Most independent appraisers are paid ‘by the job’ and are issued 1099’s for the payments made. Appraisers who are ‘staff appraisers’ for specific clients are considered EMPLOYEES, and are issued a W-2 for income paid to them. Independent appraisers should not create an EMPLOYEE RELATIONSHIP until and unless that is specifically what is desired… I’ve been having a respectful discussion with a California appraiser, who believes (as do others) that just because a particular client requests a certain kind of appraisal report be completed using an online web based report form, then that action constitutes establishing an EMPLOYEE relationship with that...
The most beneficial part of participating in live CE classes is what you learn from other professional appraisers attending… The Best Decision You Will Make in 2020! What was the one thing your parents answered your “Why” questions with that made you angry every time? You have probably said it to your own kids as well. “Because I said so” would get you every time. You knew you were never going to win that argument, whatever it was about. VaCAP is not going to tell you “Because I Said So”. But we are going to explain to you why you...
2019 is winding down with just one more day remaining. As we reflect on the past, the changes we have seen and the growth we have endured, our hearts are warmed with the accomplishments we have obtained. Appraisers are no longer sitting back and letting others dictate our future. Have we won every battle, no; but our voices are being heard and our regulators are taking notice. Legislators, consumer groups and even Realtors are speaking up in favor of the licensed professional appraiser. This begs the question, are appraisers really professional? According to Webster’s Third International Dictionary a profession is...
USPAP does not define the term arm’s-length transaction. Fannie Mae also lacks such a definition. Yet, both of them call for the appraiser to use only arm’s-length transactions as comparable sales… How often do we appraisers get into the mode where we think we know it all? Occasionally, do we need to step back and look at the way we do things, just to make sure we are not missing something? Is what we know to be true and correct really true and correct? I raise this issue relative to the concept of what an arm’s-length transaction is. Are we...
I have in my possession an appraisal for a DUPLEX (2 family residence) on a FNMA 1025/FrMac 72 form, commonly called the ‘1025 Form’ which was done by a Certified Residential Appraiser licensed for 8 yrs, 6 months. Items “observed” in the report: UAD rating numbers are used for Quality and Condition. 1025 forms are not UAD coded, so why are these used? Please don’t tell me “the client said so” because the client is incorrect, and may not be aware. Use the standard wording for those items, and provide a definition description of the standard wording you use. The Highest and...
If it’s bad feedback and the people or companies are terrible to deal with, what are you complaining about if you choose to work with them?… “They are who we thought they were, and we let them off the hook.” That was the sound bite Dennis Green said after the Chicago Bears came back and beat the Arizona Cardinals in a football game in October 2006. It will forever go down as one of the best sound bites ever in NFL history and to this day its replayed over and over. To me, this quote is not only amazing (I’m...
What Exactly Can SFREP Software Offer for Real Estate Appraisers? Are you working as efficiently as possible? In this day and age, appraisers need to be quick on their feet and utilize every tool under the sun to help streamline the process. That’s where SFREP comes in. This company is creating software designed to make the appraisal process digital while keeping it as fast, accurate, and straightforward as possible. But how exactly does SFREP work, and can it really make your job easier? For many real estate appraisers, the answer is a resounding yes. Software by Appraisers, for Appraisers SFREP...
…everyone knows that iMortgage / Single Source is the “dollar bidding” company. They send out appraisal requests at $1.00 and ask everyone to provide their fee… The Louisiana Real Estate Appraiser Board has been hit with another legal battle. This time, iMortgage, operating under the name Single Source has filed suit against the Louisiana Real Estate Appraisal Board claiming a violation of antitrust laws. This suit mirrors that of the FTC, which is currently paused by the Fifth Circuit Court. In the suit, iMortgage claims rules created by the Louisiana Real Estate Board, which consists of market participants, set appraisal...
Learning from your mistakes is all part of the change. You can’t change past mistakes, but you can certainly make sure the future doesn’t include them… My last blog focused on change and how I have benefited from changing things in both my personal and professional life. While I have made many changes, I have now come across another aspect that seems to have followed me from my past, the ability to learn from my mistakes instead of making them over and over. See, we as appraisers are creatures of habit. Well, let me rephrase that, we as humans are...
AMCs are legally required to do appraisal report reviews… Appraisers, an appraiser shared AMC appraisal report review documents with me, which the appraiser was given. I have not seen these before. See the PDF embedded below for an example. Per state laws in the various states, AMCs are legally required to do appraisal report reviews per provisions of their state AMC license on up to 5% of the reports they process. AMCs must keep the results of those appraisal report reviews on file for a specified time period, and of course, send the review document to the client lender pertaining to the...
