James S Graner Blog, Appraiser in Missouri

More Home Sellers Would Like A Home Seller's Appraisal Report, Today!

James Graner (Residential Services: http://appraisalmo.com) — Fri, 07 Aug 2009 08:22:59 -0500

In the past years home sellers appraisal reports were not commonplace. Average sellers would rarely want a professional opinion of value before listing their home. CMA's from a REALTOR were helpful in determining a list price, however sellers could be flexible on their pricing due to the rising real estate prices at the time. The typical seller was very happy to take appreciation from their home. Sale prices for much higher than than two or three years previously expected. Just a couple of years ago, it was hard to find anybody unhappy with their transaction.

As of more recent times we have home sellers who really believe their home is worth more than they are asked to sell for. Home sellers appear much more willing to accept their suggested listing prices, after an independant and well prepared home seller's appraisal report. If the opinion of value is written clearly and the report has good information the homeowner is usually very receptive to the report. The valuation from a third party is helpful to the REALTOR as this often eases market concerns of the seller.

As many REALTORS how dread the appraisal process due to reform with recent mortgage reform. (This is often referred to as HVCC hysteria!) Some are now finding it helpful to have another appraisal in their file. Many now find the home seller's appraisal report to be a good investment. Homeowners, after being referred, are finding the services of an appraiser very helpful.

More Indivisuals Willing to Buy Home Seller's Appraisal!

James Graner (Residential Services: http://appraisalmo.com) — Mon, 03 Aug 2009 21:13:13 -0500

One Online Business Directory That is Tough to Enter, DMOZ

James Graner (Residential Services: http://appraisalmo.com) — Sat, 31 Jan 2009 08:15:51 -0600

Several months ago I began an attempt to increase my business's website search engine rankings, for a Missouri Appraiser and other keywords. This massive project was full of online directories, web blogging, rewriting my website to be more SEO friendly, and studying SEO. Alot of blood, sweat and tears went into this project, however mission is close to being accomplished.

One of the online directories that I was told would be key to any search engine optimization plan was dmoz.org or "Directory Mozilla." This directory is the largest human edited directory in the world, Google, Alexa, AOL and others reconize this directory as a key in their search engine rating systems. Wow, everybody should have their site as part of this directory. Directory listings are free on this site. This directory has numerous catagories, including a Missouri Appraiser.

I entered my information, requesting to be added to dmoz.org, months ago. I re-entered later, and I have not even received an acknowledgement of my application. My site has not been included and I have no idea why. I did some research on dmoz.org and found many other websites have been waiting years to be entered. This seems crazy to me, just enter my site and be done. I would be happy to pay a small fee, if that would help. The directory is not much good without the most recent websites being included.

Borrowers Feel Hurt by New FHA Appraisal Requirements!

James Graner (Residential Services: http://appraisalmo.com) — Fri, 30 Jan 2009 21:34:26 -0600

After talking to several mortgage professionals within the past few weeks, I am convinced that the result of the new appraisal requirements for cash out refinance transactions means less overall appraisal orders.

How can a new underwriting guideline that requires more appraisals cause less appraisal orders? Well now mortgage originators must either consider the cost of paying for two appraisals when accepting a high loan to value ratio cash out mortgage application or bill the borrower for two appraisal reports. That is expensive and a gamble with alot of money in fees. FHA appraisal fees are typically higher than the conventional appraisals.

Some originators have stated two appraisal reports prices many borrowers right out of the market and this money might not pay off is the appraisal report has a lower than expected opinion of value or the home does not meet FHA property standards. The FHA appraisal is a gamble that might not pay off with the sought mortgage loan.

James S. Graner
Real Estate Appraiser
ph (636)916-4325
cell (314)277-3336
fax (636)949-2637
Website http://appraisalmo.com
Blog http://jimgraner.activerain.com

Many Mortgage Lenders are Seeking Appraiser Coordinators!

James Graner (Residential Services: http://appraisalmo.com) — Wed, 28 Jan 2009 23:50:23 -0600

We have another sign that the current plan for reorginization of the appraisal process is coming our way is the help wanted ads. I noticed numerous jobs available for an "Appraiser Coordinator." These jobs are being offered by major lending institutions.

Many Mortgage Bankers and Banks are seeking a clerical person to handle vendor relations with appraisers. Some of the help wanted ads request a person mortgage experience, some with customer service experience and others none at all. I have not found one that seeks a Certified or Licensed appraiser to handle relations with his/her peers. I have not found one ad that requests the applicant to list real estate experience. I would love to see a large local mortgage banker seek an Appraiser in Missouri for this position.

