The Truth is They Don’t Hire Professionals!
Hybrid hucksters always argue “Why can’t trained professionals like brokers or insurance inspectors” perform the appraiser’s field inspection.
The answer is because ‘trained professionals’ like those noted don’t work for $25 an inspection; are unwilling to give up their day jobs for a chance at a single $25 inspection one or two days a week, AND if they are truly trained professionals, to begin with, they are unwilling to work for part-time income of $0 to $25 a day in vain hope of having a periodic 8 or 16 inspection day (assumes all 16 are side by side since there’d be no time left for driving). Assuming three comps each that’s a total of 66 properties observed and reported on per day.
Most appraisers can’t remember specifics for half that many properties a day.
The truth is that hybrid hucksters don’t hire professionals. They advertise for part-time students; low level, inexperienced real estate agents that have failed at listing or selling, and others with nothing more important to do. I am NOT certifying that their work products are ‘deemed credible’. I’m sure as hell not ‘deeming a Mueller LLC’ inspection is credible.
The model doesn’t work for anyone without very high volume. It’s been proven time and again that very high volume in real estate analysis leads to very low quality and unreliable work product. Look no further than CoreLogic’s own data aggregation error rates. ALL appraisers know how unreliable and inconsistent their data is. Barely ‘good ’nuff for government work.’
While FNMA and TAF are pretending a USPAP compliant short form third-party inspection format can be developed; the software designers such as ACI and corelamode are developing forms that figuratively have fraud written all over them – that don’t come close to the model product Fannie Mae hypes.
Corporations such as Mueller Reports; and other traditional major players in the AMC vein have developed their own ‘online’ formats which have yet to provide ONE SINGLE COPY of either form; format, or completed report that is remotely USPAP compliant, as claimed.
Even FNMAs much vaunted 1004P (June 2017) is a complete failure. A) Because it is almost as detailed as the current URAR so no hybrid hucksters will use it. It calls for around $500 to $600 worth of professional work to be properly completed. It achieves neither speed nor cost savings. B) It’s simply a very poorly cobbled together mish-mash of a URAR and chopped up limiting conditions and certifications that make no sense.
My favorite is
“Appraiser certifies that he has considered cost income and market approach and only used the market approach.”
SAY WHAT?! They think THAT complies with USPAP or accepted appraisal practice? No mention of report credibility determination; or possible/ probable applicability of the other approaches OR an adequate reason for NOT using them.
PLEASE use those in California! I can see fortunes to be made doing follow up comparative appraisals and reviews for consumers suing loan officers and mortgage companies.