Adjustment Software

[Terrel L. Shields]

I am appraising a small cafe. Comps are 1900-2100 SF. Subject is 2,300 SF. Cannot bracket it unless I want to go to Tulsa. All sold for less than the subject is under contract for...by a wide margin. Again, no bracketing.

It has less potential traffic than 2 of my comps...one of which sold for only $130,000. In reality, the income approach is the only feasible way to value the property. But I am still waiting on 2 agents to reply. One of the agents actually is a family member of the owners. I know she has the info. The other is also supposed to know all the scoop but the agent I talked to didn't. These are recent sales (both in September) and the best 2 comps.

I am doing 3 separate methods of income (cap rate, net income multiplier, gross income multipler) and without these two sales, I am basically having to estimate rents from other rented cafes. Very weak methods. And they wonder why it takes 2 weeks to do a commercial report.

No kickbacks.

I bet someone from somewhere in that company did a presentation to FNMA selling them on the idea and FNMA did not simply cold call Aloft.

 

[NC Appraising]

I am appraising a small cafe. Comps are 1900-2100 SF. Subject is 2,300 SF. Cannot bracket it unless I want to go to Tulsa. All sold for less than the subject is under contract for...by a wide margin. Again, no bracketing.

It has less potential traffic than 2 of my comps...one of which sold for only $130,000. In reality, the income approach is the only feasible way to value the property. But I am still waiting on 2 agents to reply. One of the agents actually is a family member of the owners. I know she has the info. The other is also supposed to know all the scoop but the agent I talked to didn't. These are recent sales (both in September) and the best 2 comps.

I am doing 3 separate methods of income (cap rate, net income multiplier, gross income multipler) and without these two sales, I am basically having to estimate rents from other rented cafes. Very weak methods. And they wonder why it takes 2 weeks to do a commercial report.


I bet someone from somewhere in that company did a presentation to FNMA selling them on the idea and FNMA did not simply cold call Aloft.

What I see is a start up that is trying to f us.

 

[Surf Cat]

I am still waiting on 2 agents to reply. One of the agents actually is a family member of the owners. I know she has the info.

They're cooking the books.... Wha Whaaaa

 

[TerryRohrer]

Aloft executives:
Hansel previously held positions at Consolidated Analytics, Radian and Bank of America.
Heather is an AQB Certified USPAP Instructor and plays a pivotal role in shaping industry standards as a member of The Appraisal Foundation's Appraisal Standards Board.

 

[Mejappz]

Heather is an AQB Certified USPAP Instructor and plays a pivotal role in shaping industry standards as a member of The Appraisal Foundation's Appraisal Standards Board.

That summarizes the situation: An incompetent seller from 15th Street is providing software that fails to create accurate adjustment rates with Fannie's support.

 

[NC Appraising]

Connect the dots....
Get rid of/ lower education requirements
PAREA
National appraisal firms and AMCs staffing up
National MLS..some say it will be zillow google it compass
Hybrid reports
Certified in multiple states
Cubi casa

 

[Sadie]

I usually state what the adjustment was based on, because first you have to decide if an adjustment is warranted. So far that seem to have worked. (fingers crossed).

 

[djd09]

dont worry too much about adjustments...like in 2006 there was no way to analyze fraud...in 2024 there is no way to analyze waivers

 

[Essexfenwick]

Connect the dots....
Get rid of/ lower education requirements
PAREA
National appraisal firms and AMCs staffing up
National MLS..some say it will be zillow google it compass
Hybrid reports
Certified in multiple states
Cubi casa

Except there’s no business volume. They are understaffed. Then it blows up and they can’t handle it. Then the customers hate them. So they staff up heavily and win back the customers … then the business stops again and they fire everybody.

This has always been the issue or it would have happened a long time ago.

Their 20 million in venture capital is a good bit less than the rinky dink Appraisal institute annual income.

1) the business is like an accordion

2) the money in appraisal in miniscule on the corporate level.

3) it frustrates the control freaks to no end.

 

[NC Appraising]

Except there’s no business volume. They are understaffed. Then it blows up and they can’t handle it. Then the customers hate them. So they staff up heavily and win back the customers … then the business stops again and they fire everybody.

This has always been the issue or it would have happened a long time ago.

Their 20 million in venture capital is a good bit less than the rinky dink Appraisal institute annual income.

1) the business is like an accordion

2) the money in appraisal in miniscule on the corporate level.

3) it frustrates the control freaks to no end.

Where is the overhead?

Most staff appraisers work remotely out of their homes. So they can just hire and fire at will.

Business is down, but I still get emails from national firms and AMCs wanting to hire staff appraisers. This means they have the capital to ride this out until business picks up. This also tells me the amount of pdrs and hybrids are taking place.

90% of my work is FHA.....conventional work is almost nonexistent.