I fear many of these lending institutions will have what many appraisers know as "Phone Monkeys." People that follow up on appraisal orders and have no idea what we do and cannot relate or understand when there is a problem being explained. Many Mortgage Professionals do not really understand our explanations, as appraisers, either. While the current system does not have an appraiser's contacts with him/her on the field, there is a relationship and trust. In most cases, the Mortgage Professional selected an appraiser that they trust and work with, not just a name off a list.

The HVCC appears to be a reality, several changes will need to happen in how it is executed over the next few years.

James S. Graner
Real Estate Appraiser
ph (636)916-4325
cell (314)277-3336
fax (636)949-2637
Website http://appraisalmo.com
Blog http://jimgraner.activerain.com

Borrower Feels Injured By a Subprime Mortgage! Naive or Careless!

James Graner (Residential Services: http://appraisalmo.com) — Wed, 28 Jan 2009 22:55:01 -0600

One evening last week, I answered my cell phone and heard from a desperate lady. I, as an appraiser in Missouri, was asked for advise on this woman's overall mortgage condition. She found my website and ActiveRain Profile on Google. Her house was on the other end of the state, well outside my St Louis Metro Area, however I listened to her problem.

A licensed/certified appraiser in Missouri valued her home at $96,000 two years ago. She took out a cash out refinance mortgage on an adjustable rate mortgage. Her mortgage person told her the rate would adjust in two years, however she could improve her credit score over two years and refinance into a better mortgage. Well two years are up and she applied for a new mortgage, two Western Missouri appraisers have appraised her home for less than the current mortgage amount, $77,000. She cannot refinance her home, and her current interest rate is 11%. She mentioned the cashout mortgage was to consolidate credit card balances.

Did the real estate market fall in her town? Maybe SO! Did an her local Missouri Appraiser overvalue her home, two years ago? I do not know! Did her Mortgage Professional act outside of a fidicuary responsibility in burying her? Probably not. I heard many accusations about three appraisers, mortgage originators and the overall banking system. I did not hear her say that if she had not used her house as an ATM, she would have been in a better financial situation. I have not investigated her files, however she did tell me that SHE WAS THE ONE that spent her cashout funds. She wanted a remodeled kitchen and a finished basement.

I am here story after story of people that spend more money than they earn and wonder why they have a tough time, some even blame others. That problem is when you spend borrowed money, from people who make the rules, you always have a potential problem. Most people need to borrow money for their home purchase and car purchases, nothing wrong with living the American Dream. I do not understand those that spend money month after month without a repayment plan, then mortgage their family's security (house) to pay for a lifestyle they cannot afford. I see few of these people state their personal responsibility in their own finances.

Appraiser Cannot Bend on FHA Property Guidelines!

James Graner (Residential Services: http://appraisalmo.com) — Wed, 28 Jan 2009 22:17:06 -0600

This Missouri appraiser feels tired and worn down from real estate agents, loan production staff and recently underwriters telling him to look the other way on FHA concerns. HUD wrote a code for various things to be checked, I am not a building inspector, and I certainly do not wish to perform home inspections. Just a few things have to be in order. In previous blogs, I have summarized the FHA observation. Any appraiser in Missouri has long understood that no house is a perfect structure with all million parts in perfect order.

I as a professional that performed a significant number of appraisal reports for B & C mortgage loans for many years know and greatly understand a little missing paint is not usually a significant life and death issue. I understand that most people can easily climb three or four big foot steps, I get it when people shove thirty years worth of family keepsakes in the closet that has the only attic entry. Nobody understands better than me that no kids will ever play with an old single man's garage door. Unfortunately, I did not make the rules, and no FHA appraiser has the authority to overide any of the HUD's guidelines.

The guidelines are not overly strict. Some of the most common concerns are mentioned in FHA Property Guidelines Are Not Understood by Many Mortgage Originators! Please understand that many of the REO properties (foreclosed homes,) short sale homes and other severly distressed sales might not meet the FHA property standards when you view them. Conventional financing is a little less strict minimum property standands and perhaps agreements can be made for a buyer to perform some repair/modifications on a home before sale so financing can be completed.

This is a new market with many things that were not common just a couple of years ago. FHA financing was only a small portion of overall mortgages, REO sales were a smaller portion of the overall home stock, Conventional mortgages were more available than before. Just because mortgage financing worked in a certain for somebody else or even you in the past, does not mean today's climate will work the same.

Blogging on ActiveRain Real Estate Network has Helped My Search Engine Rankings

James Graner (Residential Services: http://appraisalmo.com) — Sat, 03 Jan 2009 14:03:34 -0600

I am amazed at how much help ActiveRain has been to my Website visablity. Appraisalmo.com used to hardly show up anywhere on any of the sites. There has been a wonderful increase in the ratings of this website, since joining ActiveRain.

