How long the comps we can go back?

[J Grant]

Mike Rowe of the show Dirty Jobs has it right. You don't need a college education nor do you need a high school diploma. People can learn how to operate heavy equipment at a fraction of the cost of the college education and make two or three times the money annually than a 2/4 yeAR college grad.

We are rapidly heading towards a cashless society. So that is a problem for many sub-contractors like a res appraiser. Private non-lender assignments for res appraisers will be forced to report that income. The banks reporting of cash deposits threshold was $1,000 now it is $600.

So suggest a res appraiser get multi-licensed. i,e. NC has a licensed home Inspector. You should also make sure you have an RE Broker license. It is all about revenue streams. The more you have the better.

If getting a res appraiser license means one has to have other income streams and have other RE-related licenses, then it is not a viable profession ( in general) A profession or trade, should provide a reasonable income for a basic to middle-class lifestyle -

I can add that in most areas of RE, it takes a full-time commitment to make decent money; one cant spread thin among the different realms with multiple licenses - plus, maintaining each license is expensive and takes hundreds of hours to get the license, and then hours of cont ed every two years to maintain it. Some people have dual licenses, but typically, one license is full-time, and the other is for additional supplemental income. I wonder how much they really get from even the supplemental income. If one dabbles in home inspection, they are competing against full-time home inspectors.

 

[J Grant]

For res appraisers that may help but that's not what the AMC leeches are looking for. Their checker dudes and dudettes are low paid. Most of them were lured away from fast food industry.

The decisions about res license appraising for the past two decades and esp the past 5 years has been to degrade it, whether that be dropping the college barrier, then the AA degree barrier, then dilute the live mentoring by offering PAREA - to allowing the AMC split fee model to continue by lenders and stakeholders to disbanding FHA panel for lender select, to never establishing a firewall, to allowing the second regulatory C and R fee to let AMCs use their own internal surveys to more recently, allowing nonappraiser people to do the inspection portion, renamed the PEDC collection, to replacing appraisals with WAIVERS which sidestep the regulations about pre-determined/target values in appraisals.

This is a pattern of decisions that has little to do with technology and a lot to do with profiteering.

Professions that require college degrees are under pressure too, but they have done a much better job than res appraising at maintaining their earning capacity and independence. As has the commercial end of appraising, which requires a college degree. AT one time, it did not. The cert Gen End introduced college degree requirements and kept it and is thriving. If they had dropped teh college degree like res did ( and they are under pressure to do) they would have been worse off.

 

[Carnivore]

J, your not telling me anything I did not know. I am only suggesting ways a Res appraiser can survive.

 

[Zoe]

Just get an purcahse loan assignment in. The contract price is high. I only find one comp sold in Jun, 2022 with such high price. I was heard we can't use the comp more than 2 years ago, even with time adjustment? Can someone confirm that?

Also, per ACI system, the final appraisal value must be bracketed within comps' price range. Is it true? Thanks!

I can't explain some of the replies to your question. I am sorry.

 

[Zoe]

Just get an purcahse loan assignment in. The contract price is high. I only find one comp sold in Jun, 2022 with such high price. I was heard we can't use the comp more than 2 years ago, even with time adjustment? Can someone confirm that?

Also, per ACI system, the final appraisal value must be bracketed within comps' price range. Is it true? Thanks!

I have got another one for you. I just didn't bracket final opinion of value on one where appraised market value is way higher than contract price.

But the subject has an inground pool and a detached Studio and/or office and or teenager house/ college student/ etc.

The answer to your question is you don't always have something that brackets the subject on market value.

I did not bracket the market value and explained why. Very high demand area. Near University, Sports Stadium, etc. etc.

But not many nearby properties have both an inground pool and a detached guest house/office/studio etc.

I told you I don't always bracket market value opinion. I am considerably over sale contract price and been preached to on why.

I am like okay, It's okay. I am not worried about my appraisal on this one for market value. Nice position to be in.

My highest sales price on comps was like maybe $12,000 less than MV opinion.

But contract price was way lower than MV opinion. Like $50K less.

It had like 290 sq ft of finished attic that had very functional utility issues also.

However, I gave it value. It had severely sloped ceiling with way less than 50% having 7 ft. ceiling heights. Upstairs and no window you could open unless you escaped from the attic window.

See?

Completely renovated home except for the guest house/studio or whatever you want to call it.

Now, welcome to my world. Studio has laundry, full bath, kitchen, Living room, and what could be considered a 1 bedroom studio. See?

I did line adjustment for finished attic that had severe functional/utility issues.

Main level on house and guest house/studio were fine on 8 ft ceiling heights. Main house over 2,000 GLA and guest house/studio another approx 500 sq ft.

 

[Mark K]

You just state that with no proof, as if saying it makes it true.

And you state the opposite with no proof. "I think you doth protest too much." WS

 

[J Grant]

And you state the opposite with no proof. "I think you doth protest too much." WS

I appreciate your perspective.

However, I believe I have some proof/support for my position: Overall, most professions (not trades, professions ) have a college degree requirement and benefit from it. Commercial appraisal license requires a college degree and they benefit from it. They kept the requirement when it was entered, while residential dropped it. And look at which side is doing better (I understand there are other reasons that commercial license is better; however, they have not been degraded like the res side since dropping the college requirement, which then led to dropping the AA requirement which then led to PAREA -once education becomes devalued then it is devalued as much as the profiteers can manage it.

 

[Mark K]

Commercial appraisal license requires a college degree and they benefit from it.

There are competent commercial appraisers working daily that don't have a degree and there are incompetent commercial appraisers that do. It goes both ways.

A degree can be very helpful but it is not necessary to perform about 100% of residential and 90% of commercial work. This isn't rocket science. Appraising real estate is actually pretty straightforward. I could train an experienced real estate broker to do residential appraising in a relatively short time. Follow the laws, regulations, and guidelines (often the difficult part) and the appraising is pretty simple. It doesn't take a degree to "prove your adjustments".

 

[Carnivore]

Just get an purcahse loan assignment in. The contract price is high. I only find one comp sold in Jun, 2022 with such high price. I was heard we can't use the comp more than 2 years ago, even with time adjustment? Can someone confirm that?

Also, per ACI system, the final appraisal value must be bracketed within comps' price range. Is it true? Thanks!

1st bold - As others have No such limitation exist.

2nd bold ACI system - Once again as others have said its BS

Now having said the above , well your gonna have to do a lot more analysis and detailed Explaining.

 

[J Grant]

There are competent commercial appraisers working daily that don't have a degree and there are incompetent commercial appraisers that do. It goes both ways.

A degree can be very helpful but it is not necessary to perform about 100% of residential and 90% of commercial work. This isn't rocket science. Appraising real estate is actually pretty straightforward. I could train an experienced real estate broker to do residential appraising in a relatively short time. Follow the laws, regulations, and guidelines (often the difficult part) and the appraising is pretty simple. It doesn't take a degree to "prove your adjustments".

i agreed with you and agree with you about individuals, regarding their college/non college and level of competence.

However, college sets a bottom bar level playing field, and it works for other professions and commercial appraisal as well. The ironic part is that a busy residential appraisr can often appraise twice to fourt time more $ volume in the course of a year.

From what I read in a number of the posts from people who can not grasp the concepts,, it is rocket science. It is not that appraisal is so technically difficult. It is that it needs a grasp of some fundamental concepts and the ability to apply them to different situations -as well as developing a broad skillset .