5-1-20 Newz: Credit Unions Can Delay Appraisals – Bathrooms and Epidemics – Pandemic: Buyers and Sellers

By on May 1, 2020   /   Coronavirus, Mortgage applications, real estate market, state appraiser regulators, UAD, USPAP   /   Leave a comment
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 WOOPS! BATHROOM ARTICLE NOT INCLUDED. DARN!! TO READ IT GOOGLE BATHROOMS AND EPIDEMICS

75 percent alcohol disinfectant alcohol spray nearby a house concept of disinfecting the house

By Ryan Lundquist April 30, 2020
Excerpts: Buyers more sensitive about location & condition: For years buyers have been exhibiting sensitivity to adverse locations and homes that are not in pristine condition. In other words, buyers have higher expectations about what they are buying and they aren’t overlooking the true condition of a home or paying top dollar for junk. I expect going through a pandemic will only inflame this dynamic.
Cash out at the top: Some people are concerned about the market changing directions, so we’ll see certain owners try to cash out at the top so to speak. I’m not saying we’re at the top of a price cycle. I’m only saying some people think the pandemic has pushed us or will push us into a new price cycle.
To read more, click here

Personal note from Ryan: Appraiser John Carlson GoFundMe: John is a well-known appraiser in Southern California and he is going through a difficult time as he was diagnosed with cancer and hospitalized. I invite you to pray for him and donate if you can. To read more, click here.
My comments: I spoke yesterday with a local appraiser friend who is thinking about selling her house and moving to a smaller, lowered priced house. (She is 78 years old, one year older than myself, but still appraising.) No listings or pendings in her area. Seemed like a good idea to me.

On June 29, McKissock had a webinar ” Appraising in a Pandemic”. In the last half hour, Ryan gave the best presentation I have ever seen on what to put in your report about the current market, not just a “I don’t know anything disclaimer”. He also had a sample statement slide. The recording was not available by my deadline. I will send it to you in next week’s email.
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DO NOT use photos or videos, taken by the owner while you remain outside, for an appraisal requiring interior inspections!!

This is NOT ALLOWED by USPAP. When the assignment requires the appraiser to do the interior inspection and photos, use of secondary source photos and interior characteristic detailing is prohibited. Google Appraisal Foundation Q&As and scroll to 2020-04: “Personal Inspection of Exterior plus Remote or Virtual Inspection of Interior.”

Or, you are standing outside taking photos through the window or directing the owner to do photos, facetime or other videos. Even if the owner is using a Virtual Inspection Tool, it is not allowed. Don’t risk your appraisal license!!

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7-19-19 Newz: Rates Going Down?- Appraiser Boards – AVMs Misunderstood?

By on July 20, 2019   /   AMCs, appraisal classes, AVMS, bifurcated appraisals, Mortgage applications, state appraiser regulators, statistics, weird homes   /   1 Comment
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AVMs Are Not Understood By A Large Swath of Non-Appraisers

Source: Jonathan Miller
Here are some recent survey results that show more than half of the respondents indicated, it is either NEVER appropriate or NOT SURE if it is appropriate for a non-appraiser to perform a valuation on a home.
So the jury is still out for a third of respondents but a third are absolutely sure it is inappropriate. One can infer that appraisers have an opportunity to convey what AVMs really are to the public.
Link to NAR AVM survey results click here
My comment: Good graphics and easy to read. Lots of topics including AVMs, desktops, bifurcated, etc. Results of a survey of NAR members. Lots of topics. Scroll down to AVMs, etc.
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7-5-19 Newz: Zillow Past and Future – Coester- Lots More Info – North Dakota Waivers

By on July 8, 2019   /   appraisal how to, appraisal waivers, appraiser shortage, real estate market, state appraiser regulators, weird properties, zillow   /   Leave a comment
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Zillow – the past and the future

Zillow’s new photo algorithm

Zillow’s New algorithm uses photos of your home to check quality and curb appeal plus a look back at when Zillow started, and info on their ibuyer service

Excerpt: “We’ve taught the Zestimate to discern quality by training convolutional neural networks with millions of photos of homes on Zillow, and asking them to learn the visual cues that signal a home feature’s quality,” Stan Humphries, Zillow’s chief analytics officer & chief economist, said in a Medium post announcing the new algorithm. “For instance, if a kitchen has granite countertops, the Zestimate now knows — based on the granite countertop’s pixels in the home photo — that the home is likely going to sell for a little more.”

To read more, click here

My comment: I am trying not to think about this…… Maybe North Dakota can try using Zillow on their rural properties….

