Appraisers and The Psycho Kitty

By on May 7, 2021   /   appraisal how to, appraisal waivers, humor, real estate market, state appraiser regulators, statistics, unusual home, waivers   /   Leave a comment
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Favorite Crazy Appraisal Stories – The Psycho Kitty

Excerpt: Psycho Kitty

I had an appointment at a home in the country out in the woods. The access instructions said the cat MIGHT be caged. Got to the home and the cat was at the front door and hissed at me as I went in. I tried to make friends with the cat, but it didn’t work, so I ignored the cat and started my inspection.

As I came out of the first-floor master, he was waiting. He stood on his hind legs, teeth showing, hissing, and came at me. Once again, I used my clipboard and ran to the laundry room where I was able to shut the door. I was safe…

To read more strange and/or funny appraisal stories, click here

My comment: We all have appraisal stories, of course!! In my 45 years of appraising I have never been attacked by a cat. My creepiest cat encounter was appraising the home of a cat foster parent for a local animal shelter. Large outside cat enclosure full of cats, multiple cats on top of dressers and other places, looking at me (looked like they were hungry). I wish I could forget about all the cat eyes looking at me :<

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Fannie says appraisal “forms” are going away

By on April 2, 2021   /   adjustments, george dell, state appraiser regulators   /   Leave a comment
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Fannie Mae is Not Developing New Appraisal Forms

By Dustin Harris 

Excerpt: Some of my colleagues have asked me, “What will the new forms look like?” Again, and I know it is a bit nit-picky, but there are no new forms. Rather, the GSEs are developing a cloud-based electronic container that will be used to report our findings rather than filling out a form and sending it in. Weird, I know, but it has its positives.

Currently, an appraiser needs to determine the proper scope of work to know which form is best for the situation. If it is a condo, it is likely a 1073. Single family residence, a 1004 or 2055.

To read more, click here

My comments: Nothing much new, of course. I have been writing about Fannie Modernization in the monthly newsletter and this newsletter for a while. Last week’s weekly newsletter had a brief Fannie Update – mostly the new timeline to 2024.

I also hear that Fannie will require a lot more data with more time required to fill out the online “form.” I can’t wait until we don’t have to decide which form to use! Especially since some “reviewers” and AMCs don’t really understand this.

A good example is how Turbo Tax software works. Instead of looking at every part of your printed tax return, it only shows what is relevant. For example, if you are filing as a single person or married. A single person would not have to look at the single vs. married part of the return.

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So Many Appraisal Cost Approach Questions

By on August 21, 2020   /   appraisal business, COVID, hybrid appraisals, Mortgage applications, Reviews, state appraiser regulators, statistics, unusual home, unusual homes, va   /   Leave a comment
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So Many Appraisal Cost Approach Questions!
So Few Answers! Such Low Fees!

By Tim Andersen, MAI

Excerpt: It is clear most appraisers do not like to do the Cost approach. Generally, we are not too familiar with it. So, it is clear that most appraisers, because of this, do not appreciate the deep analytical power the Cost approach really has. So Many Appraisal Cost Approach Questions!

Therefore, I’m going to ask you 10 questions on the Cost approach (and stuff related to it). After you’ve finished reading them, you probably will still not like to tackle the Cost approach. Nevertheless, you just may have a better understanding of, and appreciation for, its powerful analytical capacities.

First Question: On the 1004 form is the indication that Fannie Mae does not require the Cost Approach to Value. Where does the form instruct the appraiser not to complete the analytics of the Cost approach?

To read the other questions and answers click here

My comment: Appraisers, including myself, seem to have a love/hate relationship with the Cost Approach. But, it can be useful. Tim’s much longer article “But Fannie Mae says I don’t have to do the Cost Approach!!” will be in the September issue of the paid Appraisal Today.

Appraisal Process Challenges(Opens in a new browser tab)

Which Appraisal Clients are used the most?(Opens in a new browser tab)

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Appraising the White House

By on July 20, 2019   /   AMCs, appraisal classes, AVMS, bifurcated appraisals, Mortgage applications, state appraiser regulators, statistics, weird homes   /   1 Comment
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18 Historic Homes that Would Be Fascinating to Appraise

Excerpt: Historic homes make for complex and interesting appraisal subjects. As one appraiser said, “I love unusual properties, and the challenge they present to appraise. I have always loved appraising large, older properties. They take us back to another world back in time.” We recently asked our appraisal community, “What famous historic home would you want to appraise?” Here’s what they said.
A few of the homes:
Frank Lloyd Wright’s Fallingwater
The White House
Norman Bates “Psycho” House
Graceland
To read the full list plus many comments click here
My comment: For me, none of the above ;> Too difficult!

Appraising Weird Stuff is Challenging!

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Why do appraisers hit the sales price?

By on May 31, 2019   /   adjustments, bifurcated appraisals, commercial appraisal, humor, hybrid appraisals, Mortgage applications, real estate market, state appraiser regulators, Uncategorized, weird properties   /   Leave a comment
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Why do appraisers hit the sales price?

By George Dell

Excerpt: A recent study includes a graph which shows that some 90% of appraisals hit the sale price exactly, or were higher, while only some 10% were below the sale price (when the sale price is known).

Is this a bias on the part of appraisers, or is the bias the cause of the system? What could possibly cause this strong upside skew?

