unusual home

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!!

http://sacramentoappraisalblog.com/2019/03/26/tips-for-choosing-comps-on-a-unique-home/

Every unusual home has appraisal comps

By Ann O'Rourke on April 4, 2019 / adjustments, AVMS, bpos, deminimus, FHA, marketing, Mortgage applications, Strange homes, unusual home, weird homes, weird properties / Leave a comment

Tags: adjustments, appraisal business, appraisal how to, FHA, mortgage loan volume, strange house, unusal homes, unusual buildings, weird properties

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Tips for choosing comps on a unique home (straw-bale house)

By Ryan Lundquist

Excerpt: It almost sounds like the big bad wolf story, but there really are homes built from straw. Literally. Today I want to mention a few things about this type of construction, share some photos of a local straw-bale house, and then talk briefly about how I approached appraising this one.

Worth reading to find out what Ryan did!!

My comment: Very good tips on appraising unique homes. No lender issues as the appraisal is pre-listing and not for a lender… Sacramento is a Very Strange place for a straw-bale home!!

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!!

http://sacramentoappraisalblog.com/2019/03/05/the-problem-of-giving-too-much-weight-to-previous-sales-or-not-enough

Using home’s previous sales in appraisals

By Ann O'Rourke on March 21, 2019 / adjustments, appraisal how to, marketing, mortgage loan volume, real estate market, unusual home, unusual homes / Leave a comment

Tags: adjustments, appraisal how to, appraisal regulations, mortgage lending, mortgage loan volume, real estate market, unusal homes

The problem of giving too much weight to previous sales (or not enough)

By Ryan Lundquist

Excerpts: It must be worth more than it sold for in the past, right? In many cases, YES. But sometimes NO. Let’s talk through some things to consider when pulling comps and noticing a previous sale. I find many of these points coming up lately in conversation, so I hope this is helpful.

8 issues are discussed.

Here are a few

2) Unique property:

3) Unicorn buyer overpaid

8) Not penalizing because it sold too low

Closing advice: I recommend paying close attention to previous sales to get clues to understand how a property fits into the market. But don’t get so stuck that you don’t see the most important thing – current comps.

Good topic I have not seen discussed in detail before. Worth reading. Lots of comments!!

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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https://therealdeal.com/2019/03/04/fake-estate-digitally-doctored-listing-photos-are-on-the-rise

Appraisals and Altered Listing Photos

By Ann O'Rourke on March 7, 2019 / adjustments, appraisal business, appraisal how to, Fannie, mortgage loan volume, real estate market, Uncategorized, unusual home / Leave a comment

Tags: adjustments, appraisal business, appraisal how to, Fannie, mortgage loan volume, real estate market, unusal homes

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.

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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https://clevelandappraisalblog.com/2019/02/27/common-fha-violations

FHA appraisal problems

By Ann O'Rourke on February 28, 2019 / appraisal business, AVMS, deminimus, hybrid appraisals, mortgage loan volume, Strange homes, unusual home, USPAP / Leave a comment

Tags: appraisal business, appraisal waivers, Fannie, FHA, mortgage loan volume, strange house, USPAP

Common FHA Violations

Excerpt: I’ve been performing FHA appraisals since 2000. Believe it or not, on a regular basis, I have home owners and real estate agents who tell me that some of the things I point out as FHA violations, were never mentioned in other FHA appraisal inspections. So, I thought I would mention some relatively common FHA violations I see when making my FHA inspections.

My comment: Funny Fotos and Videos!! I have seen similar photos around but there are many here in one place. Written for home owners, but good reminders for appraisers.

Covid-19 Residential Appraisers Tips on Staying Safe

Common Appraiser Violations

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

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

https://georgedell.com/what-kind-of-appraiser-are-you

Traditionalist, advanced, vocational appraisers. What are you?

By Ann O'Rourke on December 21, 2018 / FHA, mortgage loan volume, Strange homes, unusual home, va, weird homes / Leave a comment

Tags: FHA, George Dell, mortgage loan volume, strange house, va appraisals

What kind of appraiser are you?

By George Dell

Excerpt: Let’s put aside the ‘art’ versus ‘science’ discussion, where the artists say: “No computer will ever replace the appraiser”, or “No amount of education will ever replace experience”. The other side seems a bit confused. There are traditionalists. And there are the “advanced” appraisers. And there are the “vocational” appraisers, who don’t seem to care much about all of this. They just want to push through as many reports as possible. The skeptics tend to doubt some of the old theory, as well as some of the “new theory”. Traditionalist, advanced, vocational appraisers. What are you?

My comment: Worth reading. I am a “traditionalist/skeptic”. What are you?

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, click Read More Below!!

https://therealdeal.com/2018/11/29/sorry-home-appraisers-bots-are-coming-for-your-jobs/

Bots replacing appraisers?