I Blogged about some things revelant to my practice, I built up my ActiveRain point total to be the top professional in my city. I am way behind the top leader in my county and state, however I am the featured appraiser in my state. These things alone appear to be helpful.

I read on ActiveRain about SEO optimization. I still have alot of work to do on the site, as I appear to have made several mistakes. Several revisions will be made gradually to the website following advice in the SEO groups.

Advice I have taken is submitting my website to numerous listing directories. I just did that, I will watch rankings as the web crawlers have a chance to read these. Other things include not copy and pasting other page information, I did that and I am slowly revising with careful words meaning the same thing. Page titles to the the pages and keyword information has helped.

I do this slowly as I do not want to make a change to hurt myself drastically and not be able to figure out which change caused the problem. I am no pro at this, however I am making progress.

FHA To Now Requires Second Appraisals for Many Cash Out Refinances!

James Graner (Residential Services: http://appraisalmo.com) — Fri, 02 Jan 2009 22:00:14 -0600

THE 2055 FHA APPRAISAL REPORT (FOR SECOND APPRAISAL REPORTS!)

The FHA Appraisal is now required to be performed by two seperate appraisers on many cashout FHA refinances. While this could be a hardship to some borrowers as payment for such FHA appraisal reports can be expensive. Loans insured by FHA mortgage insurance that are cash out refinances now require two FHA seperate appraisals. A second appraisal may be performed on am 2055 appraisal form (FHA Driveby Appraisal)

This appears to be another step in HUD trying to keep the FHA mortgage process from falling into trouble. Overall this could be less risk for the FHA mortgage insurance program and cost control for the mortgage insurance program.

This is a portion of MORTGAGEE LETTER 2008-40

•· Second Appraisal Requirements/Loan-to-Value Limits for Cash-Out Refinances: The instructions in ML 2008-09 regarding when a second appraisal is needed, and the requirements for that second appraisal, as well as the 85 percent limitation on cash-out refinances when the loan balance will exceed $417,000, remain in effect.

In addition, FHA will now require a second appraisal for all cash-out refinances where the LTV, exclusive of the UFMIP, will exceed 85 percent of the appraiser's estimate of value. This second appraisal requirement applies regardless of the loan amount or the location of the property, i.e., whether the property is in a "declining area" or is not. This second appraisal requirement for cash-out refinances is effective for all case number assignments on or after January 1, 2009 and is to adhere to the instructions set forth in ML 2008-09. Please also note that cash-out refinances with LTVs exceeding 85 percent will be over-selected for post-endorsement technical reviews (PETR) to assure the quality of the underwriting.

This is a portion Mortgage Letter 2008-09 What form must be used for the second appraisal? FHA Drive by Appraisal Report If the property is a one-unit detached house, the second appraisal may be an exterior-only appraisal using form Fannie Mae/Freddie Mac 2055; any repair requirements noted in the original interior-exterior appraisal report must be adhered to if the second appraisal is an exterior-only appraisal. Condominium units including detached site-condominiums manufactured housing; and 2-4 unit properties are not eligible for exterior-only second appraisals and must be completed on the appropriate appraisal form. When must the mortgage amount be reduced? If the second appraisal has an estimated value more than 5 percent lower than the original appraisal, the maximum mortgage must be predicated upon the lower of the two appraised values.

What Happened to Our Friends in Real Estate!

James Graner (Residential Services: http://appraisalmo.com) — Sun, 21 Dec 2008 09:33:16 -0600

I miss many of my friends who left real estate related professions and now must go out into the real world. The real estate world has definetely shrunk and there are less of us. I can remember regularly dealing with people that I like and had similar interests and goals to me. Now their days are consumed with working out into the new careers.

I have noticed real estate agents working at Walmart. Not any that I was acquainted with, however I did reconize a couple. These people surely had friends and contacts in the real estate world that worked with them. I hear other stories of people working in bars today that were real estate professionals last year.

I used work for a Mortgage Orginator that owned her own mortgage company. I used to receive at least one appraisal order from her per week. Today, she works full time in a nursing home and occasionally she is still able to work a real estate mortgage. It's great to hear from her, when I do. Other mortgage companies have reduced their staff significantly for overhead concerns.

Some of the people that I do still interact with regularly really are not themselves, anymore. The stress of trying to stay alive in this business that got them down and they are changed indivisuals. Most I am still able to enjoy interacting with.

I do not talk to many appraisers regulary, however I hear stories of many looking for work outside the industry. Sometimes I am able to pick up their clients, however many of these mortgage professionals were very comfortable with their past relationships in the business. The work just was not enough to keep them in the business.

