So for a month now I have had no work. Everyone I know hasn't had any consistant appraisal work either or none at all as well. Not that I haven't been working, but I haven't had an appraisal order/assignment for over 1 month. Now, the real esate market is significantly slower and its only been 2 days since the Feds stepped in to try and help its citizens/eceonomy (?) however, I, still have not had any work. I have spent my time doing marketing, which nobody is responding to due to the current RE market (I actually had a lady call me from my recent mailing and online advertising, that she REALLY wanted to use me but they just laid off 75% of their staff from agents, underwriters, reviewers and inhouse appraisers andshe wanted me to know how sorry she was she couldnt' give me any work. Thoughtful, I s'pose), so I think that maybe that was a waste of time and money. I also have cleaned my office, gotten all of my billing and collections in order, cleaned my office, backed up my computer and files, cleaned my office, have signed up for more continuing education and, did I mention, I cleaned my office? UGH! I can handle a busy schedule and I enjoy being busy. What I don't handle well is not doing anything. I will actually create something to do to avoid having to sit still and do nothing. Maybe I'll die early, as a result of this character trait, but I don't really care. I like being busy. But this lull in work and not having work has really exhausted my creative juices in trying to find something to do. I am almost out of ideas and funds and will probably have to start moon-lighting at some fast food joint soon just to stay a-float (God I really Hope not!). Why not go back to Physical Therapy, some of you are asking? For one thing, if I am in a hospital or clinic and get a call from a client or a prospective client, its not like I can drop my patient and run to a computer and process an order or answer any questions or take care of anything they need, and by not being readilyy available I risk loosing a client or potential client.....So going back to PT is really not an option and besides, I really don't want to.
Right now I am assisting on a photo shoot production. I have never done production before and can't say that I love working in the entertainment world, but I do have a new respect for and admire those that can multi-task with scheduling, clients, agents, art directors, the "creative types," and also deal with fussy actors and models. It's enough to push anyone over the edge. BUT!!!!! The pay is good! It pays more than Physical Therapy! and it pays more than what I make as an appraiser. Now, I'm not saying I'm going to leave the profession, but maybe the real question isn't "where's the work?" Maybe the real question is "where's the money?" and slumming to get it!
I remember being in grade school visiting relatives and my aunt wrongly accused me of convincing her duaghter, my cousin, to take something that was not hers. I was petrified with anger and resentment as even my parents sided with my aunt and I got into HUGE trouble. I tried to defend my self, past the point of sobbing in frustration as nobody believed that I knew nothing of my cousins theft. Weeks later, when my cousin finally confessed, my aunt, other cousins and immediate family, thought I had further convinced my cousin to confess so I could get out of my punishment, since I was so "convincing." It took a long time for everyone to realize, that my cousin actually had done this theft on her own and that I had nothing to do with it.
My point?
How do you handle being wrongly accused? Especially by big names such as clients, peers, companies or corporations?
Several months back I was accused of having a "history of submitting reports with 'multiple errors'" for a specific company. I asked to be shown the reports that had 'multiple errors,' and requested to know what reports they were talking about. And as of yet have not been told which reports those were or for that matter gotten any confirmation as to what my 'multiple errors' are/were. I further asked, if I had been making such mistakes, why had my reports not come back to me with ROV's or revisions, or for corrections, or with questions or for additional commentary about the report like my other clients do. I never received any significant conditions from this client in over 1 year that would warrant this accusation. After several weeks of trying to get further info and to try and resolve this accusation, and having no one following up with any PROOF of what they told me, my last call to my client over this issue, I was instructed to not call them back on this issue anymore, and that I could no longer work for them, and was hung up on. I tried one last phone call to my personal contact at the company, and she basically told me (in not so many words) to shut up and go away and that there was nothing she could do for me and she hung up on me too.
Not only am I upset that I can not get a straight answer from my former client, but "Where is the G.. D... proof?" All I have been told is a generic statement, and no-one at my former clients office will step up and tell me the truth or give me proof. Are they just really PO'd that the value came in less than what they needed? Was there someone in the office that made a deal that fell through or did something wrong and so they are making me the scapegoat or trying to cover up something?Of course the list of self doubt questions and situations have all been played in my head. I'm really at a loss with this client.
