Arms Length Sales for Appraisers

By on January 16, 2026   /   Uncategorized   /   Leave a comment

Newz: Arm’s Length, AMC Panel Requirements, Fed’s Influence on Mortgages

January 16, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: AMC Panel Requirements
  • What Does Arm’s Length Mean in Real Estate?
  • $329K California Cabin Has a Tree Growing Through Its Center: ‘Commune With Nature in a Whole New Way’
  • How does the Federal Reserve affect mortgages?
  • MY AD: What is new in the New URAR/UAD 3.6 SF-1 Scenario
  • Critical Thinking Skills Needed by Appraisers By Vernon Martin
  • Waste, Fraud & Abuse Flourished Under Former Secretary Fudge
  • MBA: Mortgage applications increased 28.5 percent from one week earlier

Non-Arms Length Sales for Appraisers

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What Does Arm’s Length Mean in Real Estate?

Excerpts: As a real estate appraiser, understanding whether a transaction is an arm’s length sale or a non-arm’s length sale is crucial. Therefore, when evaluating the current terms of a sale or analyzing past sales of the subject property or comparables, it’s essential to consider the nature of the sale to ensure a credible appraisal.

A non-arm’s length sale is a transaction between parties who have a personal or professional connection, such as family, marriage, or work relationships. Due to their relationship, the parties might not act in their own best interests, which can result in a final sale price that does not reflect the property’s true market value.

Non-arm’s length transactions extend beyond the relationship between the buyer and seller; additional conditions must be considered to determine whether a transaction qualifies as an arm’s length transaction.

Example of a non-arm’s length transaction: An employer sells a property to an employee and agrees to pay 80% of the down payment for a mortgage loan, all the closing costs, the transfer tax, and any and all repairs up to $50,000 in the first 5 years of home ownership.

Example of a non-arm’s length transaction: An elderly couple sells their property to their next-door neighbor without fully understanding its market value, relying solely on the neighbor’s offer.

Example of a non-arm’s length transaction: An elderly couple sells their property to their next-door neighbor without fully understanding its market value, relying solely on the neighbor’s offer.

To read more and watch a 5 minute video, Click Here

My comments: Worth reading for all appraisers. I have never read a more comprehensive and understandable explanation of this very important topic.

When I have a sale that does not “look right” I always find out why it is high or low or has some other issue on “arms length”. If I can’t find out, I don’t use the sale.

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How To Appraise Rural Properties

By on March 15, 2024   /   appraisal business, appraisal how to, modernization, Uncategorized, USPAP   /   Leave a comment
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How To Appraise Rural Properties

Excerpts: Appraising residential properties in rural areas can be both challenging and rewarding. Unlike the standardized expectations of urban and suburban properties, rural properties often present unique characteristics that require a nuanced approach to valuation. Whether you’re a seasoned appraiser or new to the field, having a better understanding of rural properties is essential for providing credible appraisals. In this guide, we’ll explore what defines a rural property, the challenges appraisers face, reasons for conducting rural appraisals, strategies for finding comparables, and tips for writing a compliant appraisal report.

  • Defining rural properties – USDA and GSEs
  • Challenges of appraising rural properties
  • Appraising rural properties presents unique challenges due to their diverse characteristics and market dynamics.

Topics include:

  • Diverse property types and uses
  • Unique property characteristics
  • Limited market activity and more
  • Writing your rural property appraisal report – good ideas

To read more, click here

My comments: Worth reading, if only to find out about rural appraising. Well written. There are relatively few residential lender appraisals available now. This is an excellent diversification opportunity, with little competition from other appraisers or the GSEs use of other ways to get a value without human appraisers.

What if there are few rural areas near you?

You can expand your area to include rural appraisals to get more business.

When I worked for a northern California assessor’s office with rural areas I learned a lot about almond growing (the main crop) and other ag topics. It is not hard to learn the valuation factors. I had niece who had several horses for many years where she lived. There are equestrian facilities within 5 miles from my house in Oakland hills and in farther out Bay Area cities with larger lots. You may have some similar rural experience now!

The American Society of Farm Managers and Rural Appraisers www.asfmra.org has a specialty in Rural Appraising, but it requires a Certified General. There may be seminars available. Another reason for upgrading!

Urban, Suburban, Rural in 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 USPAP and Personal Inspection, GSE Appraisal Modernization, Transaction costs and values including real estate commissions, unusual homes, mortgage origination stats, etc.

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Why do appraisers hit the sales price?

