UAD 3.6 and Appraisal Workflow

By on March 13, 2026   /   AI, humor, real estate market, statistics, UAD 3.6, Uncategorized   /   Leave a comment
Tags: , , ,

Newz: Practical AI Uses for Appraisers, Appraisal Forms Humor 

March 13, 2026

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

  • LIA AD: Client Insists on Cost to Cure
  • UAD 3.6 Is Coming: A Practical Moment to Rethink Your Workflow
  • Appraisal By Kevin Hetch
  • One of Palm Springs’ ‘Storied’ Rock Houses Hits the Market for $1.5 Million: ‘A Rare Treasure’
  • Getting 94 offers & a tighter housing market By Ryan Lundquist
  • MY AD: Do I really have to report that state board issue to my E&O insurance? By Peter Christsen, Esq.
  • Beyond the Hype: How I’m Using AI to Actually Save 10 Hours a Week By Dustin Harris
  • Appraisal Forms – the next Generation – Humor
  • MBA : Mortgage applications increased 3.2 percent from one week earlier

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UAD 3.6 Is Coming: A Practical Moment to Rethink Your Workflow Appraisal

By Kevin Hecht

Excerpts: For many appraisers, the transition to UAD 3.6 feels different from past form updates. This is not simply a revised version of the URAR with a few new fields or definitions. It represents a structural shift in how appraisal data is organized, communicated, and delivered.

While change on this scale can feel disruptive, it also creates an opportunity to improve efficiency, modernize workflows, and position your business for the future.

This transition is not just about learning a new report format. It is about adapting to a new data-centric environment. And one of the most important places to start is with your appraisal software.

This Is a Moment of Opportunity

Transitions like this can feel uncertain, but they also offer a chance to improve how you work.

By taking time now to understand UAD 3.6, evaluate your software options, and refine your workflow, you can position your business to operate more efficiently and confidently in the new reporting environment.

The goal is not simply to adapt. It is to build a workflow that supports you well into the future.

UAD 3.6 is coming. And with the right preparation, it can be a step forward for both the profession and your practice.

Topics

  • This Is More Than a Form Update
  • Start by Looking at Your Process, Not Just Your Software
  • Not All Software Will Handle This Transition the Same Way
  • Efficiency Gains Are Possible, But They May Require Change
  • Focus on What Supports Your Business Long Term
  • The Appraiser’s Role Remains the Same
  • This Is a Moment of Opportunity

To read more, Click Here

My comments: I had never thought about the “big picture”: how the software affects your business. Worth reading.

I have been writing about the appraisal software for a year and just wrote another article on Appraisal software vendor Timelines for my April newsletter. Only 1 or 2 are ready to go. The others need more work done. Appraisers cannot learn to use the software until it is fully completed.

Why is this going so slow? The GSEs did not check with the software vendors to see how much time they needed to complete their software. The actual time needed has been longer than expected. Also, GSE requirements to make all the software the same for the reporting section had to be exactly the same for all the vendors. Also, PDF and XML reports must be correctly done. Getting this all validated by the GSEs is taking time.

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One of Palm Springs’ ‘Storied’ Rock Houses Hits the Market for $1.5 Million: ‘A Rare Treasure

Excerpts: 3 bedrooms, 4 baths, 1,600 sq.ft. 0.45 acre lot, built in 1929

Perched high above Araby Cove, 2550 South Araby Road is a rare and storied treasure and one of Palm Springs iconic Rock Houses, originally built in 1929 by R. Lee Miller.

This historic residence is a singular blend of architecture, history, and landscape, offering sweeping panoramic views across the desert floor and exceptional privacy. Access is provided via a private road with restricted entry. Designated a Class One Historic Landmark by the City of Palm Springs, the home showcases handcrafted artistry throughout.

Stone walls rise organically from the mountainside, while original details remain beautifully intact, including hand carved doors and windows, custom shelving, exposed ceiling beams, ironwork door latches, handmade fireplace tools, and two original fireplaces, one of which includes a preserved stove pipe.

Respectfully honoring the home’s architectural legacy, the current owners acquired the property in late 2024 and completed a thoughtful transformation, bringing the residence into the modern era while preserving its soul. Extensive upgrades include updated plumbing, electrical, and HVAC systems, new appliances, an EV charger, and infrastructure improvements throughout the property.

