Author: Dave Towne

How Zestimate Works - Accuracy Is an iIsue with Zestimates 8

How Zestimate Works

Accuracy is an issue with Zestimates… I happened to find this article, which explains the processes used to generate Zillow’s Zestimate, the estimate of residential property value: Inside the Zestimate: Data Science at Zillow I found it interesting that they use the ‘R’ spreadsheet for doing some number-crunching, not Excel. ‘R’ is what George Dell has been demonstrating in his classes. But the graphs are generated by a different software. Accuracy is an issue with Zestimates, according to Zillow, per the article:  “Nationally, the median error rate is 8.3 percent, the company says.” However, they don’t define what ‘error rate’ means. Is...

Appraisal / Appraisal News / Appraisers News

Is Mr. Brian Coester Being Honest? I'm Skeptical... - Appraisers Blogs 19

Is Mr. Brian Coester Being Honest?

The real question I have is simple: Is Mr. Brian Coester being honest with people, and telling the truth about what REALLY happened? I’m skeptical, but I don’t do business with CoesterVMS. Brian Coester claims “We are not out of business,” as AMC runs into financial difficulty – AMC claims bank made mistake I sure have read lots of first-hand comments from appraisers about either slow pay, or not being paid, for reports completed for CoesterVMS. That makes me highly uncomfortable about accepting any assignment from them, unless they pay the report fee UP FRONT, and they don’t get the report until...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Coester VMS

Accepting CLIENT Provided List of Comparables - Client Supplying Comps 17

Client Supplying Comps

CLIENT provides the appraiser with a list of comps… I’ve heard about this practice, but this is the first time I’ve actually seen it ‘in print’: Do you supply a list of available comps for each order? Yes, in most cases. Click the “Comparables” button while completing the form to view and select available comps. This will save you significant data entry time. Please note: Option only available for BPO and hybrid valuations. I was doing some on-line research for a potential new client which provides a wide range of services to the mortgage industry, including appraisal, and found this statement among their Q&A...

Appraisal / Appraisal News / Appraisers News / Uniform Standards of Professional Appraisal Practice / USPAP

When an Appraisal is Not Required - Appraisals & Evaluations Regs 8

Appraisals NOT Required

…is not required to obtain an appraisal under other law… The Federal Deposit Insurance Corporation (FDIC) issued a Financial Institution Letter to US banks on 10/16/18, which incorporates Appraisal and Evaluation regulations and guidelines. This consolidates previously issued regs and guidelines into one document: Letter  FIL-62-2018 Part 323 – Appraisals Appraisal and Evaluation Guidelines 2000 – Rules and Regulations PART 323—APPRAISALS § 323.3 Appraisals required; transactions requiring a state certified or licensed appraiser. (a) Appraisals required. An appraisal performed by a state certified or licensed appraiser is required for all real estate-related financial transactions except those in which: (1) The transaction value is $250,000 or less;...

Appraisal / Appraisal News / Appraisers News / FDIC / The Federal Deposit Insurance Corp.

If It’s Not an Appraisal, What Is It? Doing Away with Reporting Type? 4

If It’s Not an Appraisal, What Is It?

…do away with specifically ‘naming’ an appraisal report as to the “type” it is… Folks, the Second Exposure Draft of proposed changes to the next USPAP was released by the Appraisal Standards Board on August 23. See embedded PDF below. The ASB is encouraging all users to review this document, and provide commentary back to them on/before October 10, 2018. One item of note is there is a proposal in the Draft to do away with specifically ‘naming’ an appraisal report as to the “type” it is. If it’s not an ‘appraisal’, what is it?? Currently we have “Appraisal Report”...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / ASB / The Appraisal Standards Board

FNMA Rural High-needs Appraisal Waiver 18

FNMA Rural High-needs Appraisal Waiver

…which counties in the US qualify for this kind of FNMA rural high-needs appraisal waiver… Appraisers, you may not be affected by this new FNMA waiver process. Then again, if you service certain ‘poverty’ counties in the US, you may. A surprise to me… Kings County, New York [Brooklyn], is one such county. It probably would be in your best interest to examine this blog, and then click on the map link within the article. The map will show which counties in the US qualify for this kind of FNMA rural high-needs appraisal waiver. Once the map opens, you can...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Trending

Size vs. Value - Finaly...The Truth About Price per Sq.ft. in Valuations 13

Truth About Price per Sq.ft. in Valuations

…has nothing to do with size… This article from realtor.com titled ‘Forget Price Per Square Foot: The More Accurate Ways to Determine Your Home’s Value’ explains why price per square foot is not a good gauge of value. Excerpt: A home’s price per square foot is a common way to quantify its value… Many home shoppers even use it as a determinant for whether or not they’ll even consider touring a home. But that doesn’t mean it’s the most accurate, end-all and be-all way to gauge a home’s value and compare it with other houses. Why? Because all homes are...

Appraisal / Appraisal News / Appraisers News

Indemnity Clauses... Either Sign, or Get Put Out to Pasture - Appraisers Blogs 8

Indemnity Clauses – Redux

It’s been an interesting ride down the fearfulness side of many appraisers since last week’s essay I wrote about Indemnity Clauses. But I’ve also received praise from some of the best well-known people in this industry who understood the position I took, and complemented me for presenting the info. That means far more than the diatribes I get from folks who shake in their boots and don’t bother to fully read what is presented. As I wrote to someone last week, what I should have included in my essay, and will do so now is that if you can’t (or...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / E&O

Don't Fear the AMC's Indemnity Clause - Indemnity Clauses Are Not to Be Feared 7

Don’t Fear

…appraiser who claims to NOT SIGN any kind of appraiser employment agreement with an Indemnity Clause in it… This essay is not positioned as a promotion of AMC’s, which after writing to the end I realized some may believe. I don’t like the AMC business model. But for the time being, we are stuck with AMC’s if one desires to work in the mortgage lending arena. However, some lenders are beginning to realize the AMC business model is proving unworkable and unwieldy, and are moving back to direct assignment placement, or use one of the available ‘portals’ to distribute and accept assignments...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / E&O

Nationwide Appraiser Count - The Number Game - Appraisers Blogs 16

Nationwide Appraiser Count vs. Fake News

12 Year Trend: Active Appraiser Credentials… We often hear about the ‘shortage’ of appraisers in the US. This is fake news promulgated by a number of AMC’s who cannot find enough appraisers to do their assignments – largely because the AMC won’t pay the appraiser an appropriate fee for service, or other issues. John Brenan, Director of Appraisal Issues for The Appraisal Foundation, gave a presentation at the Washington State association of appraisers conference on Aug. 16. He showed this slide during his presentation: Note that these are CREDENTIALS… the licenses granted by the individual states, which are then reported to...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisal Subcommittee

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