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Zillow – tales from when it started plus ibuyer

Excerpt: Every night for five months before the launch of Zillow’s website in February 2006, employees gathered their Dell desktops on Ping-Pong tables, connected them to harness their combined processing power, and strung together extension cords to get them all running. To avoid overloading the circuits, they unplugged the office refrigerator and banned Christmas lights. Then, while most of them slept, this jury-rigged supercomputer analyzed a decade of property records and American housing market data in order to spit out price estimates for 43 million homes.

To read more, click here

My comment: Published in Forbes. Well written and researched. I liked Zillow’s history plus a good analysis of their ibuyer service – the new wave of purchasing homes and selling them later.

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5-31-19 Newz: Hit the Sales Price – Hybrid Warning – Guitar shaped Hotel

By on May 31, 2019   /   adjustments, bifurcated appraisals, commercial appraisal, humor, hybrid appraisals, Mortgage applications, real estate market, state appraiser regulators, Uncategorized, weird properties   /   Leave a comment
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Why do appraisers hit the sales price?

By George Dell

Excerpt: A recent study includes a graph which shows that some 90% of appraisals hit the sale price exactly, or were higher, while only some 10% were below the sale price (when the sale price is known).

Is this a bias on the part of appraisers, or is the bias the cause of the system? What could possibly cause this strong upside skew?

First, ignore the ongoing pressures from the entire ‘loan industry’ to make the loan, make the commission, make the quota, make the bonus, and look successful. Ignore the claimed purpose of the public trust (of our quasi-governmental standards and licensing quagmire).

The goal of protecting the public trust failed, and will fail again— this time with different excuses and blaming— but it will fail again.

Let’s look at some underlying economic truths and social/governmental policy. What economics and public policies come into play here? Three come to mind immediately:

To read the full, very interesting post click here

My comment: When I started my appraisal business in 1986, I was told by local very experienced appraisers to appraise at the sales price or I may be kicked off a lender’s approved list. Of course, since I was trained at an assessor’s office, I was shocked and refused to do this… There was always another lender client I could get.

Dell’s blog has very short posts. My June paid newsletter will have a much longer article written by him: “Old Versus New: Conflict or Opportunity?” It has a brief look into the past, including a photo of an acoustic coupler for connecting to remote sites. Plus, of course, comments on the future! I remember 30 baud transmission rates in the early 1980s connecting from my home PC to my company’s servers;>

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4-18-19 Newz: Strange Bathrooms; Secret Suburbs; Accurate MLS Data?

By on April 18, 2019   /   Appraisal Foundation, Mortgage applications, real estate market, state appraiser regulators, Strange homes, unusual homes, weird homes   /   Leave a comment
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SUBSCRIBER NOTICE:
Starting next week this email newsletter will be sent out on Fridays.
Why? After 25 years of sending on Thursdays, time for a change! Also, fewer emails on Fridays, so more time to read this newsletter (and not lose it in your inbox) ;>
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2-14-19 Newz: Coester Shuts Down; Beautiful Erosion; Facing Your State Board

By on February 14, 2019   /   Appraisal Standards Board, mortgage loan volume, state appraiser regulators, Uncategorized, USPAP, weird properties   /   Leave a comment
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17 of the World’s Most Beautifully Broken Places

Wind, rain, and retreating glaciers left this gorgeous destruction behind.

Here are two:
– Ah-Shi-Sle-Pah Wilderness Study Area New Mexico
The land is full of geologic eye candy like otherworldly spires, mushroom-shaped hoodoos, and prehistoric fossils.

Fjaðrárgljúfur Iceland
Strange rock formations tower above the river that snakes through this enchanting Icelandic canyon.

See the incredible locations and read about them at:

My comment: Click The Link And Take A Break from Your Appraisals!!
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10-11-18 Newz://Dome Homes – Tandem Bedrooms – Competency

By on October 11, 2018   /   adjustments, appraisal how to, data, mortgage loan volume, state appraiser regulators, unusual home, zillow   /   Leave a comment
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8 Dome Homes Ideal for Well-Rounded Buyers

Excerpt: Geodesic dome homes always strike a chord with buyers looking for a different type of house.

They’re also in favor these days thanks to their cosmic, forward-looking designs. Futurist and architect Buckminster Fuller conceived the geodesic dome in the belief that the shape of these rounded dwellings was the most efficient use of resources possible, and that the homes were ideal for mind, body, and spirit.

Here are a few:
– 37849 W Johnson Lake Ln, Marcell, MN Price: $129,000
– 35685 Lake Summit Dr, Temecula, CA Price: $775,000 – Two connected domes
– 5825 E Saguaro Rd, Cave Creek, AZPrice: $469,000 – Price includes a large maze

Check out the fotos and info at:

My comment: They all kinda look the same to me ;> I have never appraised one, but don’t miss it. Very few here. Just use other odd ball properties as comps I guess. There is one in a nearby city that I drive by regularly as a reminder of what I don’t want to appraise ;>

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Is the market tanking or softening?