I cannot wondering, as I dig my heels into this business, how many of the people were really prepared for this? Was this actually a blessing for some people who were forced to focus on other things in life? How hard should I try to keep contact with some of the people who have vanished for the industry, not to come back? Do they not communicate with their former associates because they are embarrased of the choice to get out of the business.

Can A Home Buyer Use a FHA Appraisal Instead of A Home Inspection?

James Graner (Residential Services: http://appraisalmo.com) — Sat, 20 Dec 2008 21:39:55 -0600

I have wrote in the past about the detail of an FHA observation. The FHA appraisal process requires a detailed observation of mechanical systems, (My personal favorite is the reverse feature on an automatic garage door opener.) attic, crawl spaces, electric fixtures, plumbing fixtures, paint surfaces, wood surfaces, safety concerns, etc.. This observation is not meant to be and is not the same as an inspection of these same systems within the home.

We have a significant difference between the detailed inspection made by a Home Inspector and the observation of a FHA Appraiser. The FHA Appraiser has a purpose of determining an opinion of market value, during the house visit the appraiser must verify the operation of some systems. This is done as HUD requires this as part of the scope of work.

Home Inspections are not required to be performed to fund a FHA insured loan, however a FHA appraisal report is required before a FHA Mortgage is insured by HUD. It is important to understand that the FHA appraiser is working on behalf of the bank or mortgage company, while the Home Inspector usually is working for a home buyer. Realtors are usually much more comfortable when a home buyer chooses to pay the additional money for a Home Inspection, this increases the likelyness that the buyer will be happy with their housing choice or bail out of a contract on a home that might cause litigation and a poor opinion of the REALTOR involved in the transaction. Sometimes the buyer feels this to be a hardship and unnecessary expense, so no Home Inspection is done.

While a Home Inspector has a duty of giving some degree of confidence of what an occupant can expect out of the home tomorrow and the next several years. The home has several thousand parts that must operate properly for maximum enjoyment and use of the home. This requires more time and tools than an appraiser would typically utilize.

The FHA Appraiser does look at many things and tries to verify several things while in a home, however my admission from the Department of Housing and Urban Development (HUD,) we appraisers are not performing a home inspection. There are several examples of where a Home Inspection can uncover things that the FHA Appraisal Report will not. I wrote down a few.

The FHA Appraiser will go into a room and turn on a light or other electrical device to observe the system to be functional and do the same in each room, as required by HUD. Just because an electric system turns a light or television on does not mean it is safe and funcioning in a fully acceptable manner. Most Home Inspectors will take an outlet in a room and verify it is properly wired, check for wiring connections, proper height and put a load on a circuit to verify the system safety and that it can operate more than a simple light bulb. In addition the electrical box will be checked in a Home Inspection for proper sized wires, circuits, etc...

The FHA Appraiser will briefly turn on the water, the hot water, flush the toilet in each bathroom. He/she will look for significant leaks, adequate pressure and loose plumbing fixtures. Most Home Inspectors will run water for a significant period of time looking for the slightest leak, and verify numerous things within the system that an average person would not think of. A Home Inspector that is trained by ASHI or another reputable group has extensive knowledge of what to look for in the system that might be a hidden problem. There is a significant difference between a Home Inspection and a FHA Appraisal Report.

The roof is observed from the ground by an FHA Appraiser, while I do carry a zoom camera and binoculars, many appraisers are left to view with the naked eye from the ground. Problem areas can best be observed from a much closer distance. Most Home Inspectors will walk the roof looking for problem areas with the shingles, sheathing, valleys, chimney areas, caps, vent pipes, loose guttering, etc...

In most basements any leaking is not observable on days that it is not raining. The FHA appraisal report will include an observation of the basement floors and walls, site will be inspected for positive drainage along with gutter downspouts and other factors. The Home Inspector will be able to study a multitude of factors and possible problems with a basement that might not be able to be determined on a day without outside moisture.

Many Home Inspectors are also licensed Termite Inspectors. This training and set of tools is a significant advantage over a regular person trying to observe rotted wood and the smallest inspect tunnels. The FHA appraiser will look for rotted wood and earth touching the frame of the home, however the detailed inspection is not part of the FHA appraisal.

I have wrote this to point out significant differences between the two professionals. Both have a significant purpose in a home purchase. The opinion of a professional of the market value of the home is very important, and so is being able to determine the utility and well being of the home over the next few years.

James S. Graner
Real Estate Appraiser
ph (636)916-4325
cell (314)277-3336
fax (636)949-2637
Website http://appraisalmo.com
Blog http://jimgraner.activerain.com

Have You Ever Been Blasted for Writing Your Blog Piece?

