Follow the money $$$

Local vs central control. An ongoing problem.

https://mises.org/mises-wire/national-elections-expose-sham-centralized-democracy

Central planning never works.

Disclosure is the key. It is that simple. As an appraiser I don’t use any comparables that I might have been part of a real estate sale transaction.

If I appraise a non lender estate and then the estate wants me to represent as the listing broker all I do is disclose prior services in escrow as an an appraiser.

Total disclosure and totally legal.

You can not be representing as all three at the same time, but you can have all three licenses to create separate income.

I appraise 10 or 20 properties a year and 99% are not lender estate properties. Then convert one or two estate assignments a year into listings and create a 6 figure income. Totally legit but you have to disclose to all parties.

2025 will be a great year using all three licenses.

Per USPAP, just don’t misrepresent your roles in the transaction (s), you can not be all three at the same time because the. You would assuredly misrepresent yourself at some point and that would be a state boards field day and case study for years to come.

Thats what i have been doing for years as a Broker/Appraiser. Appraisers can also have a Real Estate License as well and a Mortgage Loan Originator License as income streams. An Appraiser Buyer consultant that is also a licensed Real Estate Agent is the way to go to take part in a real estate commission and not just a one-time fee. Agent/Appraisers can actually discuss market conditions and say if representing a seller be able to defend the seller when low ball offers come in. Rather than an agent who shrugs their shoulders and just wants to agree with the low ball offer. Appraiser/Agents or Appraiser/Brokers can represent buyers and that is part of my marketing plan in 2025.

I was an in-house review appraiser for a large secondary lender. I witnessed and reported multiple abuses including allowing mortgage brokers access to in-house files houndogging for possible refi, creation of false documents for straw buyers and the list goes on. Perhaps with your reasoning, all mortgage brokers are corrupt and we should do away with them?

And what cheap-a** lender do you work for? Our job is not to force the sale to go through to not go through. I’m starting to think you really don’t know what appraiser’s really do. Also, I have noted that you said “the” appraiser as in singular. So I’m I correct in the assumption that you are taking a single report and applying it’s findings unilaterally? How convenient of you if you are.

You are absolutely correct, as an appraiser I feel the frustrations these folks feel, but this is likely going to be the nail in the coffin. I’m not interested in chasing around the magic private work I’ve done everything over the years, the easier appraisals are gone and there’s way too many of us chasing the hard work

and theoretically is not equipped to prevent any future crisis.

A consequence of the amc model. The appraisers whom do a better job are not seen in mortgage lending, as three out of four refuse to work with amc’s, and what is likely less then half and rapidly falling have long since left the mortgage lending space for the rare lender direct panels. You have no idea how much fraud never happens because of the human appraisers presence in the first place. The statistical models will incorporate skewed and fraudulent data into the data outputs, the systems reliability will diminish rapidly in direct relation to the diminished use of human appraisers. That’s already happened, more to come. The human appraisers contribution to the system is much further reaching than just coming up with a market value number. The point of the exercise is checks and balances, because when there are open doors for fraud, they will be exploited with an increasing pace over time.

They blatantly do not care.

https://appraisersblogs.com/uncovering-flaws-in-fha-appraisal-n-loan-review-process/

So appraisal failed to interrupt the last two financial crises and structurally and theoretically is not equipped to prevent any future crisis. Now the issue of the day is discrimination, which to date is unproven, but the fact is this: state-licensed appraisers can differ widely in value opinions on the same property. So what are they measuring or predicting? What’s the point of the exercise?

And why would lenders pay $800 or more for this service? At least AVMs make testable statistical predictions, and they do it cheaply and instantly. Appraisal as a trade will continue to shrink until the only assignments are luxury/waterfront, estates, and other one-offs, with maybe 20,000 appraisers in business. Appraisals won’t be used for most home purchases and refinances.

That’s complicated. I’ve turned down this work before. You’ll function as an insurance shield for the realty agents, essentially doing their job for them for far less pay. And they’ll want immediate service for everything the buyers may be interested in offering upon. That’s before you get into the challenge of inspecting a property owned by a person whom is not your client and has not yet confirmed a negotiation with your client (the buyer). Additionally the buyers realty agent will in all probability, want to be your client as well, as they’ll approve and affirm the use of an appraiser through the purchasing effort on behalf of their buyers. Taking us back to the need of the realty industry to use appraisers more routinely for pre listing appraisal services instead. There is a substantially lower liability exposure risk for providing pre listings for sellers, as opposed to offering buyer consults and purchase appraisals outside of the lending avenues for buyers. On top of everything, if the buyer is financed through a bank, that’s another round of freelance review upon your services, as they ignore any use limitations you may have written into your report.

I’ve struggled with this exact idea many times before as listing agents were supposedly so happy with my approach and professionalism, knowledge of the markets and homes and such, they’ve asked me to work with them on the buyers side on behalf of their buyer persons. Unfortunately, not that simple and had to turn down those requests. Of course I offered to be available for amazingly affordable rates for listing services but they never want that side of the service. The reason why; The agent is using you for an insurance shield, an additional sales tool to achieve a pending commission.

Debt trap setup buzz words; to save on the cost of the appraisal service. An inflated housing market driven by a partial waiver program, pay even higher effective prices with higher quantities of future irresponsible credit and income challenged participants. This will lead to expansions of wholesale defaulted loan programs, put even more housing units into the hands of institutional investors who hold them as rentals, purchased in bulk for pennies on the dollar directly upstream ahead of regular citizens, aka first purchase opportunities. See how this works yet?

The FHFA & GSE’s are no longer operating in a fair and unbaised manner for all American citizens, but rather appear to be in the business of prioritizing special interest favors, delivered by way of radical policy and procedure restructuring towards central control and automation rather than comprehensive traditional human based checks and balances systems. Sounds like appraisers will not be the only ones losing their jobs. ‘Generative AI’. We’ve been warning of the destructive force of this technology for years. Instantly abused, as predicted.
https://www.fhfa.gov/programs/fintech/techsprint/2024