Sara's Blog

Toxic Drywall is turning into toxic assets

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Thu, 29 Oct 2009 11:50:52 -0500

I suppose I'll be adding a new addendum about possible drywall issues for homes built or remodeled between 2004 and 2006. The sulphate gasses from this toxic drywall can eat into framing, electric and even plumbing. Lovely.

Click photo for audio file or copy and paste: http://www.npr.org/templates/player/mediaPlayer.html?action=1&t=1&islist=false&id=114242303&m=114253842

I see that I am far from the first Rainmaker to blog post on this. In fact, others have far more information and so I'm adding their links here:

http://activerain.com/blogsview/1227241/chinese-drywall-in-florida-and-louisiana-renovation-loans-may-help-major-problem

http://activerain.com/blogsview/1288902/do-you-have-chinese-drywall-in-your-home-

http://activerain.com/blogsview/1287695/chinese-drywall-is-causing-problems-and-insurance-is-being-pulled-on-those-homes-

Crisis of Credit YouTube Video

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Sat, 24 Oct 2009 12:26:22 -0500

Click the picture below (or copy and paste the bottom link) to watch this informative video that shows a step by step of the Credit Crisis created by Jonathan Jarvis. Note how the speaker's voice gets slightly more cynical towards the end.

<click picture to view video>

Source: http://www.youtube.com/watch?v=kzQOT5atka8&feature=player_embedded

This American Life - Return To The Giant Pool of Money pod cast

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Wed, 30 Sep 2009 19:16:52 -0500

I highly recommend all of the 'This American Life' pod casts (like one of the previous shows on 'Frenemies'), but this one is particularly relevant to the industry and current issues within.

(Click photo)

You can also find the first pod cast 'The Giant Pool of Money' to hear the original story although the follow-up covers much of what was in the original.

Sometimes junkmail makes me smile... but all should be aware... $8k tax credit

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Tue, 15 Sep 2009 01:34:29 -0500

I get my share of junkmail, as I'm sure many of you do. However, being in the real estate business, I try to be sure that the masses of real estate junk mail I get isn't legitimate business mail.

Today I ran across this [partial email] that made my day:

"I'm sure you have all seen on the NEWS over this past weekend all the advetising about the First Time Home Buyer's $8000 TAX CREDIT from the government if you purchase (MUST BE CLOSED) a home by November 30, 2009. It takes about 5 years to close your loan so we need to act fast. You still have time to take advantage of this GIFT! Interest rates are still terrific. "

I'm not sure if the email meant to say 'five days' or 'five weeks'... (assuming they really weren't boasting that this company could close a loan in 'five years') ....

What I do know is that I've been doing 'update' and 'recertification' forms for appraisals that I original filed about five months back to complete people's loans ... meaning that five months to go from 'pending sale' to 'sold' is somewhat realistic... sadly.

So ... buyer beware... you're $8,000 First Time Tax Credit might time might already be up...

Burning Down the Block on 9/11

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Fri, 11 Sep 2009 14:39:35 -0500

It's September Eleventh. I started out my morning a bit melancholy; reading news stories saluting those who had fallen eight years ago. Had it really been that long? Strange sensations of feeling connected yet disconnected from that day and the path in which it has detoured all of our lives.

It wasn't until the date had really sunken in that I realized I wanted to and could properly honor the emergency teams in the presence of working firemen. Today was the last day of the controlled burn that was happening down the street from my home.

For about a year now I had been bemoaning this project that would obliterate an entire city block. The owner of the land had determined that it was a lucrative decision to annihilate this block of bungalows and replace them with the increasingly popular live/work condos that are starting to pop up in the area.

I've been told that I have a problem with change. This was certainly no exception. Although the bungalows had all seen better days, I felt for them. They had histories, they had hearts... even boarded up for months they looked a bit proud in their defeated states. My final hope for them was that at the very least their turn of the century fixtures were removed and donated so there would be some memento to send into the future.

I went down to watch the fires smolder through a couple of the houses. The fire crews seemed a bit somber. I knew the significance behind today's date was etched into each one of their thoughts as they safely practiced their profession. In a twist of the moment, I realized that the sacrifice of this block was not just sad now, but so much more poignant because of the date.

This was reminder that structures will come and go, but humanity, civility and the will to survive lives on.

Today, watching those crews, effected me more than the past seven years of nine elevens. Thank you to all of the past and present members of society who have decided to take their lives into their own hands in hopes of saving us all.

Party Sewer Line issues in Portland Oregon

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Sun, 26 Jul 2009 12:39:38 -0500

Recently we were approached by the city regarding our sewer hook-up. It is located on a ‘party sewer line' where it connects into our neighbor's sewer line before entering to the main sewer at the street. It used to connect to the house on the other side of ours as well before those owners ran a new line in 2007 (which is when we first learned of the party sewer line).

