I am not doing the 3.6 FORM deal

[Sadie]

My best client is a mortgage broker. He still emails me a one page engagement form like it’s still 2005. It’s glorious. Checks always clear. Can’t beat it. I feel bad for the new generation that doesn’t know what this profession could be. They’re just stuck in purgatory that we were put in.

It would be cool if a tech bro charges $75 a report and an AMC pays $75 a report. Then you’ll be working for free.

At least he isn't faxing it to you.

 

[Sadie]

There are a whole lot of people hoping to profit by offering a solution to solve a non-problem for appraisers ( filling in the data). There already exists a plethora of these programs-( Spark ec) or we can choose to maintain more control and do it ourselves.

The tech bros fail to get it. Data extraction/entry, promising to save X minutes per report, will not increase fees nor increase volume, both of which are the main problems facing appraisers. And it will do nothing to relieve the real burden, which is getting hard to find information, finding the right comps, and solving the inevitable weird issue that pops up- then later, addressing a stressful and time-consuming ROV or other post-report delivery challenge.

The guy from what used to be Appraise It said the doing the ipad thing in the field will be a big time saver. Although I do take what he said with a grain of salt based on a couple of statements he made during the webinar. But I went out and bought my first Ipad. So far I have charged it up. The learning curve will be steep.

 

[Alsie35]

DEAR 'UAD 3.6 ABOMINATION FORM' THREAD:

 

[Sadie]

No longer my circus or monkeys, but an observation: If we have to provide the age of roof, appliances, flooring, washers in the faucets, and electrical tape in the junction boxes, what happens when we are wrong? Seems like this opens up a slew of potential lawsuits, especially for big ticket items like a roof.

I don't know about y'all, but I can't tell the age of a C3 roof by looking at it FROM THE GROUND. So it seems our options are:

1) Essentially become home inspectors to have the knowledge to really opine on ages including crawling into crawlspaces and attics and up onto roofs as well.
2) Trust the homeowner who says "oh the roof was replaced 3 years ago (they meant the shed roof)--lawsuit city here.
3) Make homeowner prove age with receipts. (I couldn't do that for many things on my house.)

I don't see any of those 3 being viable options in reality. How will appraisers handle this when the lawsuits start coming in?

Don't you already have a some sort of disclaimer in your reports that says the appraisal is not a home inspection?

 

[Justinjla]

Yep, but as I understand it - only on value. The lender is still responsible for the accuracy and completeness of the property data. I defer to the experts for confirmation of that.

No, it's full R&W on Value Acceptance. There's not property data delivered by the lender on a Value Acceptance loan.

For Value Acceptance + Property Data, we offer R&W on value only. Lenders are responsible for accuracy and completeness of the property data collection and ensuring the property is eligible for delivery to Fannie Mae.

 

[J Grant]

No, it's full R&W on Value Acceptance. There's not property data delivered by the lender on a Value Acceptance loan.

For Value Acceptance + Property Data, we offer R&W on value only. Lenders are responsible for accuracy and completeness of the property data collection and ensuring the property is eligible for delivery to Fannie Mae.

Can I ask again, what exactly does this mean? Does it mean that Fannie will buy back/repurchase a loan if there are valuation issues in the Value Acceptance program?

It sounds above like you are offering R & W for the lender. Which means they, the lender, do not have to buy back/ repurchase. But what about Fannie itself?

 

[Bobby Bucks]

I have heard they are working on it. Because we will all jump ship to the first appraisal software company that has that.

Good point, without a doubt whoever builds the best mousetrap will get all the business and it appears we are the unfortunate mice. My fear is the plotting and scheming going on to favor one software company with the aim to have a virtual monopoly not only with the software, but the gadgets that go with it. If we only have one choice, the software fees, upload fees, tablet cost and fees will have no ceiling. Plus the amount of control they’ll have. With Fannie’s history of corruption at the corporate level, I’m not optimistic about what decisions will be made that will make our jobs costlier and more difficult.

 

[Essexfenwick]

Good point, without a doubt whoever builds the best mousetrap will get all the business and it appears we are the unfortunate mice. My fear is the plotting and scheming going on to favor one software company with the aim to have a virtual monopoly not only with the software, but the gadgets that go with it. If we only have one choice, the software fees, upload fees, tablet cost and fees will have no ceiling. Plus the amount of control they’ll have. With Fannie’s history of corruption at the corporate level, I’m not optimistic about what decisions will be made that will make our jobs costlier and more difficult.

The goal is to make appraisers look bad.

Too slow
Too expensive
Not data driven
Too inconsistent

They can gather data until we get it faster and cheaper from listing brokers / Joe blow desperate job seeker.

 

[J Grant]

The guy from what used to be Appraise It said the doing the ipad thing in the field will be a big time saver. Although I do take what he said with a grain of salt based on a couple of statements he made during the webinar. But I went out and bought my first Ipad. So far I have charged it up. The learning curve will be steep.

Let me know if it is an actual time saver! thanks

 

[shrubberyvaluation]

Fair enough. If we're using hyperbole to demonstrate our position(s) though, do we want to introduce the fact that it is VERY common, when procuring two appraisals, for those two values to be markedly diverse? To the tune of 15-20%? What about the fact that folks still use $20/foot for GLA adjustments and $10k for pool adjustments? What about the fact that folks use the 'market trend' tools without having a clue what they're doing? I mean - we could go on ad nauseum... if we're using hyperbole to defend our positions...

Like any other profession you have those that are better, or care more, or do a more thorough job (and vice versa). My position is that it can vary which is better. If an educated user like a lender is using an appraiser doing $10/foot for GLA adjustments for all appraisals that is their fault too.

I can see 15-20% for oddball properties, higher end properties, or with limited market data, (at least for residential), but for most there is probably one that is more supported. The trend is wanting that guy with a book of adjustments who will slap something together in 30 minutes who will do it for pennies and then complain that its not worth the paper its printed on.