Appraisal News and Business Tips

Posts Tagged appraisal fees

1-12-17 Newz .New scam: owners pose as renters, 21 day turn times

Haunting Photos of Europe’s Abandoned Buildings, From Steel Plants to Castles

Excerpt: Photographer Hans Van Vrouwerf first started shooting abandoned buildings in 2010. He started with an old stone factory in a village in the Dutch countryside and when he got home, Van Vrouwerf started to research other buildings. As a committed urban explorer, with the countries of Western Europe as his backyard, he has sought out derelict buildings not only in his home base of the Netherlands, but also in Belgium, Germany, France, and Luxembourg.

http://www.atlasobscura.com/articles/haunting-photos-of-europes-abandoned-buildings-from-steel-plants-to-castles 

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What’s the most disturbing history you’ve learned about a house you were selling?
More than 5,000 comments in 48 hours on Reddit
Excerpt: At first glance, it’s a simple question: What’s the most disturbing history you’ve learned about a house you were selling.
But what started out as a 13-word question on share-site Reddit, spiraled into unsettling long responses from tons of users, generating more than 5,000 responses in only 48 hours.
My comment: Wow!! I thought I had seen some bad stuff as an appraiser, but it was nothing compared to these comments. Warning: can be disturbing, especially the dead bodies. Be sure to check out the comments (and threads)

Read more!!

12-22-16 Newz//: Strange real estate listings, Turn times

Popular (and sometimes strange) real estate listings

 Take a break and check out these listings!!

The 4 Most Interesting Home Listings of 2016 – Fun Video

Video is 2 minutes and 40 seconds long and very entertaining!!

Can’t describe it. You just gotta see it!!

http://www.realtor.com/videos/video-the-4-most-interesting-home-listings-of-2016/943a657f-f1fc-4290-b608-fe158002f548

……….

2016’s top 10 most popular (and sometime strange) homes for sale

Here are 3 of them

No. 1 is the country’s biggest fixer-upper – over 60,000 sq.ft. in Texas. Price: Listed for $3.6 million

5. The cave dwelling, Undisclosed address, Festus, Missouri. Price: Listed for $314,900

10. The ‘Amityville Horror’ house, 108 Ocean Ave, Amityville, New York. Price: Listed for $850,000, entered into contract in November

http://www.housingwire.com/articles/38783-here-are-2016s-top-10-most-popular-homes-for-sale

Read more!!

Appraisal average turn times by state in business days, a very wide range

Direct lender –  average turn times by state in business days, a very wide range:
ALABAMA
10
  MINNESOTA
          9
ARKANSAS
0
  MISSOURI
  17
ARIZONA
16
  MISSISSIPPI
  10
CALIFORNIA
10
  NORTH CAROLINA
  14
COLORADO
24
  NEW HAMPSHIRE
  20
CONNETICUT
9
  NEW JERSEY
11
DISTRICT OF COLUMBIA
4
  NEW MEXICO
  20
FLORIDA
8
  NEVADA
  2
GEORGIA
9
  NEW YORK
  16
IDAHO
10
  OHIO
  17
ILLINOIS
10
  OREGON
  31
INDIANA
14
  PENSYLVANIA
  11
KANSAS
14
  RHODE ISLAND
  15
KENTUCKY
13
  SOUTH CAROLINA
  12
LOUISIANA
7
  TENNESSEE
  14
MASSACHUSETTS
12
  TEXAS
  12
MARYLAND
13
  VIRGINIA
   8
MAINE
28
  WASHINGTON
  19
MICHIGAN
 13
  WISCONSIN
  12
Note: some states had little or no data and were not included.
FYI, the January 2017 issue of Appraisal Today includes this article: “Is the New AMC business model broken?”, which discusses AMCs and why they are obsessed with 3 day turn times, among many other topics…

9-15-16 Newz// Rush fees, Flying saucer homes, $1.1 billion home

A Map of the Last Remaining Flying Saucer Homes

All the 1960s Futuro Houses left in the world.

Just For Fun!! Take a break from writing up those darn appraisal reports ;>

Excerpt: The Futuro House, in all its space age retro splendor, is like a physical manifestation of 1960s optimism. Shaped like the Hollywood idea of a flying saucer, the Futuro is a plastic, prefabricated, portable vacation home built to easily adapt to any climate or terrain, from mountain slopes to the seaside. After enjoying a heyday in the late ’60s and early ’70s, the remaining Futuros are now scattered across all parts of the globe, from the Australian beaches to the mountains of Russia, like secluded relics of midcentury technoutopianism.

