Appraisal News and Business Tips

Posts Tagged appraisal management company

1-18-18 Newz//Hybrid Appraisal Rejected, Scope Creeping, UsPaP False Assumptions

Scope Creep – Head’em Off at the Pass!

By George Dell
Excerpt: Why do we have scope creep?
Possible answers include:
– The reviewer or clerk has to justify their existence;
– There is genuine concern about something;
– The work should’ve been there in the first place;

It’s important to remember that our entire system of appraisal production and review is belief-based.  It must be “worthy of belief.”  We have no objective standards.  Your work must be subjectively “credible” in the mind of the reader.

Read this short, interesting blog post at:

My comment: George Dell writes regularly for Appraisal Today. His articles are much longer than his blog posts, often expanding on a blog post.

UsPaP – A few of the more obvious false assumptions

By Barry Bates

Excerpt from blog post

The appraisal client is always the intended user.

A lovely concept out in the ether somewhere, but hardly ever the case in practice. The client (who engages the appraiser) is a lending technician or AMC drone; the intended user is an underwriter, servicer or portfolio manager. (This assumes the fact that only about 10% of appraisals are ever done for anybody other than a mortgage company.)

To read the full post, click here

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1-11-18 Newz//Is it jUSt PAP?,Terrible Real Estate Agent Photos

Terrible Real Estate Agent Photos

Just For Fun!!

Most Excellent Photos and Very Creative Captions!!
Very, very funny and weird!!
You just gotta see them! Cannot be described.

10 Homes for Under $100k

Here are a few:
1701 Cleveland Ave, Waco, TX Price: $97,000
1724 Myrna Ln, Memphis, TN Price: $85,000
94-6428 Palaoa Rd, Naalehu, HI Price: $92,000

Click on each one for the full listing info. They are not all fixers or tiny homes!!

Check them out at:

My comment: I want the Hawaii house ;>

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1-4-17// Newz .National MLS Database?, No college degree?, .AMCs in trouble?

A National MLS Database?

Excerpt: Instead of considering the consolidation of the governance and management structures of the MLS, thereby providing coast-to-coast cooperation among brokers, we should instead focus on MLS data and technology infrastructure, and support the movement toward a national database system.

This would create a vast information network available to application developers who, until now, couldn’t offer tools to agents and brokers without expensive and time-consuming customization for every individual MLS.

My comment: The author is vice president of Business Development for Realtors Property Resource® (RPR®), created by NAR. More info at www.narrpr.com . Very interesting and worth reading. Poor real estate data has been a problem forever. Non-standardized MLS data is a nightmare for appraisers. This database would be accessible to appraisers, CU, and AVMs I assume. Of course, we all know how accurate MLS data is…

No bath tubs?

Excerpts: For years, the common wisdom among both brokers and designers was that every home needed a tub. But changing lifestyles and the demand for more space are now driving some homeowners to swap out their tubs for chic, high-end showers.

There is no definitive data on whether ripping out a tub could harm resale value – or any way to quantify how many people are doing that – said Jonathan J. Miller, president of the appraisal firm Miller Samuel. But “for a young family, not having a tub is an issue,” he added, “so the risk of impacting the value rises as the apartment size rises.”

My comment: Just something to think about… I often see bath tubs that are seldom used. But rarely see a home with no tub.

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12/28/17 Newz//Home prices since 1870, Change your templates!!, Very unusual airports

CHANGE YOUR TEMPLATES!!, computer folders, etc.

  • Appraisal template(s) forms, and narrative appraisals, proposals/bids, etc.
  • Set up new (sub) folders on your computer for 2018, such as 2018fotos and 2018appraisals. Every year, starting January 1, I keep using 2017 on my personal checkbook. I am setting up  about 10 checks with the year already on them so I finally will get this right ;>
  • Note: this depends on what you have already set up. Or, maybe it is time to think about setting up folders if you have difficulty finding files.

RECORD YOUR 1/1/18 AUTO ODOMETER READING AND DON’T LOSE IT!!

For your mileage log. I also always go to my mechanic for oil change, etc. to get an “official” odometer reading, which the IRS prefers. I learned a lot after miserably failing my IRS audit of my “recreated” mileage log as I did not have one.