I just can't help feeling like I did when I was in grade school and feeling that I have been wrongly accused of something without any proof and nobody believes in me. I'm not searching for sympathy, but my gut was in knots for weeks, and I really started second guessing myself and my work. I asked several of my early mentors, current peers and educators and come to find out, at some time or another, each one of them had similar experiences with clients in the past, that for their own reasons, decided that they (my mentors, peers, educators) could no longer be an approved appraiser for them. Some of them got answers, some did not. Its a hard pill to swallow and tough to stand wrongly accused of something without the proof. Even harder to try and defend yourself when no-one will listen, and even harder when the evidence is not produced.
The one thing I pride myself in is taking responsibility for myself and my work, which was evident by my desire to resolve the issue with my client and to find out what my errors were and to rectify any wrong doing. Did I need to take a class to address an issue and improve my competency? Was I really an incompetent appraiser? I know I'm not incompetent. But false accusations still sting no matter how old you are!
I get questions on a regular basis as the why sometimes what I measure is different than what is on public records....especially for condos that are multi level and guest houses that are detached from the main house. Some agents I know just do a quick measurement around the exterior of a house na dguest house or the interior of a condo and base their info on that. Some don't even bother and just base it on public records and assume that PR is up to date! And altho, Public Records is a reliable source, it is good to have a house and guest house or condo properly measured. There is the National Square Footage Standard that appraisers follow when measuring a home:
1. The property must be measured for the exterior /outside walls
2. measure to the nearest inch and report to the nearest whole square foot (round up or down)
3. Include only finished areas
4. Distinqusih between ABOVE-GRADE and BELOW-GRADE finished areas and identify which is which - basements do not count!!!!
5. Do not no include openings in floors - ie open to below areas or stair wells - but do include the steps on the stairs
6. Ceilings must be 7 Ft in height except under stairs, beams and sloping roof lines
7. Include assessory apartments/units ONLY if they are CONNECTED to the main house by finished hallways and stairs - does not include the detached Guest House in the back!
8. Do not include Garage area as part of the SF of the house
You can visit http://www.nahbrc.com/ or call 800-638-8556 and get a copy of this voluntary standard for your information.
So even tho, your detached Guest House has permits, it will not be inlcuded in the GLA adjsutment, however, a good appraiser will do research and find its market value by finding comps that have a similar guest house amenity. And just because Public Records states that a condo is 1200 SF does not amke it so if it a 2 story design with stairs or has an open area.
I was asked recently to make a "location" adjustment in addition to a "view" adjsutment as the reviewer thought that the view had to be associated with "higher elevation" and therefore was in a "superior location" I tried to explain that some of my comps were actually "lower" in elevation than the Subject and other comps, due to the coast line and hillside nature of the neighborhood and it was the degree of the "VIEW" (i.e. 180 degrees, white water vs Blue water Ocean, partial, peek-a-boo, etc) that determined the value not the elevation, but she wanted a locatioin adjustment anyway. I had the whole "scope of work" discussion etc.......but wanted to pose the question.......
Is this considered to be "double dipping?" I know that making adjustments for bedroom variances AND a GLA adjustment can be considered "double dipping," in some markets and wanted to know what you all thought.
Yes, we are all aware that the market is changing....and quickly! I have began to wonder and speculate and prepare for a slow down in work as the market plays out it's roll of the dice! Yes I am doing all the marketing stuff: contacting existing clients and reminding them of my services as well as advertising and contacting new clients with doing cold calls, mailings, drop bys, making apointments, internet advertising, updating my web site, etc.
But it also occured to me, that one way I can keep on top of my business and avoid serious down times as the market changes, is to continue to take classes that will expand my services. Being that there are alot of forclosures happening, taking classes in REO/Foreclosures will broaden my knowledge and services and put me ahead of those that don't. The same goes for Relocation Appraisals. There are a lot of compnaies that relocate employees and it is an area that I can serve and market too. Being an appriaser that specializes in or has experience in specific types of properties, such as those listed above or even historic properties, can put you ahead of the game and help keep the work flow going even when the market changes and slows down.
