AI and Appraisals – the Future

By on August 1, 2025   /   AI, appraisal how to, liability, non lender appraisals, real estate market   /   1 Comment
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Newz: Future of AI in Appraisals,
Comps in Today’s Market

August 1, 2025

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

  • LIA ad: Code violations and expertise
  • The Future of AI in Real Estate Valuations: Understanding Tomorrow’s Appraisal Standards By Leland Trice
  • New York City’s Famous ‘Bubble House’ Hits the Market for the First Time in 50 Years With an Asking Price of $5.8 Million
  • The problem with comps in today’s housing market By Ryan Lundquist
  • Divorce Appraisal: A Guide for Real Estate Appraisers By Kevin Hecht
  • For sale signs multiply: Inventory hits 5-year high, price cuts surge What’s happening with markets all over the country?
  • Mortgage applications increased 0.8 percent from one week earlier

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The Future of AI in Real Estate Valuations: Understanding Tomorrow’s Appraisal Standards

By Leland Trice

Excerpts: The real estate valuation industry stands at a pivotal moment. After decades of relying on manual processes that are inefficient, error-prone, and costly, we’re witnessing a fundamental shift toward AI and technology enabled solutions that don’t replace human expertise but amplify them.

The future of real estate valuations will likely involve increasing integration of human expertise with artificial intelligence capabilities. This evolution isn’t about replacing professional judgment with automated systems it’s about creating hybrid approaches that leverage the strengths of both human analysis and machine processing.

Opteon’s new AI-powered quality control tool, built in collaboration with technology partner Jaro, illustrates this broader evolution across our industry.

It’s important to clarify a common misconception: AI-powered tools like Intara, don’t replace appraisers or QC functions. Instead, they enable Appraisers to focus on what they do best, expert analysis and decision-making, while automating repetitive, administrative and time-consuming tasks that add little analytical value.

The “magic” of AI is its ability to look holistically at a file. We have moved past the days of checklist data review and can now examine unstructured data and images simultaneously and in conjunction with discrete data points.

A critical factor in successful AI implementation is the flexibility to meet varying requirements. Intara demonstrates this principle by embedding lender-specific criteria into quality control processes, automatically identifying discrepancies, and ensuring consistency before reports reach final review.

To read more, Click Here

My comments: This article sometimes reads as a “marketing promotion”. But, worth reading to see how one company uses AI for appraisals and how it is used.

This article goes way beyond Chat GPT. It shows how custom AI applications can work for appraisals. The author, Leland Trice, is Managing Director at Opteon USA.

New York City’s Famous ‘Bubble House’ Hits the Market for the First Time in 50 Years With an Asking Price of $5.8 Million

Excerpts: 4 bedrooms, 5 baths, 4,763 sq.t. Townhouse

The distinctive bubbly residence has become a somewhat divisive hot spot in its Lenox Hill neighborhood, where it was built in 1969, with architect Maurice Medcalfe transforming a traditional brownstone into the eye-popping modernist masterpiece.

Medcalfe’s unique window design was intended to be “a sculptural interpretation of the classic bay window,” according to reports.

There is plenty to play with in the four-story interior, which boasts 4,736 square feet of space and includes four bedrooms, an office, and five bathrooms that are “all in need of renovation,” according to the listing.

To read the listing with 13 photos Click Here

Read more!! →

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Top 3 Appraiser Mistakes

By on July 25, 2025   /   ADUs, appraisal how to, bias, liability   /   Leave a comment
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Newz: Top 3 Appraiser Mistakes, Bias Lawsuit Dismissed, ADUs

July 25, 2025

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

  • LIA ad: Why Do Claims Get Settled?
  • Top 3 Mistakes Appraisers Make in Their Appraisal Reports By Bryan Reynolds
  • Founding Father John Hancock’s Boston Home Is on the Market for First Time in Half a Century — More Than 250 Years After It Was Built
  • Appraiser Vindicated: Lanham Discrimination Lawsuit Dismissed in Maryland
  • A Complete Guide to Geocodes
  • Bipartisan legislation would make it easier to finance accessory dwelling units
  • Mortgage applications increased 0.8 percent from one week earlier

Appraiser Mistakes

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Top 3 Mistakes Appraisers Make in Their Appraisal Reports

By Bryan Reynolds

Excerpts: After doing more than 2,000 appraisal reviews over the years, Bryan and his team have seen these same errors crop up again and again. Know them and avoid them.

