Appraisal in Changing Markets

Sellers Chasing the ball down the road in real estate

By Ryan Lundquist

Excerpts: Commentary from a (Ryan) appraisal: Here is a bit of commentary in one of my recent appraisal reports. This is only part of what I say because I’m a man who needs a few paragraphs. One box just isn’t enough.

“At the least we ought to describe the market as showing a downward seasonal shift, though it’s possible we can call this a downward cycle if the trend persists over time. For now, it is most reasonable to categorize the market as having growing uncertainty and blatantly inflamed downward seasonal price declines compared to a normal seasonal trend. At the least, properties are clearly selling for less than they did several months ago. The regional median price has ticked down about 7% since May, which is $45,000. This doesn’t mean every property is worth $45,000 less, but it’s been clear buyers have been resisting paying higher prices.”

Okay, one last thing about size: During the beginning of the pandemic there was a blatant spike in home size due to a greater focus on larger homes at higher prices. This spike basically peaked one year ago as size has started to normalize. Now let’s keep watching to see what happens to size. Will we see smaller homes more often as first-time buyers flood the market? Will we see fewer sales at the highest prices? To be determined.

To read more, click here

My comments: Scroll down the page for more comments from Ryan. Markets are changing in many areas, but are complicated by price range, size, etc. I remember the easy days of market condition adjustments 1% per month up or down, for example, to apply to all detached home appraisals. Ryan has been writing about the ups and downs of his market for a long time. Maybe you can use some of his ideas, graphs, and/or explanations in your appraisals.

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Navigating a Changing Market

by Isaac Peck, Editor

Excerpts: … senior leaders at AMCs, lenders and the GSEs have noted that slower appraisal volume will favor those appraisers who can stay in communication with their clients and provide faster turn times. “During the heyday of 3 percent interest rates, it was acceptable for appraisers to take three to four weeks to complete an appraisal and forget to update the client. Now that volume has declined to normal levels, those appraisers who aren’t providing good customer service may see their businesses suffer,” remarked a senior executive at a major bank.

At the end of the day, (Ryan) Lundquist says his goal is to report what is happening in the market right now—accurately and without sensationalism. “I’m constantly changing what I say in my appraisals, and I’m very careful of boilerplate and canned statements. A quick change in interest rates has led to a quick change in the market. My appraisals talk about more stable prices in my area but also about uncertainty regarding the future. Pending volume is softening, available listings are skyrocketing, and it is taking longer to sell—but there are still stats that suggest there is heavy competition for certain homes. It changes by the week. There’s no easy way to quickly do this, it takes effort. There’s no such thing as being a market expert without putting in the time to be an expert,” argues Lundquist.

To read more, click here  

My comments:  This article uses AEI data, graphs, and reports from June. Some are out of date in September. I follow AEI (American Enterprise Institute), which has excellent data and reports. For more info on AEI, click here 

The MBA data, loan application volume (see below) is the future of appraisal volume. Using recent September data, loan applications are below the levels in 2019 and still dropping. I have a graph of this every month in my paid monthly newsletter. Loan applications went up this week but are still below 2019 levels.

The upcoming October issue of the monthly Appraisal Today has an article, “Which are your best current and former AMC/lender clients? What do they want?” The Big Three: Turn Time/Quality/Fee. I discuss what lenders want and how to provide better service and get more business. Number 1 for lenders (AMCs’ clients) has always been turn time.

Humor for Appraisers

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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 VA changes, Driving vs. office time, unusual homes, mortgage origination stats, etc.

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Tube-Shaped Home in Florida Asking $1.15M

Excerpt: The one-bedroom, two-bathroom home (3,216 sq.ft. and .26 acre lot), is listed for $1.2 million. The price includes a detached garage, which currently has a pool table, lofted bedroom, and office. The listing has a 3D tour and T3 photos.

The upper level includes the bedroom, a bath, and access to a deck overlooking the backyard. The compound features a back area with a pool, hot tub, and seating areas.

