statistics

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NOTE: Please scroll down to read the other topics in this long blog post on answering your phone, appraiser censorship, bias, how to do graphs, unusual homes, mortgage origination stats, etc.

Bias in Housing is Not Appraisers’ Fault

By Ann O'Rourke on June 25, 2021 / george dell, rental market, statistics, USPAP / Leave a comment

Tags: bias, Fannie, George Dell, racial bias, real estate market

Racial Bias in Real Estate: Is it the Appraisers’ Fault?
The best analysis I have ever read.

By Maureen Sweeney, SRA

Bias in Housing is Not Appraisers’ Fault

Excerpt: The appraiser must be independent, impartial, and objective. In a mortgage transaction, the appraiser evaluates the property that is to be used as collateral in a mortgage finance transaction. The appraisal is provided to the lender, who uses the appraisal as one of the many criteria used to underwrite the loan and determine if a mortgage loan will be funded or not. Contrary to what some may believe, the appraiser does not make underwriting or lending decisions.

Discrimination, including the long list of anti-cultural, anti-national, and anti-ethnic terms, is a multi-layered, multi-cultural, and multi-generational issue. The systematic, historic, and institutional causes of the various business and government policies and practices need to be addressed and cured. We do not blame the doctor for a cancer diagnosis.

We do not blame the journalist as the cause of the natural disaster that is reported on the evening news. Why is the appraiser blamed for reporting on the real estate market?

To read more, click here

My comment: By far the best, understandable analysis I have read. No whining or ranting. Many appraiser comments and forwarding. Comprehensive post with many references. I had not heard about some of the references. Appraisers are not the problem. We have been told for many decades to be knowledgeable and aware of Fair Housing issues.

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NOTE: Please scroll down to read the other topics in this long blog post on Intended users, Fannie Update, Statisticsunusual homes, mortgage origination stats, etc.

Appraisers and The Psycho Kitty

By Ann O'Rourke on May 7, 2021 / appraisal how to, appraisal waivers, humor, real estate market, state appraiser regulators, statistics, unusual home, waivers / Leave a comment

Tags: appraisal how to, appraisal waivers, Fannie, humor, real estate market, state appraiser regulators, unusal homes

Favorite Crazy Appraisal Stories – The Psycho Kitty

Excerpt: Psycho Kitty

I had an appointment at a home in the country out in the woods. The access instructions said the cat MIGHT be caged. Got to the home and the cat was at the front door and hissed at me as I went in. I tried to make friends with the cat, but it didn’t work, so I ignored the cat and started my inspection.

As I came out of the first-floor master, he was waiting. He stood on his hind legs, teeth showing, hissing, and came at me. Once again, I used my clipboard and ran to the laundry room where I was able to shut the door. I was safe…

To read more strange and/or funny appraisal stories, click here

My comment: We all have appraisal stories, of course!! In my 45 years of appraising I have never been attacked by a cat. My creepiest cat encounter was appraising the home of a cat foster parent for a local animal shelter. Large outside cat enclosure full of cats, multiple cats on top of dressers and other places, looking at me (looked like they were hungry). I wish I could forget about all the cat eyes looking at me :<

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NOTE: Please scroll down to read the other topics in this long blog post on psycho kitty, waivers, value vs. price, hot market, unusual homes, mortgage origination stats, etc.

Why appraisers should use graphs

By Ann O'Rourke on November 13, 2020 / Coronavirus, COVID, liability, real estate market, statistics, Strange homes / Leave a comment

Tags: graphs

Using graphs: why are they so important?

By George Dell, MAI

Excerpts: Graphs provide the way for the human brain and the computer to connect. And why is that important? Why appraisers should use graphs.

Computers are really good at certain things. They can handle lots of data and can quickly carry out complex instructions (algorithms) with no mistakes, with perfect memory. They also work well with no sleep. These are things the human brain does not do well.

Humans are good at other things. We make decisions and solve problems based on “massively parallel processing” systems. These are our ‘common sense’, instincts, and broad knowledge of the topic at hand.

These can be called imagination, creativity, and even belief-based inspiration.

“Computers can outperform humans on certain specialized tasks, such as playing [the game] go or chess, but no computer program today can match human general intelligence,”

To read more, click here

My comment: Great explanation of why graphs are important for humans, including AMCs if they have any human reviewers to see the graphs.

Covid-19 Residential Appraisers Tips on Staying Safe

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

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Appraisal Process Challenges(Opens in a new browser tab)

So Many Appraisal Cost Approach Questions

By Ann O'Rourke on August 21, 2020 / appraisal business, COVID, hybrid appraisals, Mortgage applications, Reviews, state appraiser regulators, statistics, unusual home, unusual homes, va / Leave a comment

Tags: appraisal business, Coronavirus, cost approach, liability, state appraiser regulators, unusal homes

So Many Appraisal Cost Approach Questions!
So Few Answers! Such Low Fees!

By Tim Andersen, MAI

Excerpt: It is clear most appraisers do not like to do the Cost approach. Generally, we are not too familiar with it. So, it is clear that most appraisers, because of this, do not appreciate the deep analytical power the Cost approach really has. So Many Appraisal Cost Approach Questions!

