Hybrid Appraisals

[TC]

When an appraiser inspects, they are doing more than rote measurements and photos - the appraiser is gathering personal observations and may also talk to owners and real estate agents on site, gathering impressions of the neighborhood and site, and if they drive the comps as part of the assignment, form an opinion about them as well.

Working from the notes and photos oa a third party is like reading teh list f ingredients and seeing a food photo vs the experience of tasting and eating the actual meal.

A nurse is under the supervision of the MD and a nurse needs their own license and months/years of training -just to take a BP or temp.

How long do you think it takes to teach someone that?

 

[glenn walker]

But now.....an unlicensed individual with just one online class, is inspecting most people's most valuable asset. Passing it off to the licensed, deskbound, non-inspector to figure out the discrepancies. Deeming the process more accurate and efficient.


That ship has sailed....

Few of us old timers had much training and myself luckily was a four year broker so I had MLS when most only had Cmdc but the so called mentor never taught me how to measure a house and in 1985 gave me a copy of his Cheat Sheet of adjustments and said call him if I had any questions.

Most were old semi retired guys who also did taxes and sold insurance or real estate. Looked like the crew of McCales Navy in jeans. The big sweat shop's didn't train they signed reports. A lot of myths about how the good old days operated.

 

[Surf Cat]

The one person do it right methods biggest flaw is he she has nobody working with them telling them maybe there's a better way of doing it.

I worked in a fee shop for a few years which had up to 15 appraisers all working in different locations.

Like DW's shop, there was a system of checking and evaluating each report prior to it being sent to the lender. An internal review of sorts. Everyone was certified/ licensed and didn't need a signature, it was just the chief appraisers' rule. His shop his way.

The new appraisers that came into the shop that perpetually continued their bad habits and refused to take constructive criticism....were told to move on. It was an excellent way to learn appraising.

 

[DWiley]

... mentor never taught me how to measure a house and in 1985 gave me a copy of his Cheat Sheet of adjustments and said call him if I had any questions.

.

The main residential appraiser where I started my career was not particularly happy when I came back from my SREA 101 and 102 courses insisting that we needed to have actual support for adjustments, effective age, economic life estimates, etc.

 

[alebrewer]

One interpretation of this is that the lender can authorize the appraisal firm to select the appraiser.

That's correct. All the groups I've worked with have determined that 'other third party authorized by the lender' applies to AMC's. But again - you're right that your interpretation could be used to justify that model. I've just never worked with someone who has.

 

[alebrewer]

I think a lot of compliance is just very conservative readings of the regulations, which needlessly complicates processes. RegZ is a great example. I think there it provides ample room to redisclose appraisal fees based on "new information," but many lenders are scared to so because compliance people take conservative interpretations out of fear.

I'd probably replace 'scared' with 'takes a risk mitigative approach'. Scared connotes some kind of fear - which I don't think is the motivation (generally). Otherwise, I don't disagree.

 

[glenn walker]

Let's have a come to Jesus type moment and that it's about money. If you got paid full fee to sit at your desk and just do the valuation portion and write up the report you would be all in .

Suddenly all the fretting about not driving to the property and walking around it with a disto and a rusty steel tape would disappear.

Once everyone gets honest it becomes easier to solve the problem. The pay scale for appraisers hasn't budged much in 25 years except the two years of Covid 19 where in my area guys were getting $650 to $800 plus to do 1004 Exteriors and suddenly the physical inspections and measuring didn't matter at all. In fact even the owners or realtors taking the photo's was fine to. That's when the light went off and I realized these appraisers were all bull****ting when they got on their moral high horses. IT WAS ALWAYS ABOUT THE FEE $$ not who inspected.

 

[glenn walker]

The main residential appraiser where I started my career was not particularly happy when I came back from my SREA 101 and 102 courses insisting that we needed to have actual support for adjustments, effective age, economic life estimates, etc.

He was a real appraiser but few found in the loan production mills.

 

[J Grant]

How long do you think it takes to teach someone that?

Teach who, what ?
Teach Nurses or appraisers or PDC collectors?

The point is not that it takes only X hours or days to teach a PDC collector to take a photo and use a measure app. The point is, when the appraiser inspects, they can get a different read on the property vs looking at a third party 's photos and notes. It's a different experience.

I often form a different opinion of a property ( and its site and neighborhood )after a personal inspection, even if online there were excellent interior photos, an overhead map, and public records data. The separation of the appraiser from a physical inspection means the appraiser is now less well informed than the RE agent or borrower , both of whom usually tour and inspect the property - it makes it harder to defend a value IMO.

 

[TC]

Let's have a come to Jesus type moment and that it's about money. If you got paid full fee to sit at your desk and just do the valuation portion and write up the report you would be all in .

Suddenly all the fretting about not driving to the property and walking around it with a disto and a rusty steel tape would disappear.

Once everyone gets honest it becomes easier to solve the problem. The pay scale for appraisers hasn't budged much in 25 years except the two years of Covid 19 where in my area guys were getting $650 to $800 plus to do 1004 Exteriors and suddenly the physical inspections and measuring didn't matter at all. In fact even the owners or realtors taking the photo's was fine to. That's when the light went off and I realized these appraisers were all bull****ting when they got on their moral high horses. IT WAS ALWAYS ABOUT THE FEE $$ not who inspected.

Triple play!