It is not something we think about until its too late....i.e. the work slows or stops, etc. Not sitting back and "fearing" the changes, but staying in-tune to what is happening in the market, continuing to market to new clients and stay in contact with existing clients, and to take classes on an ongoing basis can help put you ahead of the game can make the changes in the market a bit less painful if the work/orders start to slow down.
We all know that change is inevitable, and by staying in-tune and up-to date, it can be a bit less bumpy and not so fearful and can still bring in work.
I just received a document from the NAREA that was put out by Fannie Mae and it is about the new requirements of lenders responsibilities and Appraiser Responsibilities in a declining market.
The document can be read at: www.efanniemae.com On the RIGHT HAND side of the Home Page is a section *HIGHLIGHTS. Click on "View Latest Lender Announcement" and click on "Ann. 07-11. The name of the document is "Collateral Valuation Pracitces and Decling Markets." It is available as a PDF so you can keep a copy for yourself.
It is not exciting reading, but provides useful info and a general guidenance on resources for lenders, underwriters and appraisers and proper disclosure and responsibilities we all have in a declining market.
I have had many surprises in my day. Working in health care for many years I have stories about human behaviour that will make you laugh, cry and puke! And now being an appraier, I can say the same! I have sotries that will make you laugh, cry and puke! I will spare you the details so you don't puke, as I"m not sure if your office is set up for that!
But I will share, not in detail, just a few tid-bits of human behaviour I have witnessed and encountered......
I have been greeted at the door by a woman in the buff! (she had just gotten out of the shower! and she sated she wasn't expecting me today!) RIGHT! I called an confirmed the day before.....!
I have been told by parents to "Go ahead and go into the house my son will be home" and when I get there it is a boy of 9 at home by himself. I called and rescheduled a time when the parents would be home.
I have opened the door to a bedroom and found highschool sweethearts "going at it"..... they're so energetic! and pathetic!
I have walked in on parents taking a "hit" with thier kids... better to get high with your parents and be safe at home i guess!
I have seen dead animals in the yard and rooms of houses, been propositioned by men and women so they wouldn't have to pay, been chased by a man in south central, walked in on Agents having sex during an open house, seen people using their sinks as toilets and some even keeping their "waste" in containers, been escorted into a home by police due to the resident being violent, have seen and reported animal abuse and child abuse, and the list goes on.
Why am I sharing this. I dont' know....but it seems I'm not the only with stories! And it's fun to share!
There are many times when borrowers, lenders and agents present "comps" to me that they consider relevant for the appraisal I am working on. I am very happy to get information from realtors and owners, especially onwers as they tend to know more about what is happening on their street than most agents and may have more up to date info if there was a recent sale or listing on their street. I also ask agents and borrowers from time to time if they have comps they would like me to consider, especially, if there are a lack of more recent and relevant sales data available, and or what comps they are using to justify asking/selling price when it appears unreasonable. This doesn't mean that I automatically use them in the appraisal report, it is part of my process of gathering information so I can make an informed decision. And besides, what is often presented to me for consideration, is not "bracketed." and does no
What do you mean "bracketed?," I hear you ask! Well, it is quite simple. Bracketing is setting up a parameter(s) that help identify the Subject such as Gross living area, Bed/bathroom count, lot size, overall condition and improvements, etc. We also bracket time for the comps such as going back 2 - 4 months and then back 4-6 months, then back 6 -9 months etc, as needed. We also bracket distance from the subject.... less than a half mile, up to .5 miles, then .5 to 1.0 miles, etc and slowly increase the brackets as needed until we find specific criteria that we are looking for. I usually start with 10% variance in GLA, and lot size within 2 -4 months. Then go up to 15% past 2 -4 months. Then go to 20% variance 2-4 months and 20% 4 - 6 months. And repeat this process over and over with the distance bracketed until I find Comps that are the most recent and relevant to the Subject property. Sometimes this is really easy and quick in a growing market. Other times it can take hours, especially for atypical type properties or in slowing/declining market.
