New 2024 USPAP Q&As

By on January 26, 2024   /   appraisal, forecast, future, Mortgage applications, mortgage loan volume   /   Leave a comment
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New USPAP Q&As

January 16, 2024, the Appraisal Standards Board released new Questions and Answers covering important topics in the profession today including:

Demographics

Does demographic information relating to race (such as Census data) constitute “information relating to” a protected characteristic?

Artificial Intelligence

Question:

What is an appraiser’s USPAP obligations when using artificial intelligence (AI) in an appraisal assignment?

Personal Inspection

I recently completed an appraisal on a residential dwelling for Lender A that sells loans to Fannie Mae and Freddie Mac and the report was completed on a GSE form. Lender A decided not to grant the loan and the borrower then engaged Lender B to obtain financing. Lender B engaged me to perform a new appraisal assignment on the same property. Lender B indicated there wasno need for me to re-inspect the home, since my previous inspection date was only a few days earlier.

To read these new Q&As Click Here.

My comments: AI and demographics are “hot topics” now. I am glad the ASB is explaining them.

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 forecasts for mortgage rates, a look back at the 80s a very similar mortgage market, appraising in a changing market, unusual homes, mortgage origination stats, etc.

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Weird Real Estate Agent Photos for Appraisers

By on July 29, 2022   /   appraisal business, mortgage loan volume, real estate market, USPAP   /   Leave a comment

 

57 Weird Real Estate Agent Photos

Excerpt: Yes, many great real estate photos really capture the house. This post though is a tribute to the other kind that we’ve all seen – hilariously terrible MLS photos.

From horror movie-esque semi-abandoned homes for rent to home decor that overshot “unique”, the owners and agents behind these funny ads thought things were perfect just as they were for their photos and open houses.

Caption for Photo Above: That way, you can still work on the garden even if it’s raining!

To read more, click here

My comment: We all love these photos! If used in the MLS on a comp, makes you wonder how it sold ;> Or an expired listing that didn’t sell. Data for those fixer homes (contractor specials).

More Terrible Real Estate Agent Photos for Appraisers

Appraising Weird Stuff is Challenging!

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 USPAP Update Mistakes on Bias, Real Estate Market analysis, the FED raises interest rates, unusual homes, mortgage origination stats, etc.

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Too many appraisers?

By on June 10, 2022   /   appraisal business, george dell, mortgage loan volume, real estate market   /   Leave a comment
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How can we fix the excess of appraisers?

Too many appraisers?

By George Dell, SRA, MAI

Easy — we do what we have always done, each time . . .

Excerpts: 1) We will raise the standards (“cost of entry”). 2) We will make it harder to become an appraiser; 3) Let the lower fees discourage newcomer appraisers.

In past issues of the Analogue Blog, we have considered the “five forces of friction” on the advancement of appraisal. Here we consider how these “frictions” will behave as appraisal demand has dropped, just as each of the five forces have found ways to reduce or “eliminate” the need for valuation expertise. Recall the five forces of friction: practices, standards, education, regulation, and client expectation.

This blog considers how each friction will respond to this “excess” of appraisers.

Practices:

Current practice is still embedded in the concepts of 8 ½ X 14 paper forms, spreadsheets, or narrative explanation of the opinion of the person (appraiser, evaluator) or automation programmer. Practices will continue to evolve toward objective data selection and predictive models. But this evolvement will continue to stay behind the inherent potential of applied data science. Habitual practice of “comparing comps” over “measuring markets” will prevail (in the absence of change in the other “frictions”).

To read more, click here

My comments: Of course, lots of politicians, appraiser organizations, appraisers and others are complaining now about an appraiser shortage and trying to recruit trainees. This is the past. Loan applications are way down, the lowest in 22 years. What was your business like before the pandemic? Not much work probably compared with 2020-2022. The Inevitable Cyclicality of Mortgage Lending. I hope you saved up lots of money over the past few years!