To read the listing with a virtual tour, aerial view, 3d tour and many Photos, Click Here

My comments: Very unusual home. The photos are interesting!

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Getting 94 offers and a tighter housing market

By Ryan Lundquist

Excerpts: There is a property with 94 offers in Sacramento, and that’s not a typo. Let’s talk about this situation and how many offers most homes are getting..

A property was listed at $199,000, and it attracted 94 offers per MLS data (yes, our MLS has the number of offers). The agent who listed the property has been around a long time, and she’s great. All I’m saying is this home was strategically underpriced, and buyers showed up for it.

THERE IS SOMETHING ABOUT FIXERS THOUGH

This 94-offer example is indicative of a price strategy rather than the market being so hot. Yet, there is no mistaking there is a massive appetite for low-priced fixers (the subject was a fixer). In fact, 86% of properties with ten or more offers in the region right now are priced under $500,000 (likely underpriced under $500K).

MORE COMPETITION AT LOWER PRICES

The market isn’t the same at every price range. Do you see how there are more offers at lower prices and not as many at the highest? This is a normal dynamic, but it’s fascinating to see visually. I think this underscores how freakish it is to see 20 or more offers also.

To read more, Click Here

My comments: See the graphs and stats that Ryan uses to explain what is happening. What is your market like?

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To read more about the 4 ways, plus information on why I take ads, etc.

Click here

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Do I really have to report that state board issue to my E&O insurance?

By Peter Christensen, Esq.

In The June 2024 issue of Appraisal Today

Excerpts: This question arises because of the fear that reporting the complaint will result in non-renewal or a higher premium. Regardless of those fears and regardless of whether non-renewal or a higher premium may actually result, the safest course for an appraiser is always to report the filing of a complaint to the E&O carrier promptly upon receipt of first notice of the complaint.

Appraiser fears about reporting

Whatever the reason for having E&O, when a state disciplinary matter

occurs, appraisers understandably worry about the impact that the disciplinary matter may have on their insurance. Common fears are that their insurer will not renew their policy or that the insurer will increase their premium. These fears do have a rational basis but they are sometimes excessive.

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Beyond the Hype: How I’m Using AI to Actually Save 10 Hours a Week

By Dustin Harris

Excerpts: Let’s be honest. Most articles about Artificial Intelligence in the appraisal profession are long on dystopian warnings and short on practical advice. They talk about the “robo-appraiser” and AVMs as if they’re just around the corner, ready to take our jobs. But what if we’ve been looking at it all wrong?

For the past two years, I’ve shifted my focus from worrying about AI to leveraging it. I’ve treated it not as a replacement, but as the most capable assistant I’ve ever hired. The results have been stunning. By integrating a few smart AI tools into my workflow, I’m consistently saving over 10 hours a week. Here’s how.

First, I tackled initial data gathering. While AI can’t magically pull specific zoning data (yet), it acts as a brilliant research analyst. Instead of manually sifting through dense municipal code or county websites, I feed the text to an AI and ask it to summarize key zoning restrictions, setbacks, or use allowances. It turns a 30-minute headache into a 5-minute review.

Next came market analysis. We all know how to export MLS data into a CSV file, but the real time-sink is interpreting it. Now, I upload the CSV to an AI tool and ask it to identify trends, calculate absorption rates, and flag outliers. It drafts a solid, data-backed market conditions summary that I then refine with my local expertise. This alone saves me an hour on a complex assignment.

One of the biggest game-changers has been handling revision requests. Instead of getting defensive, I use AI to analyze the request objectively. I feed it the reviewer’s comments and my original report section, and ask it to draft a clear, concise, and non-confrontational response. It helps me address the core issue quickly and professionally.

To read more, Click Here

My comments: Definitely the most practical, and easiest applications of AI for appraisers. I play pickleball every week with a small group of older women (the youngest is 65 years old). Several of them are doing extensive genealogy research and writing articles for publication. They are using Claude extensively. I gotta get started on using Claude or at least ChatGPT!

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Appraisal Forms – the next Generation – Humor

NEW IMPROVED SPEEDY APPRAISAL FORM

Excerpt: Description of Subject Property and Neighborhood:

Subject property is located in _______________________, a popular, well-maintained area that has enjoyed dramatic appreciation over the past year.

Most buyers appeared to be unconcerned with size or overall utility of these homes, and seemed to be paying between $____________ and $____________, regardless of difference in appearance, condition, age, etc.

