VREAB to Discuss Hybrid Appraisals
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…concerns on the negative impact on the real estate market…
The Virginia Real Estate Appraisal Board Committee on Hybrid Appraisals will meet on Wednesday November 28th @1:00 PM. We ask that all appraisers attend and share your comments on these products. If you are unable to attend we ask that you submit your comments to the VREAB to be shared with the committee.
Concerns on if these products comply with:
- 54.1-2011 which states any assistance by an unlicensed person must be directly supervised by a licensed appraiser.
- 54.1-2009 Definition of an appraisal which states an appraisal is an opinion, analysis or conclusion relating to the nature, quality, value or utility of a specified interest in, or aspects of identified real estate or identified real property.
- When an unlicensed person does the property inspection and determines the condition, quality and utility of a property are they performing an appraisal?
- Is the public being protected with an unlicensed person entering homes with no training, experience, or qualifications? Is the person performing the inspection on the Sex Offenders Registry? Just released from prison? Convicted child molester? Do they have the skills and training on what appraisers look for when observing the property?
- Is the licensed appraiser completing the analysis geographically competent? Are they local or do they reside several states away? Have they ever been to the neighborhood? Been anywhere in Virginia? Are they familiar with each neighborhood nuisances?
- With the licensing of AMCs, there are many appraisers that are employees of AMC’s throughout the country. Many hold a Virginia Real Estate Appraiser License. Are they the ones completing the appraisal reports? Do they have the proper geographic knowledge?
Ask borrowers and homeowners what they think of these products. Our response has not been positive. Real Estate Agents also have great concerns on the negative impact on the real estate market.
Do these products really save time and money as those promoting them claim? Where is the proof of this?
These products have a lot of unanswered questions around them. Please attend this meeting and share your comments and concerns with the committee. Let’s continue to protect the public!
We also wanted to share with you an article written by Ken Harney comparing an AVM to an actual appraiser. This is another great story in a line of pro-consumer articles written by Ken. Please take this article, and post it on all your social media accounts. Every consumer needs to understand the difference. See the article titled “The Nation’s Housing: Which is better at valuing your home – you or a computer program?”.