Appraisers can't just choose a comp becuase it is next door to the subject. We can choose the comp next door IF it is similar in GLA, bed/bath count, lot size, view, condition, was sold within an acceptable time frame (preferably within 6 months or later if it represents current activity/marketability in the immediate area, and is a good "substitute" for the Subject). But just because your neighbors house sold for $1M doesn't mean your house is worth the same on the market. It could be more ( a lot more if you're lucky!) and it could be less (a lot less if you're unlucky!). Appraisers have to look at many apsects of the proeprty and not only follow the USPAP guidelines of promoting and maintaining Public Trust, but also to the criteria set up by lenders/underwriters who have specific criteria they look for in our reports, and by bracketing, we can assume to find the best comps for the appraisal process.
So go ahead and share the info you have with your appraiser. Just don't expect him/her to use it and be upset if they don't. There is a reasoning and method to our madness and hopefully sharing some info on how bracketing works will ease your expectations of the appraiser and understand a bit better that we look at property a bit differently.
Well, I have been delinquent in not only writing for the past few days, but also in my continuing education classes for the past 2 years. I am making a mad dash to get all the required hours in before I have to re-new my license in 4 months. I usually don't wait this long for things like this, but, my excuse is that I also had a lot of education this year to upgrade my license, and the state doesn't recognize those hours for Con-Ed. UGH!.....
It's not that education is bad. I actually enjoy learning new techniques and methods for appraising and knowing what my peers are doing. It's just craming all this new info into to such a short amount of time, is not what I like to do.....(my college days were much for fun when I left studies until the last minute.....I had lots of reserve, stamina back then too!) I should have taken more care in spreading out the classes, and allow my brain to process and absorb what I learned, and also the time to practice what I had learned. Now its becoming all a blur..... and I'm not sure I'm retaining a whole lot, other than the required hours!
Classes on updates, verbiage for form filling, acceptable appraisal practice, responsibility, accountability, who owns the photos? and report, legal issues in apprasing, who is my client, who is NOT my client, appraisal review and underwriting rules and proceedures, changes to the USPAP - Uniform Standards of Professional Appraisal Practice and new educational requirements for getting a license in appraising, use and supervision of a trainee.... and on and on and on.......
Most people are aware that appraisers are to remain objective, and unbiased in the appraisal process and are to follow USPAP. Some don't care. However, USPAP sets up rules, standards and guidelines to promote and maintain public trust and to avoid fraud and to set a standard by which the process of lending is streamlined and effecient. So all this education is good not only for me, but for the common good of public trust and for my clients.
I just should have been a bit more wise about spreading it out instead of waiting until the last minute. I'm a pretty smart guy. But lately I'm a bit over stimiluted.
I am HUGE animal lover. Dogs are my favorite and I have 2 dogs.....I would have more but, my back yard is not big enough for more animals. My dogs are like my kids....I don't have kids and my back yard is not big enough for dogs and kids so I opted for dogs! Besides, my dogs don't require a college fund.
Dogs can be like children tho. How you raise and train them determines how they behave. And that is ususally a result of either good or bad parenting/training. Overall, I think I'm a good "parent" to my dogs, I took them to dog classes and tought them and myself how to do basic dog stuff, ie heel, sit, stay, come, etc and we do pretty well. I exercise them regularly and they seem to be happy.
I have read MLS lisintgs lately that state that when showing a house, to not let the dog/cat/ out, or not to go into the back yard due a biting or vicious dog, or dog does not do welll around children, cat tends to scratch when being picked up, and the list goes on. This got me thinking....
As much as I am for keeping pets in their own invironment and keeping their stress level to a minimum while either buying or selling home, afterall, the house is just as much their domain in their mind! I think it is bad "parenting" on the owners part, knowing that if your pet bites, or is in some way, vicious towards others, to let a stranger(s) come into your home and encounter that and not take your pet out or away while there is a showing or inspection. I have been nipped, chased, attacked and scratched by peoples pets, (I have also incountered uncaged snakes, and rat like animals and uncaged birds flying around) while I am appraising a home, and at times I have not been able to complete an assignment due to the pets behaviour. Granted it is the animals domain and they are protecting it, but come on, take care of your pets properly and don't make your agent or appraiser, or inspector deal with an ill behaved animal. Its bad parenting and ir-responsible.
Here again, I dont' fault the animal(s). After all, our pets and (your children, not mine.... as I dont' have any!!!) only reflect on on their "training/parenting."
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