What are Pass through Bedrooms for Appraisals

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

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

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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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!

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?

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!!

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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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Favorite parts of the appraisal process

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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Fannie Update on Covid alternative appraisals

Fannie Update on Covid alternative appraisals. Excerpt: Through mid-May, about 15% of Uniform Collateral Data Portal® (UCDP®) appraisals completed after our announcement used the flexibilities, either desktop or exterior-only. As you know, circumstances vary widely across the country, and the uptake of the flexibilities reflects this. The highest percentages of appraisals using the flexibilities are around 40% in some northeastern states, while the lowest percentages are around 10% in some of the less impacted states…

We found that appraisers have used the flexibilities correctly about 90% of the time. Appraisers have done a great job identifying external obsolescence for desktops and exterior-only appraisals, as well as leveraging their local knowledge, maps, aerial photos, and other data sources. We’ve been pleasantly surprised to find that, although not required, about 35% of nontraditional reports include a sketch pulled from prior reports, assessors records, or other sources. Also, the supporting comments in the nontraditional reports have been even better on average than those in traditional reports.

Worth reading. 5 pages and well written. Also includes comments on “one mile rule” and flood zones. To read more, click here

My comments: There are very few of these done in the Bay Area. 10% sounds about right. However, now we are now in a major virus surge in some states – opened too soon and people in some areas did not do social distancing, hand washing and wear face coverings. Use of the alternative reports may increase in some states, and decrease in the northeast.

These appraisals are not easy to learn how to do, and are very different than doing full 1004 with interior inspections. In the June issue of the paid Appraisal Today I have lots of information on them, including useful references. See the ad below.

Covid-19 and Appraisers FREE Newsletter(Opens in a new browser tab)

Click the link below for a church converted to a home, Value Difference Between Streets, Avenues & Boulevards…?, Millions of American Homes at Greater Flood Risk Than Government Estimates, New Study Says, random thoughts of an appraiser, mortgage origination stats. 

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Defiant vs. Compliant Appraisers?

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.

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

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)

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Coronavirus and Appraisals March 13 2020

Appraiser’s (Changing) Role

Q&A with Mark Verrett, Chief Innovation Officer at Accurity Valuation

Excerpts: WRE: How can appraisers adapt to meet the profession demands?

Verrett: I think there are several ways to adapt to these challenges. The first is to work toward diversifying your practice away from 100 percent mortgage business niches. Our firm is a leader in green valuation, rural valuation, valuation consulting and litigation support and we help our offices diversify into those spaces. However, this solution isn’t for everyone….

To directly take on the challenges facing appraiser relevancy in the mortgage space, significant change is required. Appraisers need to unite to create a like-minded national voice that is not rejecting proposed changes for the profession, but rather working with stakeholders (regulators, lenders, clients, etc.) in conceptualizing, testing, tweaking, and ultimately modernizing the appraisal process on the mortgage side.

The appraisal community has a tough assignment in their role in this modernization. To be useful in the discussion, we need to challenge ourselves to be creative and open-minded, yet diligent in maintaining or, even better, improving the quality of the valuation being produced. I think it is extremely important for appraisers to listen and understand the needs of their clients and to creatively develop solutions that meet those needs.

Worth reading with some good ideas. To read more, click here

My comment: Accurity has franchisees and some very savvy appraiser officers and directors.

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

Appraiser Covid Survey Results April 2020

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