Appraisal News and Business Tips

Posts Tagged Appraisal Standards Board

4-11-19 Newz: USPAP 2020-2021 – Appraiser Experience – Mortgage Reform

ASB Adopts Changes to USPAP for 2020-21

Excerpt: The current written report options (Appraisal Report and Restricted Appraisal Report) are being retained for 2020-21. One of the more significant revisions is that use of the Restricted Appraisal Report will be permitted when there are intended users in addition to the client. An appraiser will be required to identify these additional intended users by name in the report.

The Foundation will be authoring a Summary of Changes document about the pending revisions to USPAP within the next several weeks. They will also be producing a recorded webinar on the changes. The new USPAP becomes effective on January 1, 2020, so there is still plenty of time to learn about the changes to USPAP before they go into effect.
Click here for the full blog post:

My comment: Many thanks Dan Bradley at McKissock for this blog post! I will be writing about the new USPAP in my paid newsletter, but learned many years ago to wait until a few months before it is adopted. That is when appraisers want to know about it ;>

I never used Restricted Reports because other intended users could not be added. Now I have another reporting option to use.

Read more!!

2-14-19 Newz: Coester Shuts Down; Beautiful Erosion; Facing Your State Board

17 of the World’s Most Beautifully Broken Places

Wind, rain, and retreating glaciers left this gorgeous destruction behind.

Here are two:
– Ah-Shi-Sle-Pah Wilderness Study Area New Mexico
The land is full of geologic eye candy like otherworldly spires, mushroom-shaped hoodoos, and prehistoric fossils.

Fjaðrárgljúfur Iceland
Strange rock formations tower above the river that snakes through this enchanting Icelandic canyon.

See the incredible locations and read about them at:

My comment: Click The Link And Take A Break from Your Appraisals!!
————————————————————————–

Read more!!

10-25-18 Newz// Maps streets-buildings – Warming Oceans – Actionable Education

A Map of every building in America

Excerpts: Classic maps answer questions like: How do I get from Point A to Point B? These data images, instead, evoke questions – sometimes, simply: What’s that?

We found fascinating patterns in the arrangements of buildings. Traditional road maps highlight streets and highways; here they show up as a linear absence.

—————————————-

In the August 8 2018 issue of this email newsletter, I published the link

Visualizing the Hidden ‘Logic’ of Cities

Excerpt: Some cities’ roads follow regimented grids. Others twist and turn. See it all on one chart.

Excerpt: In Chicago or Beijing, any given street is likely to take you north, south, east, or west. But good luck following the compass in Rome or Boston, where streets grew up organically and seemingly twist and turn at random.

Fascinating!! Check it out at:
——————————————————————————

Read more!!

7-12-18 Newz// 3 Story Homes, Auction Prices, Portable Architecture

The Most Popular Article From Last Week’s Newsletter: Former Appraiser’s Hot Dog Stand!! FYI, unusual and weird stuff is very popular with appraisers ;>

Three-story Single-family Homes and Townhomes

Excerpt: Of the 729,000 single-family detached homes started in 2017, a little over 18,000 (2.5 percent) had three or more stories, according to National Association of Home Builder tabulation of recently released Census data.

In contrast, the 23,000 3-plus story townhomes represent 22.0 percent of single-family townhome starts.

More info here:

My comment: 3 story detached homes are not popular in very many areas. It is a long walk up to the 3rd floor. I have appraised them (attic conversions of a classic older home to a master bedroom, for example). I always look to see if an elevator can be added – usually has to be on the exterior of the home. Definitely a functional problem. I rarely see them on existing homes, except for attic conversions. Some newer detached homes have a small room on the 3rd story – family room, extra bedroom, etc.

For townhomes, I have seen a significant increase in 3 story new construction townhomes in my city (within the past few years) and other Bay Area cities. The first floor is a garage plus entry, second floor living room and kitchen, bedrooms on 3rd floor. Very profitable for home builders, especially in areas with high land prices and infill tracts. I have appraised them and the owners did not object to the 3 floors. There are sometimes a few townhomes that are 2 story.

My first apartment when I moved to San Francisco in my 20s was a third floor walkup. I vowed Never Again ;>

Read more!!

4-19-18 Newz//Corelogic acquires a la mode, USPAP Q&A problems, Earth-Friendly Homes

Earth-Friendly Homes and Buildings for Earth Day, Sunday, April 22

Just For Fun!!

Click on the fotos of lots of ecofriendly buildings for more info. Fascinating, sometimes Weird, and Fun!!

A few: Mathematical Puzzle House, paper house, skyscrapers, Recycled Concrete Tube House, etc.

http://www.ecofriendlyhouses.net/ecofriendlyhouses.html

Appraisal Institute Requests Appraisal Standards Board to Rework Q&As

Excerpts: The Appraisal Institute in an April 13 letter to the Appraisal Standards Board formally requested changes to or the retraction of Q&A 2018-12, Employing an Extraordinary Assumption when a Client Provides Inspection Data and Q&A 2018-13, Appraisal Reporting – Certifications and Signatures.