First, ignore the ongoing pressures from the entire ‘loan industry’ to make the loan, make the commission, make the quota, make the bonus, and look successful. Ignore the claimed purpose of the public trust (of our quasi-governmental standards and licensing quagmire).

The goal of protecting the public trust failed, and will fail again— this time with different excuses and blaming— but it will fail again.

Let’s look at some underlying economic truths and social/governmental policy. What economics and public policies come into play here? Three come to mind immediately:

To read the full, very interesting post click here

My comment: When I started my appraisal business in 1986, I was told by local very experienced appraisers to appraise at the sales price or I may be kicked off a lender’s approved list. Of course, since I was trained at an assessor’s office, I was shocked and refused to do this… There was always another lender client I could get.

Dell’s blog has very short posts. My June paid newsletter will have a much longer article written by him: “Old Versus New: Conflict or Opportunity?” It has a brief look into the past, including a photo of an acoustic coupler for connecting to remote sites. Plus, of course, comments on the future! I remember 30 baud transmission rates in the early 1980s connecting from my home PC to my company’s servers;>

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

What to Do When Your Appraisal Is Under Review(Opens in a new browser tab)

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Residential Appraisal Errors

By on May 3, 2019   /   AMCs, appraisal management company, Mortgage applications, real estate market, weird properties, zillow   /   Leave a comment
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25 Common Errors in Appraisal Reports

A compilation of the most common errors and deficiencies found in appraisal reports by reviewers, regulators, and appraisal boards. Residential Appraisal Errors

Here are a few:
– Not providing enough analysis for the intended user or reader to understand the report properly.
– Inconsistencies between the description of the subject property in the improvements section and the photographs, sketch, sales comparison grid, and other areas in the report.
– Inappropriate use of boilerplate commentary in the appraisal report to describe the neighborhood or to explain the reconciliation of the sales comparison approach.
– Failure to summarize the analysis and rational that supports the Highest and Best Use opinion.
– Not complying with the most current USPAP.
Read the full list here:

My comments: Reminders are always good. For unknown reasons, I don’t see much CE or writing on these problems. These apply to all appraisals because we are licensed, not just lender appraisals.
It was soooo nice in the “old days” before licensing ;> Two Rules: Tell the  truth and disclose what is bad. No USPAP changing every two years, overzealous appraisal boards, renewal fees, etc.. Of course, the reason we have licensing is the lender mess in 1989, resulting in FIRREA,  regarding bad commercial property development loans by S&Ls
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Humor for Appraisers

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Reliable MLS Data important for appraisals

By on April 18, 2019   /   Appraisal Foundation, Mortgage applications, real estate market, state appraiser regulators, Strange homes, unusual homes, weird homes   /   Leave a comment
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The Importance Of Accurate MLS Information

Accurate MLS Information Is Necessary For Reliable Appraisals

By Tom Horn

Excerpt: Topics include
– Accurate MLS Information Helps With Adjustments
– Square Footage Should Be Accurate
– You Can’t Measure It If It’s Not Described
Read the full article plus the comments.

My comment: Written for real estate agents. Maybe you can use some of it in your appraisal blog focusing on real estate agents. Of course, with Big Data, MLS inaccuracies are propagated and used for AVMs, including CU’s AVM.
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Generally speaking, how accurate do you find MLS data in your area?

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Non-lender Appraisals Good fees and few hassles

By on February 14, 2019   /   Appraisal Standards Board, mortgage loan volume, state appraiser regulators, Uncategorized, USPAP, weird properties   /   Leave a comment
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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

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Do tandem bedrooms count as bedrooms in appraisals?

By on October 11, 2018   /   adjustments, appraisal how to, data, mortgage loan volume, state appraiser regulators, unusual home, zillow   /   Leave a comment
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Do Tandem Bedrooms and Garages Impact Value?

 Excerpt: There is less privacy in the one bedroom because it must be walked through to get to the other bedroom. This is considered to be functional obsolescence.
This type of situation is most often found in older homes. I have seen this type of situation many times on the second floors of many bungalow or cape cod style dwellings I have appraised. Although, it can exist in any style home.

My comment: I see tandem rooms a lot and sometimes tandem garages. I think I have finally convinced the local agents not to call them bedrooms. Of course, some insist on using Assessor data, which has not been updated since 1979, when Prop 13 passed and re-assessments stopped unless there was a sale or new construction.

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Appraisal Business Tips 

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U.S. Land use map for appraisers

By on August 2, 2018   /   AMCs, appraisal business, mortgage loan volume, real estate market, statistics, USPAP, weird properties   /   Leave a comment
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Here’s How America Uses Its Land

Excerpt: What can be harder to decipher is how Americans use their land to create wealth. The 48 contiguous states alone are a 1.9 billion-acre jigsaw puzzle of cities, farms, forests and pastures that Americans use to feed themselves, power their economy and extract value for business and pleasure.

One of the many interesting tidbits:
The U.S. is becoming more urban-at an average rate of about 1 million additional acres a year. That’s the equivalent of adding new urban area the size of Los Angeles, Houston and Phoenix combined. U.S. urban areas have more than quadrupled since 1945.

Click here for very interesting graphics and more analysis:

Appraisal Business Tips 

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Covid-19 Residential Appraisers Tips on Staying Safe

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