James Graner (Residential Services: http://appraisalmo.com) — Thu, 18 Dec 2008 15:13:55 -0600

I wrote a blog earlier this week about FHA appraisals and what a mortgage originator should expect from the FHA appraiser. I thought I was informative and had nothing to upset anybody in this appraisal blog.

I get an email this morning from a home inspector blasting me for writing about ruthless and unpredictable home inspectors. I mentioned this one time as a way many originators view the FHA Appraiser. Attempting to dismiss the myth, I wrote what can be expected on the observation part of the FHA Appraisal Report.

My blog was FHA Property Guidelines Are Not Understood by Many Mortgage Originators!

http://activerain.com/blogsview/837121/FHA-Property-Guidelines-Are-Not-Understood-by-Many-Mortgage-Originators

This poor gentleman believes I was smacking his profession and also apparently believes I was putting an appraisal observation in the same light as a home inspection. Two different scopes of work.

Date:	Thursday, December 18, 2008 6:43 AM
From:	xxxxxx
To:	jimgraner@appraisalmo.com
Subject:	Ruthless and un predictable home inspector
Size:	3 KB

I was reading the article of yours where you were talking about an 
            appraisal inspection versus a ruthless and unpredictable home inspector. I 
            bet when  you buy a home for yourself you find the toughest Home Inspector 
            you can find.

Oh yea the other name we are called is Deal Killers. My Realtors love their deal killer.

Why you may say? Because we keep both of 
            us out of court. If your of the assumption, an appraisal and home 
            inspection are anywhere similar, then go with a Licensed Professional Home 
            Inspector that knows what he or she is talking about and try to learn 
            something.

Oh Yea that cheesy looking website of yours, you can't read the 
            text on the button links. Spend a little money and hire a webmaster.

Name withheld

TREC Professional License xxxx

---------------------------------------------------------------------------------------

Why the hate? I made one statement in the third paragraph that I did not think warranted this reaction.

FHA Property Guidelines Are Not Understood by Many Mortgage Originators!

James Graner (Residential Services: http://appraisalmo.com) — Mon, 15 Dec 2008 11:13:46 -0600

I receive FHA appraisal orders from many different people and many different mortgage companies across the country. I know many times these Mortgage Professionals tell me they telephone interview a perspective borrower about their home and after I leave the home it is obvious they have no idea what questions to ask before ordering the FHA appraisal.

I am sometimes told "The house does not sound to be in the best condition," or a similar line. On many occasions the home is just slightly dated and meets all FHa conditions, the originator worried for no real reason and might have scared their borrower away with his/her concerns about the FHA Appraisal. Other occasions, I come to a home with a statement of slight concern and the roof if leaking, the windows are rotted, peeling interior paint, electrical systems not completely functioning, etc...

Allright, I have identified the problem, now I would like to share a solution. FHA Appraisers used to have to use a checklist supplied by HUD for evaluating whether a home meets FHA property standards. These FHA checklists were included in the FHA appraisal. HUD no longer requires or desires these valuation condition forms (VC sheets.) Now FHA appraisers are held to a standard of reporting the same items of concern within the apraisal report, without using the VC sheets. Well at least the VC sheet made appraisers appear more like the messenger instead of a ruthless and unpredictable home inspector.

Here are some of the items that HUD requires each home to be checked, before providing FHA mortgage insurance on a property.

Any termite infestation is not acceptable to HUD.

Attics and crawl spaces are required to be checked by the appraiser. A "Head & Shoulder" inspection is required for all FHA appraisals. Sometimes attic access is blocked by a closet filled with things. Appraiser has no responsibility for moving personal items and would be at risk by moving and taking responsibility for such items. Stored things get broken when moved or are discovered broken, I have not talked to a FHA appraiser that is willing to move stuff to access a crawl space or an attic entry (closet scuttle.) We can condition the appraisal to have these items cleared and return. We just are not in the moving business.

Roofs must have an estimated two year remaining life. Snow covered roofs require revisit to the home or a roofing inspection. Flat top roofs no longer require an automatic roofing certification. Exterior surfaces cannot be unprotected. Painted surfaces require attention if there is an issue of wear on the home or surface due to maintenance.

Electrical and plumbing systems must be fully operational. Checking a"Representive sample" of electrical systems is part of the observation. Each home must have a hot water source and must be operating at the time of observation. Furnace or certral heating system must be able to be turned on and heard operate by the FHA appraiser. Summer observations still need the system checked. Climates not requiring a heating system do not need furnace check. Southern tip of Florida, Hawaii, etc..

Safety: Window, doors, steps & handrails, reverse feature for automatic garage doors and general safety concerns are part of the FHA appraisal observation. Homes built before 1978 cannot have any cracking, peeling, or otherwise defective interior paint surface.