To read the full form, Click Here

My comment: A Blast from the Past. This seems appropriate for today’s UAD 3.6 !

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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, Click Here.

Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.

My comments: Rates are going up and down. We are all waiting for rates to drop lower in 2026.Mortgage applications increased 3.2 percent from one week earlier

Mortgage applications increased 3.2 percent from one week earlier

WASHINGTON, D.C. (March 11, 2026) — Mortgage applications increased 3.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 6, 2026.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 4.1 percent compared with the previous week. The Refinance Index 0.5 percent from the previous week and was 81 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 7.8 percent from one week earlier. The unadjusted Purchase Index increased 9.3 percent compared with the previous week and was 11 percent higher than the same week one year ago.

“Financial markets were volatile last week amid the ongoing turmoil in the Middle East. Mortgage rates increased on net over the week, while refinance volume was roughly flat. Borrowers in recent weeks were able to get 30-year conforming rates below 6 percent, but with the current volatility, longer-term rates have moved up, pushing up the 30-year fixed rate to 6.19 percent,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Purchase activity increased last week, particularly for FHA loans, which moved up more than 11 percent. The pace of homebuying continues to track ahead of last year’s pace, with overall purchase volume up 10 percent. More inventory on the market is supporting more transactions.”

The refinance share of mortgage activity decreased to 57.8 percent of total applications from 59.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.9 percent of total applications.

The FHA share of total applications increased to 17.1 percent from 15.8 percent the week prior. The VA share of total applications decreased to 16.1 percent from 17.1 percent the week prior. The USDA share of total applications remained unchanged at 0.4 percent.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 6.19 percent from 6.09 percent, with points increasing to 0.58 from 0.52 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) increased to 6.26 percent from 6.16 percent, with points decreasing to 0.3 from 0.31 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.02 percent from 5.97 percent, with points increasing to 0.70 from 0.62 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.54 percent from 5.49 percent, with points increasing to 0.68 from 0.60 (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 decreased to 5.26 percent from 5.32 percent, with points increasing to 0.64 from 0.51 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.

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Ann O’Rourke, MAI, SRA, MBA

Appraiser and Publisher Appraisal Today

1826 Clement Ave. Suite 203 Alameda, CA 94501

Phone: 510-865-8041

Email:  ann@appraisaltoday.com

Online: www.appraisaltoday.com

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5 Excel Resources and How-To Guides for Appraisers

By on January 9, 2026   /   appraisal business, appraisal charts and graphs, forecast, state appraiser regulators, USPAP   /   Leave a comment
Tags: , , ,

Newz: Forecasts, Appraisal Forgery,
Excel Appraiser Resources

January 9, 2026

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

  • LIA ad: A Case of Forgery
  • 5 Excel Resources and How-To Guides for Appraisers
  • Appraisal By Jim Amorin, MAI
  • Rare Sculptural Masterpiece by Architect Charles Haertling Hits the Market in Boulder for Under $4 Million
  • USPAP and the State Board By Timothy Andersen, The Appraiser’s Advocate
  • 2026 Housing Market Forecast: The Great Recalibration Appraisal By Kevin Hecht
  • When Protecting Tenants Starts With Targeting Property Rights By Desiree Mehbod
  • MBA: Mortgage applications decreased 9.7 percent from two weeks earlier

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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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5 Excel Resources and How-To Guides for Appraisers

By Jim Amorin, MAI

Excerpts: Are you getting the most out of Excel in your real estate appraisal work? If you’ve ever found yourself drowning in data or spending too much time on tedious tasks, it’s time to transform how you complete your appraisal tasks.

We’ll dive into five essential functions that can streamline your appraisal process and boost your efficiency as well as provide real-world examples to help you master these Excel tools and revolutionize your workflow.

VLOOKUP: Your Go-To for Vertical Data Retrieval

Imagine this: You’re working on an appraisal, and you need to verify the sale price of a property quickly. Instead of sifting through pages of data, VLOOKUP does the heavy lifting for you to pull information in a snap.

HLOOKUP: The Horizontal Companion

Now, let’s talk about HLOOKUP. If VLOOKUP is your vertical search tool, HLOOKUP is the horizontal counterpart. It’s perfect for those times when your data is organized across columns rather than rows.

