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  #1  
Old 05-26-2011, 10:44 PM
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prasercat prasercat is offline
 
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Default Anyone familiar with this "new" praser product?

Came through Mecury Network today.

Product Name: Pricing, Income and Market Analysis Report (isn't that what I do in a product called "a typical residential appraisal".

Their selling statement, which is a portion of the email:

======================

This desktop product, which is fully supported by a la mode's market-leading WinTOTAL software, brings appraisers' expertise and local market knowledge to the task of effectively pricing foreclosures and other distressed sales.

Broker Price Opinions are, by far, the most commonly used means to establish listing prices. Our customers, though, have recognized the need for more transparency and want the professional analysis of the local experts they trust most: appraisers. And, unlike other alternative products, this assignment doesn't require any special training or new analytic tools - we just want your opinion and professional analysis of the market for the property.

Our Real Property Insight Report combines a comprehensive home inspection, executable bids for the repair work and this new desktop appraisal product to give banks, mortgage insurers and guarantors, and private investment funds the information they need to accurately price distressed properties. We believe this combination allows our clients, banks and other institutional owners, to become better-informed sellers and short-circuit the downward spiral of values.

To complete the assignment, we ask you to analyze:
current comparable and competitive listings of non-distressed properties
current comparable rentals
current market conditions.

=========================

Praser: They have this link to FAQs, but sounds like an appraisal to me, but sort of like a BPO in pay, don't need to inspect property. So it's a short cut valuation(???) that is a desktop product. I'm not sure where I would be cutting back on the analysis and time spent to get to a 2 hour turn time (that's what they say and I'm sure they aren't being the least biased. Yeah sure). I don't do desktop products - at least yet.

My Point: I guess I'm really not understanding how the SOW can be reduced to such a level to allow such an abbreviated effort.

If anyone has insights into the process and how these work in practice (such as desktop products, even if this is a new variation), yet remaining compliant with USPAP and the appraisal gods.

Thanks in advance!

http://www.realpropertyinsight.com/Info/PIMAR_FAQ.pdf
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  #2  
Old 05-26-2011, 10:47 PM
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Elliott Elliott is online now
 
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Default

Mercury?

So what was a $500 product, went to a $200 product, which will go to a $99 product,
to a $9.99 product to a $0.99 product to a $0.09 product.
  #3  
Old 05-27-2011, 08:06 AM
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Default

Broker Price Opinions are, by far, the most commonly used means to establish listing prices. Our customers, though, have recognized the need for more transparency and want the professional analysis of the local experts they trust most: appraisers. And, unlike other alternative products, this assignment doesn't require any special training or new analytic tools - we just want your opinion and professional analysis of the market for the property.

Our Real Property Insight Report combines a comprehensive home inspection, executable bids for the repair work and this new desktop appraisal product to give banks, mortgage insurers and guarantors, and private investment funds the information they need to accurately price distressed properties. We believe this combination allows our clients, banks and other institutional owners, to become better-informed sellers and short-circuit the downward spiral of values.


So it goes from a 1004 to a 2055, to this.
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  #4  
Old 05-27-2011, 09:19 AM
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The only thing I see deleted from a typical scope of work is the inspection of the property. Given that is typically just an hour or so of the process, how in the world do they come up with an estimate of two hours to do the job?
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  #5  
Old 05-27-2011, 10:36 AM
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Exclude foreclosures and other distressed sales from the analysis because of the high degree of variability in property condition and seller motivation within this market segment.

http://www.uspap.org/AO/ao11_20/ao_19.htm
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  #6  
Old 05-28-2011, 12:55 AM
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prasercat prasercat is offline
 
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Default

I really appreciate the responses.

I do believe in innovation, but it always seems to be innovation that increases the profits on the one side while compromising the appraisal professional, and the integrity and reliability of the valuation process on the other side.

This type of product has its appeal; however, it's in the SOW and the expecations put on appraisers that must be recognized by the innovators, which they obviously don't care much about. The product and the expecations and restrictions on the profession have to be consistent with the product.

Perhaps the reasoning is - "Let's put this product out there and if appraisers are accepting them and signing them, we were successful".
  #7  
Old 05-28-2011, 10:21 AM
carver carver is offline
 
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Default Reply to Insight

I got the email notification this morning. I will just post my reply. My inclination was to be much ruder.

For $100 you may keep on getting the BPO's. Banks have saved tens of thousands of dollars having agents determine value. They have consequently lost billions on REO transactions and savaged the value of their remaining collateral by undermining markets. I am so tired of having people ask me to provide complex professional analysis, assume untold liability for an indefinite period (minimum 5 years), and get it back yesterday for fees that equate to a shift waiting tables. Call it what you want - this is an REO appraisal with single family rental data. I would normally charge $450 for this. Knock off $50 for not having to include the closed sales. Knock off another $100 for not having to go inspect the property - add it back due to the potential increase in errors = increased liability. There you have it - $400 is my fee for this work.
  #8  
Old 05-28-2011, 12:07 PM
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Rick Neighbors Rick Neighbors is offline
 
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Default Not rude at all! :)

Carver,

I like your response!

My sentiments also.

Rick
  #9  
Old 05-28-2011, 12:45 PM
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prasercat prasercat is offline
 
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Default

Quote:
Originally Posted by carver View Post
I got the email notification this morning. I will just post my reply. My inclination was to be much ruder.

For $100 you may keep on getting the BPO's. Banks have saved tens of thousands of dollars having agents determine value. They have consequently lost billions on REO transactions and savaged the value of their remaining collateral by undermining markets. I am so tired of having people ask me to provide complex professional analysis, assume untold liability for an indefinite period (minimum 5 years), and get it back yesterday for fees that equate to a shift waiting tables. Call it what you want - this is an REO appraisal with single family rental data. I would normally charge $450 for this. Knock off $50 for not having to include the closed sales. Knock off another $100 for not having to go inspect the property - add it back due to the potential increase in errors = increased liability. There you have it - $400 is my fee for this work.
Nice left hook! They deserve it abundantly.

They do the same to us, it's just that they disquise it in a "innovation" or something that is good for us. Hey, appraiser! We have a new pill for you! You'll get volume and riches!

Last edited by prasercat : 05-28-2011 at 01:01 PM.
  #10  
Old 05-28-2011, 02:20 PM
leelansford leelansford is offline
 
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Default

Quote:
Originally Posted by Couch Potato View Post
The only thing I see deleted from a typical scope of work is the inspection of the property. Given that is typically just an hour or so of the process, how in the world do they come up with an estimate of two hours to do the job?


"Short-cuts"?
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