“The whole house is set up for entertaining,” Helgren (real estate agent) says. There’s a bar and a kitchen with four ovens. From the cook area, a door leads to an outdoor kitchen near the pool. The home is next to a walking and biking trail that goes for more than 40 miles.

To read more, click here

To see the listing with lots of photos, click here

My comments: An aerial photo shows the nearby homes look like they are all standard tract style homes. Wonder how they got a permit for this home
;>

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Comparison of lender and non-lender appraisals

In this article, I go over the pluses and minuses of lender vs. non-lender appraisals to help you decide if you want to do non-lender appraisals. They are very different. Below is an excerpt about the pluses and minuses of different types of non-lender work.

(Note: I have written many articles about specific types of non-lender appraisals and have done non-lender appraisals for many types of clients, except eminent domain/right of way.)

Divorce
Plus: Very well paid. Repeat business.
Minus: Must be willing to testify in court. Sometimes have to listen to negative, personal comments about the other spouse.
Tip: Don’t believe it when they say there will be no testimony.
Litigation support

Value dispute: loss of a view, fence line, almost anything people argue about.
Plus: Very well paid.
Minus: Must testify in court. Expertise required.

Private sales. Tenant, friend, or relative wants to buy. Work for buyer, seller, or both.
Plus: Higher than AMC fees. Paid in advance or at the door.
Minus: Sometimes differences of opinion between buyer and seller.

Pre-listing, pre-purchase, pre-sale appraisal
Plus: Good fees, paid at the door
Minus: You may have some hassles with the real estate agent if they disagree with you.

Rent survey
Done for divorce and sometimes for estates.
Plus: Good fees, paid in advance
Minus: You may need to go way back in time. Be sure to charge extra. Can be difficult getting accurate historic rents for homes.

Insurance companies. Before and after being damaged or destroyed.
Plus: Good fees.
Minus: Difficult to market. Mine have all been from referrals. If the building has been completely destroyed, it can be difficult to find out what it was like before being destroyed.

To read more about this topic, plus 2+ years of previous issues, subscribe to the paid Appraisal Today.

If this article helped you decide if you want to do non-lender appraisals, or expand your non-lender business, it is worth the subscription price!

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If you have any comments or info on any topics, please hit the reply button!! I’m always looking for something new ;>

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U.S. House Passes VA Appraisal Modernization Legislation

House Bill 7735 “Improving Access to the VA Home Loan Act of 2022”

Excerpts: “The bill will encourage important reforms to the agency’s requirements regarding when an appraisal is necessary, how appraisals are conducted, and who is eligible to conduct an appraisal. This legislation is an important first step towards broad modernization of VA appraisal processes and could make veterans’ home purchase offers more viable in today’s competitive housing market.

Changes include:
(1) certification requirements for appraisers;
(2) minimum property requirements;
(3) the process for selecting and reviewing comparable sales;
(4) quality control processes;
(5) the Assisted Appraisal Processing Program;
(6) the use of waivers or other alternatives to existing appraisal processes
Also mentioned was Desktop appraisals, although that was approved in July.

To read more in this article, click here

To read the House bill, click here

My comments: Changes are too late, of course. Appraisers are not busy in many areas. Sales are slow, and sellers are more willing to accept VA loans. Lenders have always wanted VA appraisals to become more like conventional appraisals.

VA has always been an excellent appraisal opportunity. It looks like changes are coming. The VA puts the veterans as their top priority, not making money. They are an excellent client.

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Appraisal Institute sends a letter on May 23 opposing the VA legislation and its Senate counterpart S. 4208

The AI believes that concerns about slow VA appraisal turnaround times are overblown. In a May 13 letter to the House Veterans Affairs Committee, AI noted, “We believe the VA appraisal process is sound and deserves broad support by the mortgage and housing sectors. We believe there are ways in which the program can be enhanced – education and awareness on the AAPP program, being one.”

To read Senate Bill S.4208 (Proposed Companion bill) – Improving Access to the VA Home Loan Act of 2-22, click here 

The AI letter discusses Turn times, Tidewater, VA Fee panel, and other topics.

To read the Appraisal Institute letter, click here

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How Much Time Do Appraisers Spend in the Office vs. the Car?