By Ann O'Rourke on December 6, 2018 / appraisal regulations, commercial appraisal, FHA, lender appraisals, Mortgage applications, mortgage loan volume, real estate market, threshold, unusual home, unusual homes, weird homes, weird properties / Leave a comment

Tags: appraisal business, appraisal regulations, appraisal threshold, FHA, mortgage loan volume, real estate market, strange house, unusal homes, weird properties

Sorry, home appraisers, bots are coming for your jobs

NOTE: This post was published in December 2018. This topic has been going on for a very long time since AVMs started in the 1970s.

Federal regulators are looking to change appraisal rules to allow for more automated appraisals

Excerpt: Such a change could prove lucrative for upstart property valuation companies that use algorithms, artificial intelligence and drones to value homes. If these rule changes had been in effect last year, roughly 214,000 additional home sales, or some $68 billion worth, could have traded hands without an appraiser. Bots replacing appraisers?

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Plan to Reduce Human Appraisals May Lead to ‘Wildly Inaccurate’ Estimates

From NAR:

Excerpt: Automated home evaluations likely would take the place of in-person appraisals for qualifying properties-a move appraisers warn could lead to inaccurate estimates and more sellers who are unrealistic about home value.

https://magazine.realtor/daily-news/2018/11/26/plan-to-reduce-human-appraisals-may-lead-to-wildly-inaccurate-estimates

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, click Read More Below!!

https://www.fdic.gov/news/board/2018/2018-11-20-notice-sum-c-fr.pdf

11-29-18 Newz// Proposed $400k threshold for appraisals -The American Garage – a very strange room

By Ann O'Rourke on November 29, 2018 / AMCs, evaluations, FHA, marketing, mortgage loan volume, real estate market, Strange homes, unusual home, weird homes / 2 Comments

Tags: AMC, appraisal management company, appraisal regulations, deminimus, FHA, mortgage loan volume, real estate market, strange house

$400,000 Proposed bank threshold for appraisals to be replaced by evaluations

Below are links to the proposed rule, what others are saying, and where to send your comments on the proposed rule.

OCC Issues Notice of Proposed Rulemaking to Exempt Residential Real Estate Transactions of $400,000 or Less from Appraisal Requirements

Excerpts: Rather than requiring an appraisal, the proposal would require that residential real estate transactions exempted by the threshold obtain an evaluation consistent with safe and sound banking practices.

Read what the OCC says in their announcement – one page www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-123.html

Comments will be accepted for 60 days from publication in the Federal Register.

Instructions in the full Full 69-page proposed rulemaking. Download the above link and search for comments

The word “evaluation” is included many times in the document. Google evaluation to see what it says.

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FDIC, OCC, Fed propose raising appraisal threshold for first time since 1994. Good analysis of how many loans would be affected:

https://www.housingwire.com/articles/47458-regulators-propose-ending-appraisal-requirement-on-some-home-sales-of-400000-and-below

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Push to cut back on home appraisals sparks controversy

By Ken Harney, long time nationally syndicated real estate writer who regularly writes about appraisal issues

Excerpt: The Trump administration wants to eliminate professional appraisals on a large number of home-sale transactions – a move that critics say could push the country back toward the see-no-evil days of mortgage lending that preceded the housing crash.

Includes comments from appraisers Ryan Lundquist and Pat Turner plus Appraisal Institute.

https://www.chicagotribune.com/classified/realestate/ct-re-1202-kenneth-harney-20181202-story.html

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Link to Appraisal Institute letter

https://www.appraisalinstitute.org/ano/ai-strongly-rejects-proposed-residential-appraisal-threshold-increase/

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Get rid of appraisers while nobody’s looking

By Ryan Lundquist

Excerpt: I’m guessing these “evaluators” will be real estate agents who do BPOs, employees at banks and data firms, and probably some appraisers who need the work at $75-$100 a pop.

Read it here, plus the appraiser comments, of course.

http://sacramentoappraisalblog.com/2018/11/26/get-rid-of-appraisers-while-nobodys-looking/

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My comments:

– FIRREA increased the deminimus from $200,000 (1989) to $250,000 in 1994, but appraisals were still done. Why? Fannie and Freddie’s investors wanted them. FHA, VA, etc did not adopt the deminimus.

– What is an ‘evaluation’ and who does them? Hopefully, someone will tell me what is an evaluation?

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https://clevelandappraisalblog.com/2018/10/25/are-sheds-outbuildings

Sheds vs. outbuildings for appraisals

By Ann O'Rourke on November 11, 2018 / appraisal business, appraisal how to, Mortgage applications, mortgage loan volume, real estate market, unusual home, weird homes / Leave a comment

Tags: adjustments, appraisal business, appraisal how to, mortgage lending, mortgage loan volume, real estate market, strange house, unusal homes

Are Sheds Outbuildings?

Excerpts: Often, when appraising homes, I see MLS listings that call a shed an out building. Ask any appraiser and they will likely say that a shed is not an outbuilding. So, are sheds outbuildings?…

In appraising properties, there is a big difference in value between a shed and a large outbuilding. Most of the time, at least in my market, sheds really do not add any significant market value to a home. However, a large out building can add tens of thousands of dollars in value to a home…

Well written and worth reading:

My comments: I never really thought about this before, even though I see a lot of “sheds”…

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 11-8-18 long blog post with many topics, click Read More Below!!