RURAL CONCERNS: Onsite wells and sanitary septic systems do not necessarily require testing, however underwriters usually ask for these tests. Check with your underwriters if this is a concern. The FHA Appraisal Report must state distance of well from sanitary system and comment of availablity of public sewers. Roads to home must be able to traveled in all weather. (We know flooding, ice and heavy snow are not the fault of the road.)

Outside of the Property: Here are some concerns outside of homeowner's control. Sink Holes, slush pits, improvements (home) within fall distance of towers, excessive hazardous noises (includes street traffic & airport travel paths,) Soil contamination is a concern from environmental concerns.

In general the appraiser must look for any safety of occupants, structural condition, or soundness concern of the improvements of the home. The FHA Appraisers know this as HUD's three S's. Please understand there are more things in the FHA protocol that I did not mention here. I tried to gather the most frequent concerns that I know of.

James S. Graner
Real Estate Appraiser
ph (636)916-4325
cell (314)277-3336
fax (636)949-2637
Website http://appraisalmo.com

The Year is Winding Down to An End!

James Graner (Residential Services: http://appraisalmo.com) — Thu, 11 Dec 2008 22:34:01 -0600

Allright,

This has not been a wonderful year for Real Estate, not by a long shot! We can all mope and be depressed about it or we can go after marketshare. Many of our competitors are not around anymore, they have moved out of Real Estate and real estate related businesses. We can mourn their departure or pick up on their contacts and share of the market.

I, as a Real Estate Appraiser, have seen many of my competition go by the wayside. Even a short period out of the business spells disaster for those professionals. I do not perform the number of appraisals that I have in the past several years, however I have gained market share. I have picked up new clients that trust me to perform their appraisal assignments. Believe me! those appriasers that lost their clients will be thought of (by those same clients) as whatever they are doing to make ends meet for a long time.

I look forward to long term relations with my new mortgage clients and believe I will have a foot in their doors for many years to come, even in the good times while others want back in. Appraisers in Missouri seem to be falling by the month.

I do not write this to dance on the hard times of others, I write this to those that should remember the investment they made to get contacts and clients. Many should think long and hard before laying this investment aside. This message applies to Agents, Appraisers, Mortgage Professionals, and many others who struggle to decide to their future. This will get better.

James S. Graner
Real Estate Appraiser
ph (636)916-4325
cell (314)277-3336
fax (636)949-2637
Website http://appraisalmo.com
Blog http://activerain.com/jimgraner

The Year is Winding Down to An End!

James Graner (Residential Services: http://appraisalmo.com) — Thu, 11 Dec 2008 22:29:12 -0600

Allright,

Should Fannie Mae & Freddie Mac have more money invested by the Federal Reserve?

James Graner (Residential Services: http://appraisalmo.com) — Tue, 02 Dec 2008 14:40:22 -0600

At some point we need to understand what is proper Real Estate lending practice and what is not.

Ok Fannie Mae has asked for more money to make more Real Estate Loans. Great, on one condition! I have seen angry lawmakers scold these officials, however I have not seen a permanent solution to the beginning of the problem. I have seen a temporary change in the guard, however I have not seen permanent laws and regulations to keep another disaster from coming down later.

I am all for keeping these institutions. I think they are vital to our economic stablity. The only thing I am saying against this is never should business the old way be tolerated, ever again. It appears we used the real estate bubble to hide more severe economic problems. These problems could have been dealt with in 2002, 2003, 2004 or now on top of the real estate bubble breaking and higher oil and energy prices.

I hope Washington has learned from this mistake.

We Keep Trying to Stay Alive, One Day the Sun Will Shine.

James Graner (Residential Services: http://appraisalmo.com) — Tue, 02 Dec 2008 14:21:23 -0600

This market has resulted in many Real Estate Professionals in Missouri leaving. Not just Salespeople, there are mortgage professionals, Appraisers, Surveryors, Abstractors and many others that have left the business to never come back. This is sad to see some of our friends that we made over the years leave us, however it is a great oppertunity to capture market share.

Each of these professionals had prior customers, contacts and friends that can no longer call on them. For those that can make the investment for future business, wow! Unfortunately, I am in a position of survival and digging my heels into what is here now and gaining that share. Those that will benefit the most from the next Real Estate upswing will be those who are patiently and methodically spending the time and money on market share and planting seeds for the harvest.

This is an expensive and somewhat risky idea of investing heavily in marketshare when there is not much of a market. The immediate results will not be cost effective, these people are looking at the long term when people come flocking back into real estate and there will not be an over supply of professionals ready to serve. The risk comes from not knowing who will be in the business next month or next year and investing in them anyway, also that the market might be very slow in coming back.

I just wanted to post my thoughts on the environoment for the current Real Estate Professionals.