XLOOKUP: The All-Rounder

XLOOKUP was introduced in 2019 as the successor to the VLOOKUP and HLOOKUP functions. XLOOKUP empowers real estate appraisers to navigate vast datasets seamlessly and enhance the precision of their valuations.

IF Statements: Decision-Making Made Simple

In Excel, the IF statement acts like a swift decision-maker, constantly asking, “Is this true or false?” Based on the response to this straightforward yet powerful question, Excel takes a divergent path, calculating different outcomes for the true condition compared to the false one.

To read more, Click Here

My comments: Understandable. I had never heard of this software. Detailed answers on how to use the tools by an expert: Jim Amorin, MAI

Read more!! →

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Appraiser-Client Relationships for Appraisers

By on June 20, 2025   /   appraisal business, bias, liability, state appraiser regulators   /   1 Comment
Tags: , , ,

Newz: WA appraisers fee hikes, AI and an appraiser defense

June 20, 2025

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

  • LIA Ad: Protecting My Appraisal Report
  • How to Build Strong Appraiser-Client Relationships
  • Cardiologist Lists Glass Mansion in Jackson Hole for $60 Million
  • WA Appraisers Stung by Fee Hikes and Veto
  • FOIA, AI, & the Appraiser’s Defense: A Blueprint for Fighting Back
  • MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey

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Real Estate Agents and Comparable Sales – Tips for Appraisers

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

 

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How to Build Strong Appraiser-Client Relationships

Excerpts: The most successful appraisers are those who consistently bring in new clients. Are you looking to earn more referrals and repeat business? Start by fostering good relationships with your appraisal customers. Taking the time and effort to build strong appraiser-client relationships is a great way to establish a good reputation and distinguish yourself from the competition so that you can easily generate new business through client referrals and word-of-mouth.

Not sure where to begin? To help you out, we asked our community of real estate appraisers, “Which is MOST important for building strong appraiser-client relationships?” Read their responses below for insights into several effective strategies you can use to keep your customers happy and keep business flowing.

Produce credible, high-quality work (47%)

Have clear communication (20%)

Be courteous and professional (11%)

Deliver reports on time (7%)

Go above and beyond (4%)

Other (7%)

To read more, Click Here

My comments: Worth reading the appraiser comments.

Read more!! →

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The Sales Comparison Approach in Appraisals

By on January 24, 2025   /   AMCs, appraisal how to, state appraiser regulators, Trump Changes   /   Leave a comment
Tags: , , , ,

Newz: Shadowy AMC Fees, State Board Complaints, Borrower Questions

January 24, 2025

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

  • LIA AD: Borrower Wants Answers Appraiser Can’t Give
  • The Sales Comparison Approach: A Cornerstone of Real Estate Appraisal
  • Waterfront Home in Boca Raton, FL $25,000,000
  • Metrics – What Poetry and Data Analysis Have in Common
  • The Shadowy AMC Fees Draining Billions from Homebuyers
  • Why Report a State Board Investigation or Complaint?
  • Trump signs executive order to reduce housing costs, but will it work?
  • Mortgage applications increased 0.1 percent from one week earlier

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The Sales Comparison Approach: A Cornerstone of Real Estate Appraisal

By Kevin Hecht

Excerpts: For experienced real estate appraisers, the sales comparison approach is more than just a method — it is a reflection of their expertise and competency in the marketplace. By mastering this approach and staying informed about industry standards and technological advancements, appraisers can ensure that their work meets the highest standards of professionalism and accuracy.

Challenges and Best Practices

While the sales comparison approach is a powerful tool, it is not without challenges. Appraisers may encounter situations where there is a lack of recent sales data or where the subject property is unique. In such cases, appraisers must exercise judgment and creativity to develop credible results.

Some common challenges include:

Inadequate Market Data: In markets with limited sales activity, finding comparable properties can be difficult. Appraisers may need to expand their search geographically or consider older sales, making appropriate adjustments for time.

Dissimilar Comparables: When the subject property has unique features, it may be challenging to find truly comparable sales. Appraisers must carefully analyze and adjust for these differences.

Unsupported Adjustments: Adjustments must be based on market evidence. Unsupported or arbitrary adjustments can undermine the credibility of the appraisal.

To overcome these challenges, appraisers should:

  • Conduct thorough market research to identify the best available comparables.
  • Use both quantitative and qualitative analysis to support adjustments.
  • Document their reasoning and methodology clearly in the appraisal report.