Very interesting!!

http://www.atlasobscura.com/articles/a-map-of-the-last-remaining-flying-saucer-homes

My comment: I love atlasobscura.com. The strange homes and buildings I include in these emails are just the tip of the iceberg!!!!

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What is your typical rush fee?

www.appraisalport.com poll.

 

My comment: Rush fees are another way to make more money during this boom time, to save for the downturn when AMC fees will drop.

The most critical appraisals are those for purchases, which can require rush fees to get appraisers to drop their regular refi business and do them.

I am hearing about widely varying AMC fee increases from around the country, depending on the local market supply of appraisers willing to work for AMCs I guess. Savvy AMC appraisers reply to low bids with an increased fee. After a few weeks, sometimes their fee is accepted. Local appraisers I know only work for a very few select AMCs, if any. But, when business slows way down, they take more AMC work. I also hear from appraisers in the same market with widely varying fees that they will accept.

What do I do? Rush fees stress me out too much as I am very backed up. I just put new appraisal requests in my queue, which is typically around 60 days. Sometimes I will do one faster if it is a special circumstance and/or a referral from a local real estate agent, but I don’t require a rush fee. When I used to do appraisals for purchases, I always gave them priority but never charged a rush fee. I am definitely in the minority!!

What do you think? Post your comments at https://wp.me/p7jsxG-Cl !!!

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The Most Expensive House In The World Could Sell For $1.1 Billion

Just For Fun!! Take a break from writing up those darn appraisal reports ;>

Excerpt: What can justify a $1.1 billion price tag for a house?

Before searching for the features behind the number, let’s clarify that in this case, “the house” is rather a large, opulent mansion on the French Côte d’Azur, set in a “small” privileged refuge between Nice and Monaco frequently described as the ‘billionaires’ playground.’

First, there’s the house itself, with the understated name Villa Les Cèdres-The Cedars-at the center of Saint-Jean-Cap-Ferrat, known in French as a “presqu’île,” or “almost island.”

The description of the magnificent property in the French press includes 10 bedrooms, a ballroom, concierge, a chapel, 50-meter swimming pool dug into the rocks, a winter garden and stables for 30 horses.

My comment: I could take a few months (or more) to do an appraisal for a trip to France to appraise this property… Or maybe just an open house tour ;>

Very interesting!!

http://www.forbes.com/sites/ceciliarodriguez/2016/08/20/at-1-1-billion-the-most-expensive-house-in-the-world-in-france-goes-to-market

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Beware of unknown desperate AMCs sending email solicitations

An appraiser I know, who only works for one AMC, received an email request from an AMC he had never heard of. He replied politely that he was not interested. He was added to their approved list and bombarded with requests for appraisals every day. It was a lot of hassle to get his name removed.

I seldom get any AMC appraisal requests by email or phone, or request to join their panel. I must be on a Do Not Call or Email List ;> I have been replying to emails saying I have never worked for an AMC. They are really getting desperate!! Now, I am thinking about not even replying.

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In the June 2016 issue of Appraisal Today

FHA attic inspection requirement 

Excerpt: Inspection Tips – Insulation and attic access by Doug Smith, SRA, AI-RRS

When blown in insulation is added, the installer will often add an extension or dam to the scuttle that makes it difficult to fully observe the full attic.

Formerly, attics had walkways which when blown in insulation is applied, these walkways were covered with insulation. If the scuttle is in a closet and closet shelves make it difficult to fully access the attic, the difficulty with attic must be reported and a photograph taken to demonstrate the difficulty with attic access.

However, if the access is blocked by personal possessions, it may be practical to enlist the help of the homeowner to make the attic or scuttle accessible. In the instant case of the underwriter stating that a full inspection is required, the underwriter is incorrect.

The appraiser must document why a full inspection was not performed when there is not an accessible attic. Suggested language might include: “A full attic inspection was not

performed as the subject property does not have a readily accessible attic and only has scuttle access.” Along with a photo of what can be seen from the scuttle, the appraiser might add that the appraiser completed a head and shoulders inspection of the attic.

Remember to check the block on page one of the form that the attic is accessed by a scuttle. If the property has a full attic, note if a full inspection was performed and comment how access was gained either by stairway or drop stair.