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;>

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

What to Do When Your Appraisal Is Under Review(Opens in a new browser tab)

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

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Residential Appraisal Changes Coming

By on May 10, 2019   /   adjustments, appraisal how to, george dell, marijuana license, Mortgage applications, mortgage loan volume, Uncategorized   /   Leave a comment
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How is Appraisal Gonna Change?

By George Dell

Excerpt: What new “appraisal methods and techniques” have we seen? As I speak to reviewers who see valuations from around the country, there seems to be a degradation of quality. Less analysis rather than more. Less explanation rather than clearer logic. More “trust me” and less “see my reasoning.”

What does the world really need? Trust my opinion-or see the result? Trust my comps-or see market parameters.

Competitors for valuation, risk, and investment needs want “better, faster, cheaper.” For now, lets just look at “better.” What is “better?”

“Better” is actually fairly simple. There are only three parts: 1) is the right question being asked; 2) is the result true (accurate); and 3) how sure (precise) is the result? So, let’s look briefly at each of these needs, and how each can be helped with today’s technology.

https://georgedell.com/how-is-appraisal-gonna-change/

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

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

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Appraisals and Altered Listing Photos

By on March 7, 2019   /   adjustments, appraisal business, appraisal how to, Fannie, mortgage loan volume, real estate market, Uncategorized, unusual home   /   Leave a comment
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Digitally-doctored listing photos are on the rise

Excerpts: It will cost $2.40 for a paint job, $24 to replace flooring, and $40 to remove a wall or add a swimming pool.

Digital photo manipulation has become so widespread and cheap that home sellers are increasingly using the technology to spruce up their listings, the Wall Street Journal reported. This has the potential to create new headaches for end users, investors, appraisers and brokers…

Furthermore, with federal regulators pushing for automated appraisals that will make use of online listings, the hazards of doctored images could be spread to the general public.

My comments: How do AVMs and CU deal with this? Appraisers can always contact the agent to confirm what the home looked like. CU robo emails/calls to agents and somehow integrate this into the data?

Lenders and AVMs are now using agent MLS comments. I recently spoke with an appraiser where the lender disputed one of her comps because the MLS mentioned it was “close to shopping” and she did not. Yes, it was very close to a historic shopping street, but there was little to no off street parking on this street, as it was taken up by employees in the stores. The comp had 9 off street parking places for 2 units and sold for a premium price. Typically there is 1 or 0 parking spaces per unit in the historic apartments on the comp’s street. I recently tried to go to an open house on the street. The closest parking space was 3 blocks away. I skipped the open house. The agents often mentioned “close to shopping” to say something positive about their listing’s location.

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

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

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Non-lender Appraisals Good fees and few hassles

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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Private Appraisal Work, the Final Frontier

By Rachel Massey

Author’s Note: Private appraisals aren’t really the “final frontier” for appraisers but it is a good metaphor. Private work for courts and disputes predates modern lending appraisals, so they should actually be considered the “first” frontier…but never let a good Star Trek saying go to waste!

As mortgage work has started to slow down in large swaths of the country, and likely will continue to do so, the temptation to move into the private arena is appealing. This is an area where our work is valued by those who need it the most. Private work is not lending work, and there are different requirements for different clients. Intended use and users rule supreme. Do I have the patience to walk someone through the process who is not experienced? Maybe yes, maybe no. This is not a place where I would want to spout off a bunch of expletives to a client who bothers me, but instead try to step back and ask whether I need to explain it differently so it is understandable. The onus is on me, the appraiser, to help my client understand.

My comment: A good intro to non-lender work. Marketing and client communication is very different. I have written many articles about non-lender work since 1992 in my paid newsletter.

The article “Should you do non-lender work? Pluses and minuses of both lender appraisals and each different type of non-lender appraisal.” Is in the October 2018 issue and can help you decide if non-lender work will work for you.

Appraisal Business Tips including non-lender work

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

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

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

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11-21-18 Thanksgiving Thoughts For Appraisers

By on November 21, 2018   /   Uncategorized   /   Leave a comment
My Comments: I sent this last Thanksgiving also. I received it from an old friend. It “spoke” to me, especially as an appraiser and business person. This is a different, very personal, way to look at what we can be thankful for in our daily lives. Feel free to forward this to whomever you want, changing the subject line if needed.

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Be Thankful

These words from an unknown poet remind me to be thankful on Thanksgiving and all the other days, too.

Be thankful that you don’t already have everything you desire.
If you did, what would there be to look forward to?