Non-lender Appraisals Good fees and few hassles
Purchase vs. refi appraisals

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 declining mortgage loans, real estate market, unusual homes, mortgage origination stats, etc.

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What are Pass through Bedrooms for Appraisals

By on April 16, 2021   /   adjustments, appraisal business, appraisal how to, forecast, Mortgage applications, mortgage loan volume   /   Leave a comment
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Pass-through Bedrooms

Excerpts: This may not be a major problem if the house has sufficient bedrooms to match what is typical and expected in the neighborhood. It can have a negative impact on the marketability of the home if this arrangement reduces the number of usable bedrooms from what is typical.
The floor plan layout of a home can have an impact on its market value: The impact on value is determined from market data and how buyers perceive it. Did the home sell for less because it has a different floor plan than what is typical and expected?
The cost to fix can vary: Depending on the current floor plan configuration and the location of the bedroom in relation to other rooms the cost can vary widely and this should be taken into consideration when comparing it to the value added by fixing the problem.
Written for home owners with a good discussion of cost to cure vs. value added.
To read more, click here
For more analysis by Ryan Lundquist (from 2016) of what I often see, click here The image above is from Ryan’s article.
My comments: I have had many discussions with real estate agents and home owners about this issue. The number of bedrooms in a house can be a significant factor in many markets. In my market most homes were built prior to 1940 and have modifications, such as additions, over time. The pass through bedrooms can seldom be fixed. I usually call them “dens”.

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Age adjustments in appraisals

By on March 12, 2021   /   adjustments, bias, lender appraisals, mortgage loan volume   /   Leave a comment
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Age adjustments in appraisals

By Jamie Owen

Excerpts: Sometimes, two homes with wide age differences can have the same effective age. For instance, a thirty-year old home may have an effective age that is the same as a fifty-year old home, if the fifty-year old home has been renovated to a degree that is comparable to the younger home. If this is the case, while there is a relatively wide age gap, no age or condition adjustment may be supportable.

Once the home is lived in, it can never be considered “new” again. Subsequently, a new home typically has a higher market value than one that has already been lived in. The joyful homeowner makes these choices, the home is built, and they move in. Now starts the wear and tear. The degree of wear and tear depends much on the homeowner and how well they maintain their home. With new homes, typically homeowners go for a number of years without needing to do anything major to the property. However, at some point, they will need to.

To read more and see some fun animated gifs and a video, click here

My comment: Written for homeowners (an excellent marketing tool) but interesting comments for appraisers. I love Jamie’s blog posts!!

Humor for Appraisers

For Covid Updates, go to my Covid Science blog at covidscienceblog.com

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NOTE: Please scroll down to read the other topics in this long blog post on srange homes, adjustments, market changes, client pressure, mortgage origination stats, Covid tips for appraisers, etc.

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Appraisal Original Comp Photos

By on February 19, 2021   /   comp photos, Coronavirus, COVID, mortgage loan volume, real estate market, unusual homes, zillow   /   Leave a comment
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Original Comp Photos: Dangerous, Unnecessary

by Damian Downie

Excerpts: As I do many times a day, I was taking comparable (comp) photos for an appraisal. This one in particular is a condominium, so I was taking photos of two condos in a competing complex. There was a gate into the property, so I stopped across the street and snapped a photo of the gate.

Three minutes later, about a mile from the site, I looked over to my right out the passenger window, and I saw a man holding his phone up and pointing it at me. I asked him what he was doing and he angrily asked me why I was taking pictures of his car.

To read more plus the 59+ appraiser comments and add your own comment, click here

My comments: Always a hot, hot topic!! We’ve all got appraiser stories about comp photos (dogs, police, crazy people chasing you down the street, locked gates, etc., etc.)!! After 45 years of appraising I am never bored. There is always something new or weird that I see ;> My scariest experience (for the subject) was when two large Dobermans broke through the screen door of a mobile home and came after me. I got back into my car and told my client to get another appraiser!!