I was an investigator for the state of Tennessee for many years. These days, I primarily help appraisers who find themselves in trouble. Sometimes we’re successful in resolving the issue entirely, or at least reducing the impact. Other times, it becomes a learning moment — we recognize mistakes, take responsibility, and strive to do better.

Mistake #1: Omitting a key statement about an extraordinary assumption or hypothetical condition

Appraisers can gain some leeway with the right scope of work, and by properly using extraordinary assumptions and hypothetical conditions. But you must meet minimum reporting requirements.

Mistake #2: Not summarizing the results of your analysis of the subject property’s prior sales

Saying “the subject sold last year for $150,000” is not analysis. That’s just a statement of fact. What USPAP requires is a summary of your analysis. You’ve got to explain what that sale means in the context of your current appraisal, not just list the data point.

Mistake #3: Including comps that aren’t really comparable

The 1004 form, or the Uniform Residential Appraisal Report form, is what most appraisers use. This is a form many of you are very familiar with. At the top of page two, it says:

“There are ___ comparable properties currently offered for sale in the subject’s neighborhood, ranging from ___ to ___.”

“There are ___ comparable sales in the subject’s neighborhood within the past 12 months, ranging from ___ to ___.”

Now, if you truly are in an area where all the listings and sales in a neighborhood are in a competitive state for the same properties, then I guess you’d fill that in accordingly. But how often does that happen? I mean, are the two-bedroom homes competing for the same buyers as the four-bedroom homes?

To read more, Click Here

My comments: Definitely worth reading! I would have never thought these 3 were the most common mistakes.

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Founding Father John Hancock’s Boston Home Is on the Market for First Time in Half a Century — More Than 250 Years After It Was Built

Excerpts: Used as offices now, 7,622 sq.ft., 2,178 sq.ft. lot, Originally built in 1660s

The iconic dwelling, which is known as the Ebenezer Hancock House in honor of John’s younger brother who used it while serving as the deputy paymaster of the Continental Army, is thought to have been built in 1767.

According to the listing, which is held by Dave Killen of LandVest, the building is the “last extant property associated with the founding father in Boston” and stands as a living time capsule, having been meticulously maintained by its current owners over the last five decades.

An asking price for the property has not been released, but the structure was most recently valued at $1.65 million by city officials. Given its historical significance, the building could well sell for much more.

The original structure dates to the 1660’s, when the site was owned and occupied by William Courser, Boston’s first Town Crier. In 1737, the property was owned by James Davenport, the brother-in-law of Benjamin Franklin.

To read more and see many interesting photos, Click Here

My comments: Our country’s 250th anniversary is coming. This is a look into when we started.

Read more!! →

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Exposure Time vs. Marketing Time for Appraisals

By on July 18, 2025   /   appraisal business, appraisal how to, bad appraisers, bias   /   Leave a comment
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Newz: HUD and OMB PAVE Rollback, Appraiser Appraisal Capacity, Fraud Alert

July 18, 2025

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

  • LIA ad: Can’t Certify the Work
  • Exposure Time vs. Marketing Time: Why the Clock Matters in Appraisals By Jamie Owen
  • Historic Beachfront Water Tower That Has Been Transformed Into a Sky-High Home in California for $5.5 Million
  • Freddie Mac. Appraiser Capacity
  • HUD and OMB Begin Rollback of PAVE Task Force
  • Fraud Alert: Some Non-QM Lenders Excluding Loans Involving Certain Appraisers, Borrowers
  • Mortgage applications decreased 10.0 percent from one week earlier

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Exposure Time vs. Marketing Time: Why the Clock Matters in Appraisals

By Jamie Owen

Excerpts: Exposure Time: The Clock That Ticks Backward

Imagine standing in the kitchen of a colonial in Gordon Square that just sold last week. The buyers are thrilled, the sellers are relieved, and the agent is probably already on to the following listing. But in that moment, the appraiser has to ask: how long would this house have needed to be on the market to attract a willing buyer and sell at that exact price?

