Everyday Problems of an Appraiser - 02/24/10 09:04 AM
With all the posts and conversation about poor appraisers, I just wanted to take a moment to provide some insight to exactly what appraisers deal with from AMCs and underwriters.  Remember, neither the AMC nor the underwriter have any local knowledge and limited, if any, appraisal training.
I recently I completed a very easy assignment within Traverse City when compared to most in Northern Michigan.  My comps were within blocks, adjustments within range, and all items bracketted.  I received the following from the Quality Control of the AMC:
Appraiser to provide at least two comparables that have closed within 90 days. If … (7 comments)

Everyday Problems of an Appraiser - 02/24/10 08:44 AM
With all the posts and conversation about poor appraisers, I just wanted to take a moment to provide some insight to exactly what appraisers deal with from AMCs and underwriters.  Remember, neither the AMC nor the underwriter have any local knowledge and limited, if any, appraisal training.
I recently I completed a very easy assignment within Traverse City when compared to most in Northern Michigan.  My comps were within blocks, adjustments within range, and all items bracketted.  I received the following from the Quality Control of the AMC:
Appraiser to provide at least two comparables that have closed within 90 days. If … (7 comments)

Take Action against Poor Appraisals! - 02/21/10 08:42 PM
Overwhelming sentiment seems to feel that HVCC has resulted in poor appraisals by unknowledgable, distant appraisers.  This is, in fact, a result of the HVCC and its result of many lenders using AMCs which hire appraisers based not on qualifications, but rather on who will accept the lowest fee.  This allows AMCs to employ appraisers distant from properties with no local knowledge who turn out poor reports due to that lack of local knowledge combined with poor appraisal practices.  On 2/15, FHA joined other lending entities in adopting HVCC.  However, FHA added a stipulation that the appraisers must be compensated based … (7 comments)

Fight Poor Appraisal Results! - 02/21/10 08:38 PM
Overwhelming sentiment seems to feel that HVCC has resulted in poor appraisals by unknowledgable, distant appraisers.  This is, in fact, a result of the HVCC and its result of many lenders using AMCs which hire appraisers based not on qualifications, but rather on who will accept the lowest fee.  This allows AMCs to employ appraisers distant from properties with no local knowledge who turn out poor reports due to that lack of local knowledge combined with poor appraisal practices.  On 2/15, FHA joined other lending entities in adopting HVCC.  However, FHA added a stipulation that the appraisers must be compensated based … (5 comments)

DO SOMETHING!!! - Take Action against poor appraisers. - 02/21/10 08:32 PM
Overwhelming sentiment seems to feel that HVCC has resulted in poor appraisals by unknowledgable, distant appraisers.  This is, in fact, a result of the HVCC and its result of many lenders using AMCs which hire appraisers based not on qualifications, but rather on who will accept the lowest fee.  This allows AMCs to employ appraisers distant from properties with no local knowledge who turn out poor reports due to that lack of local knowledge combined with poor appraisal practices.  On 2/15, FHA joined other lending entities in adopting HVCC.  However, FHA added a stipulation that the appraisers must be compensated based … (4 comments)

Olympic Halfpipe in Gaylord - 02/18/10 11:02 PM
With the Olympics in full swing and the 4-year fever which accompanies it, many are tempted to get out in the snow and play.  A true Olympic experience can be found in Gaylord, Michigan where the Otsego Club developed a halfpipe to the exact specs of the halfpipe in Vancouver.  During the month or so prior to the games, many foreign teams as well as some of the American team members actually trained at the Otsego Club and enjoyed both the facilities and the local hospitality.  Gaylord boasts the Otsego Club and Treetops Resort with Boyne Mountain within a half hour … (0 comments)

An End in Sight for Poor Appraisals Due to HVCC? - 02/18/10 08:04 PM
A light may have been turned on at the end of the tunnel for Realtors and Loan Officers who have seen their businesses plummet due to the poor appraisals which have been done by incompetent appraisers since HVCC was adopted.  Today, Ala Mode, an appraisal software company, released a publication called Appraisal Fee Reference.  This lists the average appraisal fees throughout the country by county (or Parish).  Most may say "So what?".  However, it opens the door to submarine the AMCs who are largely responsible for sending incompetent appraisers into unfamiliar areas based upon their acceptance of below standard fees.  The … (2 comments)

