The Antitrust moment that we have been worried about has finally come to the Appraisal Profession. Phil Crawford breaks down the news and information from the FTC investigation and complaint filed against the Louisiana Real Estate Appraisers Board. Everything will change now… We do not believe the FTC investigation in Louisiana will be an “isolated incident.” This complaint will have a profound effect on all appraiser coalitions, organizations, conferences and state boards. Let’s make sure we are all prepared!!!
GUILTY of not using human brain power of thinking and communicating… More Please… How many of you can honestly state with all sincerity the appraiser is better off today with the use of Appraisal Management Companies (AMCs)? How many of you can say with all sincerity the consumer is being protected with the use of an AMC? How many of you can, with all sincerity state your business model is how you want it? How many of you are happy with the current environment of the industry? If you answered yes, congratulations, you have found your peace. You should stop reading...
Mark Skapinetz believes that appraisers are being held captive by AMCs…. Reserved is not a word that anyone would use to describe Mark Skapinetz; at least of those who know him. Shy is not in his vocabulary. Mark is the founder of the “100% Real Estate Appraisers” group on Facebook. He joined me on April 23, 2017 as a guest on The Appraiser Coach Podcast to discuss everything from training the next generation of appraisers to the AMC debacle. Mark believes that appraisers are being held captive by AMCs. Though he works for a handful of AMCs himself (in other...
I want to talk to you about the fourth approach to value… …and specifically an occasion on which it truly saved my bacon. Now, I know a lot of you real estate appraisers out there probably started chuckling as soon as you read the words ‘fourth approach to value.’ If you did, I get it, believe me! I used to be the same way. Over time, however, I’ve grown to see how it can often be a vital part of the valuation process. Let’s have a quick recap for anyone who’s either forgotten the fourth approach, or never learned it...
Gas prices in California were $4.25 to $4.50 when oil was last at $100 a barrel. A week ago they were $50+/- a barrel and our pump prices were still over $4.00 a gallon. We are told ‘environmental’ mandated blended methanol is the cause of the $1.30 higher pricing than anywhere else in the Continental US. When those environmental laws were being passed we were told they’d only add from $0.05 to MAX of $0.15 per gallon-NOT $1.30 or 43% more! We KNOW that California politicians have also very recently heavily increased gas taxes in their never ending war against internal combustion....
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...
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...
I was recently asked by a local lender to appraise 14 vacant lots. Though the lots were all quite similar, 14 separate appraisals were needed (obviously, a large discount was given for the multiplicity). Once a value was established for each individual lot, the lender came back and now wanted a ‘bulk value’ for 10 of the lots. Hmmm. That certainly changes things. Per USPAP in fact, we now have a new assignment. As I inquired to the bank and got more information, it was clear that I was out of my element. The lender did not just need a total...
Are realtors, loan officers allowed to talk to appraisers? I was amused at a phone message that was on my voice mail recently. A realtor spent 3 minutes apologizing for the phone call, explaining that she understood she was not allowed to speak to appraisers anymore for fear she might sway the appraisal process. The funniest part was that while she did tell me which file the message was regarding, she failed to leave her phone number. Are realtors, loan officers allowed to talk to appraisers? Can the appraisal be discussed? Okay. I am sorry, but has this world lost...
Virginia Gov. Terry McAuliffe on March 23 signed into law S.B. 1445, which requires appraisal management companies operating in the state to compensate appraisers at a reasonable and customary rate. The legislation gives the Virginia Real Estate Appraiser Board authority to take administrative action against AMCs not paying appraisers customary and reasonable fees in accordance with federal law. Prior to enactment of the legislation, Virginia law already required an appraiser engaged by an AMC to disclose as part of the appraisal report the actual fee they were paid. In 2014, the Virginia Center for Housing Research and the Virginia Tech...