To read the full article, plus 2+ years of previous issues, subscribe to the paid Appraisal Today.

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If you are a paid subscriber and did not get the September 2016 issue, emailed September 1, 2016, please send an email to info@appraisaltoday.com   and we will send it to you!! Or, hit the reply button. Be sure to put in a comment requesting it ;>

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Selling a $5 Million, Seven-Story Basket Is No Picnic

Its size, location, and fundamental basket-ness make it tough to sell, even at a steep discount

Thanks (again) to Jonathan Miller at http://www.millersamuel.com/housing-notes/

Excerpts: “You might see it three or four miles off before you come around the bend, and then you say, ‘That is a basket. That is unquestionably a basket,'” said Tom Rochon.

It is a basket, or rather, a seven-story office building shaped like one-a massive facsimile of the signature picnic basket made by the company once headquartered there. Some 40 miles outside Columbus, Ohio, the basket building, as it’s locally known, is one of the area’s grandest attractions, inviting quirky selfie-seekers, architecture nerds, and, of course, basket enthusiasts.

When the property – slightly larger than another Ohio landmark, Cleveland’s Rock and Roll Hall of Fame-was listed 18 months ago, the asking price was $7.5 million. Now it’s on the market for $5 million, or about $28 a square foot, about half of what traditionally shaped office buildings in the area usually sell for… commercial property in the area typically ranges from $50 to $80 a square foot.

The basket was built for about $32 million and finished in 1997.

http://www.bloomberg.com/news/articles/2016-09-07/selling-a-5-million-seven-story-basket-is-no-picnic

My comment: I regularly write about weird properties in my weekly emails, including the Basket House a few years ago. Finally we find out what it is (not) worth. Definitely an Appraisal Challenge!!

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Status Quo Bias: ‘Linear” Thinking in the Real Estate Industry

by Jonathan Miller

Excerpt: When we look at forecasting, planning, trending or anything that includes a look out over the future, I find the real estate industry (i.e. appraisers, real estate agents & brokers) generally thinks along linear lines.

For example:

When housing prices rise…they will rise forever.

When housing prices fall…they will fall forever.

When sales activity rises…they will rise for ever.

When inventory falls…it will fall forever.

When rental prices rise…they will rise forever.

…and so on.

Where does this status quo bias come from?

Click here for some more interesting comments..

http://www.millersamuel.com/status-quo-bias-linear-thinking-in-the-real-estate-industry/

My comment: Of course, I completely agree. It is very important if you work in a market like mine, where residential prices seem to go from stable to increasing and back overnight. I have no idea why. I go on the broker open house tour every week and see what agents are saying. For example, only 1 or 2 offers vs. 5-6 and longer days on market

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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, go to https://www.mba.org

Note: I publish a graph of this data every month in my printed newsletter, Appraisal Today. For more information or get a FREE sample issue go to www.appraisaltoday.com/products or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.

WASHINGTON, D.C. (September 14, 2016

Mortgage applications increased 4.2 percent from one week earlier,

according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 9, 2016. This week’s results included an adjustment for the Labor Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 4.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 17 percent compared with the previous week. The Refinance Index increased 2 percent from the previous week. The seasonally adjusted Purchase Index increased 9 percent from one week earlier. The unadjusted Purchase Index decreased 15 percent compared with the previous week and was 8 percent higher than the same week one year ago.

The refinance share of mortgage activity decreased to 62.9 percent of total applications from 64.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 4.6 percent of total applications.

The FHA share of total applications increased to 9.6 percent from 9.5 percent the week prior. The VA share of total applications increased to 12.0 percent from 11.9 percent the week prior. The USDA share of total applications increased to 0.7 percent from 0.6 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.67 percent from 3.68 percent, with points decreasing to 0.36 from 0.37 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.64 percent from 3.66 percent, with points increasing to 0.36 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.50 percent from 3.52 percent, with points decreasing to 0.27 from 0.35 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 2.97 percent from 2.96 percent, with points unchanged at 0.34 (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 remained unchanged at 2.87 percent, with points increasing to 0.37 from 0.30 (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.

What is your typical rush appraisal fee?

