Tagged: appraisal news

November 11, 2022

Appraisers Are Historians

It is gratifying when appraisers are correct, and the AVMs burn; unless you invested in their stocks. I mean no disrespect to the modelers of the Automated Valuation Models (AVMs) or to Zillow for relying on their AVMs. As an appraiser since the 80s, I have yet to find a computer that can tell me if I want vanilla or chocolate ice cream. Does the buyer want more acres, or less grass to cut? I will admit that a raised ranch, a two story farm house, a colonial, a split level, and a Dutch colonial can all sell for the...

Appraisal / Appraisal News / Appraisers News / Automated Valuation Models / AVM / Fannie Mae - Freddie Mac

Racket at Attorneys General Group Will Ring Familiar to Appraisers

November 2, 2022

Attorneys General Shady Business

Racket at Attorneys General Group Will Ring Familiar to Appraisers The nation’s licensed real property appraisers will recognize a scheme run by a nonprofit known as the National Association of Attorneys General. It will remind the former of the abuses visited on them by a tiny, free-spending 501(c)(3) publisher and its captured federal minder. The National Association of Attorneys General describes itself as a nonpartisan national forum for America’s state and territory attorneys general and their staff members. The group has close ties with trial lawyers, who bring tort cases on behalf of the states’ top law enforcement officers and...

Appraisal / Appraisal News / Appraisal Organizations / Appraisal Subcommittee / Appraisers News / ASC

October 31, 2022

Diatribes Against Appraisers

What’s even more frustrating to me is none of the well-known appraiser organizations have offered any public rebuttal to any of these hit pieces, or explained how the appraisal process works as a way to defend appraisers… Census Tract data delineating RACE of the population is the only ammunition the people doing these hit pieces can use to attack appraisers. Appraisers, this is a long article but it’s important, as it reveals how you are being discredited in the work you do. Yet, ‘we’ must begin doing some introspection of what we are or have been doing, and make necessary...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisal Subcommittee

October 27, 2022

UAD Composite Property Data Info Released to the Public

Appraisers, since 2011, the GSEs (called the ‘Enterprises’) have been collecting and analyzing appraisal data using their proprietary Uniform Appraisal Dataset (UAD) which was overlaid on four of the standard GSE appraisal forms, SFR’s and Condo’s only. Ever since then, appraisers and other users have complained that none of that data was available. Well, now it is available, but not highly detailed down to specific properties. See below for the web site link. Some of that data is granular down to specific Census Tracts, which appraisers seldom, if ever, use in their market analysis to determine comparable sales and their...

Appraisal / Appraisal News / Appraisers News / Federal Housing Finance Agency / FHFA / UAD

October 26, 2022

Lender Liability for a Negligent Appraisal?

Does a mortgage lender have liability to the borrower for a negligent appraisal? As residential property prices plateau or decline in various markets and as borrowers have financial problems with fewer financing options, there are more legal claims being filed by borrowers against appraisers and lenders in relation to appraisals for loans made in recent years. Essentially, the cases are situations of “buyer-borrower remorse.” Leaving aside the appraiser’s potential liability, does a mortgage lender have liability to the borrower for a negligent appraisal? An Ohio appellate court recently said “no.” It ruled that the lender did not owe the borrower...

Appraisal / Appraisal News / Appraisers News / E&O / Errors & Omissions

October 20, 2022

The Appraisal Problem

Gone are the days of hiring a professional appraiser to solve the appraisal problem. For decades lenders have taken on the responsibility of shaping the appraisal process and dictating the solutions to the appraisal problem. Savvy appraisers push back in a positive fashion to try and enable the lender to receive a report that not only meets USPAP, FIRREA, Fannie Mae, or HUD/FHA/VA an UAD reporting guidelines, but also provides the client with a report that is clear, concise, accurate and not misleading. An appraisal report can be on time, have all the boxes checked, no inconsistencies, meet all the...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Federal Housing Administration / FHA

October 17, 2022

Are Computer Programs Biased or Unbiased?

Whether or not computer programs are despised or supported depends on the narrative being spewed. Which is it? Are computer programs good for generating appraisal values but when the narrative is to influence an anti-police sentiment using computer programs is too problematic? Last week’s article titled “The Government Screwing Over an Entire Industry” strengthened my conviction how eager and anxious Fannie, Freddie, and certain Congress persons are to replace appraisers with computer programs. The idea is that computers will do it more fairly and with equal justice and allow for “generational wealth”. They contend that appraisers are trying very hard...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

October 14, 2022

NAR Appraisal Survey

The results of the NAR appraisal survey show more than half of appraisers reported AMCs to be the greatest challenge in their business with 40% reporting not being compensated fairly. Only 3% of members witnessed or experienced discrimination in an appraisal… NAR Research conducted a survey of all 9,700 appraiser members and 50,000 randomly-selected non-appraiser members to determine the level of impact of appraisals on the current market and member business in terms of cost, turn-around times, and other challenges and to measure member experiences with bias and discrimination in the appraisal process. Highlights of the NAR Appraisal Survey The...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / NAR

Commercial Property: What Does a Real Estate Appraisal Cost?

October 13, 2022

Commercial Appraisal Reports: How Much Do They Cost?

Every business that owns a commercial property will require an appraisal. Commercial real estate transactions are the most common. Commercial real estate appraisals are necessary when acquiring or selling a commercial building. As with home appraisals, commercial property appraisals offer unbiased, third-party insight into their value. In contrast to residential properties such as single-family houses or condominiums, commercial appraisals estimate the value of stores, offices, hotels, apartment buildings, and the like. When you build, insure, tax, mortgage, or sell real estate, an appraisal is required. Besides helping secure a loan or ensure that you have enough insurance, it may also...

Appraisal / Appraisal News / Appraisers News

October 12, 2022

The Government Screwing Over an Entire Industry

The government wants to move to a fully automated appraisal format, and the more that they can dirty the narrative in their favor, the quicker they get to their objective… This just in: In a recent memo, the CFPB wants you to know that if you are buying a home, that you can contest your appraisal. By the way, anyone at any time can contest an appraisal for any reason. This isn’t new. Not at all. In fact the CFPB doesn’t really give two craps about your opinion of value or the Appraiser’s opinion of value. This has nothing to...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Automated Valuation Models