The issue was 'caught' (although they have known about it for years) by the city when our other neighbors with the existing party connection had a sewer scope inspection due to the sale of their home.

The city is now saying that because they are the 'host' and we are the 'guest' in the party line hook-up (which doesn't make since as we are the middle house and it would be more likely if all the 'poop' (most literally) ran to a middle source before going to the sewer main in the street).

According to the city, we have three options to complete before January 2010:

1) fix the sewer line at 100% our cost... including a new connection into the city main. That alone will cost us $3,800 (mind you the neighbors don't have to shell out a dime as they are the 'host') .
2) Provide a sewer video scope that proves that there is no environmental hazards (we know that it is unlikely that a 65 year old sewer line is free of issue, so we'd simply be paying $100 more than the $8,500+ bill they are asking of us) or
3) get the neighbors to allow an 'easement' . First of course, I would require that the city can prove that the sewer line is in fact encroaching onto their property, rather than their line adjoining ours before going out to the street.

Short of bending over and paying for all costs, does anyone have any legal words of advice or personal experience in the matter? Understandably, our neighbor in the midst of selling her house has been avoiding my queries about the situation (who can blame her? She just wants to sell the house, not be burdened with updated an existing deed). I'm leaning towards option #3 for the ‘cleanest' possible solution to this situation. It is my understanding that encroachments (or would that be a 'prescriptive easement'?)such as these become easements over a certain period of time even if the encroachment is undetectable (and thus far unproven).

Here is one of the links that the city provided in the letter. In this link, the city immediately admits that they do not have accurate records of the city sewer lines.

Sadly, this is a situation that the city or our Realtor could not have warned us about prior to us purchasing the home in 1997 as their ‘Sewer Program' did not even take effect until 2007.

Any information on the matter would be most appreciated.

'Mr Ashcroft' gets a bit of Bloomberg Press

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Wed, 24 Jun 2009 21:03:52 -0500

My boss, Brandon ('Mr. Ashcroft' being his alias over at 'Ashcroft & Associates'... he also dislikes it when I use an ampersand rather than the word 'and' but I digress) got a bit of press today at Bloomberg.com.

This in turn churned up at least one other AR blog pos t from a frustrated Realtor. If time permits, I'll look for others that aren't members only blogs as I'm sure there are more out there in Rainland.

I knew when I got into the appraisal biz I was set to be a punching bag, but sometimes I grow tired of it. Which angle am I not getting struck from? Realtor?... nope, they got me in the nose today... Underwriter?... no no, they're always down for the sucker punch... Loan Officer?... he's laying low for now, but I sense a sneak attack coming... Management Company? .... ha! They're just laying on the punches in rapid fire... Government? .... I think they just tagged me in the back of the head and pushed me into the Management Company for good measure. Did I just hear the bell?

tbwsdaily.com about the HVCC and urgings to sign the petition

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Wed, 10 Jun 2009 15:32:04 -0500

The following is an albeit biased educational on the HVCC via TBWS Daily.

Click on the attached pictures for Brian Stevens and Frank Garray's video blog about the HVCC.

Click here to sign the HVCC petition.

Thank you Michael Tarabotto for bringing this to my attention.

An open letter of suggestions to our new AMC friends

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Sun, 07 Jun 2009 21:21:56 -0500

No calls for value checks.... Ahhh.... That silence is most welcome. But in return, appraisers have a new litany of issues with our new go-to-guys. I'm not trying to burn bridges here, just sending a note out into the blogosphere which include some friendly ideas. The following are suggestions to any AMC out there that may find these helpful ways to improve their business processes and ours.

Appraisals due within 2 business days (or in one case, 96 hours of accepting the assignment). You wanted quality or quantity? And so why then do I get questions on the appraisal nearly three weeks later? Was this really so urgent that it might get stuck in your own pipeline?

Get the appraisal request information correct before you send it to me. Please don't send me a ‘condition' as if it's my fault that you had the wrong company address on the original request.

Status calls. Please. Just. Stop. I promise, I remember when the appointment was set. I put it on my calendar. I promise, I will keep the inspection date. (What kind of appraisers are you used to dealing with?) I imagine I spend an additional 35 minutes on each file telling five different people that the appointment is still set for 3pm on Tuesday. And for crying out loud, when I give you a status, update the system!

Fees. The lower the fees the worse the companies to work with... trust me. Help me afford my rising phone bill from your constant status calls.

One AMC employee per appraiser file. This means when finding an appraiser for the file and when checking status and dealing with any issues. You're wasting everybody's time by sending all your henchmen out to get me. Seriously, hours have been lost with whatever system you're using. Better yet, let the appraiser choose their favorite AMC employee since they've already spoken with every one of them within the first week of working with your company.