That’s exposure time—the hypothetical time the property was exposed to the open market before the sale, assuming it sold for fair market value.

Appraisers include this estimate to show that the sale wasn’t rushed, distressed, or out of step with the broader market. It’s a way of saying: “This was a typical deal in a typical market, and the sale price reflects that.”

Marketing Time: The Clock That Ticks Forward

Let’s shift the scene. You’re standing in the living room of a Cleveland Heights Tudor, preparing an appraisal for a homeowner who’s thinking about listing soon. They want to know not just what it’s worth today, but how long it might take to se

My comments: Worth reading. Excellent understandable article and graphic above. Good Case Study (A Hypothetical Example). Written for home owners, real estate agents, etc. but a good review for appraisers. This topic can be confusing for appraisers.

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Historic Beachfront Water Tower That Has Been Transformed Into a Sky-High Home in California for $5.5 Million

Excerpts: The historic Seal Beach Water Tower dates to 1892, when it was built to hold water for passing steam engines, a role that it held for nearly 100 years.

In 1985, it was converted into a 2,828-square-foot, single-family residence that quickly became one of the most talked-about dwellings in Seal Beach. The interest appears to be alive and well 40 years later, with the home quickly shooting to the top of the week’s most popular homes list.

History buffs will love the four-bedroom home’s period details, including a vintage tool display “unearthed during the 1940s tribute” and a bedroom “themed after the only known pirate to haunt these shores.”

Other eye-catching updates include a foyer water feature; an elevator and circular staircase for easy access; a compass rose design found in the hardwood floors; a third-floor modern kitchen; a model train “weaving through the rafters”; a fifth-level, open-air rotunda; and a stained-glass cupola.

To read the listing and see 74 photos, Click Here

My comments: Very interesting! Check out the photos. I love the elevator: a long way to the top…

Read more!! →

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Highest and Best Use For Appraisers

By on July 11, 2025   /   AMCs, appraisal how to, Appraisal Subcomitee   /   Leave a comment
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Newz: Hidden AMC fees, Appraisal Subcommitee Cutbacks, Highest and Best Use

July 11, 2025

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

    • LIA AD: Borrower Wants Answers Appraiser Can’t Give
    • What is Highest and Best Use in Appraisal? Appraisal
    • By Kevin Hecht
    • Purple Rain! Vibrant Violet Villa That Would Make Prince Proud for $3,499,000
    • Could a Class Action Lawsuit Finally Unbundle Hidden AMC Fees? by Isaac Peck, Publisher WorkingRe
    • The AMC Industry Won’t Be Toppled by Code
    • Appraisal Oversight (ASC) Subcommittee Faces Cuts Amid Leadership Turmoil
    • Mortgage applications increased 9.4 percent from one week earlier

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news

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What is Highest and Best Use in Appraisal?

By Kevin Hecht

Excerpts: When determining property value, one of the most critical concepts in real estate appraisal is highest and best use (HBU). Professional standards require appraisers to develop an opinion of HBU when necessary for credible assignment results. HBU refers to how a property should be used to generate maximum value under specific constraints, not necessarily how it’s currently being used.

Definition of Highest and Best Use

In professional appraisal practice, Highest and Best Use is defined as “the reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value” (Appraisal Institute, The Dictionary of Real Estate Appraisal, 2022). This definition emphasizes that HBU must be reasonably probable, not merely possible or speculative.

Appraisers must analyze the property as vacant land, and as improved, considering what is legally permissible, physically possible, financially feasible, and maximally productive in the current market.

