The proposed AMC Rules from the Agencies are out in draft form.
Coalitions, industry organizations, and groups of appraisers are examining these and other Rules.
There is discussion amongst appraiser groups and other industry participants like never before.
It’s a great time to make your voice heard and to hear what others have to say!
As I talk with appraisers across the country, I’ve heard there is a slow-down in some areas now (although others report they are as busy as ever). We can choose to think negatively about a slow time, or we can see the slow time as an opportunity to market, market, market.
I normally get very few revision requests, and usually for minor items. I’m not saying this to pat myself on the back, but to explain how surprised I was a few weeks ago when I received two revision requests in the same week. And they weren’t just any type of revision request: they were the dreaded “instruction” from an underwriter.
“Appraiser to include a second sale whose unadjusted sale price supports the opinion of value, and resubmit report.”
I do pre-foreclosure and home equity work for several clients, and their assignments include some Exterior-From-Street appraisals. Insurance companies and agents request this type of report as well. Recently, I heard from an appraiser who doesn't do "drive-by" Exterior-Only assignments. I understand, as part of managing businesses appraisers make different business decisions related to the nature of the work they will and will not accept. And I'm never about to tell another appraiser what work to accept and what work to avoid.
"Paired Sales are a joke" …So some folks say.
Okay, I agree that paired sales are not the be-all and end-all of adjustments, and that there are other methods for supporting adjustments, but the paired sales method really can be valuable.
Both of my children play soccer, just as my father and I did. And as with any game, you have good games and bad games. But what is a “good game” really? What does it mean to “play well”, and do we mean as a team or as an individual player? If I say I “had a good season”, some folks might assume my team won most of its games, others might think we at least finished off the season strong, and others may even believe that I mean I improved my performance compared to the previous season.
Have you ever gotten into a disagreement over whether including listings in the sales comparison approach is inappropriate – or even misleading? I'd like to say I’m torn over the issue and just present my opinion as some middle-of-the-road approach; however, I really do see the benefits of including listings as part of summarizing my appraisal process in my written report.
Last week, I discussed fee and turn-time management in running an appraisal business (“Business Management: Part 1 Fee and Turn-Time Management”). Today, I wanted to further explore how to actively manage our businesses: through managing our clients.
Appraisers are really good at finding comps, measuring and drawing houses, evaluating a property's highest and best use, analyzing the market, extracting and applying adjustments, driving to comps, and communicating final results. We have a big skill set! But what are we not always good at? Actively managing our businesses.