Please note where you're calling. I live on the west coast. When you think it's okay to start calling me from Pennsylvania at 8am, you're really calling me at 5am. And while we're at it, why do you all work on Sundays?

Pre-set appointments. This annoys the customer to be called so many times and the appraiser who has to struggle to make the appointment by 5pm on a Saturday. Half the time I find the borrower can't even make the ‘pre-set' appointment time, anyway.

Promptness of Desk Reviews. I have done reviews from appraisals in January and even November. I feel for these borrowers that are waiting six months to close a loan! I realize this might not be a clog in your pipeline, but it makes me curious.

Please be as diligent about checking your emails, voice mails and web forms for information that your appraisers need.

Here are some of the urgent matters that have taken weeks to sort out:

House that is on the market for re-fi. Who do I contact? No one at the AMC bothers to answer and so I continue on with my inspection.
The house is less than 500 square feet. I know that some lenders will not accept smaller abodes.
Waiting for purchase agreement... and waiting .... And waiting.... Believe me, loan officers had this to me yesterday.
Waiting for correct contact number. It's usually not until I get a status call from an actual person that I can successfully rely the information about the lack of a correct contact number. I'm not sure that they read their web forms.

Have your appraiser's information on hand. I do tire of answering the same AMC pre-qualifying questions about my appraisal license, what areas I cover, what type of appraisals I'm willing to do, etc. I filled out a five-page form when I signed up for you. Where did you put it?

When I tell you that I have all of the qualifications you are looking for and you say that you are sending an appraisal over, please send it over. I would say about 10% of the time after I have verbally accepted your order; I never get the request.

Give your appraisers a heads up. If you know the property is a manufactured home, on acreage, complex, a pre-construction etc. please don't keep that information a secret.

Why am I purchasing additional software to send a different format file for appraisals? OK, this whole AI Ready/ENV format? I'm sure it's for data mining purposes and I have to pay for the lousy upgrade to convert the files. There goes $300.... That's like two appraisal fees these days.

I hope this has helped you as an AMC. I don't mind taking your criticisms and so I assume that you would welcome mine with open arms.

A very ducky banker/loan officer in Spokane

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Wed, 20 May 2009 00:12:06 -0500

It is unclear in this news story whether his title is 'Banker' or 'Loan Officer'... but really, who cares? It's just one of those nice 'breather' stories that reminds us all that life is alright.

The morale of the story ... Take a break to help others every now and again... you never know, it might even turn out to be a 'marketing moment'.

See the story here

HVCC question - Can your broker clients have their own 'approved list'?

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Sat, 25 Apr 2009 13:02:45 -0500

I've been tossing a question around in my head and the clients that I've spoken with about it really don't know the answer.

If your client, a local brokerage, signs up with an AMC, can they submit an 'approved appraiser list' to that AMC so that they are still working with the same group of appraisers they have built a relationship with? It only stands to reason that if lenders and AMCs have approved lists, then the brokerage should have the right to have that much control left, right?

The brokers that I have spoken with are all pretty confused about what is to happen starting May 1st. Most that understand what the HVCC means (believe me, there are still quite a few that are in the dark) are planning on tagging along with whatever AMCs their primary lenders use as not to make waves during the transaction process. So my suggestion to all appraisers that don't want to lose their clients is to sign up with these companies. It doesn't mean that you have to take the work, but it doesn't hurt (and might be a good idea) to be on their roster, regardless. Who know's? We might have some leverage as to fees and conditions if we're on a smaller 'approved list', aye?

First-time home buyer 2009 tax credit

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Fri, 24 Apr 2009 23:33:58 -0500

I hate to open up a can of worms, but are any of you appraisers checking to see if buyers are first time and qualify for the First-time home buyer tax credit on your comparable properties?

Enough Realtors that I have spoken with say that there business has picked up with help from the tax credit, but I have yet to find an agent that has said that any of the houses I am using as comparable properties have qualified.

I dread running across one, because just because it is an '$8,000 credit' doesn't mean the value is $8,000 for each transaction. It all depends on the home buyers tax base, etc.

Anyone?

Foreclosures are effecting our four-legged friends

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Fri, 17 Apr 2009 16:11:53 -0500

The Oregon Humane Society has seen the effects of our economy.

Hugo's family faces foreclosure so the OHS description tells. Sergio Rodriguez's family might be in the same situation. This may also be why Cassie was left on the side of the road with her pups. There also seem to be more dogs like Cooper Farris with medical issues arriving at OHS, likely more victims of the economy.