Why Highest and Best Use in Appraisal Matters

Highest and Best Use gives stakeholders insight into a property’s worth at its full potential. It guides market value determinations that reflect the property’s full potential and informs development and investment decisions based on feasibility and profitability. Additionally, HBU supports lending and underwriting decisions, especially for construction loans or redevelopment projects, guiding land use planning and zoning analysis in transitioning neighborhoods.

To read more, Click Here

My comments: Well written and understandable. I was trained at an assessor’s office to first determine highest and best use for each property I appraised. For homes, issues I have had were a small house on a large lot where nearby lots were being converted to apartments. More common for homes is a possible lot split. HBU is a regular factor for appraising commercial properties in my city. The main part of the city was almost fully developed by the early 1940s. Often the HBU was not the current use.

Read more!! →

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Neighborhood Analysis Matters for Appraisers

By on June 27, 2025   /   appraisal how to, GSEs, liability, New URAR   /   Leave a comment
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Newz: Neighborhood Analysis, Death of the Appraisal Clipboard

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

  • LIA AD: Can’t Certify the Work
  • Why Neighborhood Analysis Matters: Avoiding Costly Appraisal Mistakes By Timothy Andersen, MAI
  • See the Churches That Make Divine and Affordable Homes
  • Pulling comps in a softer market By Ryan Lundquist
  • The Future is Now: Fannie Mae and Freddie Mac Announce UAD 3.6 Implementation Timeline and Policy Changes
  • The Death of the Appraisal Clipboard By Tony Pistilli
  • Mortgage applications increased 1.1 percent from one week earlier
Appraisal Neighborhood Analysis

 

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Why Neighborhood Analysis Matters: Avoiding Costly Appraisal Mistakes

By Timothy Andersen, MAI

Excerpts:

Neighborhood analysis is a critical component of real estate appraisal, providing insights into factors that influence property values, risk analysis, and investment decisions. A comprehensive neighborhood analysis involves delineating precise boundaries, understanding property types and architectural styles within those boundaries, assessing land use changes, and evaluating current and future economic trends.

Topics:

  • Defining Neighborhood Boundaries
  • Assessing Neighborhood Characteristics
  • Monitoring Land Use and Development Trends
  • Evaluating Economic Trends

Implications for Appraisers

Neglecting a detailed neighborhood analysis as part of the appraisal can lead to inadequate appraisal reports, potentially resulting in critiques from reviewers or issues with compliance standards (i.e., a state appraisal authority). Appraisers are advised to conduct meticulous neighborhood analyses, ensuring their reports reflect current market conditions and property characteristics accurately.

To read more, Click Here

My comments: Well written and worth reading. Includes references. Defining the neighborhood is critical for all types of appraisals. This article focuses on residential, but the topics apply to commercial and other uses.

The neighborhood is where you first look for comps and do the analyses above. Going to a similar neighborhood for comps may be needed, but can be tricky.

Read more!! →

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What’s a comparable property for appraisals?

By on June 13, 2025   /   appraisal, bias, Fannie, liability, real estate market   /   Leave a comment
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Newz: Q2 Fannie Appraiser Update, Appraiser Wins Discrimination Lawsuit

June, 13, 2025

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

  • LIA ad: Am I Still on the ‘Do Not Use’ List?
  • What’s a comparable property? Or a “comp,” as we say more informally? By Bryan Reynolds
  • Rotterdam’s Yellow Cube Homes
  • Q2 2025 Fannie Mae Appraiser Update – UAD 3.6
  • A Back to the Future Housing Market By Ryan Lundquist
  • Case Dismissed: Ohio Appraiser Wins Discrimination Lawsuit by Isaac Peck
  • Mortgage applications increased 12.5 percent from one week earlier

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Real Estate Agents and Comparable Sales – Tips for Appraisers

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What’s a comparable property? Or a “comp,” as we say more informally?

By Bryan Reynolds

Excerpts: Let me give you an example of an appraisal report I saw recently, which is why I’m asking this question: There are 65 comparable properties currently offered for sale in the subject’s neighborhood, ranging from a price of $330,000 to $5,400,000. The report also states that there are 44 comparable sales in the subject’s neighborhood within the past 12 months, ranging from $152,000 to $2.2 million. That’s a big range. Are you comfortable putting that in your report?

