3.6 Crunch Time

[Vermonter]

Sounds like you Rural guys and gals are in the driver's seat fee wise.

We've always been in the drivers seat.

 

[Airstream]

Per AI:

Heavy AI-powered report-filling tools like Aivre, ValueMate, and Automax cannot reliably complete rural real estate appraisals on their own. While these platforms accelerate standard residential workflows by auto-filling data from public records, MLS, and photos, rural properties feature unique traits—such as large acreage, specialized agricultural zoning, and scarce comparable sales—that require hands-on human analysis and localized market judgment.

Sounds like you Rural guys and gals are in the driver's seat fee wise.

Yep. I got asked by a lender to go to an area and I said my minimum fee is 2500. They didn't blink an eye. I do this part time now. Hard to turn down that kind of fee. And the 2 appraisers that work there now and I know well have enough private work they aren't going to do lender work. Could get interesting.

 

[Surf Cat]

We've always been in the drivers seat.

I get kicked in the nuts like an Uber driver residential wise in my area here in SoCal.

As a matter of fact, Uber drivers might be more respected than licensed appraisers because you get a ride....

 

[Airstream]

I get kicked in the nuts like an Uber driver residential wise in my area here in SoCal.

As a matter of fact, Uber drivers might be more respected than licensed appraisers because you get a ride....

I wouldn't want to do appraisals in SoCal. Too many zoning and building permit issues. The only time we have major zoning issues on the rural homes I do is for waterfront properties. Just did one waterfront inspection that had so many zoning issues the lender canceled it. But that is very very rare. In many of the areas I do appraisals there is no zoning at all!!

 

[Surf Cat]

I wouldn't want to do appraisals in SoCal. Too many zoning and building permit issues.

Lots of red tape that's for sure...that's why I believe there's so many non-permitted ADUs out here. The homeowners go into the planning departments and they're just overwhelmed with everything they have to do. So, they go rogue. All kinds of contractors out here will go under the table and convert the garage...no problem.

I observe and report and look out for #1....me.

 

[J Grant]

Per AI:

Heavy AI-powered report-filling tools like Aivre, ValueMate, and Automax cannot reliably complete rural real estate appraisals on their own. While these platforms accelerate standard residential workflows by auto-filling data from public records, MLS, and photos, rural properties feature unique traits—such as large acreage, specialized agricultural zoning, and scarce comparable sales—that require hands-on human analysis and localized market judgment.

Sounds like you Rural guys and gals are in the driver's seat fee wise.

Appraisers are supposed to use hands-on human analysis and localized market judgment on non-rural properties as well. Whether one uses AI or not.

AI can autofill, but so can a data source with Wintotal. Just saying.

 

[alebrewer]

We are the only independent third party ensuring that everybody with a vested interest in the deal closing at a certain loan amount, don't get the last word.

The relevant question is, does it matter? Unless the loan defaults, it doesn't matter if they base it off of the purchase price or the appraised value. No default, no risk.

 

[Vermonter]

The relevant question is, does it matter? Unless the loan defaults, it doesn't matter if they base it off of the purchase price or the appraised value. No default, no risk.

Not to mention as AI lowers risk in other areas of the lending pipeline, the accuracy of the value of collateral becomes less important. It just has to be "good enough"

 

[glenn walker]

The relevant question is, does it matter? Unless the loan defaults, it doesn't matter if they base it off of the purchase price or the appraised value. No default, no risk.

The problem is appraisers think the risk in terms of loan amounts as the loss when in reality after foreclosure there is usually a 10%-15% loss or less. In CA over last 10 years many sold at trustee sales at over the loan balances. The loan amount isn't the risk unless your in a major National crash. The values just need to be within a range in the portfolio and 95% plus of the time the sale's price is just fine and that's why most of the purchase appraisals hit the bulls eye. Lol )

 

[Airstream]

The problem is appraisers think the risk in terms of loan amounts as the loss when in reality after foreclosure there is usually a 10%-15% loss or less. In CA over last 10 years many sold at trustee sales at over the loan balances. The loan amount isn't the risk unless your in a major National crash. The values just need to be within a range in the portfolio and 95% plus of the time the sale's price is just fine and that's why most of the purchase appraisals hit the bulls eye. Lol )

There are still people out there that are willing to massively over pay mostly due to ignorance. I had two of those in the last month. One was going to pay 80,000 more for the land than what it was worth and build a house on it. That got nixed. Then had another one where the people were going to massively over pay on a house and then put 70,000 into it. That came up about 50,000 short. They were essentially going to pay 180,000 for a piece of junk. The realtor called me up and asked me what I thought the house was worth. I said well you should be able to figure that one out. It sold for 100,000 2 or 3 years ago. What has been the appreciation on the property based upon the market? That house started back on the market at 150,000. It has now dropped to 125,000. Still hasn't sold. What I am trying to say is we can prevent someone from making a huge mistake. If the bank just rubber stamps a loan, that never comes out.