Opinion

How Many Ways Can You Support Adjustments in Your Appraisals?

Wednesday, December 11, 2013

Having spent the past few years being the Chief Appraiser for a bank that, by the time I left, had acquired seven failed banks from the FDIC during the credit crisis, I started becoming a collector. Of course you can imagine the types of appraisals that had been engaged by the failed banks, but more importantly, I was able to work with some of the best appraisers in our market areas doing new appraisals trying to figure out the crazy real estate deals that these banks had done.

"Low Bid" Appraisal Ordering Yields Quality Work (Most of the time)

Sunday, December 8, 2013

Post No. 34 – Some of you may have seen a recent article by Isaac Peck, Associate Editor of WorkingRE. His article was titled "'Low Bid' Appraisal Ordering and Its Effect on Quality." It can be found at this link - http://www.workingre.com/low-bid-appraisal-ordering-effect-quality/

Contrary to Popular Belief, the Appraisal is NOT a Commodity

Monday, December 2, 2013

Many mistakenly view the appraisal as a commodity. True, there are several traditional methods that every appraiser must go through when determining the value of a home that may make the appraisal seem commoditized, including researching the market, analyzing comparables, inspecting the property and making appropriate adjustments to the comparable sales. But those methods are exactly why the appraisal is NOT a commodity. In reality, it is a myth that all appraisals are more or less the same, even though it may seem so at first glance.

Thinking Outside the House

Saturday, November 23, 2013

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.

Approaching Retrospective Appraisals

Wednesday, November 20, 2013

When Hurricane Sandy made landfall just over a year ago, no one could have predicted the immense damage it would cause. In the United States alone, 24 states were impacted, New York and New Jersey most severely.

That's why both those states are now offering to buy damaged homes from willing sellers at pre-storm values—in order to replace those homes with open land that can serve as buffers for future storms. To determine those pre-storm values, the state is relying on appraisers.

Evaluations - My Letter to The North Carolina Chapter of the Appraisal Institute Board of Directors

Monday, November 18, 2013

Dear North Carolina Board of Directors,

First off, congratulations on your appointment for the upcoming year.

I was in attendance at the Chapter meeting in Pinehurst and the subject of Evaluations came up. This has been a pet project of mine for nearly 20 years - i.e. I believe every State should allow appraisers to perform true Evaluations (non-USPAP compliant valuations).

The Transparent Real Estate Transaction

Wednesday, November 13, 2013

Remember this phrase: The Transparent Real Estate Transaction. With the level of detail required in today’s appraisal reports it is time for the real estate industry to move toward full and clear disclosure of sales concessions or unusual sale terms in the post-closing section of MLS, allowing all participants in a real estate transaction to analyze comparable data with knowledge of an accurate net sales price.