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appraiser: a recent email and my response - what do you think? - 02/22/10 11:23 AM
From: xxxxxxxxSent: Monday, February 22, 2010 10:29 AMTo: Mike LaySubject: HVCC (Sent via Activerain)
You've received a contact message from your Contact Form on the ActiveRain network.
Mike,I just read your letter and think it is great. Did you receive any response? I would also like to know if you are currently doing anything to fight the HVCC? I just received a link to sign a petition against the HVCC. The link is http://www.hvccpetition.com/ . I am trying to have as many people as I can sign it. My husband has been a real estate appraiser since 1992 and in business … (3 comments)
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appraiser: THe HVCC is alive and well and working for appraisers! - 11/07/09 10:12 PM
If you have read any of my posts, you will have already guessed that the title of this one is sarcastic.
I had a good client (mortgage broker) who was pretty much forced to give up her business due to the HVCC, and ended up merging into another larger practice. Once there, she recommended me as one of the 5 appraisers that their AMC uses on a rotation (and the AMC pays full fee, so I can't complain). However, I found out last week after the orders dried up that I had killed three deals for another broker in that office, … (6 comments)
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appraiser: How stupid can this business get? - 10/14/09 09:46 PM
I've got an appraiser friend in NM that does a lot of work for the big AMC's. He emailed me yesterday to tell me he thinks he finally got the straw that broke his back. A new requirement from LSI that will "greatly reduce" the number of appraisal challenges (where the buyer/seller/borrower/realtor gets the chance to say "why didn't you use these comps?") is this gem:
"...appraisers (shall) provide a paragraph within the addendum of each report detailing the parameters used to narrow down their search for comps, including why the provided comps were the best and why others were not selected. … (9 comments)
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appraiser: The Fallacy of the Price per Square Foot Method - 08/13/09 11:02 PM
"What is the price per square foot?" In my job as a residential real estate appraiser, I hear this repeated almost daily. Other variations include "my neighbor sold for $ (x) per square foot", or "the average in my neighborhood is $(x) per square foot". Almost always, these comments and questions come from people who are unhappy with the valuation of their home. Unfortunately, the price per square foot method is very rarely a reasonable indication of the true market value of a property.
Let's look at the basics: The price/sf is determined by dividing the sale price by the number … (6 comments)
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appraiser: Why the NAR call to action for HR 3044 is a joke - 07/23/09 12:16 PM
I recently received an email asking me to call my representatives and urge them to co-sponsor H.R. 3044, which would place an 18-month moratorium on the HVCC. Along with the email were links to several articles talking about how low appraisals are hurting real estate, essentially saying that appraisers are responsible for the slow economic recovery.
New Home Appraisal Rules Stir Industry Backlash - Associated Press (July 14, 2009)
Low Ball Appraisals Spark Uproar - Post (July 3, 2009)
Appraisal Management Chart
While I understand the real estate industry's frustration, yet another delay in implementing the HVCC is not the … (65 comments)
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appraiser: The Benefits of a Beautiful Outdoors - 06/01/09 11:23 PM
I was perusing the June issue of Money magazine when I came across a short article entitled "The Benefits of a Beautiful Outdoors". The gist of it was that good landscaping adds about 10% to a homes value according to a Michigan State study. Normally I would have just laughed at that and moved on, but several days earlier I was reading a blog post on Activerain where a realtor had asked a similar question, that she had heard that 10-15% statistic (although from a different source). So now I'm going to have to post something to make sure everyone understands that … (2 comments)
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appraiser: An open letter to Andrew Cuomo - 05/06/09 12:46 AM
Dear Andrew,
Now that we are a week into May, I wanted to personally thank you for your efforts in regard to creating the Home Valuation Code of Conduct (affectionately known as the HVCC, or "Half-assed Values at the Cheapest Cost" to those of us in the appraisal industry).