McKissock Survey

Excerpts: The vast majority of respondents said that they spend at least 50% of their workday in the office these days—with many spending 70-80% of the day in the office. Here are their comments regarding why this is, how their time is split between different types of tasks, and how they manage their time to maximize efficiency.

A few of the appraiser comments:

“Homeowners often think the site visit is all there is to an appraisal. I tell them, ‘This is the fun, easy part. I get to meet nice people and see nice homes, then I get to spend several hours of quality time with my computer screen.'”

“When I first started appraising real estate in 1986, most of the time was in the field, about 80%. Now it’s 80% in the office.”

“Makes me sure appreciate getting to go back out on the field and/or drive around. The ‘real’ question is: How much time is spent thinking about a difficult job and write up? Too much sometimes.”

“Inspections in a rural area put me on the road up to 200 miles in one day. Then writing the appraisal from home. Usually one day in the office to manage new assignments and file all of my work files weekly.”

“I currently review appraisals and consult with the lending team for appraisal questions and products for a large bank in the Northeast. All time is spent in the office.”

To read more, including appraiser comments, click here

My comments: The article includes many comments from appraisers regarding how their time is split between different types of tasks, and how they manage their time to maximize efficiency.

When I started my business over 35 years ago, I worked 5 Bay Area counties, drove a lot, and subscribed to 5-6 local MLS. I kept going to fewer and fewer counties over time. For the past 10 years, I have only been appraising in my small city. Why? I finally figured out that driving takes too much time, especially with the sometimes heavy Bay Area traffic. Appraisers sell our time. Once time is gone, you can never get it back. I wanted to make more money per hour by driving fewer hours.

Now that business is slow in many areas, some appraisers are considering expanding their geographic area. But lenders have always wanted fast turn times. Definitely a conflict.

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Fennell Residence, Portland, Oregon

Excerpts: “The Fennell Residence (2,306 sq.ft.) presented a unique challenge as the site was “on” the Willamette River as opposed to “by” the river. The project is focused on the poetry of the ripples and contours of the river, it’s never ending flow, the view, and the interrelationship concerning the play of the sun and moon as it courses through the days of the year. Curved glue laminated beams were used to capture the timeless sense of flowing water and time passing to imbue the space within and its relationship with the river creating a spiritual and poetic sense of space.”

“The Fennell Residence belongs on the water; if it were built anywhere else it would make little sense. Whether it is the undulating forms, which seem to follow the ebb and flow of the water, or the expanse of glazing that throws back a reflection of the sky just as the water beneath it does. The Fennell Residence dissolves into the river.”

To read more and see the photos, click here

My comments: Many thanks to Lisa Forbes for posting a link on the National Appraisers Forum, an email chat group, the only appraiser “social media” I regularly use. I have been a member since soon after it was started by Steve Smith as the Inland Appraisers Forum, who still does regular posts. For more information on the National Appraisers Forum click here

Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW 7 AM to noon, Pacific time.

My comments: Rates are going up. Some appraisers are very busy, and others have little work. Varies widely around the country.

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Mortgage applications increased 3.8 percent from one week earlier

Mortgage applications increased 3.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 16, 2022. Last week’s results include an adjustment for the Labor Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 14 percent compared with the previous week. The Refinance Index increased 10 percent from the previous week and was 83 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index increased 11 percent compared with the previous week and was 30 percent lower than the same week one year ago.

“Treasury yields continued to climb higher last week in anticipation of the Federal Reserve’s September meeting, where it is expected that they will announce – in their efforts to slow inflation – another sizable short-term rate hike. Mortgage rates followed suit last week, increasing across the board, with the 30-year fixed rate jumping 24 basis points to 6.25 percent – the highest since October 2008,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “As with the swings in rates and other uncertainties around the housing market and broader economy, mortgage applications increased for the first time in six weeks but remained well below last year’s levels, with purchase applications 30 percent lower and refinance activity down 83 percent. The weekly gain in applications, despite higher rates, underscores the overall volatility right now as well as Labor Day-adjusted results the prior week.”

