If the DSA controlled a majority in Congress ..... (appraisal related)

[Surf Cat]

I'll bet they read and speak english and are legal

That doesn't matter.....they were cheap.

It's lenders utilizing non-licensed, uninsured personnel to go inspect residential dwellings instead of licensed appraisers. They're cheaper.... the laws, the loopholes let them do this legally.

 

[Zoe]

That doesn't matter.....they were cheap.

It's lenders utilizing non-licensed, uninsured personnel to go inspect residential dwellings instead of licensed appraisers. They're cheaper.... the laws, the loopholes let them do this legally.

A $750 APPRAISAL fee on a 30 year mortgage is $2 a month. A $1,000 appraisal fee on a 30 year mortgage is $2.78 a month. $1,000/360 = $2.78. Not much to pay to protect the people that got bailed out and public trust.

 

[meatsandbounds]

If the DSA controlled a majority in Congress, what effect do you think that would have on appraisal requirements at the federal agencies, state appraisal boards, GSEs and the lenders?

Asking for a friend

Sidestepping all of the culture-war bs this question has raised in this thread, I thought it prudent to look at the goals of the main DSA platform and what they specifically say about housing, and then extrapolating my thoughts on this thought experiment from there:

On the official DSA website, there are a few things that stand out to me of their goals and how it pertains to working (by extension, working as an appraiser), and how their goals pertain to housing.

In regards to working, they seem to champion the idea of “control your own labor” and that a job doesn’t have to just be something to “pay the bills”, which points towards not a push for no one to work, but that working is the choice of the person doing it. Those of us who are independent appraisers should understand that by working for ourselves we own the means of production in our business, so more DSA candidates don’t stop me from pursuing a job I love, which still happens to be Appraising.

Now to housing specifically. The DSA platform sees housing as a human right, but notice it doesn’t say houses. Now, how their goals pertain to the building of new publicly owned housing would effect markets is a valid question; Yet their goals pertaining to restricting investment properties is already so popular an idea that our congress just passed a bipartisan housing law that regulates institutional investors. Perhaps their goal of rent control would be an issue to doing rent schedules and such, but perhaps we push these DSA candidates to legislate data availability for appraisers to have more accurate rental data. Additionally, the stated goal of “Finishing Reconstruction” would pose interesting value questions of remediating value in redlined and historically disadvantaged communities, but nothing that our training in real estate data analysis couldn’t latch onto.

On the whole, I don’t see any DSA candidates or platforms coming for appraisers specifically, but they could change the landscape of our profession. That being said, the profession is already changing and most of you aren’t going to be working long enough to see any of these what ifs come to fruition, so like anything else if you expect to last in this business, be willing to roll with the punches and find your footing. Private appraisals will still be a thing. Institutional investors will still need value. Someone is still gonna need real estate data analysis that we are trained to provide. The work may not look the same, but value will still need to be found, even if the end user’s definition of value is not based solely in the capitalistic definition.

 

[meatsandbounds]

An interesting what if is that if the use of sales comparison ceases to exist due to a more highly regulated market that kills the traditional “free market value”, would that push us towards using the cost approach as the more “accurate” appraisal method?

Or is that a dumb extrapolation? Willing to be wrong, but trying to follow this idea to its logical end, within the framework of what we already do as appraisers.

 

[TerryRohrer]

An interesting what if is that if the use of sales comparison ceases to exist due to a more highly regulated market that kills the traditional “free market value”, would that push us towards using the cost approach as the more “accurate” appraisal method?

Or is that a dumb extrapolation? Willing to be wrong, but trying to follow this idea to its logical end, within the framework of what we already do as appraisers.

That was the suggestion of the social justice warriors who led the charge to brand all appraisers as racist and biased. They proposed estimating the replacement cost and deducting some amount to reflect loss in value due to physical depreciation, intentionally eliminating loss in value due to external obsolescence. Without sales, there is no way to estimate market value as we know it. Even now, the market is so heavily influenced by government policy (foreclosure moratoriums, eviction moratoriums, rent controls, FED-influenced mortgage rates, FHFA blessed waivers by the GSEs, VA and FHA financing, etc) that "market value" is already a fantasy.

 

[J Grant]

An interesting what if is that if the use of sales comparison ceases to exist due to a more highly regulated market that kills the traditional “free market value”, would that push us towards using the cost approach as the more “accurate” appraisal method?

Or is that a dumb extrapolation? Willing to be wrong, but trying to follow this idea to its logical end, within the framework of what we already do as appraisers.

All of this assumes a bank would be willing to lend on the alternate types of value or other means of support such as cost. Why would a bank do so, if the asset could be vastly overvalued and the bank is stuck with the loan? If American taxpayers are on the hook for it, absorbing too many REO properties would drive interest rates up.

This is the problem the advocates for equitable value ran into. and why the DEI advocates for alt values could not gather enough support to make it happen.

 

[IlliniApp]

Appraisals wouldn't be needed; everyone would get a free house.

 

[TC]

I'd take it.

 

[Carnivore]

Islam isn’t democratic socialism, but it does have a strong built‑in social‑welfare system.**
> Islamic teaching requires things like *zakat* (mandatory charity), *sadaqah* (voluntary charity), and *waqf* (public charitable endowments). Historically, these funded food distribution, hospitals, schools, and support for the poor.
>
> The key difference is **Islam’s welfare comes from religious duty**, not government ideology. Democratic socialism is a political system where the state redistributes wealth; Islam is a moral system where the *community* is obligated to care for the vulnerable.
>
> So the outcomes can look similar — social safety nets, help for the poor, limits on exploitation — but they come from completely different foundations.


Kinda Makes me think of Mayor Mandani'

Do you know his education and where his family lived,

Here is a clue. Mandani can never be President of the United States under the current constitution

 

[George Hatch]

The same people who object to the politicized Christianity should object to politicized Islam.

And if we're making comparisons between the DSA and any other groups we shouldn't lose sight of a modern society which includes communes which have actually survived and thrived. On the voluntary basis, not as a function of state coercion.