In fact, OHS has been supporting new proposed legislation that helps abandoned pets in foreclosure situation. "Suzanne Bonamici, D-Beaverton and introduced at the request of the OHS, would for the first time establish a clear process for placing animals abandoned because of foreclosure in loving, caring homes. Mortgagors, for example, would be required to provide minimum care for an abandoned animal and to contact the appropriate agency or animal shelter to take custody of the animal. While many mortgage companies and banks try to do the right thing, current law is unclear when it comes to the issues of animal care and ownership transfer."

There is an upside to the downfall of the economy. With lost jobs, more people have time and energy to volunteer at OHS and other area shelters.

An AMC wants part of my work file

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Thu, 16 Apr 2009 11:58:45 -0500

Hello appraisers -

I have a new AMC that I'm working with (call me a sucker, but the fee split is nearly decent) that is requesting that I send them my MLS information that I had used for the comparable properties and listings in my report. I saw this as a requirement on their appraisal request but it states 'These listings must be on a grid OR you may include the full detailed color MLS data sheet in the PDF report'. I chose to grid the properties (a little more work, but more accurate, right?).

So, I'm trying to think of:

Why they want this information (no good and pure reasons have come to mind) and
Whether this is some sort of violation... an AMC asking for a part of my work file?

I've never run into this before.

This American Life - Scenes from a recession

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Mon, 06 Apr 2009 22:28:31 -0500

This American Life episode focuses on a Chicago Condo that is going through foreclosure.

The foreclosures were due to location, condition of construction (a paid off city inspector?) and of course the current economy.

Listen to episode here.

From Wine Barrels to Rain Barrels

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Sun, 05 Apr 2009 11:59:26 -0500

Rain Barrels: They've has been on my to-do list for about two years now. Realizing that I'm more of a list-writer than a do-er when it comes to manual projects, I enlisted the help of a friend, Maurice to help me check this project off my list.

I started some online research about the basics to creating a rain barrel verses buying a pre-made rain barrel. Even with paying for labor, I figured I could save about $50 by DIY. Every dollar counts right now, aye?

Thanks to the popularity of water conservation and craigslist.org, finding rain barrels around here is pretty easy. A lot of places sell plastic grain containers for about $5 to $20. These are popular for rain barrel conversion, but I was willing to spend a bit more for some wine barrels. We are fortunate enough to have enough wineries in the area to find these for sale locally. Once I started searching for the wine barrels, I realized that I would have to pay quite a bit more for the esthetics of a nice old wine barrel verses a grain container... about $130 more.... But with a few more days of searching on craigslist, a winery that was going out of business was willing to sell them for $50. That would do. My friend went and picked them up. It wasn't until he toted them to our house that I realized how big a 60 gallon wine barrel could be. They barely fit in the back of his stripped out van. He also picked up (or found laying around) the following: a stopper for the bunghole (yes, it is called a bunghole), a spigot, some mesh (replacement window screen), flexible metal and bendable plastic downspout house. I found it a bit of an eye-opener that he could find all this material in our garage with exception to the spigots (... although later I did find one old spigot in there that would have worked).

Maurice built a rain barrel stand out of recycled wood that he had laying around for the back yard rain barrel (gravity is key for getting the water out). This stand has to support about 400 lbs of barrel and water... the sturdy beast he built will certainly suffice. The front yard rain barrel will sit on our concrete porch and so there is no need for a stand there.

We did a water test and found that the barrels had dried out enough that they would leak a bit until the moister allowed the wood to expand. This is good to know and we'll be watching the barrels over the first couple of rains so that we can divert water away from the house properly.

Maurice then cut a hole for the spigot and the top for the downspout, sealed the bunghole. He lined the top hole with the window screen mesh to keep the bugs out and secured the mesh with the flexible metal (he mentioned that an embroidery ring would have done the job as well... sadly I did not have one).

He hoisted the barrels into place (yes, by himself... this I do not recommend) and cut into the existing downspouts. The plastic flex downspout was routed to the top of the wine barrel.

Now we wait for the rain. We will have to ‘waste' at least the first fill of rainwater to ensure that the wine residue does not harm the plants or turn them pink. We may find it necessary to add an overflow hose in the future, too.

Well, that's it... our first attempts at a rain barrel. I'll update notes with trials and errors if any should occur. Now for installing a clothes line.

4/17/2009 Update:

I meant to post this note our first day of rain. The overflow valves should be installed immediately. The first night of mild rain overflowed both 60 lb barrels! We do plan on adding the overflows soon, but for now, we've been releasing the water as necessary.

10/5/2009 Update:

I just responded to a private email to someone inquiring about the rain barrel supplies that are needed. I thought I would paste the information here as well:

A platform of some sort (if you're planning on gravity flow… you can also buy a pump, but they're spendy and not as energy efficient as gravity). Remember this has to hold a barrel and 60 gallons of water, so it's got to be sturdy.

