3.6 Crunch Time

[Airstream]

I had my own real estate brokerage in WI for over 20 years and sold a BUNCH of duplexes, which are plentiful in the Milwaukee area. I'm sure getting a start in an owner-occupied duplex helped a BUNCH of my clients get a good start in homeownership. the fact that you are mentioning twin homes now reflects the benefits to the community, to contractors, and to renter/owners who can make their ownership more affordable. There are just a few builders building like that out here, and people MARVEL at what a good idea it is! New homes near me are typically in the $600s-$700s, and what young family can afford that? But if there is a built in subsidy (ie tenant in a portion of that big house), suddenly people CAN realize their goal of home ownership. And that style is conducive to taking over the entire house if their family grows or they become more financially secure, and also is a great idea for downsizing without leaving "home". Who ever though it up out here was ACES in my book. Typically, builders show that additional space with its own private entrance, noting the rooms as larger rec room with kitchenette, bathroom & bedroom, with hallway and connecting door to the main 2-story residence. All the space is GLA, and still is zoned and shown as SFR here, which solves a bunch of other problems, since SoCAL hasn't been particularly duplex friendly in the newer developing areas. Some towns have NO duplex zoning in the entire town! But these 'multigenerational' houses will work.

New 1800sf twin home 3 BR 2Bath 2 car garage (no basement on slab) selling for 300,000. And they are pretty nice for first time homebuyers. Not a fan of slabs, but young people can deal with it better.

 

[OSU Beavers]

Give it up. That's such a warn out cliche.

 

[Non Sequitur]

This article is why I am an OPEP customer; They support and advocate for boots on the ground appraisers (bolding mine):

Nobody is Ready for UAD 3.6

> The Appraiser Coach> AMC Guide> OREP E&O ★★★★★“They are knowledgeable, professional, and understand urgency.” – Joe Thweatt Nobody is Ready for UAD 3.6 by Isaac Peck, Publisher I just got back from Valuation Expo, the nation’s largest and most dynamic conference for real estate appraisers and...

www.workingre.com

"When asked how UAD 3.6 was going at Val Expo, several Rocket Mortgage staff said they had ordered only six appraisals so far in the new format. Given that Rocket Mortgage originates roughly six percent to seven percent of all residential mortgages in the United States, their readiness two months out is indicative of industry readiness at large."

"For appraisers, one risk in all this is that the industry’s lack of readiness becomes the appraiser’s problem. When a report won’t transmit, when a field won’t populate, when a revision request comes back three times because the AMC’s system can’t read the file correctly—it is the appraiser who eats the turn-time and, often, the fee.

An appraisal software executive shared with me privately that he fears appraisers may be (wrongly) blamed if the rollout goes poorly and the market is disrupted. It would be easy to sell a narrative that “appraisers weren’t ready,” or that appraisers can’t handle the new report format. Such a view clearly misses the point. After all, appraisers don’t control the development of the software, nor do they control when UAD 3.6 reports start getting ordered, to Reuter’s point.

The practical takeaway for the boots-on-the-ground appraiser: The next 30 days are a crucial window to practice with UAD 3.6 assignments, find a software vendor that will actually work with you and revisit whether your current fees reflect what a 3.6 report actually takes—at least if you wanted to do that before the report format is mandatory."

Thank you, Mr. Peck.

 

[chad hampton]

I dont understand how software gets approved until it’s working correctly 99% plus of the time. What other profession is forced to use software that doesn’t function turn a living?

I don’t really care if they extend the due date or not, I’m more concerned with if this software will ever function correctly. I don’t know **** about computers, but it shouldn’t be so complicated to get an opinion of value on a report and send it into a lender.

 

[Sadie]

I dont understand how software gets approved until it’s working correctly 99% plus of the time. What other profession is forced to use software that doesn’t function turn a living?