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

For Covid Updates, go to my Covid Science blog at covidscienceblog.com

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

NOTE: Please scroll down to read the other topics in this long blog post on , mortgage origination stats, Covid tips for appraisers, etc

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Why Appraisers Love Appraising!

By on February 5, 2021   /   appraisal business, appraisal waivers, bifurcated appraisals, COVID, mortgage loan volume, unusual homes   /   Leave a comment
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7 Reasons to Love Being an Appraiser

Excerpts: 1. Being your own boss

“After ‘working for the man’ for 20+ years, I changed careers to be an appraiser. Working for myself has been the biggest reward, offering flexibility and a healthy work-life balance.”

2. Having a flexible schedule

“Being able to set my own hours, as long as I get the job done.”

“Tackle the workflow when its heavy, and enjoy the reprieve when it lightens up!”

For 5 more reasons and lots more comments, click here

My comments: I worked in labs for 7 years and was bored. I saw an ad for a county assessor’s office in 1975 that said “work in the field.” I worked on the 1970 census and loved going out at looking at houses all day long. I read a book at the library about appraising and got hired. After 45 years I still love it! I am never bored. No two properties are the same. Plus, I love being self employed. I was always a bad employee with too many opinions of my own.

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

For Covid Updates, go to my Covid Science blog at covidscienceblog.com

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

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

NOTE: Please scroll down to read the other topics in this long blog post on , mortgage origination stats, Covid tips for appraisers, etc.

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AMC Appraiser Dress Requirements?

By on December 11, 2020   /   appraisal business, BATHROOMS, lender appraisals, mortgage loan volume, USPAP, weird homes   /   Leave a comment
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AMC Appraiser Dress Codes? 

Excerpt: I recently saw a Facebook post where an appraiser was quite upset and offended that an AMC asked him to dress professionally for an appraisal walkthrough. Now, this

was a request that was made upfront as one of the conditions for accepting the order. Reading the post, it sounded like this appraiser was upset for two reasons. One, he was offended that the AMC was implying that he does not take his job seriously enough or dress professionally enough. Two, he felt like the AMC did not have a right to tell him how to do his job (i.e., how to dress).

First, let me say that I personally do not think it was the AMC’s intention to imply that this appraiser is not professional in any way. I simply think that they were taking extra precautions to make sure the borrower was extremely impressed by the service they, and the appraiser whom they hired, provided. Now, on to the real question. Can an AMC tell an appraiser how to dress? And the answer is yes.

To read more, plus appraiser comments, click here.

My comment: This has always been a controversial topic for fee appraisers. Dustin is correct. An appraiser client can have many requirements, such as requiring a newer car, no flip-flops, etc. It is your decision whether to work for them. Primary Rule: There is always another client!

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

For Covid Updates, go to my Covid Science blog at covidscienceblog.com

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

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

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How to Fool the Appraiser

By on October 9, 2020   /   Coronavirus, COVID, fauci, FHA, mortgage loan volume, real estate market, Strange homes, trainees   /   Leave a comment

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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Favorite parts of the appraisal process

By on July 17, 2020   /   adjustments, appraisal business, Coronavirus, humor, Mortgage applications, mortgage loan volume, square footage, Strange homes   /   Leave a comment
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What’s your favorite part of the appraisal process?

Excerpt:

Number 1. Data collection and property description (38%)

“The best part is the property review. I enjoy seeing what people have done to their properties and talking to them about their homes.”

“I enjoy viewing/observing the subject home.”

“Detective work”

“Each dwelling is different, and not every appraiser takes the time to clarify the differences in the dwellings. The quality, the construction, the egresses, and especially the correct way to calculate GLA or measure a dwelling.”

Number 2. Data analysis (27%)…

To read more about favorites, click here

My comment: I love working in the field, so my choice is Number 1. But, my very best choice is getting paid ;>

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

What is the farthest you have traveled to complete an appraisal and still be considered geographically competent?(Opens in a new browser tab)

Appraisal Process Challenges(Opens in a new browser tab)

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