Tagged: value

Are Appraisal Management Companies Value-Adding? 29

Are AMCs Value-Adding?

The Federal Housing Finance Agency has released a working paper “Are Appraisal Management Companies Value-Adding? – Stylized Facts from AMC and Non-AMC Appraisals” We have not had a chance to review the report in great detail, however, a quick glance has some very interesting analysis. This is a must read for every appraiser! See the “Are AMCs Value-Adding?” paper here or below. Excerpt: Are Appraisal Management Companies Value-Adding? – Stylized Facts from AMC and Non-AMC Appraisals In this paper, we study whether there are any systematic quality differences between appraisals associated and unassociated with appraisal management companies (AMCs). We find...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisers News

Rounding of Adjustments Because We Are Just Not That Good 16

Adjustment Question

Rounding of adjustments is perfectly acceptable. Would someone kindly, and logically, explain to me why the ‘Site’ is adjusted precisely at $0.20 per square foot, down to the nearest dollar, but all other adjustments are rounded to $50? Are ‘we’ appraisers really that good, where we can divine buyer motivations or values (i.e., adjustments) as accurately as that?  In other words: “Well, I believe it’s worth exactly that much.” Usually I see this kind of adjustment practice to the nearest dollar when applied to the Gross Living Area and below grade areas, which is also screwy (IMHO).  This is the...

Appraisal / Appraisal News / Appraisers News / Tutorials

Flagstar Bank Eliminating Use of AMCs: Direct Vendor Appraisers Wanted 29

Flagstar Bank Eliminating AMCs

Flagstar Bank’s Direct Vendor Appraisers Appraisers, I have just learned from reading a forum that Flagstar Bank is doing away with the AMCs they use, and bringing appraisal ordering back in-house. However, you must agree to this: PLEASE NOTE: We only pay via ACH (automatic deposit twice a month on the 1st and 15th) so your bank information is also mandatory. There are no other payment methods available at this time so if you prefer not to use automatic deposit we unfortunately cannot add you to the panel. Also effective July 24th, 2017 there will be a click fee charge...

Appraisal / Appraisal News / Appraisers News / Trending / Uniform Standards of Professional Appraisal Practice / USPAP

Is There a Fourth Approach to Real Estate Value? 17

Is There a Fourth Approach to Real Estate Value?

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...

Appraisal / Appraisal News / Appraisers News

Communication Gone Wrong: AMC Communications Have Failed Consistently 41

Understanding the Appraisal Profession

AMCs communication have failed consistently…. As a Certified Residential Appraiser that started my career as a loan officer in the early 1990’s, I am baffled how many who claim to be mortgage or valuation professionals that are just clueless. Don’t get me wrong, I am not talking about any one person, group or business type, but a true lack of understanding of the underlying principle of Real Estate… that is each property is unique. Even in cookie cutter subdivisions where every third home is the same model, there are differences both in the land and the improvements. If you don’t...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Trending

Contract Price vs Failed Appraisal...The Blame Game Just Won't Quit 38

Shame on Us – Appraisal FAILS Replace LOW Appraisal

Appraisal under contract price… Appraisers, The blame game just won’t quit. Now instead of dealing with a ‘low appraisal’, it’s now a “FAILED appraisal.” It’s always “our” fault properties don’t sell – when the contract sale price is higher than the appraised value. It’s never the fact that the home may have been over-priced, the buyer was desperate or over-emotionally involved, or the seller super greedy. The latest example highlighting “our” deficiencies: Excerpts from the Mortgage News Daily article: “…collateral problems are consistently the third most frequent cause of loan denials.” “…appraisals coming in below the contract selling price is...

Appraisal / Appraisal News / Appraisers News / Trending

The Site Value… A Walk in the Park or USPAP Nightmare? 12

The Site Value… A Walk in the Park or USPAP Nightmare?

Recognized methods to determine the site value… We have all been there, the subject is located in an established neighborhood, no vacant land sales in many years and the lender has requested the site value. USPAP Standard 1-1 states “be aware of, understand and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal.” The other key standard to keep in mind is Standard 2-2a (viii) – “Summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analysis, opinions and conclusions: exclusion of the sales comparison approach, cost approach...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / Uniform Standards of Professional Appraisal Practice / USPAP

Higher Value Bids - Appraiser Versus Machine 32

Appraiser Versus Machine?

Loan officer, the bank, homeowner… want a higher value… Automated Valuation Models: Are they any good? Appraiser vs Machine? AVMs were run on a few properties that were recently appraised. The results are well, ….. they are what they are. The questions are: Are they good? Are they good enough? Will the consumer accept them? Will the banks and lenders accept them? Below are the samples. We have to be careful as we are appraisers and don’t want to be sitting in front of the VREAB explaining why we shared assignment results in violation of the confidentiality requirements of the...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / Automated Valuation Models / AVM

Individual Adjustments to the Detriment of the Bigger Picture 10

Seeing the Forest Through the Trees

Focusing on individual adjustments to the detriment of the bigger picture… Growing up, my parents used to refer to my inability to see the forest through the trees. This simply meant not being able to see the bigger picture because focus was so narrow that I only saw what was right in front of my eyes. Fortunately, I am older now, and (usually) better at seeing the bigger picture. I suspect this is a common phenomenon in all walks of life, and particularly in our work. This can happen in many aspects of the appraisal puzzle. One of the most...

Appraisal / Appraisal News / Appraisers News

Line Item Adjustments for Every Little Difference? 8

Bugged About Adjustments

Illogical line item adjustments… Appraisers, I’ve recently ‘come in contact with’, in a semi-official capacity, a recently completed appraisal report. In looking at the adjustment grid pages for 5 comps, items jumped out at me. These do not appear logical. All comps, except one, have sale or list prices at even thousand dollar figures = $XXX,000. The one is $XXX,950. These are pretty typical in our market. Very seldom do we see these in odd numbers, unless the listing agent is trying to be cute, and buyers accept the oddity. For line item adjustments in the report, the appraiser has...

Appraisal / Appraisal News / Appraisers News

xml sitemap
blank