To read more, Click Here

My comments: Good reminders of the Sales Comparison Approach.

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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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Waterfront Home in Boca Raton, FL $25,000,000

Excerpts: 12 bedrooms, 11 baths, 12,709 sq.ft., 0.53 Acres, Built in 2016

Direct Intracoastal Point Lot with 256 ft of Waterfrontage and .53 Acres. Built of John Ross/ ROSSCO Const, the beauty of the lot is that it is sited on an expansive Nautical turn of the Intracoastal so it captures the gorgeous long North views.

There are 2 staircases, one with Marble & tile work by a Canadian Artist and banister designed by a metal artist and the owner, the other is a tree staircase The best part is you do not have to climb down the stairs as there is a hand crafted wooden Dragon Slide from the second floor to the foyer. The central slide seen from the front door is artizanally made from oak by local artist. The observation deck (covered) offers stunning views of the Intracoastal, and it includes another outside shower, and solar panels.

In the middle there is a 20 sitting Norse carved table with Helga and Magnus dragons protecting it. There are tile murals, stained glass windows and ceiling paintings all over the house, also thematic. The kitchen is dedicated to the Elements of Air and a story of its power is depicted on its ceiling.

To see the listing and 209 Photos, Click Here

My comments: Thanks to Joe Lynch for this listing with very colorful exterior and interiors!

Read more!! →

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Q3 Fannie Update – Concessions, Rural, Environmental Hazards

By on October 4, 2024   /   adjustments, Fannie, real estate market, state appraiser regulators   /   Leave a comment
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Newz: Fannie Update, Concessions Are a Mess, State Board Complaints

October 4, 2024

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

  • State Board Complaints and Renewal

  • Q3 2024 Fannie Mae Appraiser Update – Concessions, Rural, Environmental Hazards

  • $47 Million Ski Chalet With Private Tesla-Style Gondola, Bowling Alley, and Basketball Court

  • September 2024 Real Estate Market Update: What Appraisers Need to Know By Kevin Hecht

  • The hot mess of concessions in real estate By Ryan Lundquist

  • That A-Frame Life: What It’s Really Like To Live in These Triangular Houses

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    Appraisal Business Tips 

    Humor for Appraisers

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

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Q3 2024 Fannie Mae Appraiser Update – Concessions, Rural, Environmental Hazards

Excerpts:

Rural

Worth reading with links to Fannie info, including a link to: Free Fannie online Rural Appraisal Challenges eLearning course. Plus other tips.

Environmental Hazards

While Fannie Mae does not expect the appraiser to be an expert in the field of environmental hazards, we do expect appraisers to analyze and report any information about environmental hazards that is available in the normal course of business…

If an appraiser has knowledge of or identifies an environmental hazard in or on the subject property or on any site within the vicinity of the property, we require the appraiser to…

Seller Concessions

The article about seller concessions in our December 2023 Appraiser Update generated a lot of questions and buzz.

First, we heard that some appraisers, in reaction to our article, adopted a practice of always adjusting dollar for dollar for seller concessions. While this may seem sensible from a theoretical perspective, it could have adverse unintended consequences (such as undervaluation) if the concession did not actually have a dollar-for-dollar impact on the price. Making either assumption (that there is no impact or that the impact is dollar-for-dollar) is not the correct approach…

PSAs – UAD, Bias with useful links to Fannie info

To read more, Click Here

My Comments: Read the concessions section to see what Fannie Mae says on this hot topic! Plus the useful info and links on other topics above.

See Ryan Lundquist’s post below on Concessions – A Mess

Read more!! →

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Low Appraisal Fees in 2024

By on June 7, 2024   /   appraisal business, liability, real estate market, state appraiser regulators   /   Leave a comment
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CFPB Crackdown: Unfair Practices Hurting Consumers

This includes Appraisal payments to appraisers by AMCs

by Josh Tucker, June 5, 2024

Comments must be received on or before August 2, 2024

Excerpts: As we all know many AMCs are not paying Customary & Reasonable fee as required by TILA. They have consistently pushed down the pay of Appraisers while making undisclosed profit off consumers and prioritizing cheapest and fastest over quality and competency. The CFPB has been in communication with individuals behind the scenes and are concerned with what has been shown enough to include AMCs in their data collection process.

Now is the time to send them everything we have. To drive legitimate change, we must encourage as many appraisers as possible to submit all relevant information to the contact details provided below.

