Author: Dave Towne

Importance of Including Sales Price Trend Graph in Appraisal Reports 2

Importance of Graphing Sales

Scatter graph can help you “visualize” the trend of sale prices over a time period… Appraisers, I’ve been including ‘comparable’ price trend graphs in my reports (using Excel) since 2008. The graphs are based on a chart of MLS sales in the subject’s neighborhood, and can be from 1 to 5 years prior to the report Effective Date – based on housing density and number of sales. (I work in urban, suburban and rural areas.) A Scatter Graph can help you “visualize” the trend of sale prices over a time period. It can also show questionable outlier sales that you...

Procrastinators Rejoice! Tax Deadline Gets Pushed Back 5

Procrastinators Rejoice!

In case you have not heard, the IRS tax filing deadline for 2017 taxes is on April 17 this year, per this info from the IRS: April 17 Filing Deadline The filing deadline to submit 2017 tax returns is Tuesday, April 17, 2018, rather than the traditional April 15 date. In 2018, April 15 falls on a Sunday, and this would usually move the filing deadline to the following Monday – April 16. However, Emancipation Day – a legal holiday in the District of Columbia – will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday,...

Lender Contributions FNMA Policy Adding Fuel to the Confusion... 6

Concession Reporting Confusion

…how are these "lender contributions" identified… Appraisers are ‘required’ to report comparable sales or financing concessions that benefit a borrower in the GSE form appraisal report, on the second line in the comparison grid (as a negative adjustment). Secondly, for subject properties, appraisers are ‘required’ to report any concession benefiting the borrower on page 1 of the report form. Subject concession amount is NOT entered on the Comparable grid. Well now, FNMA has issued a modification to their Selling Guide (which takes effect as of 4/03/18) – SEL–2018-03 – (I have added type face enhancements): Lender Contributions With this update we are...

Getting Rid of the Human Appraiser & Putting Appraisers out of Business 14

Are ‘No Appraisal’ First Mortgages the Future?

A human appraiser usually goes to a home… Appraisers, The article, linked here, purports to say that future mortgage loans will be done without using the services of a “boots on the ground” appraiser… "the human appraiser". Why??… because speed and low cost are paramount when people want to finance their largest investment in their life. From the article: “The appraisal process, which typically is not automated, remains a problem. A human appraiser usually goes to a home, takes pictures, makes sure there’s nothing terribly wrong with the structure. It takes seven to ten days to turn around, van den Brand...

Appraisal Thresholds Raised $500K. How Long Before Its Raised for SFR? 12

Appraisal Thresholds Bordello

Anyone wants to place a wager on how long before appraisal thresholds are raised for SFR? Retirement, with a part-time job working as a bouncer at a bordello in the Nevada desert is beginning to look appealing. Activity there is similar to what appraisers are experiencing these days. From the article: “The FDIC board of directors today (Mar. 20, 2018) approved a final rule to raise the appraisal thresholds for commercial real estate transactions from $250,000 to $500,000…” While the individual 1-4 unit investment properties are being kept at $250,000, would anyone like to place a wager on how long...

Rural Areas Appraisal Waiver Threatening Appraisers & Bad for America! 33

Another Threat Looming

Senate Bill raising de minimus value to $400,000 will also waive appraisals in certain situations in rural areas Folks, while the TriStar Bank appraisal waiver issue is important for appraisers, there is another insidious threat looming: Senate Bill 2155 passed the Senate this week, and is now in the hands of the House of Representatives. That bill, if fully ratified as it stands, and is signed by the President, will undercut the need for appraisals in two ways: the current de minimus value of $250,000 is raised to $400,000, which means lenders can use non-appraiser evaluations to establish property value for...

Rumor - GSE Forms Revisions Coming? 29

Rumor – GSE Forms Revisions Coming?

GSE’s “really want your input” on the proposed revisions… Folks, Rumor has it that the GSE’s are ‘finally’ considering making revisions to the current appraisal report forms. I suspect there have been draft forms already produced, and possibly are actually being tested in a cave somewhere in the Appalachian Mountains wilderness or perhaps inside Yucca Mountain, Nevada. But rumor has it that the GSE’s “really want your input” on the proposed revisions. But how to do that is not revealed in the rumor. This is something to keep at least one eye observing over the next many weeks, months,or maybe...

http://appraisersblogs.com/wp-content/uploads/2018/02/AQB-qualifications-criteria-changes-5.2018.pdf 11

AQB Qualifications Criteria Changes

Folks, I wanted to wait to send info about this until the AQB actually published a document showing the actual ‘new’ Qualifications Criteria for Real Property Appraisers. When first announced a few days ago, no official document was posted – only a news release. These take effect May 1, 2018. See the attached 4 page PDF. Due to ‘states rights’ issues in 54 jurisdictions (states & territories), implementation may not actually happen on 5/01/18. The document says this: “Because state appraiser regulatory agencies are only required to adopt minimum AQB Criteria, it is crucial that candidates contact their state to determine if the state intends...

Don Machholz Hangs up his Clipboard & Gives Away Spreadsheets 3

Don Machholz Hangs up his Clipboard

We owe a huge debt of gratitude to Don Machholz for his willingness to assist appraisers… Appraisers, A well respected appraiser who has voluntarily helped many of us has decided to hang up his clipboard, and remove the batteries from his laser measurer. I first became aware of Don Machholz back when the screwball GSE designed MC form was introduced in 2009. Don was one of the first appraisers who used his skills with Excel programming to design and distribute an Excel computation spreadsheet for the MC. Many appraisers have been using that, and his other Excel spreadsheets, ever since....

Location Reporting - Where, 'Exactly', is Your Subject Located? 9

Where, Exactly, is Your Subject Located?

Appraisers, I have another ‘observation’ to discuss, based on separate reports where I found the same type of subject location reporting by different appraisers working in different areas, nowhere close together. This ‘observation’ concerns the reported physical location (on form page 1 Neighborhood comment section) of the appraised property verses its street address and ZIP Code. This is especially relevant to appraisers who work in Suburban and Rural areas. Street addresses and ZIP Codes are assigned by the United States Postal Service, for THEIR convenience and operations. Those addresses and ZIPs may extend far from city limit lines which is the primary...

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