Is Your Life Integrated? – George Dell

Tools for work, tools for life.

Excerpt: This time of the year for many is a time of reflection and hope. My reflection today is how some principles of our profession may be principles of a successful life; what those principles may be, and how they’ve contributed to my joy and sense of satisfaction and service.

Very interesting. Worth reading!!

My comment: I have known George for many years. He has appraisal ideas I have never seen anywhere else. He is a regular contributor to the paid Appraisal Today.

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12-21-17 Newz//: AMC appraisal fraud, Fannie Appraiser Update, CoStar vs Xceligent

The Three Most Fascinating Homes In 2017

Just For Fun!!

Very unusual… and two are very low priced ;>
You just gotta see this 2 minute FUNNY video!!
Death and Breakfast, House with Big Cave, and Very Old Historic House

https://www.realtor.com/videos/video-behold-the-most-fascinating-homes-of-the-year/db7fb804-6cd6-4556-887c-49410eb6d77a

The Appraisal Standards Board has issued new Q&As for December 2017, dated 12/19/17:

Note: personal property and M&E not included in the list below
– Communicating Assignment Results Without an Appraisal Report
– Workfile Requirements When Communicating Assignment Results
– Adding an Intended User
– Assignment Conditions versus Client Conditions
– Proposed Construction Employing an Extraordinary Assumption
– Proposed Construction Employing a Hypothetical Condition

https://appraisalfoundation.sharefile.com/app/#/share/view/seea70b822d24fa59?

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9-28-17 Newz//Fees up or down?, Credit easing, San Francisco Castle

Albion Castle – A 140 year old castle with underground caves hidden in San Francisco.

Just For Fun!!

Excerpt: When Bill Gilbert was growing up near Candlestick Park, all the kids said that Albion Castle was haunted. Gilbert himself wasn’t sure, but every time his parents took him to eat at the at the old Dago Mary’s restaurant across the street, he would look at the gates that front the 145-year-old stone structure and wonder. Little did he know that as an adult, he would own the keys to the castle (literally).
My comment: It was listed in 2009 for $2,950,000 (a very bad market). The six-story square tower has four bedrooms, two bathrooms and 1,436 sq.ft. It sold for 11/2011 for $890,000 and has been rehabbed. It needed a lot of work!!
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Info on the history and historic photos

My comment: It was listed in 2009 for $2,950,000 (a very bad market). The six-story square tower has four bedrooms, two bathrooms and 1,436 sq.ft. It sold for 11/2011 for $890,000 and has been rehabbed. It needed a lot of work!!

Read more!!

9-21-17 Newz//Pivot- Not enough Appraisers To Too Many Appraisers, Appraising New Home In Old Neighborhood

How do we value a brand new house in an old neighborhood?

By Ryan Lundquist
Excerpt: Tip #5. The wrong one & modern homes: Just because something is brand new does not mean it’s going to fetch top dollar. If it’s the wrong type of house for the neighborhood, buyers might actually pay less for the property. It’s like when someone builds a plain earth-tone stucco tract home in a classic area with Tudors and Bungalows. Despite being new it might actually sell with a price discount if it doesn’t have any hint of era charm for the neighborhood. On the other hand there are modern homes popping up all over Sacramento (CA) and beyond that seem to defy this idea. These homes definitely don’t blend into the neighborhood at all in terms of design, but they’re still fetching high prices. Keep in mind though modern homes tend to carry wide appeal, so they are often able to break the mold of the neighborhood and still command a price premium because of their style. In short, modern homes are not vibeless tract homes, so it’s not really the same thing.
Click here to read the other 4 great tips plus some interesting comments!!

http://sacramentoappraisalblog.com/2017/07/26/how-do-we-value-a-brand-new-house-in-an-old-neighborhood/ 

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8-10-17 Newz// Fannie-Appraiser Future, AMC goes down, Delightful Domes

A Tour of the World’s Most Delightful Domes

17 half-spheres that do round right. Just For Fun!