My comment: Rush fees are another way to make more money during this boom time, to save for the downturn when AMC fees will drop.
The most critical appraisals are those for purchases, which can require rush fees to get appraisers to drop their regular refi business and do them.
I am hearing about widely varying AMC fee increases from around the country, depending on the local market supply of appraisers willing to work for AMCs I guess. Savvy AMC appraisers reply to low bids with an increased fee. After a few weeks, sometimes their fee is accepted. Local appraisers I know only work for a very few select AMCs, if any. But, when business slows way down, they take more AMC work. I also hear from appraisers in the same market with widely varying fees that they will accept.
What do I do? Rush fees stress me out too much as I am very backed up. I just put new appraisal requests in my queue, which is typically around 60 days. Sometimes I will do one faster if it is a special circumstance and/or a referral from a local real estate agent, but I don’t require a rush fee. When I used to do appraisals for purchases, I always gave them priority but never charged a rush fee. I am definitely in the minority!!
AT_final_rev_newslet

9-8-16 Newz// Increasing fees, Flawed FEMA maps, Loan apps way up

How many appraisers are increasing their fees?

Poll: In the past year, have your standard fees for a typical non-complex assignment? www.appraisalport.com

 

 

 

 

My comment: Good news that the majority of responses were for increased fees. But, less than $50 annual increase is low. If you work for AMCs, your fees will drop when business slows down, assuming you are not getting very low fees now. If you don’t ask for higher fees now, or drop AMCs that insist on low fees, you are losing lots of money. I keep increasing my fees by $50 every 3-4 months and am still below other local appraisers’ fees. Remember, there is little or no AMC “loyalty” to appraisers. They will not remember you when business slows down and you really need work.

WHAT DO YOU THINK? POST YOUR COMMENTS AND READ OTHER COMMENTS AT www.appraisaltodayblog.com

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McMansion Hell in Roseville CA

Just for Fun!!

Excerpt: Nothing in this world is a better metaphor for what politicians and marketers like to call “The American Dream” than the Californian tract house. Imagine – you too, could have your own sloppily put together plot of land on a nice street lined with other sloppily put together plots of land.

But you, of course, want your sloppily put together plot of land to be different from the sloppily put together plots of land of your peers. Now, your houses may have been built at the same time with the same plan by the same builder, but damn are you not determined to find a way to stand out from the crowd.

Finally, after the nth hour of HGTV, it dawns on you: the windows.

http://www.mcmansionhell.com/post/149807609446/roseville-ca

My comment: check out other interesting stuff on this web site. I didn’t even know there were any McMansions in Roseville!!

Read more!!

How many appraisers are increasing their fees?

Poll: In the past year, have your standard fees for a typical non-complex assignment?

www.appraisalport.com

My comment: Good news that the majority of responses were for increased fees. But, less than $50 annual increase is low. If you work for AMCs, your fees will drop when business slows down, assuming you are not getting very low fees now. If you don’t ask for higher fees now, or drop AMCs that insist on low fees, you are losing lots of money. I keep increasing my fees by $50 every 3-4 months and am still below other local appraisers’ fees. Remember, there is little or no AMC “loyalty” to appraisers. They will not remember you when business slows down and you really need work.
AT_final_rev_newslet

8-25-16 Newz://What are C&R fees when fees are changing?, 8 colorful cities, Flooded appraiser donations

Donation Fundraising for Louisiana Appraisers

Thanks (again) to Dave Towne for this info!!

Excerpt:

The Louisiana Real Estate Appraisers Coalition (LAREAC) has started a fund raising campaign using PayPal, which will be used to equally provide donated funds to affected appraisers who are suffering as a result of the massive flooding last weekend. PayPal is being used because its administrative fee is less than another more-well-known crowd funding web site.

There are approximately 8-10 presently known appraisers who have had their homes nearly destroyed in the flood.

http://appraisersblogs.com/donation-disaster-louisiana-appraisers

My comment: last week I wrote about donations to Bill Cobb, whose house was flooded. It is great that this donation method is done also.

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8 Colorful Cities that Look Like They Were Designed by Crayola

See the world in a whole new light through these vibrant locales.

Just for Fun!!!

Excerpt:

Many cities are known for their distinctive profiles and unique landmarks, but all across the globe there are regions that are landmarks in and of themselves thanks to their insane colorations. From a all-blue town in Spain that is a leftover from a Smurf marketing stunt, to a Venetian island that looks as though it was born of an intense acid trip, some of the most colorful locations in the world aren’t the biggest, just the most eye-popping. Check out eight cities and towns that offer vibrantly colorful views which are just as unforgettable as any big city skyline.