What does the term “comparables” even mean? Let’s go to the authoritative sources. Here’s one: The Dictionary of Real Estate Appraisal, published by the Appraisal Institute. It defines comparables as “a shortened term for similar property sales, rentals, or operating expenses used in the comparison in the valuation process and best usage. The thing being compared should be specified.” In other words, are you looking at comparable sales, comparable rentals, or comparable listings?

Lastly, I’m going to pull up the Encyclopedia of Real Estate Appraising. It’s a great big book, and it has a whole section on this. I highlighted one part of it because I like it: “What is a comparable property? It is one that would be a reasonable alternative for most prospective buyers who would be interested in the subject property.”

What is a comparable property? It is one that would be a reasonable alternative for most prospective buyers who would be interested in the subject property.” —Encyclopedia of Real Estate Appraising

That’s very simple, and it invokes some good, common sense

To read more, Click Here

My comments: Lots of opinions on this topic!

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29008552 – innovative yellow cubic houses built in rotterdam

Rotterdam’s Yellow Cube Homes

Excerpts: Both a popular tourist attraction and a strange architectural experiment, the cluster of 39 homes stands out amongst the city’s mostly modern architecture. However, that is what makes these “cube-perched-on-a-point” homes all the more interesting.

he elevated cubes are essentially houses supported on hexagonal piers; this design frees up the ground space for public use. Each cube measures 72 feet in height with each side measuring 25.5 feet. While the pillars and floor are made from reinforced concrete, structural wooden skeletons from the base for constructing the cubes were mounted on the floors’ edges. Interestingly, cement panels with rockwool insulation in the middle resulted in cutting down on almost all exterior sounds.

Inside, the complicated form meant that the interior walls were angled at 54.7 degrees with the floor. The consequences of this construction detail is that 25% of the almost 1,100-square-feet of living space is unusable because of the angular walls. The interior is divided into three floors that are connected by a narrow wooden staircase. The ground level houses in the living room and an open kitchen with plenty of windows. The second floor has two bedrooms, a bathroom, and a small living area. Finally, the third floor is a three-sided pyramid that can be used as a bedroom or an office.

To read more and see interior photos and floor plans, Click Here

My comments: Fascinating, with very good photos.

Read more!! →

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Parcel, Deed and Tax Data Differences for Appraisals

By on June 6, 2025   /   appraisal how to, liability, New URAR, non lender appraisals   /   Leave a comment
Tags:

Newz: Parcel, Deed and Tax Data Differences, New URAR, Probate/Estate Appraisals

June 6, 2025

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

  • LIA AD Problem with An Affidavit
  • The Difference Between Parcel Data, Deed Data, and Tax Data
  • Nautilus House in Naucalpan, Mexico
  • Brains, Bytes, and Bracketing: Why Appraisers Need Both Carbon and Silicon in Their Toolkit By Ernie Durbin
  • What’s new in the New URAR?
  • How Probate Appraisals Really Work By Tom Horn
  • An Appraiser’s Musings on Adaptive Reuse By Hal Humphreys
  • Mortgage applications decreased 3.9 percent from one week earlier

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The Difference Between Parcel Data, Deed Data, and Tax Data

Excerpts: Parcel, deed, and tax assessor data — what’s the difference between them, and which type of data do you need?

What Is Parcel Data?

Parcels, or property boundaries, can be defined as a shape or polygon and displayed on a map. These mapped areas comprise parcel data, and they might also show points of latitude and longitude, streets, or zip codes. Parcel data also includes ownership details, acreage, and the boundaries for the parcels.

What Is Deed Data?

Deed data include the information contained within a property deed. Unlike parcel data, deed data is not map-based although the data points can be overlaid on a map. A property deed is a legal document that transfers ownership of real estate and is required for real estate transactions, legal proceedings, and tracking property ownership history.

What Is Tax Data?

Tax data are collected by the county tax assessor. Tax data include property identification, addresses, current and past property ownership, legal descriptions, property features, property values, and taxes.

