Tagged: square footage

Appraisal news for real estate appraisers and real estate professionals regarding square footage. News relating to the Appraisal Industry.

Are You a Hybrid Appraiser? Relying on Real Estate Trainees... 23

Are You a Hybrid Appraiser?

We won’t take appraiser trainees, but we’ll take real estate trainees… That’s the million dollar question. Big banking is counting on the majority of appraisers to fall in line with whatever hybrid product they decide is best. It makes for an interesting road ahead because appraisers actually have the power to make these products a success or a failure. A hybrid appraisal is still an appraisal and must have a signature from a licensed appraiser. If banks can keep whittling away at the appraiser’s scope and can get the total appraisal fee low enough, they will achieve their goal and...

Size vs. Value - Finaly...The Truth About Price per Sq.ft. in Valuations 12

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...

The Missing Standard - It's Time to Make a Measurement Standard Mandatory! 32

The Missing Standard

What can we do to establish a national measurement standard for appraisers? Every week I talk to appraisers in different parts of the country and the conversations are almost always the same. Square footage errors are a problem everywhere, some places worse than others. Every appraiser seems to understand the problem and many of them complain about the real estate agents, home-owners, and even underwriters who challenge them about their square footage totals. They rely on the “Official Record” they believe is listed by the local tax department. Who teaches them this stuff? How is it possible the general public...

Let’s just use the Tax Assessments...Tax Values just as Accurate as AVMs? 22

Tax Values Just as Accurate as AVMs?

In a head to head contest between tax values and AVMs for use in mortgage lending, I’ll take tax assessments every time… The battles rage on to decide who will take over the automated valuation process. There are big companies lining up to take over this massive profit arena. And, make no mistake, it’s all about the money. At the end of every discussion about AVMs verses traditional appraisals, it has less to do with faster or cheaper, or better, and sadly little to do with consumer protection. It has to do with who gets the profits that will be...

FHFA Working Paper Credibility Questioned by AGA 10

Working Paper Credibility Questioned

NO REAL ESTATE APPRAISER IN THE COUNTRY IS ALLOWED TO MISS THE MARK BY 7.8% WITHOUT RISKING LOSS OF LICENSE! The Working Paper demonstrates more than anything else, that given an 8-hour work day the computer will take 6 full working days (1.2 working weeks) to arrive at a result that is at best 7.8% error prone. Office of the Director, Honorable Melvin Watt Federal Housing Finance Agency… Dear Sir(s) The American Guild of Appraisers is a Guild within the more than 12 1/2 million members, retirees and family members of our parent union OPEIU, AFL/CIO. In addition to representing...

The Way Things Used To Be - Appraisal fees unchanged in two decades 124

The Way Things Used To Be

“We haven’t had a raise in two decades.” Give me a break! It’s a common complaint in our industry that real estate appraisers haven’t had a raise in two decades. The argument goes that twenty years ago, the standard fee for an appraisal was $350. Fast forward twenty years and it’s still $350. That’s a great sound bite, but the actual logic is deeply flawed. In real terms, we’ve had a huge raise thanks to the massively reduced amount of time we spend on our appraisals. It’s something I’ve written about before (Never Had a Raise in 20 Years), but...

Price of this Fiasco May be the Downfall of the US Real Estate Market 16

The Price of Big Data Valuation Fiasco

"Price" of this Fiasco may be the Downfall of the American Real Estate Market… I Choose Not to Be Part of the Big Data Valuation Revolution The big data and automated valuation explosion will ultimately destroy the real estate industry and it will take decades for it to recover. The facts are, we live and work in a price-per-square-foot industry. The square footage data used in the so-called “official record” in local tax records is in error enough to alter home values and it’s an equal opportunity offender – values can be too low or too high. And, it’s wrong...

Price Based on Computers Being Relied on By Realtors® A Growing Trend 10

Realtors® Giving Too Much Power to RPR®

….getting a suggested listing price based on a computer and not a licensed professional’s skill, is the new trend and it is very bad for consumers…. “Since then, we’ve become RPR’s biggest fans. It has helped grow our business because it has given us more credibility.” A recent article talks about the benefits of using the Realtor® edition of online home valuations. This growing trend is frightening for home owners as more and more agents rely on computers to price real estate instead of using their time, skill, and research to calculate home values the right way. When it comes to...

Individual Adjustments to the Detriment of the Bigger Picture 10

Seeing the Forest Through the Trees

Focusing on individual adjustments to the detriment of the bigger picture… Growing up, my parents used to refer to my inability to see the forest through the trees. This simply meant not being able to see the bigger picture because focus was so narrow that I only saw what was right in front of my eyes. Fortunately, I am older now, and (usually) better at seeing the bigger picture. I suspect this is a common phenomenon in all walks of life, and particularly in our work. This can happen in many aspects of the appraisal puzzle. One of the most...

Automated Revolution Valuation Imposters 14

Automated Revolution, the Valuation Imposters

Along comes the automated valuation revolution… The appraisers we need, to keep consumers protected, are the very ones being driven out of the business. They are being forced out by big banks and AMCs (who much too often provide zero benefits to consumers). Everyone seems to have forgotten that these services (provided by AMCs) used to be part of the bank’s responsibility for every loan. It was just the cost of doing business. Then came the AMCs and banks’ profits had to go up. After all, they lost a whole department. Now they pass the expenses along, mostly on the...

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