An End in Sight for Poor Appraisals Due to HVCC? - 02/18/10 07:14 PM
A light may have been turned on at the end of the tunnel for Realtors and Loan Officers who have seen their businesses plummet due to the poor appraisals which have been done by incompetent appraisers since HVCC was adopted.  Today, Ala Mode, an appraisal software company, released a publication called Appraisal Fee Reference.  This lists the average appraisal fees throughout the country by county (or Parish).  Most may say "So what?".  However, it opens the door to submarine the AMCs who are largely responsible for sending incompetent appraisers into unfamiliar areas based upon their acceptance of below standard fees.  The … (8 comments)

Appraisal Advocacy - 02/13/10 10:09 PM
USPAP (Uniform Standards of Professional Appraisal Practice) annually issues a revised edition which updates and clarifies acceptable appraisal practices.  This document sets the minimum guidelines to which all states have enacted complying legislation.  Recent years have had specific language addressing the issue of appraisal advocacy.  Short and sweet - no appraiser may advocate the position of a client.  Translated, it should signal a major change in strategy for divorce settlements.  The longstanding practice has one party seeking a "high" appraisal while the other seeks a "low" appraisal with both argued out in court.  Viewing the recent changes, it would now be … (2 comments)

What does a California underwriter know about Michigan? - 02/13/10 08:44 PM
Just got a rather typical idiotic request from an underwriter which will appear commonplace to appraisers and shed some light on the difficulties of this profession for others.  I valued a lakefront property for a refi on a popular, highly valued Northern Michigan lake.  The site had 2 parcels - 2 lots on the lake and 2 lots along the road.  Waterfront sites are commonly valued according to front feet in Michigan.  The property was valued based upon all 4 lots which were contained in 2 separate parcels.  The underwriter has requested that the site be stated in terms of acreage, … (4 comments)

SimpleTaxAppeal.com - 02/12/10 02:24 PM
SimpleTaxAppeal.com is a new website which assists property owners in Michigan to evaluate their present taxes and appeal those taxes.  The site guides the taxpayer through the system and also allows real estate professionals access to market services needed by the consumer to appeal their taxes.  It could serve as both a marketing tool and a reference to provide property owners who may readily qualify for a tax appeal.
… (2 comments)

FHA and HVCC Alert!!! - 02/12/10 02:11 PM
As of February 15th, all FHA appraisal requests will have to conform to HVCC.  This means a heavy reliance on AMCs for appraisal services which have been ordered through good, local appraisers.  Expect a similar result as conventional markets have seen since HVCC whereas AMCs will use inexperienced and locally incompetent appraisers willing to work for tablescraps.  The appraisal problems caused by HVCC will now spread into the FHA loans.
… (3 comments)

No Comps!!!! - 02/10/10 03:19 PM
I was trained in the wisdom that there are always comparables, perhaps not perfect or as similar as you (or the underwriter) would like, but there are still always comps.  After more than 25 years of appraising, I recently completed my first assignment where there were no comparable closed sales.
The property was a REO vacant canal-front site on a small lake in northeast Michigan.  As a REO property, the prospective listing Realtor had already completed a BPO.  Unfortunately, BPOs are not evaluated to the same standards that appraisals are.  Within a 5 county area, there are few lakes which have canal … (11 comments)

Inexperienced Appraisers - 02/10/10 02:39 PM
During the overwhelming sentiment against non-local appraisers, I have consistently made the point that the problem is not use of non-local appraisers, but rather incompetent appraisers who lack local knowledge which violates the Competency Requirement of USPAP.  However, a recent comment to one of my blogs alerted me to another contributing factor - inexperienced appraisers. 
Before HVCC, appraisers built client base through experience and service to local and national lenders.  Many lenders required several years of experience before consideration for appraisal work.  Since the activation of HVCC, AMCs have taken over the appraisal process and eliminated the natural and developed professional … (8 comments)