The Appraisal Institute believes this advice is antiquated and out-of-step with appraisal practice and long-standing USPAP principles about not dictating the form, format or style of an appraisal report. Perhaps most concerning to AI is the apparent inclusion of additional requirements in this advice rather than in USPAP itself.

My comment: I completely agree with the AI’s issues with Q&A 2018-12 and -13. The certification issue has been around since USPAP required that the “previous 3 years” be included in the certification. The ASB needs to modify USPAP itself as I don’t think it addresses these current issues in appraising very well. Unfortunately, the new edition was effective 1/1/18. 2 years to wait.

Read more!!

2-22-18 Newz//ASB Meeting Live Streaming, McMansions, Risky Appraisal Alternatives

Who Ordered All the McMansions? 10 Cities Where They’re Piled Highest

Excerpt: You know them when you see them.

The imposing, ostentatious structures looming over surprisingly wee plots of land. The crazily mismatched architectural styles. The hipped roofs, gabled roofs, and pyramidal roofs-all on the same house! The bank columns. The front yard Romanesque fountains. The puzzling profusion of window sizes and types. The gigantic, two-story front doors.

Click here for more info and where there are lots of them:

https://www.realtor.com/news/trends/metros-with-most-mcmansions

Read more!!

1/24/18 News//New USPAP Q&A-Hybrids .Dying Appraisal Profession? .Cat Urine & Big Data

Is the Appraisal Profession Dying?

By George Dell
Excerpts: Yes. Appraisal as we know it is dying.
Can it be saved?  No.
So what should I do?  What should “we” do?

To answer these questions, we need to look at causes and conditions. Some of these are obvious.
– Judgment is good; Analysis is better.
– Human generalization is excellent; Computation is fast…

So what can we do? If we cannot be saved. If computers are faster. If we have complete data. If we too have software.  If we too can provide results instead of opinions…  Leads to an obvious question: Can an experienced appraiser do these things as well as, or better than those others?

Worth reading at:

Read more!!

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?

Read more!!

1-19-17 Newz//Trump Mortgage Nation, Windy cities, Bob Hope’s UFO Home

Bob Hope’s UFO Home Sells for $13 Million

Excerpt: At long last, Bob Hope’s UFO house has sold for $13 million, after first being listed in early 2013 with a price tag of $50 million.  Having gone through a couple of price cuts over the last three years, the most recent cut lowered the ask to $25 million. But with no comps available, how does one actually price a concrete space ship?  Seems that when $25 million was thrown at the wall, $13 million stuck.

My comment: Tough appraisal including measuring and the listing history ;>

——————————————————————
Top 10 cities with homes most threatened by heavy winds
CoreLogic gives its Windy City index

Excerpt:

In its latest report, CoreLogic rated the top cities at risk of hazardous wind conditions in its Windy City Index. The ranking among the nation’s largest 279 metros incorporates both the number of wind events, measured at the city center plus a 10-mile radius, as well as the total force caused by any severe wind gusts of 60 mph or more.
“Wind can cause significant damage whether associated with an actual hurricane or not,” CoreLogic Product Manager Curtis McDonald said. “Wind speeds of 92 mph, even without a hurricane – as seen in Tallahassee – can be a significant threat to life and property.”
Two of the top 10 cities
10. Charleston, South Carolina
Number of wind events: 12
Max wind speed: 86 mph
4. Cincinnati, Ohio
Number of wind events: 16
Max wind speed: 79 mph

My comment: Wow!! I had no ideas these cities had high winds, especially those not in hurricane areas.

Read more!!

12-15-16 Newz// Unique Airports, Deregulation and Appraisers, Victorians Under $200k

Beautiful airports and Victorians under $200,000

Unique and Beautiful Airports Around the World

Architecture that redefines what it means to travel in style.

All I can say is WoW!! Take a break for a few minutes and look at these photos…

http://www.atlasobscura.com/articles/photos-of-the-worlds-most-unique-and-beautiful-airports

……………………………..

Affordable homes from all over the country (Hint: No fixers)

Just scroll down the pages.

7 Victorians under $200,000 (No tiny homes)

http://www.realtor.com/news/trends/victorian-homes-under-200k/

8 homes under $100,000 (Hint: no fixers)

http://www.realtor.com/news/trends/black-friday-bargain-homes-under-100k/

My comment: Wow!! Those Victorians in my city would be way over $1,000,000 on lots under 5,000 sq.ft. !!!


Sadly, The Appraisal Institute is now working against its local chapters by Jonathan Miller, posted 12/9/16
Read more!!