Articulated downspout - Between cut off portion of downspout and your rain barrel (there is a possibility that you can position your rain barrel directly below the downspout so this part is not necessary)

Plumbing drain cap and caulk for wine barrel's bunghole

Mesh - When you cut a hole in the top of the barrel to receive water from the downspout, you want as little debris as possible to enter the rain barrel. Our friend also found an embroidery ring that fit snuggly into the top hole (which he had to cut) where the mesh is placed

Threaded spicket and caulk to release water

Overflow pipe and caulk to divert excess water from the barrel in heavier rains - This is very important as we found out. The barrel will fill in 1/2 a nights rain… and that's from just half of a modestly sized roof. An old piece of galvanized pipe connected to the top of the barrel and draining away from any structures. One of our rain barrels has piping plus some plastic tubing connected to it which can be moved around like a second hose.

If you choose a wine barrel, will see some minor leaking coming from the barrel at first. No worries, the wood will expand again. If the water is in the wine barrel too long (especially in warm weather) your water will smell like fermented wine and fruit flies will gather. It's best to empty it in a timely fashion at first. Also, the first barrel or two might have a hint of pink to the water from the left over wine.

Appraisal Reviews that make you go ‘hmmmm’

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Sun, 29 Mar 2009 16:07:20 -0500

Thursday I received an urgent call from a lender. They needed a rush review appraisal that needed to be completed by the following morning.

It seemed pretty cut and dry, but I was perplexed by the original appraiser's comparable properties, which were up to 3 1/2 miles from the subject property. As I researched the property further, I realized this might be valid as the subject had a river view in an area where river views were hard to come by unless the property was directly on the river.

By noon I had reached the property and I just shook my head as I pulled up. The property did in fact have a river view, but you had to look under the freeway to see it. The property's back yard literally abutted a freeway off ramp. Perhaps I missed this very relevant information in the original appraisal. I traveled the properties that were used as comparable properties in the original report as well as some sales that I had pulled up. I went back to review the appraisal more carefully. Yes, it did mention traffic noise, but did not really encompass the impact of a freeway off ramp in the subject's back yard.

I continued with the review, added the more appropriate comparable properties in the subject's neighborhood adjusted values accordingly and reduced the opinion of value by about a fourth of the original appraisal's report. The appraisal review was submitted to the lender that evening as promised.

The next morning I opened my email to find two ‘cancel' notices for the appraisal review as well as a voice mail reiterating the cancellation. I responded to both emails and the voice mail stating the report had already been submitted. The lender said that the reason for the cancellation was that the appraiser reviewer that was originally asked to complete the report was not responding to their contacts, but apparently he had sent in his own appraisal review the following evening. It did not seem that anyone had actually opened my appraisal review report to see the outcome, but I have my suspicions that perhaps they had and were none too happy with the decrease in value. I wonder what the other review appraiser came up with. I will likely never know the final value that the lender will go with.

Portland's famous 'Made in Oregon' sign and proposed Eminent Domain

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Sun, 29 Mar 2009 13:45:03 -0500

Eminent Domain was implemented in the US to seize individually owned property for public use.... for the betterment of a community.

In Portland, with all of the Interstates, it had to be done for the good of the masses (in other words, the city would not be what it is today without creating said infrastructures). With Interstate 5, it became a water front eye sore and divided North Portland into two parts with many turn of the century houses being destroyed in the process. With Interstate 205, they chose the path of least resistance between a few hills and low-income neighborhoods. Interstate 205 was the reason for the creation of City of Maywood Park, a neighborhood that banned together to dictate where the freeway turned in order to save their neighborhood. (By going from a neighborhood to an established incorporated city, they were able to be a voice against eminent domain...to a point... an interesting story for another time). Eminent domain will likely be repeated soon as traffic increases and talks of another Portland/Vancouver bridge proceed.

I wonder how long the houses butted up to the freeways are going to last once the city wants (er, needs) to widen the interstate or whether Portland Community College will succeed in acquiring several houses for buildings and parking lots to expand their campus (this has been proposed in more than one of their campus locations and so I find it ironic that their motto is ‘We're all about your future'). This, to me is border line abuse to allow a community college to be the reason for eminent domain. Public school, perhaps, tuition fueled college? No.

Some North Portland residents are still reeling over the eminent domain that encroached on their neighborhood and took their houses when hundreds of houses were cleared to make way for Legacy Emanuel Hospital and somewhere along the building process, the hospital ran out of funds and blocks were left vacant to this day.