Excerpt: Employing massive hemispherical roofs first became popular with the ancient Romans-most famously the iconic Pantheon, built in the 2nd century. Since then, the feature has taken many forms across the globe, providing cover for everything from ancient tombs to futuristic houses. The circular nature of domes has special significance in religious houses such as churches and mosques, where it represents the eternal, with no beginning and no end.

http://www.atlasobscura.com/lists/domes-architecture-world-tour 

TC Valuations (AMC) Ceasing Operations!

Paying appraisers $ .25 on the dollar!!

Excerpt from letter sent to appraisers: It is with much regret, that I write this letter to inform you that TCV has commenced an orderly wind up and liquidation of operations. Unfortunately a significant downturn in revenue and the loss of part of our volume with two key clients in the second quarter of 2017, has forced the company to wind up its operations.
Read the full letter plus lots of comments at

My comment: There will be more AMCs going down, particularly small ones. In 1993, when the appraisal business crashed and I had way too many employees, I almost went out of business. But, I had no uncollected billings, even from mortgage brokers. Why? I always carefully monitor my accounts receivable. My assistant called all my clients every day until they paid. My husband, a very large man, wearing black clothes (Gangsta style ;>), went to a local mortgage broker’s office and left with a full payment check. It may be time to write a collections article for the paid Appraisal Today…  predictions are for more small AMCs Going Down.

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8-3-17 Newz// Forest Guitar, Wells Fargo-no AMCs, Creepy Scope

Forest Guitar made of trees, dedicated to a man’s lost love.

Excerpt: Breaking up the flat agricultural areas of Argentina’s Pampas is a guitar formed entirely out of trees. Stretching for 2/3 of a mile, the multi-colored instrument was created by one Argentine farmer to memorialize his wife who tragically died at the age of 25.
My comment: Just for Fun ;> Fascinating photo and brief writeup.

Scope Creep Causes Creepy Scope

By George Dell, MAI, SRA

Excerpt: …scope creep has turned into scope running. I’m sure many appraisers, particularly residential people will agree. He (David Braun) points out that as the reviewers ask for more, appraisers are finding ways to not be specific. This has turned into a self-perpetuating loop:  “As the providers, users, and enforcement bodies have differing opinions on the proper level of the scope required . . .”

My comment: Interesting blog post. Short. Worth reading.

Read more!!

7-13-17 Newz// FTC vs. NC Fees, Zillow misestimates,Turbo-Charged Appraiser

FTC targets North Carolina Fee Survey

North Carolina currently considering establishing set fees for appraisals
 
Excerpt: According to the FTC, North Carolina’s proposed legislation carries many of the same issues as the laws in Louisiana.
In its comment, the FTC states that the bill’s method for establishing appraisal fees “is not mandated by – and, in fact, may be inconsistent with – federal law.”
The FTC also suggests that the bill “may have the effect of displacing competition for the setting of appraisal fees and ultimately harming consumers in the form of higher prices.”
More info here, including text of the bill, etc. and where to file a complaint.
Louisiana’s reply to previous FTC hassles here:
My comment:I have no idea why the FTC is going after states setting AMC fees. Seems like there are a lot of much bigger problems…

The Next Job Humans Lose to Robots: Real Estate Appraiser

Advances in big data at Zillow and elsewhere are helping automation creep into knowledge-based professions.

 

Excerpt: Twenty-five years ago, Brian Weaver was told at a seminar that the real estate appraisal profession would be killed off by technology in five years. It didn’t happen. But he now thinks the forecast wasn’t exactly wrong-just early.

https://www.bloomberg.com/news/articles/2017-07-11/the-next-job-humans-lose-to-robots-real-estate-appraiser 

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The Turbo Charged Appraiser – “Progress Slow on Robot Takeover” – A Blast From the Past by George Dell

Except: This is the headline from an article in the San Diego Union Tribune this morning.  The article went on to say, “Data complexities, trust issues, and the persistent need for human input restrain scaled-up automation.”
As a brand-new appraiser trainee, I was in awe of the office and the people.  And in particular, the backroom.  The backroom was the library and data room.  As large as some small homes.  It contained data.  Lots of data…
Read more at:
My comment: I love these two very different topics!! One is maybe the future and the other looks at data way back in the past from George Dell, stats and data guru!!

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