As you can see, these three real estate data types have some level of overlap. However, boundary data are required for mapping purposes and deed and tax data are critical for businesses providing legal, mortgage, and titling services.

To read more, Click Here

My comments: Read more details. Very good information. This article was written by ATTOM data, who provides all the types of data above. You can read the Mortgage sections of the article to see how it affects mortgages and appraisers.

When I started my first appraisal job at an assessor’s office in 1975, I was very lucky. I appraised the land for every parcel, improved or not. I had great training on the topics above.

I went to the county records to find, read and understand deeds.

I learned how to read assessor’s parcel maps, as that is how I found the properties I appraised. I attended a 3 day class by a property surveyor to understand how they determined property maps.

When I started my appraisal business in 1975 the chief appraiser one of the local lenders I worked for required that the appraisers read title report including the deeds for every property. You initialed the report.

I doubt if many appraisers got the training that I received. I was very, very lucky.

The deeds also include easements and other restrictions. When I am not sure the parcel map has correct dimensions or there may be easements, I obtain a copy of the deed’s legal description and run down the property lines (length, angle, etc.

In my city, there are many Victorians side by side on narrow lots with garages in the rear that use the driveway between the homes for access. A client wanted to get her parking rights between her house and the neighbor. Her neighbor did not have a car now so she could use the full driveway. I told her the neighbor could sell or rent her home and her driveway parking might be gone. There was a recorded driveway easement. I told her to get a survey. She purchased a car that fit into her half of the driveway.

Another time my client and a neighbor were not in agreement on the location of a fence. I told them I assume fences are not on the property boundary, unless I have a survey. They got one and resolved their dispute.

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Nautilus House in Naucalpan, Mexico

Excerpts: Architect’s statement: At the end of the turn-around is the piece of land, with upward topography, where the Nautilus was built. It is limited by three of its adjoining properties because each of them has high buildings. The fourth adjoining property if to the west and has wide views of a green area with mountains in the horizon.

The construction area was defined since the first studies at the back of the piece of land, leaving the pedestrian and car access at the front as well as only one façade, the so called fifth façade in architectonic language.

The social life of this dwelling place flows inside the Nautilus without any divisions. Going up the spiral stairs, continuing through the hall, going through the television room sheltered in the Nautilus belly flows the space up the spiral stairs to the study room, where you can view the mountain’s landscape.

Behind the Nautilus is wrapped the intimate and service area: bedrooms, walking closets, bathrooms and the kitchen.

To read more plus see fascinating phots, Click Here

My comment: This is one of my favorite “unique” homes.

Read more!! →

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Pending Sales for Appraisers

By on May 30, 2025   /   AMCs, appraisal business, appraisal how to, Economic analysis, GSEs, PAVE   /   Leave a comment
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Newz: PAVE Problems, Outdated Mortgage Regulations

May 30, 2025

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

  • LIA ad: Should I Complete this Assignment?
  • Pending Sales May Be Your Secret Weapon To Accurate Listings and Appraisals
  • $3.69 Million ‘Tron’-Inspired Mansion With ’80s Speakeasy and Ferrari-Themed Office
  • The Full Measure: May 2025 Housing Market Recap for Appraisers
  • TEAPOTS Exposed: The PAVE Initiative’s Illusion of Justice
  • Outdated Mortgage Regulations
  • Mortgage applications decreased 1.2 percent from one week earlier

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news

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Pending Sales May Be Your Secret Weapon To Accurate Listings and Appraisals

Excerpts: Bottom line: Pending sales show you what’s happening now and where prices are headed. Skip them, and you’re stuck looking at yesterday instead of today.

Closed Sales Lag—Pendings Lead

The Built‑In Delay

  • A March 1 contract might not close until late April. By then:
  • Rates could move 50–75 basis points.
  • A new round of housing inventory could hit the market.
  • Economic news—jobs reports and inflation scares can spook buyers.