CONSUMER FINANCIAL PROTECTION BUREAU

[Docket No. CFPB-2024-0021] NOTE: USE THIS LINK TO READ THE DOCUMENT AND THIS NAME TO USE THE COMMENTS PORTAL BELOW.

Request for Information Regarding Fees Imposed in Residential Mortgage Transactions AGENCY: Consumer Financial Protection Bureau.

ADDRESSES: You may submit comments identified by Docket No. CFPB-2024-0021, by any of the following methods:

Federal eRulemaking Portal: http://www.regulations.gov . Follow the instructions for submitting comments. NOTE: THE SEARCH WAS NOT WORKING ON JUNE 6. MAY WORK LATER. CAN USE EMAIL.

Email: 2024-RFI-ResidentialMortgageFees@CFPB.gov. Include Docket No. CFPB-2024-0021 in the subject line of the message.

Mail / Hand Delivery / Courier: Comment Intake —Residential Mortgage Fees Assessment, Consumer Financial Protection Bureau, 1700 G Street NW, Washington, DC 20552.

To read more, Click Here

My comments: DO SOMETHING. YOUR VOICE MATTERS. Let CFPB know about the amount of AMC fees for appraisers, plus other problems. In my opinion, AMCs are ruining residential lender appraising. I have never worked for an AMC, but I’ve been appraising for almost 50 years and understand the problems.

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Appraisal Fees & Value: Lessons from Picasso & Steinmetz

By “Apex Appraiser” June 3, 2024

The Appraisal Institute has been a source of frustration and criticism within the appraisal profession for quite some time. I must admit that I have also expressed my dissatisfaction with them. Nevertheless, I must acknowledge that the new CEO, Cindy Chance, appears to be a positive change and is making some valuable points about our profession from her new position. In particular, she recently discussed appraisal fees in a piece she wrote.

In this excerpt, she shares two stories that provide valuable insights. These stories, one involving art and the other science, highlight the fact that appraising is a combination of both.

First is the story about a young woman who encountered Pablo Picasso one spring day, in a park, sketching. She begged him to sketch her. He graciously agreed, and following a few moments of study and drawing, handed her a sketch of herself. When she asked what she owed him, Picasso answered “$5,000 madam.” “But it only took you five minutes.” “No, madam, it took me my whole life.”

To read more, plus many appraiser comments, Click Here

My comments: Worth reading, plus the appraisers comments. I have been following CEO Cyndi Chance since she started working for AI. It’s definitely a “breath of fresh air” for the AI!

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Appraisers Riding the Waves of Up and Down Mortgage Rates

Appraisal Business Tips 

Humor for Appraisers

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

NOTE: Please scroll down to read the other topics in this long blog post on state appraisal boards, liability, appraiser insurance, price per sq.ft. up 50%, sea level rise, unusual homes, mortgage origination stats, etc

Read more!! →

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NAR Member Survey on Appraisal Data Collectors

By on September 22, 2023   /   appraisal business, appraisal how to, non-lender appraisals, real estate market, retirement, state appraiser regulators   /   Leave a comment
Tags: , , , ,

NAR  Member Survey on Data Collectors

Excerpts: In May 2023, NAR surveyed its members pertaining to data collectors in the appraisal process. Here are a few of the many survey results.

Survey respondents

Sales agents accounted for the largest proportion, with 45% of participants holding this license. Brokers followed with 24%, and appraisal-certified professionals comprised 14% of the respondents. Broker-Associates and Appraisal Licensees accounted for 13% and two percent, respectively, while the remaining two percent reported holding other types of real estate licenses.

According to the survey responses, the majority of participants (76%) perceive the quality of property data collected by data collectors to be lower than that collected by appraisers themselves. Conversely, 23% of respondents believe that the quality of data collected by data collectors is comparable to that of appraisers.

The survey findings indicate that 30% of respondents reported that a data collector had given them the impression that they were the appraiser or had a role other than merely collecting property data.

Fifty-one percent of respondents expressed safety concerns with the data collection process.

To read more, click here

My comments: Now we know what NAR members think about it. Not very positive. I was surprised at how negative they were. Read the full report. Very interesting. I am working on an article on Hybrid Appraisals for the November issue of Appraisal Today. To me, the big issue is who is doing the inspections. Only appraisers do the appraisals. I see very different levels of inspectors.

