Appraisal News and Business Tips

Strange homes

4-19-18 Newz//Corelogic acquires a la mode, USPAP Q&A problems, Earth-Friendly Homes

Earth-Friendly Homes and Buildings for Earth Day, Sunday, April 22

Just For Fun!!

Click on the fotos of lots of ecofriendly buildings for more info. Fascinating, sometimes Weird, and Fun!!

A few: Mathematical Puzzle House, paper house, skyscrapers, Recycled Concrete Tube House, etc.

http://www.ecofriendlyhouses.net/ecofriendlyhouses.html

Appraisal Institute Requests Appraisal Standards Board to Rework Q&As

Excerpts: The Appraisal Institute in an April 13 letter to the Appraisal Standards Board formally requested changes to or the retraction of Q&A 2018-12, Employing an Extraordinary Assumption when a Client Provides Inspection Data and Q&A 2018-13, Appraisal Reporting – Certifications and Signatures.

The Appraisal Institute believes this advice is antiquated and out-of-step with appraisal practice and long-standing USPAP principles about not dictating the form, format or style of an appraisal report. Perhaps most concerning to AI is the apparent inclusion of additional requirements in this advice rather than in USPAP itself.

My comment: I completely agree with the AI’s issues with Q&A 2018-12 and -13. The certification issue has been around since USPAP required that the “previous 3 years” be included in the certification. The ASB needs to modify USPAP itself as I don’t think it addresses these current issues in appraising very well. Unfortunately, the new edition was effective 1/1/18. 2 years to wait.

Read more!!

4-12-18 Newz//What’s a Comp?, Multiple offers way over list, Rotating House

What’s a comp?

 
By George Dell, MAI, SRA

Excerpts: Our education tells us a comp is similar and competitive. So how do we measure “comparability”? If our job entails studying market data to get an answer … might it be important to know exactly how to describe a comp?

So what’s the issue? Why should we care? I am a highly trained expert. I have a license. “Trust me. I know a good comp when I see one.”

My comments: George is writing a longer article than his blog posts for the May issue of the paid Appraisal Today. I often wish his blog posts were longer, but they are designed to be short ;>

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

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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3-29-18 Newz//Last Minute Tax Tips, FHFA-Value of AMCs, Time Capsule Homes

New FHFA report says AMCs are not much different than direct lender appraisals – value added??

From the March 2018 paper (“Are Appraisal Management Companies Value-Adding? – Stylized Facts from AMC and Non-AMC Appraisals”:

“In this paper, we study whether there are any systematic quality differences between appraisals associated and unassociated with appraisal management companies (AMCs). We find that compared to non-AMC appraisals, AMC appraisals on average share a similar degree of overvaluation despite being more prone to contract price confirmation and super overvaluation.
“AMC appraisals also share a similar propensity for mistakes, despite employing a greater number of comparable properties. Our evaluation employs relatively simple statistical comparisons, but the results indicate no clear evidence of any systematic quality differences between appraisals associated and unassociated with AMCs.”

Note: FHFA is the Federal Housing Finance Agency, established by the Housing and Economic Recovery Act of 2008 (HERA) and is responsible for the effective supervision, regulation, and housing mission oversight of Fannie Mae, Freddie Mac (the Enterprises) and the Federal Home Loan Bank System, which includes the 11 Federal Home Loan Banks (FHLBanks) and the Office of Finance. Since 2008, FHFA has also served as conservator of Fannie Mae and Freddie Mac.

Read appraiser comments here:

Link to the report. Worth reading… or skimming ;>

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3-22-18 Newz//The Way Things Used To Be, Can the Appraisal Profession Be Saved?, Cultural/Religious Effects on Value

Can the Appraisal Profession be Saved?

By George Dell, MAI, SRA
Excerpt: What does it mean “Can the profession be saved?” Does anyone else care except us?

The second question first. Who might care? Clients who have developed a trust for you and who are comfortable with the traditional ways of doing things. There is a group of us and of them who like doing things as always. It’s comfortable, requires little change, and is a ‘safe’ way of doing things.

But who might not care? We can break these down into two subgroups: 1) those that dislike our getting in the way of their deal; and, 2) those who genuinely want something different, more modern. For now, let’s dismiss the first group, and consider those who do want a better product, a better service.

What do you think? Post your comments!!

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3-15-18 Newz//$2,358 PSF Small Tract House, Water Heaters, Affordable Beach Towns

$2,358 per sq.ft. for small home in Sunnyvale CA

Excerpt: This home on Plymouth Drive in Sunnyvale, Calif. recently set the highest price per square foot ever recorded by the Multiple Listing Service. The two bedroom, two bath home – 848 square feet in size – sold in two days for $2 million. It had been listed for $1.45 million. That means it sold for $2,358 per square foot, which is the highest price per square foot in Sunnyvale recorded by MLS Listings which has data going back to Jan. 1, 2000.

My comment: It did have new paint inside and outside plus refinished hardwood floors ;> Check out the fotos for a boring tract house. I got Mine. I am sooo glad I bought my house in 1985 for $145,000, worth about $900,000 now!! Mine is twice the size of this one, but not close to Google or Facebook (30 miles away, but could take the employee Google bus which comes here.)

The World’s Best Affordable Beach Towns

Just For Fun!!

Excerpt:
Here are two, not too far away:
3. Tulum (Mexico) Luxury condos in new developments and single-family houses under $100,000
9. Dominical Beach (Costa Rica)

Check out all of them at:

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3-1-18 Newz//”Just” a Residential Appraiser?, Turret Living, Price Fixing?