Be thankful when you don’t know something,
for it gives you the opportunity to learn.

Be thankful for the difficult times.
During those times, you grow.

Be thankful for your limitations,
because they give you opportunities for improvement.

Be thankful for each new challenge,
because it will build your strength and character.

Be thankful for your mistakes.
They will teach you valuable lessons.

Be thankful when you’re tired and weary,
because it means you’ve made a difference.

It’s easy to be thankful for the good things.
A life of rich fulfillment comes to those who are also thankful for the setbacks.

Gratitude can turn a negative into a positive.
Find a way to be thankful for your troubles, and they can become your blessings.

I love the thought that Thanksgiving is less of a meal and more of a mindset. May your Thanksgiving be filled with friends, family, love and all that is important to you.
Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
2033 Clement Ave. Suite 105
Alameda, CA 94501 Phone 510-865-8041
Fax 510-523-1138
Email   ann@appraisaltoday.com
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Comps From Different Neighborhood for Appraisals

By on March 8, 2018   /   adjustments, appraisal, Uncategorized   /   Leave a comment
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Can you use comps from a different neighborhood?

By Ryan Lundquist
Excerpt: BIG CAUTION: If one area has smaller homes, heavy fixers, not enough data, more foreclosures, or more remodeled properties, we might draw the wrong conclusions when looking at stats if we’re not careful. In other words, we need to know how to think through the numbers rather than taking them at face value.

Good analysis and graphs from Sacramento area, but applies to many other locations. Worth reading.

My comments: Going to another neighborhood is tricky if a location adjustment is required. However, I do it occasionally. If the two neighborhoods are similar, it is easy. FYI, I attended a Fannie webinar last week that showed how CU displays comps in neighborhoods, based on census tract blocks, showing how median prices vary. I will be writing about how underwriters use CU in next month’s paid Appraisal Today newsletter.

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 What is an Island, mortgage origination stats, Covid tips for appraisers, etc.

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12-7-17 Newz//Appraisal Waiver Threat, Very Modern Churches, New USPAP Q&As

By on December 7, 2017   /   Uncategorized   /   Leave a comment

A Tour of the World’s Most Unrepentantly Modern Churches

Worship at the altar of striking architecture.
Excerpt: Outside the town of Almadén, in central Spain, nestled on a scrubby hillside, there is a chapel. You’d be forgiven for thinking it is an art gallery, or perhaps a particularly modern-looking winery, or the home of an eccentric tech mogul. Planes of concrete fold into one another, creating elegant, severe triangular surfaces that frame a wooden doorway marked by tapering planes of glass. But inside there is only sunlight-and a cross. Known as the Valleaceron Chapel, it was designed for the property by the architecture firm S-M.A.O. in 2001.

Click here to see the very interesting photos. For more info and fotos, google the name and location of the churches (under each photo – copy and paste).

My comment: I have seen lots of very interesting and creative U.S. churches (religious buildings) in many places. I don’t really know why church congregations are willing to be “out there” in their architecture but I love looking at these buildings!!

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4-13-17 Newz// Desktop Appraisals .Fannie Appraiser Update .Trump Dump Dodd-Frank Regs

By on April 13, 2017   /   AMCs, appraisal business, appraisal management company, Fannie, fees, FHA, Strange homes, Uncategorized, unusual home, unusual homes, weird homes   /   Leave a comment
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Sign up for Fannie’s new Appraiser Update and other appraisal-related news!

How do appraiser-related policy updates, technology changes, and industry trends affect your business? To stay on top of the latest Fannie Mae appraisal news and policies, check out the new Fannie Mae Appraiser Update, a newsletter providing periodic updates for residential appraisers serving Fannie Mae lender customers.  Sign up today to receive the newsletter and other appraisal-related updates.
My comment: I get all the Fannie announcements and have to scroll through them looking for anything relevant to appraisers for this email newsletter. Hopefully, Fannie’s appraiser info will be send frequently. The first newsletter is available.
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Ecological Plastic Bottle House

One family’s mission to exemplify sustainability took on a whole new life as a surprisingly beautiful home.
Excerpt: Alfredo Santa Cruz and his family built the bottle house out of trash and recyclables they collected. Aluminum cans, glass jars, CDs, cardboard cartons, and of course, plastic bottles were all used as construction materials. The house has multiple rooms, and even furniture constructed from all these items.
Scroll down the page to see bottle houses in Michigan, Canada, and Azerbaijan!!
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