But seriously, I applaud your efforts in allowing Fannie and Freddie to get out testifying in the Washington Mutual/eAppraiserIt lawsuit. I mean, what would that have accomplished anyway? Actually proving that the lenders who were pumping our financial system full of suspect loans were well aware of what they were doing? If you had actually prosecuted that … (6 comments)
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appraiser: a letter to a good client I will be losing... - 04/09/09 05:23 PM
Here is an email I wrote to a good mortgage broker client I've had for the past few years, in response to one from them asking me to please sign up with Fiserv as required by Crescent Mortgage, one of their lenders:
Hi Bob,
Tom also sent me one for Taylor Bean & Whitaker, who is using some company called SecurityOne Valuation as their AMC. Both they and FiServ typically charge the borrower more than I do now, and then only pay the appraiser about $200, keeping the rest for themselves. I actually called SecurityOne to ask what their split was, but … (12 comments)
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appraiser: The benefits of using an AMC for appraisals - 02/06/09 12:40 AM
Lenders,
I would like to relay a firsthand account of what kind of quality you might expect when you choose to work with AMC's:
A very large bank, in fact one of the largest BANK's in AMERICA, uses eAppraiseIt for appraisal management services. Now, I would agree that if you wanted to deter having the LO's pressure the appraisers, a firewall such as an nonaffiliated AMC just might be a good solution. The AMC orders the appraisal, the chosen appraiser does the best possible work (or at least what you might expect for a +/-$200 fee split), he/she sends it back to the … (11 comments)
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appraiser: Great news for appraisers! - 01/21/09 12:10 AM
I am very excited today because I found out that we NO LONGER NEED TO FIND AND USE THE "BEST" COMPS IN OUR REPORTS! Nope, it looks like that old, outdated method of choosing the most comparable sales is going the way of the wooly mammoth. From now on, the only important attribute of a comparable is that it MUST HAVE SOLD IN THE PAST THREE MONTHS.
Think of how much easier our life is going to be now! We don't have to worry about stupid little things like proximity, or similarity of quality, age, condition, lot size, age, or even … (38 comments)
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appraiser: a new personal best! - 01/04/09 10:45 PM
My 1999 Ford Expedition recently turned over 200,000 miles, and I am very proud of myself. I've never owned a car that lasted more than 120,000, so this is a definite milestone. It runs great (knock on wood), is still in great shape, and has had only some minor repairs over the years. I bought it in 2001 with 33,000 miles on it, so that averages out to about 24,000 miles a year. And best of all, it's been paid off for a while. I didn't like $4/gallon gas, but it was still cheaper than a new Prius!
My problem now … (6 comments)
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appraiser: Update on the HVCC for brokers and appraisers - 12/29/08 11:18 AM
To all appraisers and mortgage professionals:
I have posted a letter on my website that I have provided to all of my clients that outlines the HVCC, including what it is, what it does, who it affects, and what they can do about it. I think it provides a reasonable summary that would be beneficial for appraisers to provide to their clients, and is just good information for mortgage brokers and lenders who aren't completely up to date on the situation.
Anyone is welcome to copy it for your own use, as long as you understand that while I believe that the content … (3 comments)
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appraiser: What is an appraiser? (a little humor) - 11/30/08 12:24 AM
(borrowed from www.thejokeshop.org)
APPRAISER (Ap*prais"er), noun: One who compiles and analyzes voluminous data of problematical accuracy from sources of dubious veracity and derives therefrom a numerical quantification of unquestionable necessity, analogous to a nebulous and euphemistic concept representational of value commensurate with ambient configurations of the open market and promulgates thereby a precise written declamation which delineates his observation, deliberations and conclusions all done while he feigns absolute ignorance of the avaricious machinations of Buyers, Sellers, Brokers and Lenders, compensated only by that penurious stipend known as the professional fee.
Top 10 Reason to Become An Appraiser
1. Dazzle your friends with … (9 comments)
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appraiser: Update on the HVCC and the AMC's push for business - 11/21/08 11:25 AM
I'm annoyed today. I received two conflicting pieces of information on what has been going on with the HVCC. The first came from an appraiser friend in Maryland, who received an email from their state board representative who was at a national meeting of the appraisal foundation. That email said:
"I know you are all concerned about the HVCC that resulted from the FannieMae/FreddieMac agreement with the State of New York.
From what I could learn at The Appraisal Foundation's Board of Trustees meeting, it is highly unlikely that the HVCC will go into effect on January 1 of next … (19 comments)
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appraiser: Fannie Mae, are you sure you are out there? - 10/05/08 11:21 PM
I recently had a question come up regarding an appraisal assignment that I was unsure about, and in trying to find the correct answer I got some insight into why Fannie Mae has some of the problems it does.
I got a request from a client to appraise a house on 5 acres of land. However, the actual legal parcel is about 35 acres. Now, I do these on a somewhat regular basis, and I simply make them "subject to" receiving a copy of the new survey showing the 5 acres they have subdivided, and also note in the report that the … (3 comments)
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appraiser: Home value websites - 04/23/08 11:24 PM
I often get told by homeowners, "I looked at Zillow (or Housevalues.com, or similar) and it said my house is worth (x)". While I will admit that the values have improved over the past few years (I've been monitoring my own house since Zillow came online), they are still typically only good to maybe 10 or 15% of the true value that an in-person appraisal would provide (IMO). So when you are trying to sell your $500,000 house and Zillow says it's worth $425,000 to $450,000, are you willing to take that $50,000+ loss because you didn't want to shell out $400 … (7 comments)
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Mike Lay
Austin,
TX
More about me…
Appraisal House Texas
Office Phone: (800) 497-2660
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