Tagged: Adjustments

July 30, 2015

The “Property Prices Reach All Time High” Hype

“Property Prices Reach an All-Time High” Oh really? The subject line is a press release headline put out by a national sales organization. Do you buy into the hype, or do you actually do local comparable property market research to verify trends? I just completed an appraisal on a property I appraised 2 years ago. I did a 5 year market study on comparables then, and found the market for that type of property had been DECLINING at that time. I did another 5 year market study on this same property this time around. And guess what? The property values for this type...

1004MC / Appraisal / Appraisal News / Appraisers News

June 25, 2015

You are Not Valuing Property

Thousands and thousands of decisions determine value. What do you do for a living? I am a real estate appraiser. What does that mean? I value real estate. Actually, that is not quite true. Okay, technically it is, but what is the value of real estate really? Real estate is given a value only based on what a seller is willing to settle for and a buyer is willing to part with. Of course, it is much more complicated than that (which is why appraisers are so needed), but that is the gist of it. For a moment, I want you to think about...

Appraisal / Appraisal News / Appraisers News

What is Gross Living Area and What Does it Include

June 15, 2015

What is Gross Living Area (GLA)?

What is Gross Living Area and What Does it Include? Appraisers, There are certain properties where aspects of Gross Living Area (GLA) might not be obvious. It’s more confusing when the selling real estate agents lump all “living space” together, because that’s what they are selling, or when the county assessor includes basements with upper level areas. These include homes with a detached ADU, additional rec room or sleeping space above a garage, additional living space with roof attached to the primary dwelling via covered breezeway, basement living spaces with separate entry, etc. Fannie Mae has a giant book called...

American Measurement Standard / American National Standards Institute / AMS / ANSI / Appraisal / Appraisal News

June 2, 2015

Appraisers – The Reason You Have No Business: Functional Obsolescence

Functional obsolescence is the reason many appraisers are going out of business. On a daily basis, appraisers moan: “It’s because of the HVCC that my business is down” or “that AMC or X or Y or Z caused my income to decline.” Really? Are you sure? So, why is my company buried in business and you’re not? We’ve all heard about blacksmiths being out of work; Seems the use of horses has declined. And the need for typewriter repairmen, the demand just isn’t what it was 20 years ago. The people in these jobs failed to adapt; Maybe appraiser are having the same problem....

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Software / Appraisers News

May 28, 2015

An Appraisal is not THE Opinion of Value

My opinion of value is well-supported… Some of you are going to need to hang up your ego hats for this one. You know who you are. I see you hanging out on the online appraisal forums. You are the ones who do not just have an opinion, but THE opinion. Don’t worry, I will let you put it back on before I am done. As appraisers, we are often asked a question similar to this, “Why can two professionals appraise the same property, yet come up with two different values?” It is an excellent question, and one that has...

Appraisal / Appraisal News / Appraisers News

April 8, 2015

Helpful Appraisal Tips From the Seattle Chapter of the Appraisal Institute

Last Fall I had the pleasure of attending the annual conference presented by the Seattle Chapter of the Appraisal Institute. I was able to sit in on some interesting educational sessions. With all the conversation in industry surrounding CU and other initiatives directly impacting appraisers, I felt highlights from the educational sessions would be beneficial. The following information is from a presentation by Clark Dickson with HomeStreet Bank called, “Appraising for Lenders in Today’s World.” Mr. Dickson’s presentation was about appraisal quality and what it takes to have your appraisal be acceptable in today’s lending environment. He said that everything...

AI / Appraisal / Appraisal Institute / Appraisal News / Appraisal Organizations / Appraisal Quality Monitoring

March 17, 2015

Time to Bring Back Common Sense

Appraiser No More, Think I’ll be a Lawyer: it takes less time to get a law degree than to get an appraisal license. I heard from an old friend today that worked as an appraiser in Raleigh, NC for at least a dozen years. Shortly after 2009 and the HVCC, he (like so many others) started looking for career options. After appraisal reports kept requiring more and more pages, had more and more restrictions (far too many that were totally useless and had nothing to do with the home’s value), and his fees kept going down instead of up, he...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Home Valuation Code of Conduct

February 10, 2015

If I Cannot Support a Small Adjustment, I Just do not Make it

I am more circumspect about the adjustments I make. The most feared date in the appraisal industry has come. January 26, 2015 arrived with much trepidation and trembling amongst myself and my appraiser colleagues. The day of the Collateral Underwriter (CU) had finally arrived. Yet, it turned out to be a pretty typical day for most. We are now over a week removed from the CU and I have yet to receive even one CU-related revision request. I guess that means one of two things; either I am an incredibly talented appraiser who uses all the best comps and supports every one...

Appraisal / Appraisal News / Appraisal Quality Monitoring / Appraisers News / AQM / Collateral Underwriter

January 22, 2015

Dave Biggers, You Owe Me an Apology

Normally, I like Dave Biggers. I think a la mode — like other appraisal software companies — has always been (and will likely always be) an advocate for appraisers. I am not saying any of that has changed, but I feel like Mr. Biggers owes me, and all appraisers, an apology. Ever since I first heard of Collateral Underwriting (CU), I have been a bit — and at times, much — overwhelmed at what it might mean to me and my peers. Frankly, there have been times that I have been downright scared of what CU might do to my thriving appraisal...

a la mode / Appraisal / Appraisal News / Appraisal Quality Monitoring / Appraisal Software / Appraisers News

January 14, 2015

The Network Letter RE CU Program

Network of State Appraisal Orgainzation’s letter to FHFA Director Watt Regarding Fannie Mae Collateral Underwriter (CU) Program For over the past couple of months, VaCAP has participated with 18 other State Appraiser Coalitions in drafting an unified response to Fannie Mae’s Collateral Underwriter Program. Their letter to FHFA Director Watt briefly outlines their concerns, offers recommended solutions, as well as asking for a meeting to discuss the issue for the benefit of all vested parties. Please take a few minutes to peruse the letter below: Dear Director Watt: On behalf of the independent state professional appraiser organizations signing below, I...

AAREA / ACOW / AMC / Appraisal / Appraisal Management Companies / Appraisal News