ASA fired off quite the letter

[jay trotta]

Those who choose an accountant because they are Certified, have the Education. Experience and knowledge of continual changes.

The sales pitch for a "Waiver/Value Acceptance" letter is a scam on the American public, for nothing more than $$$$$$$$$$ Greed is not Good.

 

[J Grant]

 

[J Grant]

post 142 is a sample from a contract addendum- some contracts have an appraisal contingency as an addendum, while others have it as a preprinted option in the body of the contract.

A grey area is if the appraisal contingency is not put on as an addendum and it is a finance contingency - when a lender uses an appraisal, it is a contingency anyway because lenders lend on the appraisal value amount, if the lender chooses a waiver or value acceptance and no appraisal contingency was in the contract, is the buyer aware that the mortgage contingency now lacks the appraisal element - they may be informed (not sure of this aspect ) that some kind of "valuation" occurred in a "value acceptance" and they might assume that means the same thing as an appraisal.

 

[Essexfenwick]

Those who choose an accountant because they are Certified, have the Education. Experience and knowledge of continual changes.

The sales pitch for a "Waiver/Value Acceptance" letter is a scam on the American public, for nothing more than $$$$$$$$$$ Greed is not Good.

It’s not greed.

It’s national security.

We are in a financial crisis. All the banks are insolvent holding overpriced bonds due to the FED holding interest rates at zero for 13 years. Every banks liabilities drastically exceed their assets. Squeezing whatever equity people have out of their homes with no holdups is the air bubble in the underwater car. It’s the end game. QE has restarted to fix the financial crisis and will be needed to speed up pay the governments rising interest payments. The money printing heroine is causing all the totally predictable death rattles.

 

[Overimprovement]

This angle may work if someone could package it and market the idea properly.

Stress that THEIR $$ is at risk via the payments they make. Demonstrate how much overpaying actually costs them over the life of the loan. The appraisal fee is peanuts compared to $XX times 360 payments.

Appraisers need a Lerner & Rowe marketer who doles out the assignments.

The main hurdle to this business model working is the current public perception that a zestimate or other very cheap and essentially instant AVM is in some way inferior to a more typical interior appraisal.

Appraisers cannot convince the GSEs or lenders that what we do is any better than a $10 AVM. How would we go about convincing the general public, especially with those other entities loudly and publicly decrying our very existence?

The other factor at play is marketing--the larger the group involved, the easier and cheaper (per intended audience unit) the advertising becomes. Any one of us hoping to make a go of it by marketing directly to consumers, perhaps some quick form report (which of course would cost less, back to the same issues), would not only have to reach their intended audience with the message, but also educate them in the process. Historically, that is a much tougher road than simply letting someone know about a product or service.

 

[shrubberyvaluation]

The main hurdle to this business model working is the current public perception that a zestimate or other very cheap and essentially instant AVM is in some way inferior to a more typical interior appraisal.

Appraisers cannot convince the GSEs or lenders that what we do is any better than a $10 AVM. How would we go about convincing the general public, especially with those other entities loudly and publicly decrying our very existence?

The other factor at play is marketing--the larger the group involved, the easier and cheaper (per intended audience unit) the advertising becomes. Any one of us hoping to make a go of it by marketing directly to consumers, perhaps some quick form report (which of course would cost less, back to the same issues), would not only have to reach their intended audience with the message, but also educate them in the process. Historically, that is a much tougher road than simply letting someone know about a product or service.

I see plenty of people thinking their home value went up because zillow says so.

 

[Overimprovement]

post 142 is a sample from a contract addendum- some contracts have an appraisal contingency as an addendum, while others have it as a preprinted option in the body of the contract.

A grey area is if the appraisal contingency is not put on as an addendum and it is a finance contingency - when a lender uses an appraisal, it is a contingency anyway because lenders lend on the appraisal value amount, if the lender chooses a waiver or value acceptance and no appraisal contingency was in the contract, is the buyer aware that the mortgage contingency now lacks the appraisal element - they may be informed (not sure of this aspect ) that some kind of "valuation" occurred in a "value acceptance" and they might assume that means the same thing as an appraisal.

I can almost promise the NAR is busy at work to reword these appraisal contingencies to include more inclusive language such as official valuation instead of appraisal, etc. Realtors hate appraisals more than lenders and GSEs...

 

[Essexfenwick]

Until the currency collapses there is not much use for anything other than a fig leaf appearance of fiscal discipline. Appraisal discipline doesn’t register. Everything is technically insolvent .. the government, the GSEs, The banking system. There are no moves left for the FED without huge downsides. Accounting and asset accuracy is dangerous at this point. The government doesn’t even stress test for mark to market in banks because they don’t want everybody to know they are insolvent. By automating appraisal they can manipulate the appearance of solvency if they need to. It’s actually a quite interesting sign for anybody in finance with brains and awareness. This little corner of fiscal discipline eliminated right at the time the banks are insolvent is the kind of thing that clues the nimble and aware of reality into probable future events. This is a massive inflection point and nothing will ever be the same. The GSEs probably won’t survive whatever reset is coming.

 

[J Grant]

I can almost promise the NAR is busy at work to reword these appraisal contingencies to include more inclusive language such as official valuation instead of appraisal, etc. Realtors hate appraisals more than lenders and GSEs...

perhaps, idk
There is no contingency protection wrt a waiver, (value acceptance ) no verbiage they can put in .

NAR would seek the advice of attorneys before screwing around with contracts..

 

[Overimprovement]

perhaps, idk
There is no contingency protection wrt a waiver, (value acceptance ) no verbiage they can put in .

NAR would seek the advice of attorneys before screwing around with contracts..

Why not? Just add waiver is OK type of language. You can put whatever you want in those contracts. Not a real issue anyway, these contracts are so weak they become virtually unenforceable if someone decides to not buy. The only cases I've known where they were enforced was if a seller tried to back out.