Before Covid, I talked with various AMC upper-level managers who were testing it. What they were doing about inspectors had a wide range. They included appraisers, real estate agents, and someone with a week, a month, or online video training. They should definitely not be paid the same. An AMC can offer different levels to their clients, depending on how much reliability their lender customers want or need.

On a more positive side, I have done thousands of drive by appraisals since 1986. I drove by the house and looked at what was nearby, etc. For example, I’m appraising a Victorian built before 1910. There is no way to know what the inside looks like or the foundation (many are brick). Using MLS photos is a joke, as real estate agents don’t take photos of defects. A buyer gets a seller’s disclosure statement for that information. I would be more comfortable if someone used an app that was set up to take specific photos, do floor plan, etc. At least I would have some independent photos.

Data Collectors: Appraisers vs. Uber Drivers

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Appraiser Countersues Alleged Discrimination

By on July 7, 2023   /   Fannie, non-lender appraisals, real estate market, state appraiser regulators   /   Leave a comment
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Appraiser Countersues Black Plaintiffs Who Alleged Discrimination

by Isaac Peck, Publisher WorkingRE

There are now a number of lawsuits facing appraisers where the primary allegation is racial discrimination.

Tate-Austin v. Janette Miller, filed in California in Dec. 2021, was one of the first (and perhaps the most publicized). But since late 2021, a number of similar lawsuits have popped up—from North Carolina to Maryland.

Connolly & Mott v. Shane Lanham et al. is one highly publicized lawsuit covered at length by mainstream media–CBS News, The New York Times, NBC, CNN, ABC News, and more.

Filed in August 2022 in the U.S. District Court of Maryland, Connolly and Mott allege that Lanham discriminated against them and violated professional appraisal standards because of his allegedly “racist beliefs” (among other things).

Mr. Lanham is now countersuing Connolly and Mott for labeling him a racist, making false and defamatory accusations, and causing severe harm to his business, his reputation, and his well-being. Alongside his counterclaim, Lanham has also filed a Motion to Dismiss Connolly and Mott’s initial claim, arguing that they have failed to show any facts that support he discriminated against them.

“Plaintiffs cannot transform allegations of incompetence or a breach of appraisal industry standards into racial discrimination by baldly alleging that Mr. Lanham believed that Plaintiffs did not belong in their neighborhood and that their home was worth less than other homes because of their race. There are no facts alleged in the First Amended Complaint, and none can be alleged with good faith, that Mr. Lanham treated Plaintiffs any differently than homeowners of other races,” the motion reads.

To read more, click here

My comments: Long article and worth reading. Discusses many issues and lawsuits. I don’t write about this topic much. My opinion is that everyone is biased against something. I learned I was biased against young Black men when I was on a criminal jury many years ago.

When a young Black man, the defendant, walked into court, I immediately thought he was guilty. I sent a note to the judge who excused me publically in court. I was very, very embarrassed. But it would have been a lot worse to stay on the jury and vote to convict him. My parents raised us not to be prejudiced against anyone. But I grew up in Tulsa, OK, next to Greenwood, an area of successful Black residents prior to 1921. The Tulsa race massacre occurred on May 31, 1921. I never heard it mentioned by anyone. Older people, who knew about it, never spoke of it. Some newspaper issues were destroyed.

I assume that since I had been appraising in high crime neighborhoods, I became prejudiced. I work hard not to show it. I don’t cross the street when I see a young black man coming towards me, and I smile when we pass, but I do get a little nervous. What is most important is recognizing and not acting on your prejudice.

I have been tempted to lower a value when an owner’s large do dog jumps on me or tries to bite me. But I know I don’t like aggressive large dogs and don’t let it affect my value.

Of course, some appraisers could be biased. But, for residential lender appraisers, there is no advantage to coming in “low” on any residential lender appraisal. You may lose a client.

In the past, appraisers were trained by FHA to redline, with lower values in Black neighborhoods. Appraisal textbooks and classes included this. But, it all changed in the mid-1970s, when I started appraising and was no longer allowed. Hopefully, I would not have become an appraiser working for residential lenders before then because of the obvious bias.

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State Appraisal Boards – What Do They Look For?

