The Truth is They Don’t Hire Professionals!

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Michael Ford

General Certified Real Estate Appraiser at Michael F. Ford Appraisal
Over 28 years appraising all property types and interests, in Southern California real estate. VP/Chairman National Appraiser Peer Review Committee, American Guild of Appraisers, #44OPEIU/AFL-CIO. - Michael Ford on e-AppraisersDirectory
Michael Ford

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The Truth is Hybrid Hucksters 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.

Image credit flickr - Simon Doggett
Michael Ford

Michael Ford

Over 28 years appraising all property types and interests, in Southern California real estate. VP/Chairman National Appraiser Peer Review Committee, American Guild of Appraisers, #44OPEIU/AFL-CIO. - Michael Ford on e-AppraisersDirectory

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8 Responses

  1. Herb Martin on Facebook Herb Martin on Facebook says:

    They probably advertise in Craig’s list

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  2. Avatar CJK says:

    $6 – $15 per inspection, I wonder how much they will charge the client $100 – $300?

    500 inspections per month would be about 17 inspections per day every day.

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  3. Baggins Baggins says:

    This just in.

    Fannie update letter with a wonderful tale to tell about how we can trust the inspection process. Fannie working to eliminate a substantial volume of appraisers? Homeowners will be thrilled all the people coming into their homes have not had equivalent validation and record checks like appraisers. What did we take fingerprinting for nationwide? One hand does not know what the other hand is doing.

    https://www.fanniemae.com/content/news/current-appraiser-newsletter.pdf

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  4. Douglas Harbold on Facebook Douglas Harbold on Facebook says:

    Truth is real estate brokers are nothing more than used car salesmen.

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  5. Avatar don says:

    Appraisers, inspectors who are independent earn a fees based on time spent, capital investment, and liability.

    Most appraisers spent time on education, promoting, and bidding work.

    Attorneys spend professional time suing architects, appraisers accountants etc. Many of the sued simply pay high premiums and keep on paying. However if an appraiser has too many losses he becomes UN-Insurable. How does an appraiser calculate loss of insurability the hour? By taking a class on spelling or typing?

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  6. Avatar Tim Boreale says:

    The incredibly simple ripe for the taking solution to all of this – inspecting, data quality, turnaround dilemma – is allowing Trainees to return to their role in the process. As far as the form design, I’m going to rely on prayer for that.

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The Truth is They Don’t Hire Professionals!

by Michael Ford time to read: 2 min
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