Desktop Appraisals Becoming the New Normal

[alebrewer]

I was far more isolated from the loan originators when I worked on staff for a bank than when I worked for fee shops, both before and after my stint at the bank. Conditions can certainly vary from one operation to another, but at the bank I worked for the loan originators weren't allowed to call the appraiser who was working on their deal nor were they even allowed to step foot off the elevator onto our floor. If they had a beef with an appraisal it had to go through their VP to our VP on a peer-to-peer basis. And our VP always defended our work unless we had made an obvious and significant mistake.

That has been my experience as well. Having lived in both worlds, I've generally found that staff positions tend to be more insulated (with respect to pressure) than fee positions. It's MUCH easier to remove an appraiser from a panel than to fire an employee without cause.

 

[djd09]

misleading is intentional or not. assume at your own risk. march on, comrades

 

[George Hatch]

Unless we have better information that the information is incorrect. For example if tax records say 800 sq.ft. but there was recently a second floor addition where it is most likely 1,600 Sq.Ft. we should not just blindly use tax records, especially when it is clear they are way off.

If you have reason to suspect the accuracy of a data source then it goes without saying that you DONT assume the info is accurate. I actually run into that a lot in certain areas and for certain property types. Hence the utility of using multiple data sources and cross checking for consistency.

 

[CGinMN]

What I was specifically referring to was pressure to accept certain types of work, not pressure to hit numbers.

 

[alebrewer]

The idea is to shorten all sides of the triangle as much as possible so that appraisal quality (credibility) is degraded to compete with the AVM. If you add enough weights to the back of the human analyst, the machine will eventually start winnings races.

Is it possible that you may be looking at it backwards? IOW, that appraisal quality isn't being degraded - if anything, I'd submit that appraisals - as a whole - are more credible now than 10 years ago. Is it possible that technology is just improving at a rate MUCH faster than appraisal quality is improving?

 

[shrubberyvaluation]

If you have reason to suspect the accuracy of a data source then it goes without saying that you DONT assume the info is accurate.

I'm just saying I have seen people use "comps" where the tax record GLA was clearly way off looking at the dwelling, but it pushed the numbers up using that tax record GLA.

 

[alebrewer]

FTR, I wasn’t (and I didn’t see anyone else here) dissing staff appraisers, just saying that they appear to have less independence with an extra layer of pressure.

Some might construe the following as a 'diss'...

"They won't. They will say "What conclusion do you need?"

 

[djd09]

i don't know what kind of donkey wouldn't want to see the property they are appraising. don't you believe your own eyes?

 

[George Hatch]

What I was specifically referring to was pressure to accept certain types of work, not pressure to hit numbers.

Oh, the staff appraisers will definitely be assigned to certain assignments regardless of their preferences. That's one of the primary reasons for hiring appraisers as employees, to control the hours they work, the desk they sit at and the assignments they'll be working on.
.

 

[shrubberyvaluation]

i don't know what kind of donkey wouldn't want to see the property they are appraising. don't you believe your own eyes?

Someone who wants to not spend the trip and scheduling. I can understand it if you don't verify information and are a skippy it is preferable.