Hybrid Appraisal Extraordinary Assumptions

[J Grant]

If a non appraiser does an evaluation and offers a value estimate , it is an evaluation

If an appraiser does does an evaluation and offers a value/opinion, it is an appraisal...and has to comply with USPAP aka workfile etc..no matter if the form is labelled "evalution"

IF low fee desktop and hybrids become more prevalent, might make more financial sense for some appraisers to drop their appraisal license and get licensed as a sales agent instead. Then do the inspection part of hybrid as an agent, might also do BPO's and sell a few listings a year...would make the same or more $....with much less stress and angst. If the fees are going to suck in res lending appraisal for that segment of work might as well have an easier time of it.

 

[hastalavista]

If a non appraiser does an evaluation and offers a value estimate , it is an evaluation

If an appraiser does does an evaluation and offers a value/opinion, it is an appraisal...and has to comply with USPAP aka workfile etc..no matter if the form is labelled "evalution"

I think there are at least two states that make an exception (I "think").

 

[Mr Rex]

Read closer. My exact quotes are directly from the IAG...and AI is quoting it verbatim. Their are evaluations, and there are appraisals. An appraiser does an appraisal. If an appraiser does an evaluation, they need to sign off and call it an appraisal (restricted or not). There is a required inspection by someone, and required photos which are not required by an appraisal.

Are you unable to read? Rex is having some trouble with that this morning, too.

If you do an "evaluation" then you are violating mandatory laws in every state but two.

It says the appraiser must state whether they did or did not inspect. Not that an inspection is required.

While the Guidelines do not state that a property inspection is necessary in all cases,

 

[George Hatch]

Nobody said you did.

But you can.

And let's face it,

If you are going to let someone pre-print into your report, what you don't know, and you are going to Certify to it,

Well, that's exactly the road map to get to numbers clients want, because they'll just keep telling you what you don't know, and you can agree with them.



View attachment 34740.

This is pure wishful thinking on your part. IRL the perceptions appraisers have about the quality and integrity of the data sources they use are based on their own experience with those sources. And to the extent that any appraiser is operating in good faith the first line of the appraiser's cert dictated in SR2-3 says

"I certify that, to the best of my knowledge and belief:
- The statements of fact contained in this report are true and correct.... "

Not to mention the other assertions in the cert. So no, an appraiser who has reason to doubt the accuracy of one or more particular data sources - and who is operating within spec and in good faith WRT our standards - would NOT accept that assignment under those conditions let alone sign reports they had reason to believe were based on inaccurate and/or falsified data. Now that's not to say that there won't be appraisers acting in bad faith doing such things, but those attitudes aren't created by report formats or assignment conditions - those donkeys are being donkeys in everything they do.

Moreover, a lender who engaged one of these and then fed the appraiser bad inspection reports isn't exposing the appraiser to risk so much as exposing themselves to risk by virtue of establishing a pattern of similar conduct with all the appraisers and "inspectors" they deal with.

 

[George Hatch]

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.

"Partition the SOW to lower cost" is the primary factor in play here. The functions of analyses, opinions, conclusions and report writing are arguably worth more per hour than making appointments and driving to the subject and performing the inspection and laying all that info out in its own report. That's why these runners only get $20/hr and the appraisers get a higher rate.

The reason that also leads to shortening the time to delivery is because the number of qualified appraisers far less flexible than the number of potential inspectors. So rather than only getting an average of 6 or 7 1004s a week out of each member of their panel for the types of deals these hybrids would be used for they will now be able to get multiples of that. So from a lender's perspective it's a far more efficient use of that limited resource, REGARDLESS of how much they pay the appraiser. And within reason, it's scalable according to how much volume they're getting in.

They can get more of this type of appraisals done with fewer heads. Meaning the supply of appraiser productivity will probably ALWAYS be much greater than the demand.

I also have to wonder how much business these hybrids will siphon off from the AVMs.

 

[djd09]

Only rigged games, for the purpose of profit, use their own loaded dice.

 

[BRCJR]

I think there are at least two states that make an exception (I "think").

TN, GA and VA.

Virginia recently adopted the following:

An appraiser may provide market analysis studies or
consulting reports, which do not constitute appraisals of
market value, provided such reports, studies, or evaluations
shall contain a conspicuous statement that such reports,
studies, or evaluations are not an appraisal as defined in §
54.1-2009 of the Code of Virginia.

 

[hastalavista]

I also have to wonder how much business these hybrids will siphon off from the AVMs.

AVMs are so cheap, I don't know if they will impact that market much, if at all?
Indeed, it may be that the internal-qualifications for the hybrid may be that the property first must pass an AVM litmus test. But, I'm purely speculating here.

 

[George Hatch]

At any rate, unless you're working in a severely underserved market the last thing a CR should be wanting to do right now is to take on a trainee.

 

[Mr Rex]

Only rigged games, for the purpose of profit, use their own loaded dice.