Evaluations & USPAP - Question from a bank staff appraiser

[Zoe]

Agreed.

But if the lender recognizes you as an appraiser, engages you as an appraiser or expects appraiser type services, then you have the hat on in their eyes even if you took it off.

"I know a good CG that can do an eval on this 20 unit building for us at ABC Bank." Calling you out just like that, they see you wearing that hat.

I'd be curious and not even surprised if the bank/client asked for a resume/certification/E&O (that would CLEARLY define you as an appraiser) to be provided in an evaluation report. Wouldn't put it past them.

You don't even need any qualifications to do an evaluation with some unless State law says different. Don't you remember Joan Trice calling for a National license because some State laws were not fitting Joan's hopes and wishes?

I remember certain things.

 

[Zoe]

Just let the owner give you the evaluation. That is what Joan Trice wanted. The sad part is Joan was an appraiser. Let the seller give it to you, the buyer, the teller taking your money. The secretary. Whoever?

State laws throw a cog in that wheel in some States. I have no idea in Wisconsin. I have never worked in Wisconsin and don't have a license anywhere in Wisconsin. Federal law can't overrule the State law.

The State can say do you see our State boundaries? Thank you for your concern.

Oh, okay, we don't want a volcano at the moment. We are sorry State.

 

[Tiffany Gibbons]

If you PM me, I will give you the name and phone number of a guy that is over a big bank appraisal department and employee of the bank. He is past president of NAIFA. PM me. He will take your call. He is not in your State in though.

That's why I say you might want to talk to your State appraisal board 1st. You can't be the first to be in the position you are in within your State.

That is my mentor (on my CR). He told me recently at a USPAP class that I should get into "Evaluations" on Commercial Property. I said, "Mike, why did I go through all the classes, experience, that difficult exam etc. to earn my CG then if a licensed CG is not necessary on these multi million $ properties. He didn't have an answer for me, but I knew it already, based on who i know at that "age" in the areas covered his territory. Multiple retirement income streams, eligible for social security, etc. It is OK to "dabble" if you don't need an actual income from appraisal. Appraising for fun is different from trying to earn a living. As I learned when the CG I was supposed to replace at the firm wouldn't retire until the state took his license (happened years after I left). Nobody realized I did that guy's work for him FOR YEARS. I had much respect for him. He was a WWIi Vet and he taught me a great deal, but at a point, you are taking income from young appraisers with families to supplement your boredom. I'm not going to do that. In fact, I'm becoming rather tired of the whole business. The next post will be George saying how "Bitter" I am. Betcha.

 

[George Hatch]

Me? Nah. No comment necessary.

 

[Tiffany Gibbons]

Me? Nah. No comment necessary.

Just the fact you were waiting....

 

[George Hatch]

One reason I've been able to run on my own for all these years is because I live/work one of the busiest RE markets in the world. If I lived in a much smaller RE market I would have had to make different choices. The downside is that it's expensive to live in this region, so I have paid for my compromises in other ways.

 

[Tiffany Gibbons]

One reason I've been able to run on my own for all these years is because I live/work one of the busiest RE markets in the world. If I lived in a much smaller RE market I would have had to make different choices. The downside is that it's expensive to live in this region, so I have paid for my compromises in other ways.

Same. Totally different market from where I earned my stripes so to say. I've worked Rural areas now where people saw me measuring a new house and ran up saying "OMG, are you an appraiser?! We can't find one anywhere. The VA is the only reason I'm not a true crime writer or a psychologist It is the only reason I'm still in appraisal. I love commercial work, but data sources are too cost prohibitive, (Hi Costar). Also, I LOVE research! I loved term papers, book reports, etc. and I love Architecture too. I will make it no matter what the scabs do. Viva la resistance! P.S. Relocation appraisal, ROW for DOT, estate, probate, tax appeals, divorce appraisal were all taught to me by various appraisers and mentors at the firms I worked at as a baby. AMCs destroyed that. I see questions on this forum now that I wouldn't have ever had to ask. A good mentor is key. PAREA is BS.

 

[Terrel L. Shields]

but at a point, you are taking income from young appraisers with families to supplement your boredom.

Really? I am the only CG left in the entire west half of this county and there are virtually no CGs in the 4 counties I cover in NE OK. And half the CRs do not want to leave the city limits to do a large rural property. I have people asking me not to quit. They will have to start paying double to entice someone from Tulsa or Fayetteville-Rogers to do a rural property.

Secondly, while I could survive retiring, certainly I'd have two choices - live very frugally or estimate when i would die and take out a large chunk of my retirement annually until the cash is gone. I want to leave my niece and nephews something of the old farm and enough cash to keep it going for a few years until the time is ripe to sell it. And they will be forced to sell sooner or later. You cannot farm on land that costs $20,000 an acre. As some point you have to move on.

No one wants to move up to the certified general license here. They want a form report for FNMA and the AMC to furnish the job because they are too introverted or lazy to do the hard work - selling themselves and their service to the general public and banks. So, am I really undercutting some youthful appraiser from making a living? I would say that they have to be in the same competitive market. Never mind my mineral work. I get calls for assignments in Texas, New Mexico, etc. because that field is completely scarce. But ordinary farm and land assignments? I was at a meeting Thursday and one of my appraiser friends is a poultry and farm appraiser. Stays busy but he is also working NE Oklahoma, the Arkansas River Valley, NE Arkansas, and even into Kentucky. Why? Because there are not very many people willing to do those kinds of assignments. There are niches. But no one wants to fill them because it's "too hard" compared to mortgage work.

 

[Tiffany Gibbons]

Really? I am the only CG left in the entire west half of this county and there are virtually no CGs in the 4 counties I cover in NE OK. And half the CRs do not want to leave the city limits to do a large rural property. I have people asking me not to quit. They will have to start paying double to entice someone from Tulsa or Fayetteville-Rogers to do a rural property.

Secondly, while I could survive retiring, certainly I'd have two choices - live very frugally or estimate when i would die and take out a large chunk of my retirement annually until the cash is gone. I want to leave my niece and nephews something of the old farm and enough cash to keep it going for a few years until the time is ripe to sell it. And they will be forced to sell sooner or later. You cannot farm on land that costs $20,000 an acre. As some point you have to move on.

No one wants to move up to the certified general license here. They want a form report for FNMA and the AMC to furnish the job because they are too introverted or lazy to do the hard work - selling themselves and their service to the general public and banks. So, am I really undercutting some youthful appraiser from making a living? I would say that they have to be in the same competitive market. Never mind my mineral work. I get calls for assignments in Texas, New Mexico, etc. because that field is completely scarce. But ordinary farm and land assignments? I was at a meeting Thursday and one of my appraiser friends is a poultry and farm appraiser. Stays busy but he is also working NE Oklahoma, the Arkansas River Valley, NE Arkansas, and even into Kentucky. Why? Because there are not very many people willing to do those kinds of assignments. There are niches. But no one wants to fill them because it's "too hard" compared to mortgage work.

I meant whoever is doing "Commercial Evaluations", not you, and it's a very different market where you are. I used to help our Arkansas appraiser out, but she mainly worked the West Memphis, Jonesboro areas just over the river. I wouldn't have a clue about the Oklahoma border area.

 

[Terrel L. Shields]

meant whoever is doing "Commercial Evaluations"

Evaluations are what they are and mostly they are used by most banks I know, for updating values when an ARM balloons. They were never used by the banks I worked for as origination.