I don’t really care if they extend the due date or not, I’m more concerned with if this software will ever function correctly. I don’t know **** about computers, but it shouldn’t be so complicated to get an opinion of value on a report and send it into a lender.

I think that the 'approval' from the GSEs was simply to make sure the software had all of the requirement they want available in the 'form'. Making it work is up to the companies.

 

[Jason Hill]

I feel sorry for all those appraisers who were good boys and girls and spent hours getting ready for UAD 3.6. Time wasted. This ain't happening. At least not any time soon.

 

[Airstream]

This article is why I am an OPEP customer; They support and advocate for boots on the ground appraisers (bolding mine):

Nobody is Ready for UAD 3.6

> The Appraiser Coach> AMC Guide> OREP E&O ★★★★★“They are knowledgeable, professional, and understand urgency.” – Joe Thweatt Nobody is Ready for UAD 3.6 by Isaac Peck, Publisher I just got back from Valuation Expo, the nation’s largest and most dynamic conference for real estate appraisers and...

www.workingre.com

"When asked how UAD 3.6 was going at Val Expo, several Rocket Mortgage staff said they had ordered only six appraisals so far in the new format. Given that Rocket Mortgage originates roughly six percent to seven percent of all residential mortgages in the United States, their readiness two months out is indicative of industry readiness at large."

"For appraisers, one risk in all this is that the industry’s lack of readiness becomes the appraiser’s problem. When a report won’t transmit, when a field won’t populate, when a revision request comes back three times because the AMC’s system can’t read the file correctly—it is the appraiser who eats the turn-time and, often, the fee.

An appraisal software executive shared with me privately that he fears appraisers may be (wrongly) blamed if the rollout goes poorly and the market is disrupted. It would be easy to sell a narrative that “appraisers weren’t ready,” or that appraisers can’t handle the new report format. Such a view clearly misses the point. After all, appraisers don’t control the development of the software, nor do they control when UAD 3.6 reports start getting ordered, to Reuter’s point.

The practical takeaway for the boots-on-the-ground appraiser: The next 30 days are a crucial window to practice with UAD 3.6 assignments, find a software vendor that will actually work with you and revisit whether your current fees reflect what a 3.6 report actually takes—at least if you wanted to do that before the report format is mandatory."

Thank you, Mr. Peck.

"find a software vendor that will actually work with you."

Easier said than done. There aren't many choices.

I have to renew my software in the next few weeks. So really if I were to evaluate software I only have 2 weeks.

I will stick with Total for now. But I may choose to say I will not do any 3.6 until I feel satisfied with the software; that it can do what needs to be done. I think Total will get its act together at some point. But I can afford to do that since I am 71 and basically retired. I will take a wait and see approach.

 

[Non Sequitur]

Man, if this doesn’t describe the last couple of months nothing does:

 

[Airstream]

On a positive note (relatively). An appraiser friend of mine that works in the Twin Cities Metro area has done about 5 or 6 (I can’t remember if 5 or 6) 3.6 reports. He uses Total which I do as well. I asked him yesterday how it was going. He said after getting a template down it takes about 15 minutes longer to do the inspection, and about 45 minutes longer to do the reports. He did say he is going to try and do the photo approach with the new Total Mobile App. From his response I think the photo issues are causing much of the time issues. Whether that total time would decline when using a Mobile App I am not sure. But my gut says it would. Having said that the smart adjust feature on Wintotal is not available yet. That to me is critical for time saving and ease of use.

I also talked a reviewer from Chase the other day (working on appraisal for Chase). He said the feedback he is getting is the first few are brutal. But after doing a handful things do get better and that generally speaking it is taking about 1 hour longer once one gets familiarity. So that is kind of in line with what my friend stated.

The upshot: Those first few are going to be brutal. It does get some better. But figure 1 hour longer. Charge accordingly.

 

[chad hampton]

I hope it takes forever. We’ve been told for the last eight years that appraisers charge by the hour with hybrid appraisals. So I guess that applies here as well.