3.6 Crunch Time

[autobot]

The bottom line is you don’t have to have receipts. No one is going to keep them for 10 years. And if it is a resale to the present owners the present owners may have zero idea. This is where the appraiser will look and given a general analysis. But it is good to know what has been done and when it was done.

I watched the video and my reaction was is this guy is a bit blowing smoke. Some of the things he says are true, but some are a bit exaggerated. For example, the agent being there. That’s fine, but not necessary if there is a list. And I don’t mind having the agent give me their sales comps (if they are good). In fact I often ask agents for their comps ESPECIALLY if it is an odd ball property. AND I WOULD NEVER take these stupid scanning programs with any credibility. They are crap and highly inaccurate.

So it sounds like the big "every possible situation" example provided by Freddie is kinda lacking, in that may example clearly said "just remodeled" but no dropdowns for details.

Also, "Upgraded" seems like poor choice of terms.
1)How does the Appraiser know what was there before. lol. Seriously, I've seen jobs where the old "classic" stuff was being removed and kept by the Seller, and replaced with fairly good but "builder grade" units.
2)"Upgraded" is a pretty meaningless term, and provides zero real info.
Unless they have receipts or are told, I doubt an Appraiser could know if its been "less than a year" or a few years, once the new-paint smell goes away. Its the miles not the years.

I always tell homeowners to keep all receipts for stuff like Home Depot's code for style of molding and digits of what their paint-match computer came up with, and exactly what brand and serial # of caulk, etc, and pass them on to new owners.

What stupid scanning programs? AMVs? I'm thinking AMVs driven by AI will become the authority due to the vast amounts of data they can use. AI AMV wont just use that neighborhood's data, but will look at a few million similar situations across at least the whole USA. Its not just that a new school affected prices in that locality, its what has happened in other 'hoods when that happens over the last few decades, and what will likely happen for that house in the next decade.

 

[Tom D]

Fannie has had every appraisal saved for the last 30 years, over and over again. I think their avm can get a somewhat accurate GLA, non GLA, and lot size accurate. Those are factuals. What i don't think the avm can get is, especially in my big urban, is neighborhood boundries, were 1 street over, the value are very different.

I also believe that once fraudsters figure out how avm & waivers work, we will see more badly done houses sold with the wrong higher values. At some % of fraud values, the circle will come back to having the appraiser do them more. But we will get pretty thin before that happens.

 

[Essexfenwick]

Question ..

What's MORE valuable to the GSEs?

A) the appraisal

B) the data.

 

[alebrewer]

The accuracy of an appraisal is measured by how credibly it developed and supported a market value opinion.

And how, pray tell, is that accompished?

 

[J Grant]

And how, pray tell, is that accompished?

By reviewing the data and how well the comp selection, adjustments, and other aspects of the appraisal were developed.

You have been an appraiser for x years - if you have no idea how to tell a credibly supported MVO from a poorly supported MVO in an appraisal, how do you function in your job?

 

[alebrewer]

By reviewing the data and how well the comp selection, adjustments, and other aspects of the appraisal were developed.

You have been an appraiser for x years - if you have no idea how to tell a credibly supported MVO from a poorly supported MVO in an appraisal, how do you function in your job?

You fake it, of course.

That aside, how do you measure the credibility of the Opinion of Market Value in an appraisal?

 

[J Grant]

You fake it, of course.

That aside, how do you measure the credibility of the Opinion of Market Value in an appraisal?

I am sorry; this is basic appraisal fundamentals. Go back to school if you honestly have no idea! Or you can pay me (or an appraiser of your choice who has done X number of field reviews ) to tutoring.

Have you been faking it all these years? You truly have no idea how to measure the credibility of an OMV in an appraisal...including your own appraisals?

 

[alebrewer]

I am sorry; this is basic appraisal fundamentals. Go back to school if you honestly have no idea! Or you can pay me (or an appraiser of your choice who has done X number of field reviews ) to tutoring.

Have you been faking it all these years? You truly have no idea how to measure the credibility of an OMV in an appraisal?

Nastiness aside, it's a simple question: how do you measure the credibility of an opinion of value? The term 'measure' invokes some standard against which you 'measure' something. In this case, what you're measuring is the credibility of an opinion of value. What standard do you use to gage how credible that opinion is/was?

 

[J Grant]

Nastiness aside, it's a simple question: how do you measure the credibility of an opinion of value? The term 'measure' invokes some standard against which you 'measure' something. In this case, what you're measuring is the credibility of an opinion of value. What standard do you use to gage how credible that opinion is/was?

Not trying to be nasty....just floored that you apparently have no idea.

Or you do, and want to debate....for debate's sake, which I do not have time for, since it is not a simple question - it is the question people are supposed to have answered for themselves after spending 2 years or more with a mentor, studying appraisal methodology to get competence, and, for regulated work, be licensed.

 

[J Grant]

In case you are actually serious about this... a brief answer: did the appraiser select comps that are the most similar to the subject, or did they ignore those and cherry-pick other sales to hit a value - or were they just clueless and included less similar sales? In the near future, the clueless will let AI pick random comps. The number hitters will dazzle with AI-written narrative and slick charts.

Did the adjustments make sense according to the data showing what buyers pay or penalize extracted for contributory value key value items? Those are the big two for res credible support, though other tests to measure credibility exist, and how relevant they are to an assignment comes into play.