The City of Portland is now threatening a different kind of eminent domain on a city icon... The ‘Made in Oregon' sign (previously the ‘White Stag' and originally the ‘White Satin' sign). It sits atop the White Stag Building and is a prominent city landmark. Now the University of Oregon has proposed to purchase building (sign and all) and like the building's previous owners, wishes to change the sign to read their logo. Apparently the powers that be at the city have decided that after three name changes, they rather like the current ‘Made in Oregon'logo and wish to keep it that way. Many Portlanders (myself included) agree. But that's no reason to throw an eminent domain tantrum and take over the sign while leaving the building up for grabs. The city sees something shiny, says ‘I want!' and through eminent domain has the legal ability to take it for their own... even if it lives on the top of a private party's building. I find this scary as a citizen. The city has determined that the sign is worth $500,000 and that would be the retribution pay for nabbing it from the present and future building owners (I suppose the electric bill would also go to the city. I hear it costs quite a bit to keep alight).

If this one small act is successful for the City of Portland, it opens new doors... Take the stories of neighborhood tear-downs to build a shopping malls (there are multiple examples of such a case... Google it). Such deeds gives a city a bad name... it reeks of a city that desperately sells out to commerce.

Our unofficial motto is ‘Keep Portland Weird'... Unless we make it so weird that laws such as eminent domain just don't make sense anymore.

4/9/2009 Update: http://www.katu.com/news/local/42685962.html

An agreement has been reached which allows the University to keep rights to the sign and a new design which is not such an glaring advertisement to be created. I guess that's what UofO had to do to keep the sign from being snatched away in an eminent domain case. On a very related topic, the city is allowing the university to doll up a nearby water tower that they own with their logo as part of the agreement.

Hey Realtors... Appraisers LOVE this!

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Tue, 24 Mar 2009 17:44:12 -0500

If you have a private remarks spot on your MLS system and you take a moment to write a note such as this one:

Seriously... if you have a thorough description and pictures in your MLS listing and note any concessions that may have happened at the time of purchase, this quick note can save you oodles of phone calls from Appraisers who wish to use your listing as a comparable property.

~ Thank you

Why not make Home Inspections mandatory?

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Tue, 17 Mar 2009 17:41:09 -0500

We're in the middle of an economic and individual housing meltdown in this country. People are losing their homes, banks are losing their assets. To comfort the government, banks and homeowners, new appraisal regulations are being made left and right. Upgraded appraiser qualifications are being put in to place to keep honest appraisers honest, mandatory review appraisals are ordered, or two appraisals per property are what we are to expect under some loan conditions.

As an appraiser, I have had attic and crawlspace photos have been asked of me... I have even been asked to perform re-inspections for something that was noted by the home inspector.

Appraisers are not home inspectors.

These are some canned statement that I enter into each one of my appraisal reports in hopes that the underwriter and other powers-that-be might finally understand the difference:

"The appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions..... A property appraisal is a document that provides an estimate of a property's market value. Lenders require appraisals on properties prior to loan approval to ensure that the mortgage loan amount is not more than the value of the property. Appraisals are generally for clients such as lenders; home inspections are for home owners and buyers. "

When I reread these statements, however I see a flaw. Are home inspectors really there to protect just the home owners and buyers or are they there to back the validity of the value of the home that the appraiser has assigned to it?

When we purchased our first home in 1997, it was an FHA requirement to have a professional inspection done (this is no longer the case as far as I know). As first time home buyers, we also ordered a second inspection (the independent inspector came up with a few more issues than the FHA inspector did, I might add).

Even now as a real estate professional, I would never trust myself to catch all the details that a home inspector would... and you better believe I still hire home inspectors for my own assurance as well as recommend them to anyone purchasing a place whether it be a new construction or 100 years old.

That depends on what ‘knowledgeable' is...

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Sat, 14 Mar 2009 11:15:58 -0500

I hear grumblings from Realtors every now and again that sound something like this... ‘Why should we have to get an appraisal done when the house is on the open market and there are knowledgeable buyers and sellers who have agreed upon a price?'

An episode of HGTV's My First Place (entitled ‘Hoping to Persist in Phoenix') summed up my answer. I can't remember all of the monetary details, but the story goes something like this:

Couple transfers from the East Coast to Arizona
Buyers Agent finds them a house within their price range
Couple is ready to put in an offer
Buyers Agent in suspicious about the asking price (even after the sellers dropped the price $30,000)
Buyers Agent makes a contingency to sellers that they pay for an appraisal to be done on the house prior to buyers formally signing purchase agreement to determine market value
Appraiser's opinion of value was about $35,000 below the price that both the ‘knowledgeable' buyers and sellers were about to agree upon
Sellers reluctantly drop their price so that a bank will give them a loan

I give grand kudos to the Buyers Agent for seeing this glaring price deficiency before it extended the purchase process for these first time home buyers that were on a time crunch or became a deal killer all together.