Therefore, I’m going to ask you 10 questions on the Cost approach (and stuff related to it). After you’ve finished reading them, you probably will still not like to tackle the Cost approach. Nevertheless, you just may have a better understanding of, and appreciation for, its powerful analytical capacities.

First Question: On the 1004 form is the indication that Fannie Mae does not require the Cost Approach to Value. Where does the form instruct the appraiser not to complete the analytics of the Cost approach?

To read the other questions and answers click here

My comment: Appraisers, including myself, seem to have a love/hate relationship with the Cost Approach. But, it can be useful. Tim’s much longer article “But Fannie Mae says I don’t have to do the Cost Approach!!” will be in the September issue of the paid Appraisal Today.

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

Terrible Real Estate Agent Photos for Appraisers

By Ann O'Rourke on June 12, 2020 / adjustments, AMCs, appraisal, Fannie, FUN, humor, Mortgage applications, statistics, unusual homes, weird homes / Leave a comment

Tags: adjustments, appraisal, Fannie, mortgage loan volume, unusal homes

Just For Fun and Oddities!!

If M C Escher had tried interior design.

<< 4 bedrooms, 2 bathrooms, and extensive opportunities for open plan off-roading.

Inexplicably bad property photographs.

It’s that simple

Don’t miss the Very Funny Captions!!

To see more, click here

Appraisal Humor

Appraisal business tips

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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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Appraising the White House

By Ann O'Rourke on July 20, 2019 / AMCs, appraisal classes, AVMS, bifurcated appraisals, Mortgage applications, state appraiser regulators, statistics, weird homes / 1 Comment

Tags: AMC, appraisal business, appraisal management company, Hybrid appraisals, state appraiser regulators, statistics, unusal homes

18 Historic Homes that Would Be Fascinating to Appraise

Excerpt: Historic homes make for complex and interesting appraisal subjects. As one appraiser said, “I love unusual properties, and the challenge they present to appraise. I have always loved appraising large, older properties. They take us back to another world back in time.” We recently asked our appraisal community, “What famous historic home would you want to appraise?” Here’s what they said.

A few of the homes:

Frank Lloyd Wright’s Fallingwater

The White House

Norman Bates “Psycho” House

Graceland

To read the full list plus many comments click here

My comment: For me, none of the above ;> Too difficult!

Covid-19 Residential Appraisers Tips on Staying Safe

Appraising Weird Stuff is Challenging!

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https://georgedell.com/appraisal-profession-dying

Will the last appraiser turn out the light?

By Ann O'Rourke on February 7, 2019 / AMCs, AVMS, future, george dell, mortgage loan volume, statistics, USPAP, weird properties, zillow / Leave a comment

Tags: AMC, appraisal fees, future, George Dell, mortgage loan volume, new appraisers, USPAP, weird properties

Is the Appraisal Profession Dying?

By George Dell, MAI

Excerpts:

Yes. Appraisal as we know it is dying.

Can it be saved? No.

So what should I do? What should “we” do?

The data has already been gathered. The analytics software is free. The pictures have already been taken. “Let’s Make a Deal!”

Analysis requires judgment. Human generalization is enhanced by computation. Complete data can be enhanced/cleaned as well as “confirming a comp.” A point value is an inherent part of a predictive value distribution. A documented, reproducible result is the most credible, believable answer.

My comments: I believe that human appraisals will still be needed. There are times that a human appraiser is needed to interpret results, and “go beyond” the data for Highest and Best Use, Unusual properties, etc. Lenders will move to computerized risk management, once investors will accept this. Most residential lender valuations will not need humans as the value of an individual property in investors’ portfolios is not critical. Of course, when the market inevitably crashes, there will be no appraisers to sue to recover some of the lost money. Maybe our E&O premiums will go down.

Covid-19 Residential Appraisers Tips on Staying Safe

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

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https://georgedell.com/will-it-be-a-form-or-not-a-form/

New 1004 appraisal form?

By Ann O'Rourke on August 30, 2018 / adjustments, appraisal how to, Collateral Underwriter, Fannie, statistics, Strange homes, weird properties / Leave a comment

Tags: adjustments, appraisal forms, appraisal how to, collateral underwriter, CU, Fannie, IRS, mortgage loan volume, real estate market, square footage, unusual buildings, weird properties

To Form or Not To Form? What will it be? A new 1004?

By George Dell

Excerpt: What’s the difference between a form and a data entry page? Will “forms software” even be necessary? Will the result require less appraiser expertise – or more? Will it encourage the “form-filler” people, or will it require some real understanding of problem identification, data selection, predictive methods, and communication? Will the transmittal require both an electronic data stream and human actionable views?

Will it require appraisers at all? Or will the “data analysts” simply create the ultimate model.

These are big questions. From my point of view, some of the answers are obvious. But first, let’s outline how we can even ask the right questions . . .

My comment: Fannie Mae has been planning on revising the forms. I have known George for quite a while, heard him speak and taken his class. Looks like people are finally starting to pay attention to what he says about stats, data, etc.!! His blog posts are fine, but sometimes you want more. The September issue of the paid Appraisal Today will have George’s 6 page article, “Why, Why, Why? Why do we put “stats”, “graphs”, “data,” and “science” together?”

The "Green Hornet" – first lender appraisal form from 1962(Opens in a new browser tab)

Covid-19 Residential Appraisers Tips on Staying Safe

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