgage applications, mortgage loan volume, real estate market, weird homes, weird properties / Leave a comment

Tags: adjustments, bifurcated appraisals, Hybrid appraisals, mortgage loan volume, real estate market, unusual buildings, unusual homes, weird properties

Can Smart Appraisers Make Dumb Mistakes?

By George Dell, ASA, MAI, SRA

Excerpt: I am a smart and educated, award-winning appraiser. It is not possible for me to be irrational. Of course not. You can see that. I can see that. But appraiser mistakes are not good.

A high IQ and education won’t necessarily protect you from highly irrational behavior—and it may sometimes amplify your errors. David Robson, in an Excerpt from The Intelligence Trap

Oh No! Who is this guy!? Doesn’t he know how smart I am? Why, even my peers have said I am smart. I pride myself on my critical thinking. Even my kids say that! What more proof do you need? Let’s get this straight: I am rational, smart, of high IQ and extremely educated, especially in my chosen field!

Recently, scientists have started to measure what things go with irrationality. There is even a name for this field of study, this measure: dysrationalia. The studies roughly parallel the studies of dyslexia and dyscalculia (difficulty in dealing with number things).

Understandable, Well Written and Interesting!! To read more, click here

Covid-19 Residential Appraisers Tips on Staying Safe

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Property inspection issues for appraisers

By Ann O'Rourke on August 4, 2019 / appraisal business, george dell, Mortgage applications, real estate market, statistics, unusual homes, weird homes, weird properties / Leave a comment

Tags: appraisal business, mortgage loan volume, real estate market, unusal homes, unusual buildings, weird properties

Nothing New Under the Sun: The Varied Face of Appraisal Property Inspections

By Joshua Walitt

This article focuses on property inspections, which – to an outsider – might seem to be a straight-forward topic. However, given current changes in the valuation space, nothing is further from the truth: valuation, specifically the collection of data that supports a valuation method, has never been one-size-fits-all. There are many property inspection issues for appraisers

Excerpt: Sample of the questions about data sources:

The appraiser determines physical characteristics of the subject structure from limited-data county records, recent family photos showing two rooms, and a 15-year old appraisal.

A determination must be made whether appliances and utilities are functional and/or whether the property meets local codes

An appraiser performs an Exterior-from-street appraisal and reports a value opinion of $500,000; the next week, she performs a Exterior-and-Interior appraisal on the same property and reports a value opinion of $630,000.

To get the answers and more questions click here

My comments: Worth reading. Summary of a recent presentation by Walit. Lots of different scenarios presented. Note: I publish a graph of mortgage orgination data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample issue go to https://www.appraisaltoday.com/products.htm or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 7AM to noon, Pacific time.

Covid-19 Residential Appraisers Tips on Staying Safe

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https://georgedell.com/how-is-appraisal-gonna-change/

Residential Appraisal Changes Coming

By Ann O'Rourke on May 10, 2019 / adjustments, appraisal how to, george dell, marijuana license, Mortgage applications, mortgage loan volume, Uncategorized / Leave a comment

Tags: adjustments, appraisal how to, mortgage loan volume

How is Appraisal Gonna Change?

By George Dell

Excerpt: What new “appraisal methods and techniques” have we seen? As I speak to reviewers who see valuations from around the country, there seems to be a degradation of quality. Less analysis rather than more. Less explanation rather than clearer logic. More “trust me” and less “see my reasoning.”

What does the world really need? Trust my opinion-or see the result? Trust my comps-or see market parameters.

Competitors for valuation, risk, and investment needs want “better, faster, cheaper.” For now, lets just look at “better.” What is “better?”

“Better” is actually fairly simple. There are only three parts: 1) is the right question being asked; 2) is the result true (accurate); and 3) how sure (precise) is the result? So, let’s look briefly at each of these needs, and how each can be helped with today’s technology.

Covid-19 Residential Appraisers Tips on Staying Safe

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