How to Assist the Appraiser - 02/08/10 08:45 PM
With the numerous blogs and unlimited comments regarding poor appraisals by distant appraisers, I would like to share a small sampling of things you, as a Realtor, can do to give yourself an edge.
1) Make property access as convenient as possible.  The words "Vacant Lockbox" are akin to manna from heaven to an appraiser.  Often, between the original contact for the appointment and the actual inspection date, several more orders may come in, some of which must have a set time.  The flexibility to shuffle inspections to maximize the day is appreciated.  If your office is across town or some … (6 comments)

Accurate and Consistent MLS Listings - 02/08/10 11:46 AM
Over the 25+ years I've been appraising, one of the problem areas in formulating values is interpreting MLS data.  I realize the intent of an MLS listing is to attract buyers, thereby it behoves the writer to embellish the property to the greatest extent short of dishonesty.  And recognizing that as the primary intent of MLS listings, I have learned to interpret the data.  However, there are areas where data is entered which leads to confusion and inaccuracies.  A prime example I find is listing all rooms and baths including those in finished basements.  Likewise, a property may include the area of … (0 comments)

The Appraiser and the Real Estate Agent - 02/08/10 06:46 AM
The past 9 months since the enactment of the HVCC have been a period of great turmoil for appraisers and real estate agents alike.  As generally is the case, the government fix for a problem has not only left it unfixed, but created a landslide of new problems.  Appraisers who had built up longstanding relationships with lenders through good, competent service had these relationships instantly dissolved.  AMC's took over the general appraisal process increasing the fees to the consumer while lowering the quality of the appraisals by using low paid and often incompetent appraisers, many times from quite a distance from the … (13 comments)

Real Estate Board Merger - 02/05/10 08:31 AM
At the beginning of 2010, the Alpena Board of Realtors (AAPI - Alpena, Alcona, Presque Isle) merged into the Water Wonderland Board located in Gaylord.  This consolidates much of the real estate activity for northern to northeast Michigan primarily including the following counties: Otsego, Crawford, Cheboygan, Presque Isle, Montmorency, Alpena, and Alcona with fringe coverage to select Realtors in Oscoda, Roscommon, Kalkaska, Antrim, and Charlevoix Counties - all except Oscoda County having their own active Boards.  Congrats to the merger and welcome to the old Alpena Board members.
… (4 comments)

Review Appraising - Contact Original Appraiser or Not - 02/05/10 08:13 AM
Several times over my 25+ years in this business, I have contacted the original appraiser to get their insight, prospective, and direction if I found questionable issues in the report.  I absolutely believe that the identity of the original appraiser should be disclosed.  It is the responsibility of the review appraiser not to be biased so this disclosure should not be an issue.  There have been occasions where the call brought light to a different approach or insight to the property of which I was not aware from exterior observation.  While I'm sure opinions will differ on this, it's always been … (2 comments)

Short sale, foreclosure, strategic default - unforeseen consequences - 02/04/10 06:37 PM
Read an internet article that banks are now more agressively going after former owners on both defaults and short sales. Seems there are two parts to a short sale which often are not completed. First is getting the lender to release the property for sale at below loan value. However, many don't complete the second part of having the lender forgive the difficiency created, which can be pursued at a later date by the lender. It appears that lenders are now tracking short sale and default borrowers who may have the ability to pay or assets to levy. This greatly exposes … (7 comments)

The Perfect AMC - 02/02/10 03:41 PM
With AMC's cropping up all over the place over the past couple years, you'd think someone would've gotten it right by now.  It's really quite simple and, with today's technology, easy to do.  First, hire good local appraisers at their local fees.  Add 10% for processing fee and the appraisal will still be priced well below what AMC's are charging the borrower.  By hiring good local appraisers, no review is necessary because, dah, they're good local appraisers.  They know the market better than the "quality control personnel" of the AMC because, by hiring good local appraisers, there is no longer a … (1 comments)

 
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Richard Glesser

Gaylord, MI

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North Country Appraisal Services

Address: P.O. Box 1271, Gaylord, MI, 49734

Office Phone: (800) 806-1075 x 101

Cell Phone: (989) 858-0528

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