The refinance share of mortgage activity increased to 32.5 percent of total applications from 30.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 9.1 percent of total applications.

The FHA share of total applications decreased to 13.3 percent from 13.4 percent the week prior. The VA share of total applications decreased to 10.9 percent from 11.3 percent the week prior. The USDA share of total applications decreased to 0.6 percent from 0.7 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 6.25 percent from 6.01 percent, with points decreasing to 0.71 from 0.76 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $647,200) increased to 5.79 percent from 5.56 percent, with points increasing to 0.46 from 0.39 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 5.85 percent from 5.71 percent, with points increasing to 1.15 from 1.12 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.40 percent from 5.30 percent, with points increasing to 1.06 from 0.89 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 5.14 percent from 4.83 percent, with points increasing to 0.99 from 0.52 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, and thrifts. Base period and value for all indexes is March 16, 1990=100.

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Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
1826 Clement Ave. Suite 203 Alameda, CA 94501
Phone 510-865-8041
Email  ann@appraisaltoday.com
www.appraisaltoday.com

VA Approves Desktops and Exterior-Only Appraisals

VA Approves Desktops and Exterior-Only Appraisals

Excerpts from the Summary: On August 1, 2022, the Veterans Affairs released Circular 26-22-13 announcing new procedures for alternative valuation methods, effective immediately.

“The use of a Desktop Appraisal may allow an appraiser from outside the market area, but with appropriate credentials for the jurisdiction of the property, to complete the assignment when no local VA fee panel appraiser is available.”

“Appraisal Assignment Waterfall. With consideration for the high demand for appraisal services and limited availability of appraisers in certain local market areas, VA is providing lenders, servicers, and appraisers with a procedural waterfall that clarifies acceptable valuation methods when certain conditions exist. Lenders and appraisers can also refer to Exhibit A for more information. VA continues to explore opportunities for expanding the use of Exterior-only Appraisals and Desktop Appraisals and will update this procedural waterfall, as appropriate.”

To read the full blog post, click here

The summary and Circular are in the blog post.

To read more about the May 2022 proposal to eliminate the fee panel, click here 

I wrote about the VA in my July 8 email newsletter. To read it, click here

My comments: The big push to cut down on appraisal turn times because of the appraisal shortage is Very Old News since mortgage volume has plummeted. I always recommend VA as the best lender client for appraisers. I wrote about it in the past and interviewed VA employees, appraisers on the VA panel, and appraisers who did not want to do VA appraisals in my paid monthly newsletter.

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Where VA loans are soaring. Are you doing VA appraisals?

Appraisal Business Tips 

Humor for Appraisers

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 non-lender appraisals, real estate market, unusual homes, mortgage origination stats, etc.

Read more!!

VA Appraisals and Fee Appraisers

V.A. as a Model for Appraisals

by Isaac Peck

Excerpts:

Step Above the Rest

It’s not a secret that being on the V.A. appraiser roster is a coveted position for most residential appraisers. So, what exactly makes the V.A. so special?

Rocha (V.A. appraiser) says the V.A. is a step above the rest primarily because of the following criteria.

V.A. wants a good quality panel

V.A. pays higher appraisal fees

V.A. delivers fast turn times to veterans

V.A. doesn’t use Appraisal Management Companies (AMCs)

V.A. has a program that encourages the use of trainees

V.A.’s Tidewater Program is fair to all sides

Fees, Turn Time, and Quality

The first four criteria are certainly related and are worth examining together. For starters, the fact that the V.A. does not use AMCs allows them to pay more directly to the appraiser, according to Rocha. “Instead of AMCs, the V.A. has a Portal which is really streamlined and easy for stakeholders to use. We can communicate in that Portal and it sends it out to all parties and keeps everyone in close communication,” says Rocha.

To read more, click here

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Proposal to Eliminate the V.A. Fee Panel

Excerpt: On May 1,8, 2022 the Subcommittee on Economic Opportunity held a legislative hearing on the Discussion Draft of H.R. 7735, Improving Access to the V.A. Home Loan Act of 2022… It would require the V.A. to consider when an appraisal is unnecessary and when a desktop appraisal should be used and, a move from the V.A. Fee Panel to a lender select program. Mortgage Bankers Association advocated for the proposal. Appraisal Institute opposed it.