James S. Graner
Real Estate Appraiser
ph (636)916-4325
cell (314)277-3336
fax (636)949-2637
Website http://appraisalmo.com
Blog http://activerain.com/jimgraner

Everybody Appears Just a Little Nervous These Days!

James Graner (Residential Services: http://appraisalmo.com) — Tue, 01 Jul 2008 14:13:17 -0500

Yesterday I set an appraisal appointment with a listing agent. This was an FHA appraisal assignment of a very cute and well maintained home that was purchased two years prior with FHA financing.

She was very pleasant and accomodated my request for entry into the home. I asked for an appointment that day, however we agreed on me observing the home the next morning. I reviewed the listing on the multiple listing service and selected comparable sales that might be good sales, these were homes that were also in good condition.

Later on that last night I got a phone call from that listing agent. I paraphrase her statement "Would the REO sales and listings in the neighborhood hurt the appraisal value?" Well she was not the client of the report, so I could not talk specifically of this appraisal. I relaxed her with generic talk about good comparable sales in a neighborhood are often the best sales for a good subject property inside the same neighborhood. I went on to say that REO sales often have problems associated with them, unless they have overwhelmed the market, REO are usually sales represent an oppertunity for a different buyer than a neat and clean marketable home.

The listing agent was pleasant in her questions and I did not mind the phone call. I understand that this type of phone call was not common last year, however I understand this kind of phone call is just part of the current market conditions and real estate depression that we currently have.

Is Working All The time Making You Grumpy?

James Graner (Residential Services: http://appraisalmo.com) — Sun, 29 Jun 2008 13:55:58 -0500

I see many Mortgage and Real Estate Professionals always "Self marketing" and looking for their next deal with their social affairs. Most notably on the children's sports events. My understanding is that some larger churches have such professionals as well.

While these professions require such a work ethic, does it make people grumpy? I often wonder when I talk with an agent that is rude or short with me. Did they do anything to relax? Do they have people that they do not talk business with, just personal events, sports or family? Does their family feel loved by them?

Some people are that way whether they work all the time or not. I do not have statistics, however I think with many people there is a relation between the two.

James S. Graner
Real Estate Appraiser
ph (636)916-4325
cell (314)277-3336
fax (636)949-2637
Website http://appraisalmo.com
Blog http://activerain.com/jimgraner

Missouri Flooding!

James Graner (Residential Services: http://appraisalmo.com) — Thu, 19 Jun 2008 13:06:13 -0500

I am marvelling at some of my neighboring cities to the north of St Charles, Missouri. I see small communities of Winfield, Elsberry, and Clarksville fighting for their existance, as the Mississippi River approaches them and wants them to fell her rath. I watch local news of massive sandbagging being done in efforts to fight the greatest river of North America. These are people that will not give up.

As the permanent levies along the river break, they just keep putting more and more sandbags between them and the Mississippi River. What a brave and determined bunch of people. Most have flood insurance, however it is not about that for them. These are people who want their towns to remain as they know them and keep their neighbors.

Great job! Some other cities were not able to fight the River, I hope rebuilding goes well for them.

Does Anybody Believe Senator Dodd or Senator Conrad?

James Graner (Residential Services: http://appraisalmo.com) — Mon, 16 Jun 2008 23:03:11 -0500

Both Senators in the last week have agreed that they received preferential treatment in obtaining mortgage loans, from Countrywide Home Loans. The special treatment is obviously becuase they are US Senators and neither seems to have known that such "Favors" were done for them by Countrywide CEO, Angelo Mozilo.

After reading about their stories in paper, they both checked their loan papers and saw they did receive favorable treatment. Neither knew of the favoritism handed to them. I am sorry, I do not believe either of them.

Thank you Senators, as you receive your special deals and have your back stratched by people who do the nation harm, we suffer. You run on a platform of helping the general public, if this is your idea then stop helping us. You voted on laws regarding large mortgage instituions such as Countrywide Home Loans. You voted on a bailout for large mortgage institutions.

SENATORS NO HELP PLEASE! Maybe things will get better if you do not help.

Personal Property in the Sales Contract!

James Graner (Residential Services: http://appraisalmo.com) — Sun, 15 Jun 2008 16:03:32 -0500

Ok you have a purchase deal completed and there a pool table and a some furniture included in the sales contract. You think to yourself "No problem, anything is possible if both parties agree in writing." If there is a mortgage involved, there might be a problem.

The Real Estate Appraiser must analyze the contract to understand the transaction. Real Estate Appraisers are required by FIRREA (Federal lending guidelines) and USPAP (appraiser's ethics) to analyze the contracts and comment on sales concessions and personal property. The personal property must be assigned a value. I know, we are supposed to be Real Estate Appraisers. Used stuff sometimes is not worth much, however it might significantly effect a transaction.