Although this example was based on out-of-town buyers that my not have necessarily been ‘knowledgeable' about the market it is not isolated to transplants. First time home buyers often do not know what to expect ... sellers will presume that their $80,000 remodel is worth $80,000 more than their neighbors house.... buyers find a house that has ‘special financing qualifications' and simply look at their monthly payment... sellers don't know the market, they only know how much they need to sell their house for... The list is endless as to why the list price may not be the right price, but the final conclusion will probably be the same... if the buyer wants lender financing, the purchase price needs to be reasonable or the buyers willing to come in with a greater down payment.

Surfing appraisal blogs so you don't have to...

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Thu, 12 Feb 2009 12:22:17 -0600

It's been a while since I surfed through Active Rain to find some rogue appraisal blogs, so here is the latest (up to 9 months old... too old for a comp these days, btw) and greatest!

Donna Harris writes about the appraisal board in Texas.
Amy Gooden is perplexed about an appraisal outcome on a sales transaction.
Fred Chamberlin talks about Countrywide's appraisal requirements.
Bela Toledo urges all not to don't scapegoat the appraiser.
Adam Wise asks appraisers to answer how they'll make a living after the implementation of the HVCC.
Team Newton shows a begrudging view of the HVCC from a mortgage planner's view.
Janice Roosevelt encourages helping the appraiser with some up front research.
Rich Jacobson brings up a little talked about topic, VA loans and appraisals.
Terri Chandler breaks down loan transactions including the appraisal process.
James Wheeler parallels appraisals as deal killers.
Larry Bettag has spirited play-by-play scenarios of what the HVCC might bring.
Kerry Lucasse vents her frustrations over appraisals on purchases.
Patricia Kennedy has an appraisal story and wonders about influencing the appraiser.
C Tann-Starr was surprised to learn about the 10/09 Certified appraiser deadline for the FHA Roster.
Michael Regan briefly talks about our favorite topic... AMCs and their lovely fees.
Tom Horn preaches pre-listing appraisals.
Appraiser Mike Shapiro speaks highly of the HVCC changes to the industry (post dated March 2008, mind you).
Kate Ford gives suggestions when an appraisal discloses more than the lender can take.
Mike Hunter carefully advocates appraisers in a declining market.
Dean Moss talks more about how HVCCs will affect appraisers, borrowers and the rest of the industry (I know, a lot of HVCC links, but it's important and right around the corner, guys!).

Addition: Mary Thompson's explanation on writing appraisals in a foreclosing market.

Work Quirks MeMe

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Sat, 24 Jan 2009 12:22:53 -0600

Larry Morris invited me to post this MeMe. The rules (which I barely followed) as well as the newly tagged MeMe folks are located at the bottom of the page. Thanks, Larry J

An Appraiser's daily grind is not unlike many real estate professionals. Driving around, visiting new and interesting places and then sitting behind a computer until your work is complete. This MeMe is dedicated to what happens within that grind... (which I do with delight) that is not necessarily part of the job. I'm not sure if this falls in the set of MeMe rules (see below), but work is part of my life and I like to make a nice marriage of the two.

If I miss the phone while I'm driving it's likely because the music is up too loud. This often stops me from arguing too much with my GPS.... She always usually wins anyway.
I would often rather take four three right turns then one left. This is thanks in large part to driving in New Jersey where if there was a left turn (rather than a jug handle) cars would start honking the moment the light turned green.
When on rural appraisal inspections, I have to refrain from trying to rescue every dog without a collar in the country. Just because their running down the middle of the road doesn't mean they don't belong to someone... or so I've been told.
I often schedule extra time between appointments if the person appears to be talkative on the phone when I set the appointment. One of the best parts of the job is learning about a stranger that invited you into their home.
I love being early to an appointment so that I can take pictures along the way. I do this when I'm lost too. It calms my nerves. Someday I want to make a coffee table book of all the ‘left over' pictures I've compiled.
I don't have too many cloths because I rarely see the same people more than once or twice and I don't like shopping. In addition, most of my work shoes are slip-ons as I'm constantly taking them on and off when I go to people's houses. (There are always two pair of shoes in my car, but when the weather is wet, both sets are often too dirty to walk into someone's house with.)
I am a huge fan of McDonalds although I never eat there. There is always one around when I need to use the restroom on the road and the floor plan is always the same with the restrooms in the rear so you can sneak in and out guilt free.

Here are the rules:

1. Create a blog post with a link to the person who so happily tagged you. See above picture!
2. List all of these rules in the post. Feel free to cut and paste this.
3. Share seven things that others may not know about you. Do I or have I HAD a life outside (oops) of real estate?
4. Identify seven friends, contacts or near enemies in which to adorn this MEME. Tag them at the end of the post and give a link to their blog.
5. Contact each of the tagged members and let them know that you were indeed fast enough to catch them and that you did indeed tag them...no matter how much they say you missed them!

