My appraisals aren’t a shell game, I think you know what I am talking about when I say the business is a shell game.

Ross, Unfortunately there are some bad people in every industry. However, if you ever tried conducting an appraisal and valuation assignment on your own day in and day out, I guarantee you would change your mind. Please explain how the appraisal is just another shell game. Thank you

1) Churchill thought they had relevance, was that before statistics?
2) three approaches are three from disassociated sources, or three related sources, does it make a difference Or?
3) Using a generalized form for a narrowly defined subject; SFR for a broadly defined subject, requires more than a form can relate & would be misinformative. This is a problem the appraiser can cure because he is the expert hired.
4) To Hide or not is the explainable prerogative of the appraiser. The reviewer can object for reasons or not.
5) boilerplate is tedious in any form, or format.
6) Not only not be legislated but hard to identify. And also Professionals or technicians have it or don”t.
7) The rest of it we agree on, but prosecution as a source for enforcement is a threat which should be discussed especially for independent contractors.

Whether the legal professional would accept fee potential or not might be disastrous. An appraiser looking forward to a career, and retirement might look at reasonable fees differently.

Respectfully Don, 25 is not 30. IF we are going to compare statistics as if they have some relevance to a point or issue, then the analogy should remain constant.

Three approaches are not bifurcation in any form. They are three independently developed approaches to a defined value, which when performed properly are supposed to yield similar or supportive results (hopefully).

It’s not the 1004 reporting form that is the problem. It is the flat rate fee that is neither customary and frequently unreasonably low for the circumstances of an appraisal. It is the unrealistic fee and unreasonable turn time that are the primary problems for appraisers. Other important problems are misuse of CU (as we all knew it would be misused); and micro management through misinterpreted policies of FNMA by AMCs …not to mention the misuse and intrusion into the development and reporting process of FNMA itself.

I use both narrative and form reports. It has been my experience that narrative reports are used more often to hide what was NOT done, than they are used to provide greater depth of analysis. Most today are boilerplated products using one of the off the shelf software packages such as Narrative1 and similar.

I know of no one that submits self-contained appraisal reports anymore. Haven’t seen one in years. What has replaced them is a formulaic boilerplated narrative with 40% to 50% useless stuffing to pad the report size.

You raised interesting ideas Don. There’s a lot of food for thought there – though I disagree with the mechanics surrounding the fundamental problem.

Integrity cannot be legislated. Either appraisers have it or they don’t. It is clear that the regulators from TAF down to many states & the unofficial but influential AARO simply do not have it. If they did, they wouldn’t be seeking prosecutorial solutions to educational shortcomings & errors of human limitations. Nor would they consider for two seconds suggesting that USPAP compliance investigators don’t have to comply with USPAP themselves.

Winston Churchill separated pre-25 from older as liberal by ideal, and the older, conservative by experience. Coincidentally nearly the same numbers by 5 years, as Statistically, home buyers are 30 and older.

When appraisers do all three approaches to value; cost, Income & market, isn’t that a bifurcated appraisal, or is it bifurcated after comparing all three approaches for the final opinion.

Lenders blind reliance on form (1004, etc.) appraisals for their convenience is an unstated problem for appraisers. We are blamed for adopting an impossible situation, an easy solution for our client, by a fixed fee. Appraisal clients, even lenders don’t always KNOW the problem! All assignments won’t fit on a fixed format form. That’s not the appraisers’ problem. The bifurcation of management has politically relegated uniformity for responsibility. The Appraisal community has some of this guilt by insisting that everything needs a form appraisal. The appraisal community should be insisting that standards be met and fees paid.

Is prosecution by law the better solution for standards. Respectable organizations talking about principles, insurance guaranteeing loss against errors & omissions, has not improved bad appraisals! Maybe the threat of Civil Law or Criminal Law would increase the appraisers fees.

Student loans are one of the factors at play, although the research found that homeownership rates for millennials who don’t have a college degree are falling behind those who do, possibly due to their unstable incomes along with rising rents.

Nearly half of households headed by people 18 to 34 are rent-burdened with 30 percent or more of their paycheck goes to their landlord. The study found that home ownership increases — by more than 10 percentage points, if their parents were homeowners.

Delayed marriage has one of the biggest impacts on their low home ownership rate. The share of married households with children, aged 18 to 34, dropped to 25 percent in 2015, from 37 percent in 1990. Having a child increases a person’s chance of owning a house by 6 percentage points, the researchers calculated.

Here’s why millions of millennials are not homeowner.

And let’s not forget this generation were children during the last market crash, and many were in families that lost homes to foreclosure.

Yeah, but what’s the value of numbers when you got a really good story to tell?

“Millennial 

Millennial is an identity given to a broadly and vaguely defined group of people. There are two wings of “Millennial” that are often at odds with each other: Generation Y (people born between 1981-1991) and Generation Z (born between 1991-2001). People of Generation Y often have characteristics similar to Generation X, which is why Generation Z will confuse Generation Y with Generation X and then claim to be the generation that represents “MIllennial,” when in fact, birth years for Millennial range from about 1981-2001, just as the birth-years for Baby Boomers ranged from 1946-1964.

Both Generation Y and Generation Z can be called “Millennials,” with the primary difference between the two being technology. Generation Y grew-up on personal computers, cell phones, and video game systems, while Generation Z has grown up on tablets, smartphones, and apps. Yet, the common ground between both generations is that both have been transforming and altering communication and identity–not just in the United States but globally.

I’m not listening to what anyone born from 1991 to now thinks. AT 27 years old, they have only been allowed to vote for 9 years; or two national election cycles. Some may be brilliant, BUT they are still green with respect to world experience. Many haven’t found their own set of values yet. A lot are still deciding whether booze and drugs have a place in their lives.

I’ll give more credence to the 30+-year-olds though not sure how large their population is that makes anyone think they are ‘demanding’ anything with respect to mortgages. These are the folks that are either perpetrating today’s version of pyramid schemes (bitcoin), and general socialism OR they are the suckers falling for them. Perhaps a more definitive name would be “P.T. Barnum’s Kids”.

What IS the average age of say…a typical Wells Fargo Special Accounts sales rep? I know a lot of very smart ‘kids’ (18 to 25-ish) and those in the military have already shown our future is in good hands…but that doesn’t mean I’m giving them the car with the keys quite yet. I’m willing to let them have it once in a while so they can learn to drive this great nation of ours, but they aren’t quite to the point where their 6-10 years of recent experience equals my 30 to 40+ years beyond them.

When They wait 6 weeks to get an appraisal back, they will get rid of the AMC’s and pay higher wages !!! Supply and demand…..and they are obviously getting very scared !!!

All too many disregard ethical principles in favor of advocacy. The ‘value’ of hiring persons not restrained by licensing requirements.