Appraiser’s View: How We Use Pending Sales (Even When We’re Handcuffed to Closings)

Time adjustments

Compare contract prices to 30‑60‑day‑old closings to justify ± market‑trend tweaks. If pendings are 3 % higher, you can show upward pressure — great ammo for your list price.

Feature bracketing

No pool comps closed? A pool home pending $25 k higher becomes my clue. Helps you price premium features correctly.

To read more, Click Here

My comments: Good discussion of many aspects of using pendings. Written for real estate agents, but many good tips for appraisers. I always look at pendings, including the ratio of pendings to listings. I got some good ideas from this blog post.  I have been appraising for 50 years. I like learning something new!

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$3.69 Million ‘Tron’-Inspired Mansion With ’80s Speakeasy and Ferrari-Themed Office

Excerpts: 3 bedrooms, 3.5 baths, 4,853 sq.ft., 8,509 sq.ft. lot

Futuristic, three-bedroom mansion that was inspired by the hit 2010 sci-fi movie “Tron: Legacy” has made a high-speed return to the market in Dallas, where it is listed for $3.69 million.

The decked-out dwelling, which also boasts an auto showroom in the living room and a Ferrari-themed home office, has been driven right to the top of the week’s most popular home’s list, after pulling in a huge amount of interest from buyers thanks to its very unique aesthetic.

Opulence abounds in every room of the property, which is spread across 4,853 square feet and includes a 1980s speakeasy with “turquoise tufted walls,” as well as a dramatic two-story living room with soaring ceilings.

To see the listing with 40 photos and a virtual tour, Click Here

My comments: See the wild interior photos with Ferraris and many unusual features!

Read more!! →

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Surplus vs. Excess Land for Appraisers

By on May 2, 2025   /   Economic analysis, GSEs, liability, Mortgage interest rates, New URAR   /   Leave a comment
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Newz: Surplus vs. Excess Land, Interest Rate Drop? GSE Oversight?

May 2, 2025

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

  • LIA ad: Am I Still on the ‘Do Not Use’ List?
  • Surplus Land vs. Excess Land: What Appraisers Needs to Know
  • 5 Mind-Boggling Optical Illusion Houses That Have To Be Seen To Be Believed
  • Fed officials offer differing signals on timing of potential interest rate cuts
  • Fed seen cutting policy rate by a full percentage point this year
  • The Balancing Act: How Appraisers Can Navigate Supply Shortages, Interest Rates, and Tariffs
  • A Cry from the Appraisal Trenches: The Fall of GSE Oversight
  • Mortgage applications decreased 4.2 percent from one week earlier

Surplus vs. Excess Land for Appraisals

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Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news

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Surplus Land vs. Excess Land: What Appraisers Needs to Know

By Kevin Hecht

Excerpts: Land valuation is a fundamental aspect of real estate appraisal, influencing property transactions, development decisions, and investment strategies. A key part of the process involves distinguishing between the land that supports the property’s current use and any additional land that may—or may not—have independent value.

Commonly, a square footage adjustment is made based on lot size differences among comparable properties without one key distinction – whether the difference in land is surplus or excess land. This fails to consider whether the extra land has value independent of the subject property.

Surplus land and excess land are often confused. Surplus land is land which adds no value independently of the property being appraised. Excess land, on the other hand, has value because it can be divided and sold separately. These distinct differences must be accounted for in an appraisal.

Here we will discuss what constitute excess and surplus land, common methods used to identify each, and why it matters….

Methods for Identifying Surplus vs. Excess Land

Residential appraisers commonly make a dollar per square foot adjustment for differences in lot size among comparable properties without distinguishing whether the land is surplus or excess. The problem with this approach is that it fails to consider highest and best use where excess land—land that can be independently sold or valued—creates a premium.

This question cannot be answered without evaluating zoning and legal restrictions of the property.

For example, just because a property is large enough to support a second structure, zoning may prohibit multiple residences on a single lot or there may be legal restrictions in terms of land coverage and minimum square footage requirements. If this were the case, it would be considered surplus land.

When determining if land is excess land, appraisers must consider legal permissibility, physical possibility, financial feasibility, and profitability.

