I am constantly writing emails to correct room counts and square footage either to a realtor or if I see errors in sketches, I contact the county appraiser.

I am constantly writing emails to correct room counts and square footage either to a realtor or if I see errors in sketches, I contact the county appraiser.

What a shame for the industry you retired.Enjoyed the read

What a shame for the industry you retired.Enjoyed the read

Perhaps appraisers should have access to AVM’s as another possible check to their thought process. Followed by a well thought out commentary explaining the reasons for their assumptions. Echoing what has already been said above comments by others. Many have worked many years in this profession in a specific areas of the country; it must be said that their is no substitute for geographic knowledge, neighborhood trends, specific zoning and the list goes on. No regressive analysis has that ability to my knowledge.

Bradford says it does when it comes to Fannie and Freddie.

DO THEY ?

The tools we have today are far better than 15 years ago, and used properly can cause an appraiser to complete better work today than in the past. More improvements are coming. Nothing on this earth can replace an experienced appraiser’s eyes or area knowledge.

Someday perhaps the Banking industry, Congress, Fannie & Freddie and other will realize this fact and laws and rules will be put in place to prevent the RAPE of The appraisal profession.

An AVM is NOT an appraisal. Nor is it an appraisal report. An “appraiser assisted avm is  an appraisal” if an opinion (or statement) of any kind of value or value range is provided.

The mere fact that there is such basic confusion by users of appraisals and some purported “Chief Appraiser” reinforces legitimate appraisers concerns that this is a product or service that has NO BUSINESS being called an appraisal/”valuation” of any kind.

The statement that it is ‘not as reliable a valuation’ as a traditional appraisals wrongly suggests that it has ANY / some validity when in fact it (AVM) does not. No more than a cursory “comp check” anyway.

Automated Valuation Model  (or Method depending on locale) or AVM is just that; an AUTOMATED process without human (appraiser) analysis. It is only as good as Zillow or CoreLogic’s multiple linear regression “big data” analyses are.

An appraiser assisted AVM may or may not be an AVM coupled with appraiser stated limitations, assumptions, hypotheticals, a certification and some degree of limited but defined appraisal techniques being applied.

The biggest problem is that the cheap-skate idiots that use such products RARELY understand the nuanced differences between the two. While the appraisal firm may have boiler-plated limitations and use restrictions up the wazoo so that the product meets any technical requirements of an appraisal, the manner in which that appraisal is used is subject to probable abuse rather than ‘possible’ abuse.

What amazes me is that virtually every state and the Feds cite promotion of sound appraisal practices and protection of the public trust as a basic foundation or justification for all their rules, and laws, but they still knowingly allow garbage such as AVMs to be portrayed as “appraisals” or some form of acceptable alternative ‘valuation’ product. It’s hypocritical.

Then again, I also object to an appraisal being referred to as a “valuation” to begin with. But THAT is a battle I’ve already lost. With it’s roots in business valuation, even TAF adopted the phrasing as being universal for all appraisal. Bad mistake since it really opened the door to confusion about what an appraisal is or isn’t in the first place.

Correct, the people at the top don’t even know whats wrong, they think it’s a lack of College education

everything is way too gooned up to be fixed at this point. the only way to fix all the problems is to completely clean house, bring in new people with fresh ideas, listen to appraisers, and start from scratch. it will never happen.

god help us all when the real estate part of our economy starts coming to a screeching halt or appraisers, (the only honest and trusted part of any transaction), are taken out of transactions.

like i have always said – fixing things now is like trying to pick up a turd by the clean end.

good luck with that.

the bleeding continues . . . . .

because if an AVM is an appraisal, then every value/appraisal created by an AVM violates every rule in USCRAP, and should be prosecuted to the full extent of the law.

i am sorry, but i thought doing appraisals without a license was ILLEGAL? due diligence? explain your conclusions? work file? need i go on? wouldnt a licensed appraiser be brought before state regulatory boards and fully prosecuted for giving someone a value with proper support, documentation and explanation?

will anyone do ever anything about this? heh heh. of course not.

AVM’s will never go away in our life times, because if anyone would ever decide to do anything about something like this, it would take at least 15 years or more just to hold the meetings about it and over-analyze the problem to death.

the bleeding continues . . . . .