Video by Ryan Lundquist
About the Sacramento CA market, but applies to all markets
21 minute video. Worth watching.
More articles by Ryan at http://sacramentoappraisalblog.com
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5-24-18 Newz//UAD and Fannie Form Changes, Floating Island, Refis dropping

By on May 24, 2018   /   adjustments, AMCs, appraisal business, appraisal how to, appraisal management company, data, Fannie, Freddie, lender appraisals, marijuana license, real estate market, state appraiser regulators, Strange homes, weird homes, weird properties   /   Leave a comment
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It’ll never sell that high (but then it did)

Excerpt: There’s no way it’s going to sell that high. Have you ever thought that in real estate? Well, let’s talk about a property that many said would never sell at $4.1M, but then it did. I definitely have some takeaways about this lofty condo in Downtown Sacramento (CA), and I hope non-locals will relate to the commentary. (My note: median home sale price is $367,500)

Details and lots of graphs at:

My comment: The median home sale price is $367,500. This is definitely an outlier for the area.

A floating Pacific island is in the works with its own government, cryptocurrency and 300 houses

Just For Fun!!

Excerpts: The Floating Island Project plans to create off-shore housing that uses its own currency and operates outside of government regulations.
– The project is a pilot program in partnership with the government of French Polynesia.
– A long-term vision for the project is hundreds of new countries floating on the ocean.

As well as offering a home for the displaced, the self-contained islands are designed to function as business centers that are beyond the influence of government regulation.

Check out the video and lots more details at:

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5-3-18 Newz//Federal Enforcement of USPAP?, Public Restroom App, Unusual Houses & Buildings

By on May 3, 2018   /   appraisal business, Appraisal fees, appraisal waivers, Fannie, hybrid appraisals, Mortgage applications, mortgage loan volume, state appraiser regulators, Strange homes, unusual homes, weird homes, weird properties   /   Leave a comment
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How Lenders and Appraisers Can Work Better Together Through Increased Transparency

By Wes Costello
Excerpts: The relationship between lenders and appraisers has never been quite right. The association was scared by improprieties of the few that led to a fallout of the many, with each party retreating behind walls of mistrust and perceived regulatory requirement. Recently, communication is civil but has been described as resembling two parties of a legal arrangement who speak to each other on an as-needed basis….

Anyone who has directed appraisal management knows that they are only as good as the appraisers they partner with. This makes it vital to value each member of your appraisal panel as an integral partner in your company’s business.

My comment: Well written and worth reading, plus the comments, of course. The author is a Senior Vice President of Quality Management & Collateral Risk at AnnieMac Home Mortgage… He is a Pennsylvania Certified Real Estate Appraiser.

Public Restroom App by Charmin: Find Clean Bathrooms!

Excerpt: A clean nearby public bathroom can be hard to find. But not all restrooms are created equal.

With SitOrSquat we put clean public toilets on the map. Literally. Clean locations have a green “Sit” rating. Less desirable ones have a red “Squat.”

So, the next time nature calls and you need to find a nearby restroom, SitORSquat will help you know where to go.

My comment: Thanks to appraiser Jerry Walsh for this great tip. He has used it for years. I am downloading it today!! I coulda used this 40 years ago when I started appraising in rural areas….. Better than The Bushes or Behind A Tree ;>

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4-5-18 Newz//Weird home interiors, Reduced AQB requirements and state regulators, Data analytical tools

By on April 5, 2018   /   adjustments, Appraisal Foundation, Appraisal Qualifications Board, appraisal waivers, appraiser shortage, data, evaluations, lender appraisals, Mortgage applications, mortgage loan volume, new appraisers, real estate market, rental market, state appraiser regulators, Strange homes, trainees, unusual home, weird homes   /   Leave a comment
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The rage of Airbnb rentals (and stuff to keep in mind about value)

By Ryan Lundquist

Excerpts: The owner has a cash cow. Her second unit is bringing in $3,300 per month as an Airbnb rental, and it’s paying her mortgage. Since these types of rentals are all the rage right now, let’s talk about some important details to keep in mind from a value perspective. This isn’t meant to be exhaustive, but I wanted to share some things on my mind. I’d love to hear your take in the comments.

Topics:
1) Airbnb rent vs. market rent
2) Lenders and market rent
3) Investors & seller expectations
4) The fine print and a 12% tax

Click here to read the details, plus the appraiser comments:

My comment: This stuff gives me a headache ;> These seem to be everywhere now, especially room rentals. The Local Politics can be a mess. I look at the income as a business. Very different than renting by the month or year (at much lower daily rates), unless it is in a popular vacation rental market.

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