To read more, click here

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My comments: V.A. is the best lender client for appraisers. You are working for the veteran to be sure they do not overpay, find out about problems, etc. You are not working for a lender who just wants to make the loan.

Where VA loans are soaring. Are you doing VA appraisals?

Appraisal Business Tips 

Humor for Appraisers

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 No more floor plans?, non-lender appraisals, hurricane with and surge risks, unusual homes, mortgage origination stats, etc.

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Tips on appraising new construction homes

6 Tips for Appraising New Construction Homes

Excerpts: New construction is treated a little differently by lenders, FHA, and the GSEs. When appraising new construction homes, you must take into consideration certain features and attributes that don’t necessarily apply to re-sales. It requires more work, so you want to be sure that you are charging for your effort. However, perhaps more than that, you want to be sure you’re following the proper protocol. Stick to these best practices to ensure you cover all your bases.

3. Talk to multiple local builders You can gain valuable information from builders—as long as you talk to them now to evaluate current costs and value. Some of the best construction cost data is compiled by you as you complete new construction appraisal assignments. When appraising new proposed construction, the prior data can be reviewed for those construction projects that are most similar to the subject property in quality, size, and features and be used as cost data to support cost estimates for the current appraisal. As the cost of construction materials generally continue to spiral upwards, it may be necessary to adjust for time, depending on how old the cost data is.

To read more tips, click here

My comments: Well written and worth reading. New home construction appraisals can be tricky. I quit doing them a while ago – too many various hassles, but many appraisers like doing them. There are few new homes built in my area, except stacked condos. Land is too expensive.

Appraisal Business Tips 

Humor for Appraisers

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 VA appraisals, appraisal modernization, eliminate VA panel, unusual homes, mortgage origination stats, etc.

Read more!!

So Many Appraisal Cost Approach Questions

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.

Appraisal Process Challenges(Opens in a new browser tab)

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

Read more!!

Strange Appraisal Terms

Excerpts: Since space is the only place that is pandemic free, I thought it would be fun to try to apply space and science fiction terms to real estate. Let’s take a little break from the stressful atmosphere we are experiencing here on earth and have a little fun. Perhaps you can think of more.

Here are two:

Orbit– The path homeowners take whilst following the appraiser around the home, trying not to follow too closely by maintaining at least six feet of distance. (Probably taking pictures of the appraiser in the PPE)

Blackhole – The place where Zestimates go after being debunked by reality.

To read and see lots more Strange Appraisal Terms, click here.

My comment: I love Jamie Owens’ blog posts! Unbelievably creative!! Plus, outstanding/strange videos, animated gifs, etc. etc. I have been a big SciFi fan since high school and used space videos in my experimental music band for many years.

More Appraisal Humor

Appraisal business tips

For lots more appraisal topics, Click  Read More below!

Read more!!

7 Things to Watch in your Appraisal Market

Seven things to watch in real estate during a pandemic

April 14, 2020 By Ryan Lundquist

Excerpts:

1) Listings: We often think about listings increasing as a way to see the market changing, but right now many markets across the country are seeing fewer new listings. So at times change is best seen with less of something rather than more. It’s not a surprise to see fewer new properties during a pandemic, right?…

7) Prices: In real estate we are so obsessed with prices, but that’s really the last place to look to see the market. What I mean is change happens first in the areas above before showing up in sales stats a couple months down the road. In short, for now the slower pandemic trend hasn’t infiltrated sales price figures as of yet in Sacramento. This doesn’t mean the market is stable in every price range and location. All I’m saying is regional and county stats don’t show price declines right now. Normally I pull monthly price data, but I’ve switched to weekly in order to see the trend sooner rather than later.

To see the other 4 factors plus lotsa graphs and many appraiser comments , click here

Appraisal Humor

Appraisal business tips

Pandemic and market for buyers and sellers: Appraisals(Opens in a new browser tab)

Very, very funny appraisal video!!(Opens in a new browser tab)

To read about lots more appraisal topics, continue reading below!

