Are Human Appraisers Being Phased Out?

Are Human Appraisers Being Phased Out? Federal Regulators Vote to Loosen Requirements

Excerpt: What’s that drone doing hovering over a property?

Soon that sight may be the norm on homes for sale.

The days of human appraisers may be coming to an end for homes priced under $400,000, if regulation proposed by the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp. and the Federal Reserve gets approved.
Previously, only homes valued under $250,000 could be purchased or sold without the use of a human appraiser. That threshold is potentially being raised to $400,000, opening up more business for drone-monitored and computer-generated home valuations. The vote is nearly there, awaiting expected agreement from the Federal Reserve before the regulation takes effect.

While the appraisal industry is concerned the change could negatively impact real estate at large, the brokerage side of the business predicts the threshold hike should have minimal effects on homeownership and the home-buying experience.

Comments from many sides of the issue and lots of comments by readers.

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Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

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Real Estate Appraisers Self Employment Humor

9 Very Funny Quotes for the Self-Employed Appraiser

Just For Fun!!

Some great, very funny, animated gifs ;> We All Need Real Estate Appraisers Self Employment Humor!!

Here are a few comments:

“The crappy thing about being self-employed is I never believe myself when I call in sick.”

“Things people say: ‘It’s Friday!’ Things self-employed people say: ‘It’s Friday?’”

To read more, click here

My comment: We all need some appraiser humor! Something for everyone in this blog post!! Unfortunately, animated gifs usually don’t work well in these email newsletters. You Just Gotta See Them!!

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

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Appraising Hobbit Houses

Hobbit Houses in Charlevoix, Michigan

Just For Fun!!

Excerpts: Growing up in northern Michigan in the early 1900s, Earl Young was obsessed with boulders. Glacial boulders, to be exact-ones moored in fields, forests, and on lake coastlines across the state thanks to the slow march and retreat of glacial ice during the Precambrian age. Appraising Hobbit Houses in Michigan is a challenge.
The homes he designed will stop you in your tracks, as one did the last time I was there, passing by on a bike. Call them “mushroom houses,” “hobbit houses,” “boulder houses”; everyone has a different name for them. They’re often described concisely, if vaguely, as “organic.” Though some see Frank Lloyd Wright’s influence, they’re distinctly Young.

Fascinating! Lots of fotos and info at:
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Lord of the Rings – Hobbit houses from the movie(Opens in a new browser tab)

Hobbit House of Montana(Opens in a new browser tab)

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

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Women in Appraising

Women in Appraising

Karen Mann: An accidental encounter turns into a lifelong career in the appraisal industry

Excerpts: Karen Mann is a Certified General Appraiser in Discovery Bay, CA. In her 39-year tenure, Karen has made it her mission to help continue the evolution of the industry – serving on several national and local committees for both the Appraisal Institute and the American Society of Appraisers.

Karen’s success in the industry started with a fortuitous event that turned into a successful career and a lifelong friendship. Even today, she remains close to two of the mentors that helped her get started. Her leadership and activism in the industry have helped guide others just getting started, and her acceptance of technology has aided in her success.

“Becoming an appraiser has changed my world. I’ve now been in quite a few leadership roles in and outside the appraisal industry. And, I feel that I’ve had a very fortunate career. I’ve worked really hard, but for the whole 39 years (so far), it’s been an honor to be an appraiser.”

My comment: I have known Karen for over 30 years. She is a lot of fun also. I will never forget when Karen and I plus a couple of other women got on stage and dancing and doing karoke at a national Employee Relocation Conference (social event). Appraising interferes sometimes with cruising on her big power boat ;>
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Maggie Hambledon, ASB member since 2011

Maggie is president of Hambleton, Inc., a real property appraisal firm in Columbus, OH. She has been in practice for over 40 years, specializing in the valuation of residential properties, with an emphasis on litigation support.

She got started by Sheer luck. “I answered an ad to work as an assistant for an appraisal department in a corporation.  The luck was I had two pioneer male appraiser mentors who believed in upward mobility and this was in 1968! I was able to learn from the time a potential assignment was logged in through the entire process and to travel to other states to participate in large multi-property appraisal assignments.”

https://www.appraisalbuzz.com/international-womens-month-part-3/

My comment: How did I get started? After 7 years I was bored working in labs, started when I graduated from college. In 1975 I saw an ad for “Engineering Aide” at the county’s assessor’s office. It said “work in the field” (verifying county records before switching to automated valuation). Previously I worked on the 1970 census in the field and really liked it. I had never heard of appraising and got an appraisal book at the library. Have been appraising ever since!

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

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Non-lender Appraisals Good fees and few hassles

Private Appraisal Work, the Final Frontier

By Rachel Massey

Author’s Note: Private appraisals aren’t really the “final frontier” for appraisers but it is a good metaphor. Private work for courts and disputes predates modern lending appraisals, so they should actually be considered the “first” frontier…but never let a good Star Trek saying go to waste!

As mortgage work has started to slow down in large swaths of the country, and likely will continue to do so, the temptation to move into the private arena is appealing. This is an area where our work is valued by those who need it the most. Private work is not lending work, and there are different requirements for different clients. Intended use and users rule supreme. Do I have the patience to walk someone through the process who is not experienced? Maybe yes, maybe no. This is not a place where I would want to spout off a bunch of expletives to a client who bothers me, but instead try to step back and ask whether I need to explain it differently so it is understandable. The onus is on me, the appraiser, to help my client understand.

My comment: A good intro to non-lender work. Marketing and client communication is very different. I have written many articles about non-lender work since 1992 in my paid newsletter.

The article “Should you do non-lender work? Pluses and minuses of both lender appraisals and each different type of non-lender appraisal.” Is in the October 2018 issue and can help you decide if non-lender work will work for you.

Appraisal Business Tips including non-lender work

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

For Covid Updates, go to my Covid Science blog at covidscienceblog.com

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City and building maps for appraisers

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? City and building maps for appraisers

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

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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:

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

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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 ;>

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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.

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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

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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:

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