Here is where the problem comes to play. When the appraisal report comes to the Underwriter of the mortgage transaction, the value assigned to the personal property will be deducted from the sales contract in the Underwriter's paper work. As far as the Underwriter is concerned, you have a new sales price for the real estate and the personal property is to be paid for separately.

If you have a $100,000 sales price and $3,000 worth of personal property, your buyer's loan is arranged as having a $97,000 sales price. That might be a problem if the buyer is expecting a low down payment loan. Buyer will make a down payment on the sales price of the real estate and will be asked to bring the personal property payment to complete the transaction.

This is not under the control of the Appraiser, Mortgage Professional or Title Company. This is a matter of mortgage underwriting guidelines.

James S. Graner
Real Estate Appraiser
ph (636)916-4325
cell (314)277-3336
fax (636)949-2637
Website http://appraisalmo.com
Blog http://activerain.com/jimgraner

Missouri House Bill 2188

James Graner (Residential Services: http://appraisalmo.com) — Fri, 13 Jun 2008 20:55:20 -0500

Missour Governor signs House Bill 2188

This "Mortgage Fraud Law" appears have stiff penalties for those who hurt the public. This new law is designed to punish Mortgage Brokers, Real Estate Brokers & salespeople, and Appraisers, who perform things that are already illegal. These things are all well and good, anybody who hurts somebody else by fraud should be punished.

My question is where is the Mortgage Originators licensing legislation? If lawmakers really wanted to protect the public, we would have this profession regulated. Each and every mortgage originator should be tied to a standard of ethics that are designed to protect the public. This standard of ethics should be enforced by its own governing body that understands the laws and their intent. Prosecuting Attourneys are limited on their understanding of certain white collar crimes and often will bargain deals to allow a defendant to continue practice after a conviction.

Where is the leadership? Who is in the way? Real Estate Salespeople and Brokers have been licensed indivisually for decades. Appraisers accepted government regulation in the early 1990's. How about it? Professional mortgage originators should welcome this and this would limit the field of originators and grow public trust.

http://www.house.mo.gov/billtracking/bills081/billpdf/commit/HB2188C.PDF

Check Your Shoes!

James Graner (Residential Services: http://appraisalmo.com) — Thu, 12 Jun 2008 21:30:38 -0500

I got an appraisal order this week, it was in East St Louis, Illinois. I went there this morning, for the field observation.

About half way through the walk thru I started noticing a smell. I began to walk around each room and wonder where it was coming from. The smell stayed with me regardless of where I walked the smell was just as strong. I wondered if I stepped on a doggie land mine outside. I got outside and still smelled it.

I got in the car and closed the doors and drove away, then I noticed a neighbor burning a tree stump. Of course, that was the smell, worried for nothing.

My Worst Appraisal Assignment, Ever!

James Graner (Residential Services: http://appraisalmo.com) — Thu, 12 Jun 2008 21:18:56 -0500

Several years ago, I accepted an appraisal assignment in a area of Northern St Louis City. This is an are of the city with several vacant and deteriorated buildings. When setting up the appointment, I agreed to a 5:00 PM appointment. I had an earlier inspection, that day, and drove by my later appointment to snap exterior pictures. (This was back when we used 35mm film and one hour developing.) I wanted to save the cost of a role of film and developing.

While I drove by the house that I was to inspect later that day, apparently I alarmed a neighbor. I took two pictures of the front of my subject, a picture of the street, and a rear picture from the alley. I dropped off my film to be processed and my wife picked up my film later that day.

When I went back to my subject property, in the same car I drove earlier that day, I drove in front of my subject and noticed parking spaces on the other side of the street. I drove to the end of the street and attempted a U-Turn at the cul-de-sac. I St Louis City Police car drove up, blocked me in, and would not tell me what his problem was.

I was cuffed and stuffed into the back of the police car. I was drove up the sub-station where I was met by men in dress suits. I am thinking some dumb guy, my color, did something bad here. I might look a little like him, this will get cleared up. I am asked several questions of "What are you doing here?" "Who hired you for this assignment?" "How come you were on the street earlier?" Nothing was satisfying this stupid department. I was in trouble, and still did not understand what the problem was. Without being able to identify the problem, it was hard to let these idiots know what they needed to know.

After a few hours of trouble, I was released. I was told that the lady at her house, who could not accept an appointment until 5:00 PM in this wonderful depressed area, was sure that she was being stalked by a pervert, and filed a report earlier in the day. My response was" I would not have came at five if I knew she was home earlier." I refused to come back to this ladies house, the appraisal was re-assigned.