At The Appraisal Foundation, we often encounter misperceptions about the role of appraisals in the home buying process. From first time homebuyers to seasoned real estate professionals, there is often confusion about the purpose of an appraisal, how it is ordered and carried out, and what type of communication is allowed with appraisers. Dispelling these misunderstandings is critical to educating borrowers, lenders, real estate brokers, and homebuilders on the central role of appraisals in the mortgage process.
I have an unique point of view within the appraisal industry. I am constantly interacting with appraisers all across this country via email, telephone, Skype, webinar, snail mail, conferences, [breath] and workshops. I guess you could say I have my finger on the pulse of appraisers. In a very real way, I 'feel the pain' they are currently feeling because I hear it from multiple sources. Right now, most are feeling a bit of a pinch. Okay, that was an understatement. Appraisers I interact with have reported a decrease in business from 10% to as much as 40% in the past three months!
Too often we receive complaints from Buzz subscribers who say no one is standing up for appraisers in the battle over Customary & Reasonable Fees. Well, we are excited to tell you that someone has emerged who is trying to do something to combat unreasonable fees.
I am truly excited about this announcement. We have been guilty of "the cobbler’s children need new shoes". At Allterra Group we support multiple websites—Appraisal Buzz, Valuation Expo, Collateral Risk Network and soon Allterra Online. Each of our lines of business has been well branded yet our corporate site was admittedly neglected. All of that has changed as of today.
We hear you loud and clear. Most of the emails and feedback we receive at the Appraisal Buzz are about customary and reasonable fees. We completely understand.
That is why we have created a FREE T-Shirt for everyone who registers for Valuation Expo before May 1st. This T-Shirt takes a humorous look at this very important industry issue. While we don't recommend you wear it on appointments, we do think it will be a conversation starter amongst your peers.
Conventional wisdom states the three most important things in real estate are: location, location, location. This wisdom is especially true today since market fundamentals and local conditions vary greatly across the US. Thus, not surprisingly, the answer depends on location.
Customary & Reasonable fees were all the buzz back in 2010. Then the conversations subsided. Appraisers had a whirlwind of refinance activity to distract them for a while. When interest rates ticked up, volume plummeted. Now every dollar counts more than ever. The sting is especially painful when volume has dropped precipitously and fees were cut simultaneously. That spells double trouble.
With the signing of the Financial Regulatory Reform Bill on July 21, 2010, also known as Dodd Frank, there were significant changes that affected the appraisal community.
The Appraisal Buzz recently caught up with Peter Gillispie and Craig Julian to discuss their upcoming continuing education class, "FHA Appraisals and Reporting Requirements". This one day class will be held Monday, May 12th in Annapolis, MD. We knew our readers would like to know a little more about the instructors and the class itself so we thought we would share their answers.
Buzz: Thank you for joining us Pete and Craig, could you tell us a little about your history in the appraisal industry.
Post No. 38 - If you are a Canadian residential appraiser, hopefully you will comment on this post and explain how appraisals are done 50% cheaper and in half the time of American appraisals.
"Average turnaround time of appraisals in Canada is 2.5 days, while in the US it is double that. And an appraisal in the US is also twice the price as in Canada."
While surfing the web I came across that quote from the article with the link below:
The Appraisal Buzz recently had a chance to speak with Robert T. Murphy of Fannie Mae and ask him a few questions. He is the Director of Property Valuation & Eligibility at Fannie Mae and an influential leader in the appraisal industry. We wanted to speak to him about their recently released Lender Letter and find out how it affects appraisers. Below are some of his responses.