Read more!!

Covid humor for appraisers

Fun video – Take a 3 minute break!

One Day More – A Quarantined Broadway LipSync

Fantastic!! Made me smile. Regular people.

Many thanks to John Regan, a long time subscriber and big opera fan!

To watch click here

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!!

Read more!!

Covid-19 and appraisals. March 20 2020

March 20, 2020

There are many, many issues which seems to be changing on a daily basis. I wrote this yesterday. There have already been changes I am sure. I am including links to relevant information below

The big refi boom is causing lots of desperate lenders and AMCs trying to find appraisers.

You don’t need more info on keeping safe as it is available all over. What I discuss today is shift from interior inspections to drivebys, forms, what lenders are saying, what real estate agents are doing, the market changes (maybe), liability, etc.

What are lenders and AMCs doing?

Some direct lenders, such as Citibank, are sending out emails about what they recommend. On the other side AMCs are acting like nothing has happened and sending out email blast low fee appraisal request. FYI, it is a lot easier for one lender to change. AMCs work for many lenders.

Info on what Citibank is recommending from VaCAP:

Many are fearful exterior only appraisals will be the end of the traditional appraisal as we know it. Right or wrong, exterior only appraisals are a possibility that may be acceptable in certain situations. VaCAP does not believe it will end traditional appraisals with interior inspections. The profession has been down this road before. It will not fly long term, especially if the market turns downward.

Some lenders are establishing COVID-19 protocols to follow and some have remained quiet on the subject. There are rumors that one lender has instructed appraisers not to inquire as the health of the occupants of the home due to privacy laws. Others like Citibank have developed their own protocol on how appraisers should handle COVID-19 concerns. There is great flexibility to the appraiser. See Citibank’s protocol below:

Worth reading. To read more, click here

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

Appraiser Recovers From COVID-19

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

Read more!!

What is “retirement” for appraisers?

Appraising in Retirement

by Isaac Peck

Excerpt: According to the Appraisal Institute’s latest Valuation Professional Factsheet (Dec. 2018), over 70 percent of all licensed or credentialed appraisers across the U.S. are over 50 years old, with over 20 percent being over 66 years old. As appraiser demographics continue to shift older and grayer, some within the industry have predicted sharp declines in the number of practicing appraisers as they begin to retire. However, as the numbers show, appraising appears to be an optimal career to continue part time, in retirement.

Melvyn Wolf, a Certified Residential appraiser, licensed in Illinois and Wisconsin, is one such appraiser. Born in 1942, Wolf is 77 years old and has been a real estate appraiser for 33 years. He says he will continue appraising as long as he is physically fit and in good health. Here’s his story.

To read more, click here

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My comments: The July 2018 issue of Appraisal Today had my article: “Retirement for fee appraisers: when, why, and lots of options”. I discussed when to take social security, fixed costs, burnout, spouse retirement, etc. Also, for self employed people what does retirement mean? For appraisers, including myself, often you gradually cut back on appraisals. I am 76 and started Social Security at age 70. It is currently $3,470 per month and 85% taxable. It goes on top of my business income and puts me in a high marginal tax rate. I can’t cut back easily on my newsletter business, so I do fewer appraisals. What is “retirement” for appraisers?

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What is “retirement” for appraisers??

An Appraiser’s Full Circle

By Mike Foil

Excerpt: A couple of years ago, I asked my brother who had just closed his business, “How do you know when you are done and it’s time to retire?” He answered, “When it is time, you will know.”

There are considerations: health, finances, what to do, and the passion you still have for appraising. I’m turning 70 in a few months and enjoy good health. We see a path financially without the need for appraisal fees; however, having just received payment for the last file in accounts receivable did put a stamp of finality on the decision. I have ‘projects’ to work on: thinning trees and brush on four acres I want to split into three building sites, writing a study on “The Salvation of the Soul,” and family time (wife, kids, and 16 grandkids). As for my passion for appraising, it is gone.

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