So ... I now pass this honor on to the following:

Mary Thompson - Georgia Appraiser
Shawn Martin - Washington Inspector
D. Bass - Connecticut Underwriter
Troy Bolinger - Oregon Loan Officer
Mary Bigelow - Michigan Building Supplier
Rebecca Levinson - RE Marketing Consultant
James Graner - Missouri Appraiser

Know your market before you create your niche... market value appraisals for contesting taxes

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Mon, 19 Jan 2009 12:21:57 -0600

As lender-based appraisals have declined over the past year, appraisers started to lean on alternative avenues of appraising such as appraisals to contest property taxes. As markets decline across the US and taxes remain stable, this would seem to be a logical direction for any appraiser... But look carefully at your market before you redirect your energies and advertising dollars.

According to the Portland Tribune: "About 2,700 property owners appealed their 2008-09 property tax bills to the Multnomah County Board of Property Tax Appeals by the Dec. 31 deadline, up from 1,078 last year, said county spokesman Shawn Cunningham. Most of those appeals are unlikely to prevail, said Multnomah County Assessor Randy Walruff. And many homeowners will face sticker shock when they get their 2009-10 property tax increases this fall, even if home values continue falling."

This is thanks to a property tax limitations bill that passed back in 1996 which set a 3% cap on annual increases in assessed property value. This means that if you live in Multnomah County and your house was built over about four years ago, you likely have an assessed tax value that is still lower than the market value of your home.

However, if you have a newer construction or recently purchased a home that you have improved upon since the purchase date, you may be in that small percentage of home owners that is paying a higher assessed value than your home is worth.

If you live in Multnomah County, you can see a breakdown of your tax assessed values by going to Portlandmaps.com. Here are some other surrounding county web sites:

Property owners; If it appears your tax assessed value is higher than the market value, then it is a good time to seek out an appraiser.

Appraisers: If you consistantly find the tax assessed values in your area to exceed existing market values, perhaps tax contesting appraisals are in your future calling.

Countrywide/Landsafe (and now Wells Fargo RELs) appraisal class action suit - Appraisers can join the action, too!

Sara Goodwin - Portland, Oregon Appraiser (Ashcroft & Associates) — Wed, 14 Jan 2009 23:34:50 -0600

I found this thanks to my free subscription to Ann O'Rourke's email which you can subscribe to the Appraisal Today Newsletter by clicking this link.

Countrywide & LandSafe Skimming Appraisal Fees

As promissed here it is:

Washington homeowners filed a class-action lawsuit against Countrywide, claiming the lending giant illegal rigged the appraisal process in a scheme to boost profits at the expense of homeowners and independent appraisers.

According to the complaint, borrowers were forced to use the Countrywide subsidiary, LandSafe who, according to the charge, skimmed off part of the appraisal fee for themselves (Countrywide). The borrower was charged $450 while the appraiser sometimes netted less than $200 with LandSafe/Countrywide pocketing the difference.

Several years ago a friend told us this was a violation of RESPA. He told us who to focus on, and he was right.

If you would like to read more and help the law firm hit this AMC square between the pocketbook read more here: LINK Hagens Berman Sobol Shapiro LLP

Appraisers, down load the complaint here: DOWNLOAD COMPLAINT

The law firm is looking for more class participants. JOIN THIS LAWSUIT: HERE

Posted on Tuesday, January 13, 2009 at 05:26PM by Fraud Problem Team | 8 Comments

Source: http://www.fraudproblem.com/updates/2009/1/14/countrywide-landsafe-skimming-appraisal-fees.htm l

1/19/2009 addition regarding Wells Fargo / RELs :

New investigation of Wells Fargo - RELS AMC - possible lawsuit Last week it was Countrywide (Landsafe AMC). This week it is Wells Fargo (RELS AMC). The same law firm is starting the class action lawsuits.

Wells Fargo/RELS investigated - Link to news story Click here

Quote from the law firm

"Hagens Berman is investigating Wells Fargo and its appraisal subsidiary Rels Valuation based on reports the companies engaged in a rigged appraisal process.

"The firm is investigating claims that the company forces homeowners to use its appraisal firm, Rels Valuation, which then turns around and subcontracts the work to independent appraisers while charging homeowners an inflated fee for the work."

"Reports say independent appraisers are forced to work for below market value while Rels Valuation significantly inflates the cost of the work for homeowners, generating profits for itself and its parent, Wells Fargo." Link to law firm http://www.hagens-berman.com/WFCappraisals