Hybrid Appraisal Extraordinary Assumptions

[Meandering]

The lemmings are those who worship at the "Church of the 1004" and think that is the only acceptable form of appraisal practice At least some are honest enough to admit that their primary concern is fee - not public trust

As for fees - just set the fee at the proper level. Problem solved. The buyer of the service is never in charge of the fee; it is just too bad that so many appraisers are such poor business people they cannot grasp that.

Anyone can well decide not to do this work. But making that decision will come with business consequences, especially for those relying on Fannie work. Fannie is going this way, and those who rely on Fannie work may face tough choices. It could be very interesting to check back in 3 years and see how many who say they won't do this work are doing it. Of course, you won't really be able to tell from the posts here. I see people who are on my panel who get on here and swear they don't do any AMC work. It is easy to be an Internet hero

Oh come now Danny,
Appraising is a business.
Denis and George can accept any scope of the work and give clients exactly the numbers clients want to buy from them.

So why would they share their trade secrets with their competition on a public Internet forum? Especially when the secret of being able to monopolize all the appraisal work in the country. lies in the defense of SOW and EAs?

Where’s those “free market” people to tell you how it makes no sense to give away your trade secrets to your competition for free

.

 

[Meandering]

Really,

Like Kudos to George and Denis for figuring it all out.

Maybe you guys should go on Shark Tank and get an investor to help you monopolize the appraisal industry. Oh, man, maybe Barb Cochran will even be on the day you are there.

You could borrow the money for the technology.

I bet Danny could tell you how many papers can be signed in an hour.

Oh, but you don't even have to "sign" the paper, just click the attach signature button


So cool, you guys can have all the residential lending work in the country. Go for it. I'll be able to tell my other rich friends, that I know the "new rich" people.



.

 

[George Hatch]

Okay I just read through the quoted piece and there are a couple things I don't like.

EA this, EA that, blah blah blah. An assumption is an assumption. It doesn't really need to be labeled an EA.
If you're using an exterior-only inspection then you probably are making assumptions about the interior quality/condition, so that's worth mentioning.

I especially don't like the idea of assuming HBU or assuming the property is worth more in its current use than as vacant.

I don't like the lack of concise description of who did what or the cludgy reference to the effective date of the appraisal being the date of the most recent inspection.




If it were me writing it I would

- Explicitly identify my intended users and their intended uses as conveyed to me, and warned that this workproduct was not intended for any other user or any other use. Any off-label users or uses should get their own appraisal specific to that usage.

- make reference to my data sources, including the "inspection report" and any identifying numbers, dates or names that would positively identify that report as being separate from my work

- state my process: I looked the public records info up, I read that report and i did some research on my own to identify the general attributes of the neighborhood and the site and the improvements in the available data sources; I developed my opinion of HBU as improved, I researched sales data and identified a bunch of them of which I chose several as being more similar than the others; i analyzed those sales data for their value attributes and reconciled for my value conclusion.

- THEN I would make reference to the list of assumptions and limitations in the addenda with a comment that - as with most appraisal assignments - I am assuming the available database info is sufficiently accurate, that the info in the appraisal report (including the pics) were reasonably accurate and that there are no adverse conditions omitted from that report that would have been apparent to me had I made a personal walk through of the property myself. In lieu of information, knowledge or belief to the contrary I have no reason to doubt the substantiative accuracy of that information.

- Lastly a warning that if any of the assumptions being made turned out to be significantly inaccurate or incorrect it might have an effect on my opinions and conclusions.


I don't think there's any need to engage in a lot of repetition. If I report which company or which individual performed the inspection and that I did not personally inspect that should be sufficient to convey the point. I shouldn't need to mindlessly pound on the subject.

 

[George Hatch]

Oh come now Danny,
Appraising is a business.
Denis and George can accept any scope of the work and give clients exactly the numbers clients want to buy from them.

So why would they share their trade secrets with their competition on a public Internet forum? Especially when the secret of being able to monopolize all the appraisal work in the country. lies in the defense of SOW and EAs?

Where’s those “free market” people to tell you how it makes no sense to give away your trade secrets to your competition for free

.

That's a pretty insulting comment for you to make. I may be an idiot but I'm not a liar. I don't think Denis is a liar, either.

 

[Meandering]

You tell him George,

But you left out,
oh, what if; I was in it last week, with a wanna-be investor,
or,
my best friend lives next door for the past decade plus, and I've been in that house many times.


You guys work out the kinks between the two of you.

Captains of Industry

The Rockefellers of Appraisal.

Go for it.

.

 

[Meandering]

That's a pretty insulting comment for you to make. I may be an idiot but I'm not a liar. I don't think Denis is a liar, either.

Nobody called you a liar.

But if you want to make stuff up...................

They make unicorn T shirts for that.

.

 

[Meandering]

That's a pretty insulting comment for you to make. I may be an idiot but I'm not a liar. I don't think Denis is a liar, either.

And just so you know

I did not call you anything derogatory.

And I screen printed it all so we don't have a repeat of the October fiasco.


.

 

[George Hatch]

Nobody called you a liar.

But if you want to make stuff up...................

They make unicorn T shirts for that.

.

I don't "give clients exactly the numbers clients want to buy from them", and I don't think Denis does, either. Nor would I would never accuse you or anyone else on this forum of something like that. That's literally the worst accusation you can make about another appraiser. So no, I am not making something up.

 

[Carnivore]

Before you read and view the links i first want to start you off with this thought: How much is the Doctor being paid per virtual visit? .or is he on a Salary?

OK, a perfect example of what a desktop appraisal actually is and why this is a plausible process. Good friend has been in CCU then ICU and is now in a regular room for the Flu(same hospital). He has not seen his Doctor in person. He has been attended to by RN, LPN and CNA. and other cheaper people. If you listen to the video(s) it gets into whats happening at this facility. The Parallels are easy to see an amazingly similar.

So the Doctor does a virtual Visit(s) with you. This hospital in the video has done a large number of these virtual visits. The whole facility is run this way and is increasing its beds(more visit potential)

https://www.carolinashealthcare.org/medical-services

https://www.carolinashealthcare.org...irtualVisit?hcmacid=&phonenumber=855-438-0010

 

[Carnivore]

So after reading as much as I can on this subject of desktops, looking at other industries I have decided that what the people who are pushing the desktop are actually trying to accomplish.

A. Shorten time to delivery
B. Partition the SOW - to lower cost
C. Diminish Risk to Lender - I don't see Hard money Lenders adopting this.
D. Eliminate the middleman(AMC) - lower cost - Seriously Why do we need an AMC
etc you add something I may have missed,

What is contradicting this process is the so called Appraiser Shortage. Seems like it is partially a solution to the shortage. Is the AQB trying to protect their Turf.