My comment: None are in the U.S. Too conservative I guess…

Great article with lots of photos and comments!!

http://www.atlasobscura.com/articles/8-colorful-cities-that-look-like-they-were-designed-by-crayola

Read more!!

What are Customary & Reasonable fees when residential fees are changing?

I don’t think that residential fees have ever gone up this quickly, both for non-AMCs and some AMCs. Keeping up on residential fees in my local market is tough. Of course, the “flip side” is that fees will go down when the boom is over, especially AMC fees.

Some consider VA fees as C&R, but they are increasing also in some areas.

Although some AMCs keep looking for appraisers who will do a quick turn time for a low fee, it is becoming more and more difficult as fewer appraisers are willing to do this.

I recently attended a CE class nearby that focused on AMCs, who said that there were big issues with turn times and fees from their lender clients. The September issue of the paid Appraisal Today will have an article on what was discussed at the class, “AMCs tell All to residential appraisers”.

Why were fees relatively stable for decades? Prior to HVCC, in my market, fees would gradually go up over time, increasing $25 to $50 when demand was very strong. Most fees were in a fairly narrow price range. We made money on the easy tract homes and lost money on the “tough ones”.

Why have fees gone up so dramatically? Appraisers are reporting turning down (or not responding to) 20-30 or more requests a day from AMCs. Residential appraisers had never competed much on lender fees prior to HVCC. I do commercial appraisals, where bidding has always been done. Fee ranges of $1,500 to $3,000 for the same property have never been unusual. The time and cost of bidding is included in the fee. Most AMCs have been using bidding as there was an oversupply of appraisers. When business is slow, they offer lower fees. Now that business is strong, they pay higher fees. Of course, there are still some appraisers doing them for low fees.

Appraisal Today Paid Newsletter

In some areas, AMCs are desperate for any appraisers at any fees to accept appraisals, especially for purchases. Particularly tough are markets where an AMC has one, or a few appraisers. NAR warned real estate agents not to try for 30 day closes.

How do AMCs handle the high fees? This depends on their lender agreements. TRID is a factor as loan officers usually set the fees, which are very difficult to change. Some lenders will allow AMCs to charge more for a specific appraisal. If not, the AMC has to pay the additional cost.

What about turn time? If a loan needs to close quickly, such as a purchase loan, some lenders are offering very high fees. Be careful taking them – be sure to see how difficult the appraisal will be before accepting as turn time is very critical. Also, you will doing less work for a regular “A list” clients.

8-11-16 Newz//How to fix the appraiser shortage now, Photo blurring, Gold medal for town planning in 1936 Olympics

America’s First Medal at the Nazi Olympics Was For…Town Planning

Excerpt: Yes, from 1928 until 1948, town planning was an actual Olympic sport.

Town planning fell under an “architectural design” category at the Olympic art competition. The field that year was dominated by German entries. Yet the first U.S. medal of the Olympics went to Lay, a New York architect, for his ambitious blueprint to modernize Marine Park in Brooklyn.

http://www.atlasobscura.com/articles/americas-first-medal-at-the-nazi-olympics-was-fortown-planning

My comment: I love these Obscure Olympic Facts ;>

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Photo blurring gone waay overboard!!

Excerpt: At issue was the ubiquitous “client requirement” involving digital masking of people from images. While lenders and AMCs wave the Fair Housing penalty flag in order to assure compliance; there is NO such law. Never has been.

Lenders need to re-examine the reason for all of these pointless and invasive interior shots. They add nothing meaningful to the file. Nobody is laying out mortgages for Beanie Baby collections and bad drapes. So why are appraisers wasting megapixels on decorating images?

AMCs are on notice to cease demanding and insisting that appraisers do digital staging. That is clearly in violation of Illinois law.

Click here to read the full article plus the comments, of course…

http://appraisersblogs.com/digital-staging-amc-fair-housing-myth

My comment: Blurring interior pictures on walls, personal objects, etc. seems very excessive. Don’t know about rooms with strange devices and chains hanging from walls and ceilings, etc ;> Maybe appraisers will only be able to appraise vacant homes with nothing in them without getting requests for blurring. This applies only to AMCs doing business in Illinois, but maybe the AMCs will quit doing it in other states.

Read more!!