By on April 21, 2023   /   bias, Fannie, liability, non-lender appraisals, state appraiser regulators   /   Leave a comment
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The State Appraisal Board Wants to Throw Me Under the Bus, Right?

by Barry Phillips and Tim Andersen

Excerpts: So, what do the investigator and the state board look for as part of their investigation? Again, simply put, the investigator and board look to see if the appraisal meets the requirements of USPAP’s Standard 1, and if the report meets the requirements of USPAP’s Standard 2. Everything else in such an investigation is merely an elaboration of the answers to these two questions.

Nevertheless, there is a warning due here. Increased numbers of state appraisal boards are looking at complaints against appraisers from the standpoint of the consumer, rather than that of the client and/or the intended user(s).

This, to a great extent, is a function of the current political climate. As all appraisers are aware, the consumer has no standing with the appraiser (assuming the consumer is not the named client or intended user). Nevertheless, state boards tend to favor the consumer (the complainant) over the appraiser (the respondent).

To read more, click here

My comments: Good analysis of how state boards work and what they look for. Tim Andersen, MAI, is definitely “The” USPAP Expert.

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Fannie Mae Takes A Closer Look at Appraisals

By on November 20, 2022   /   appraisal business, Fannie, future, real estate market, state appraiser regulators   /   Leave a comment
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Sins of the Past Are Back to Haunt Appraisers

Fannie Mae Takes A Closer Look at Appraisals

By Richard Hagar, SRA

 

 

Excerpts:

In the recent past, when appraisers were swamped

Even with the Collateral Underwriter program review, appraisers were overwhelmed. Every lender and AMC were seeking and hiring review appraisers in order to keep up with demand. Due to the shortage of review appraisers (exacerbated by low fees and time pressures), tens of thousands of poorly created appraisals were accepted without receiving adequate review.

Unfortunately, because many appraisals were rarely rejected or required corrections, appraisers developed the false notion that poorly crafted appraisals were okay to turn in. Many appraisers were bragging about their ability to fill out two or three appraisal forms a day and receive no call-backs from lenders.

However, time and time again we’d review appraisals, that were accepted by lenders, but had failures such as:

• No highest and best use analysis (as if vacant and improved).

• Failure to make appropriate time/market adjustments (positive or negative).

• Using only a single approach to value.

• Incorrect land values.

• Square footage costs and depreciation based more on opinion than reality.

• Unsupported adjustments (adjustments based on “my 30 years in the business” instead of facts).

• Failures to personally inspect and photograph comparables.

What’s happening now

FNMA indicates that their 2022 lending volume is down 47% from 2021 and is expected to drop by another 50% in 2023. So, it’s pretty safe to state that the “appraiser shortage” of yesteryear is over, and reviewers now have more time on their hands.

Which appraisers are going to survive when the loan volume is down 75-85% and the poor appraisals of the past are catching up with the appraiser today? Well, for the most part, it’s based on the quality of the appraisals delivered to lenders over the past five years.

Do you believe that the quality of your work ranks you as a tier 1 appraiser or do you have a little concern about your rating? Tier 1 appraisers have little to fear but tier 2 and 3 appraisers…

What you can do today

Today, you likely have more time on your hands, so slow down and take more time improving the quality of your work. Superior quality appraisals can set you free.

Learn how to accurately determine adjustments. Follow the ANSI standard when measuring the subject (even if you disagree with the method — it’s the requirement). Take more classes! Don’t stop taking classes just because you have enough CE credit to meet your next renewal; that mentality is for the bottom tier of appraisers.

I typically obtain double the CE credit hours necessary to renew my certificate…double! Why? Because I want to do things better, obtain higher fees, and survive the purge that is coming. Lenders have more choices, and you need a way to stand out from the bottom tier and low fee appraisers.

To read more, click here

My comments: Worth reading. Hagar is one of the best residential appraisal instructors. I have known him for over 30 years and have taken many of his classes. Richard can be a bit negative but states what is really happening and what you need to do. Many thanks to Ryan Lundquist’s 2020 blog post for the very appropriate image above!

I also think that now is the time to increase your appraisal skills by taking classes and seminars. I also have always had more CE hours than I need.

I am an appraiser because it is challenging and never boring. I quit working in labs because it was boring after 7 years but have never been bored appraising. I want to be the best appraiser I can be. (I have always been an over-achiever).

Consider doing non-lender appraisals. I have been doing them since 1986 and writing about them in my monthly newsletter since 1992. No CU, UAD, reviews, many pages of differing AMC requirements etc. Your requirements are in USPAP.

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