To read more, Click Here

My comments: Read this blog post. Residential appraisers can easily make a mistake on this topic and get into trouble.

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5 Mind-Boggling Optical Illusion Houses That Have To Be Seen To Be Believed

Excerpts: Photo above info:

2. 8198 Uphill Rd, Joshua Tree, CA

Price: $17,950,000

The Invisible House: This mirrored mansion is the brainchild of film producer Chris Hanley and Frank Gehry collaborator Tomas Osinski, who designed the home to seemingly vanish into its desert surroundings.

At first glance, you might not notice the 5,470-square-foot residence staring back at you. Nestled on 67.5 acres, the shimmering structure was created with the intent of connecting its residents with the desert through the mirrored glass exterior. The three-bedroom estate’s interior is just as astonishing featuring retractable glass walls; a 100-foot, heated indoor swimming pool; and a 224-square-foot, white wall designed for movie screenings.

Whether you are looking for a home that quite literally disappears into the Arizona desert or one that mirrors its landscape in the Hamptons, these works of jaw-dropping art not only offer a captivating design but a remarkable setting.

From California to New York, we found five optical illusion abodes that will leave you wondering if they are playing tricks on your eyes.

To read more, Click Here

My comments: Click on the addresses for the listing. I have written about some of these before. I am fascinated by these types of homes. Now you can see 5 of them in one link. My favorite is the home in the photo above.

Read more!! →

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Drive-By Appraisals – Who, What, Why

By on April 18, 2025   /   appraisal how to, Appraisal Standards Board, hybrid appraisals, liability, real estate market   /   Leave a comment
Tags: , , ,

Newz: Drivebys, Foreclosures, Hybrids?, ASB Q and As

April 18, 2025

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

  • LIA ad: Appraisal Used in Divorce Case—Now What?
  • What is a Drive-By Appraisal?
  • Contemporary Architect’s Downtown Santa Barbara Home Could Set a Condo Price Record
  • Top 10 U.S. Housing Markets with the Most Foreclosure Starts in March 2025
  • Hybrid Appraisals – Flawed Data or Flawed Agenda?
  • New ASB Q&As
  • Mortgage applications decreased 8.5 percent from one week earlier

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What is a Drive-By Appraisal?

Excerpts: This method bypasses traditional in-person appraisal methods and has grown in relevance for situations like refinancing or low-risk loans where a full interior inspection may not be necessary.

In addition to observing and evaluating the property’s exterior condition, appraisers will also assess the surrounding neighborhood, use MLS listings for home interior information, and evaluate comparable sales data to estimate property value.

Also known as “exterior-only appraisals” or “2055 appraisals,” this approach is often chosen when a full appraisal isn’t required, such as for low-risk lending scenarios or when lenders have sufficient market data to support a valuation without an interior inspection.

They are also used in situations like foreclosure when interior inspections are not possible.

Topics

  • How Does a Drive-By Appraisal Work?
  • Steps to Conducting Drive-By Appraisals
  • Situations When a Drive-By Appraisal is Used
  • Limitations of Drive-By Appraisals
  • Drive-By Appraisals and Industry Standards

To read more, Click Here

My comments: Definitely the most comprehensive and understandable article on drive-bys I have read. I did many drive-bys in the 80s and 90s for lenders. I finally quit doing them on 2-4 unit properties with little info available. Also, when appraising large Victorians I did not know what had changed since 1910. Permit histories in my city are very limited prior to 1950.

I did a lot of foreclosure drive-bys when prices were dropping. I did full appraisals with interior inspections after they were foreclosed.

My most difficult drive-by was a house that was completely “trashed” after the death of the owner by a young relative drug user. It had been sold after renovation and I had no access. I interviewed relatives, neighbors, etc. to try to find out what it was like on the date of death. I always ask the estate trustee to get me access to the house before any changes are made if possible.

BE CAREFUL. DO NOT UNDERBID ON DRIVEBYS.

TOO MUCH UNCERTAINTY ABOUT THE INTERIOR CONDITIONS.

Read more!! →

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