I Am Not “JUST” a Residential Appraiser

By Rachel Massey, SRA
Excerpt: There is no doubt that moving to obtaining a certified general appraisal license opens doors to varied and interesting work. If it is in one’s capacity to obtain this level, it is a great idea. That said, the idea of being “just” a residential appraiser has got to stop.

A good professional residential appraiser who studies the market, knows how to analyze and solve a problem, and can communicate effectively and succinctly, is a very valuable appraiser at that!

Worth reading, plus read the comments and post your opinion.
My comment: Rachel wrote a much longer, very interesting article for the paid Appraisal Today March issue: “What being designated means to me”
When I started appraising in the late 70s, residential was somehow considered “inferior”. I guess it has been going on for a very long time. I have always thought that residential appraisers are experts in one type of property: 1-4 units. If you are testifying in court on a single family home and the opposing attorney’s appraiser is an MAI who appraises a few times a year, you will blow them away!!

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12-21-17 Newz//: AMC appraisal fraud, Fannie Appraiser Update, CoStar vs Xceligent

The Three Most Fascinating Homes In 2017

Just For Fun!!

Very unusual… and two are very low priced ;>
You just gotta see this 2 minute FUNNY video!!
Death and Breakfast, House with Big Cave, and Very Old Historic House

https://www.realtor.com/videos/video-behold-the-most-fascinating-homes-of-the-year/db7fb804-6cd6-4556-887c-49410eb6d77a

The Appraisal Standards Board has issued new Q&As for December 2017, dated 12/19/17:

Note: personal property and M&E not included in the list below
– Communicating Assignment Results Without an Appraisal Report
– Workfile Requirements When Communicating Assignment Results
– Adding an Intended User
– Assignment Conditions versus Client Conditions
– Proposed Construction Employing an Extraordinary Assumption
– Proposed Construction Employing a Hypothetical Condition

https://appraisalfoundation.sharefile.com/app/#/share/view/seea70b822d24fa59?

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11-2-17 Newz .Crazy Appraiser Stories, AirBnB and Value, 31 abandoned places

Crazy Appraiser Stories

Excerpt: I had a house where the 1st floor den was connected to the basement via spiral staircase. Wife did not want the appraiser to go down the spiral steps and said she would “show” room from the basement. Telephone rang, appraiser proceeded to the basement, opened the door and the room was full of whips, chains, and other erotica ala “50 Shades of Grey.” I said we would just call it a rec. room and shoot from the best angle to disguise the “toys”.
-Sharon Finnerty Cremen

My comment: I have heard this story a few times but never encountered it… Lots of other weirdness though, such as seeing the sky through a big hole in the ceiling, falling down backwards into a partially covered pond and destroying my camera, etc. Check out the Cat Photo and make up your own Cat Comments!! Here is mine: Those appraisers need to take more naps and Get A Life. I guess they do have a sense of humor occasionally though ;>

Check out the other stories and add your own to  the 26+ comments at:

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10-26-17 Newz//Haunted homes and Places, Liability Issues, Tax Savings

Haunted houses and places – Halloween is next Tuesday.

================================
Google Maps Listed The 31 Most Haunted Places In America And They Sound Terrifying
From cemeteries and churches to mansions and museums.
Here are a few:
13. Adam’s Street Cemetery – South Bend, Indiana
16. Eastern State Penitentiary – Philadelphia, Pennsylvania
26. The Stanley Hotel – Estes Park, Colorado
My comment: Photos, brief writeup and links. Most are east of Kansas. Only a few near me. Not sure what that means ;>
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38 Real Haunted Houses and the Stories behind Them
Here are a few:
4. The White House, Washington DC
8. The Pirate’s House, Savannah, Georgia
10. Lizzie Borden House, Fall River, Massachusetts
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Haunted House? Not a Deal Breaker for Many Homebuyers

Excerpt: According to the Haunted House Real Estate Survey realtor.com® released today, 33 percent of approximately 1,000 respondents said they are open to living in a haunted house, 25 percent might be, and 42 percent are not open to the idea.

About 40 percent of people who are open to a haunted home said they’d want to see that home price go down to put money down on it. Another 35 percent said it would have to be in a better neighborhood to make the move, 32 percent said they wanted extra footage and 29 percent said they’d move in if they had more bedrooms.

Only 8 percent of respondents said they require no additional perks to purchase a haunted home. Basically, they wouldn’t hesitate and would move right in.

What about if someone died in the house? Actually, 47 percent of those surveyed said they would live in a home where someone died, 27 percent said they might, and 26 percent said, “NO WAY.”

My comment: Very interesting results. What is the effect on value, if any. Up, down, none?? Maybe someone will pay me some big bucks sometime to figure it out…

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From Ghost Hunters to Exorcists: Who You Gonna Call for a Haunted House?

Excerpt: Shortly after physical therapist Sally Morgan moved into her charming, late-19th-century cottage in Northampton, MA, she realized that she and her two pet corgis were not alone.

The price of the two-bedroom fixer-upper had seemed almost too good to be true. She soon discovered why she had gotten a bargain.

“Within a week, I started to feel a presence in the house. There were cold spots, and the dogs would stop and look at [invisible] things,” says Morgan, now 59. “In the shadows in the evenings, you’d think you saw a lady in a long dress. But was it her? Was it the curtains? Was it the shadows?”
My comment: Very interesting – who are you gonna call???
 
Search for haunted homes and places in your city. I found some in mine!! 

Read more!!

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