Any appraisers here specialize in same day turn time appraisals?

[MMing5000]

Now that appraisal work volume has slowed significantly from last year, review work is increasing. I have come across reviewing several appraisal reports that have same-day turn time, in other words, inspect today, complete the report today, and deliver to the lenders today. Needless to say, the appraisal assignments were most likely awarded to the lowest fee appraiser with the fastest turn time, where the Lender can easily afford to send the cheap appraisal out for a review.

Refinancing work is pretty much close to dead, where most of the review work are for purchase transactions, but the market is still going strong in terms of property values even though sales volume have declined, where analysis are needed in order to make appropriate market timing adjustments to justify value than the last sale.

Those sloppy "5-minute" appraisal jobs really hurt the appraisal profession. If i am the property buyer, i would value toilet paper more than the thick 35-45 page appraisal reports that i have been reviewing. At this point, we can't blame the AMCs for low balling the appraisal fees because it is the appraisers who are undercutting the fees in order to get the work, or starve.

I can only think of one person to give credit to, for those "5-minute" appraisal jobs, he considers himself a coach and brags in his Youtube videos on how he can complete an appraisal in 4 hours. Unless it is an apartment condo that an appraiser has just done one in the same project last month, i just don't see how anyone can spit out a credible appraisal report.

All the appraisal reports i have reviewed recently all came in at the purchase price, but the report lacks credibility when there are so many minor errors such as a high-rise condo building having masonite wood siding and composition roof shingles. And because sales volume have slowed significantly, many appraisers use the verbiage that the comps provided are the best available in order to justify using a 3-bedroom apartment to value a 2-bedroom apartment unit due to lack of recent sales within the past 90 days as required by the lenders.

The Lenders seem to love these reports for 3 reasons: 1) cheap appraisal fee with fast turn time, 2) value is never an issue, 3) these cheap appraisals are fluffy 45-page reports filled with superfluous info such as the history and nuances of the neighborhood that has nothing to do with supporting the appraisal value, but is thick and impressive to "justify value", that has no substance at all.

No matter how sloppy and careless the appraisal, the value is supportable, but not within the report. It is very time consuming and becoming not feasible to do review work if the reviewer must re-write the report to justify and support the value in the report.

 

[alebrewer]

Is your issue with folks who are capable of providing speedy services, or with the quality of those services? In your reviews, have you noticed a significant difference in quality between '5 minute appraisals' and 'insert your idea of how long it should take here' appraisals?

 

[J Grant]

How do you know they were done as same-day turn times?

BTW I don't do turn time same day - typical for me is 3 days after inspect. As a reviewer, how can you tell? The credibility of the appraisal is what we review, whether it was turned in the same day or 3 weeks later is not relevant

 

[alebrewer]

How do you know they were done as same-day turn times?

BTW I don't do turn time same day - typical for me is 3 days after inspect. As a reviewer, how can you tell? The credibility of the appraisal is what we review, whether it was turned in the same day or 3 weeks later is not relevant

The way you tell is that the effective date is the same date as the report date.

 

[Terrel L. Shields]

They cannot consistently do credible work with one-day turn times. Period. Too many potential problems from delayed entry, double checking data, etc. for anyone to doing 1 day turn times without exception. There are too many glitches possible. Even if a particular report can be done in a day, don't they ever have time conflicts, say 2 or 3 appraisal assignments in one day? Who gets stiffed?

Regardless - good or bad - if the report is substandard and has USPAP issues send it on to the state.

As for "appraisal coaches" - I've seen statements from some that were completely wrong. In my state I took several classes from 1994-2002 from a guy who ran an appraisal school in Little Rock. He was very good. Excellent with the 12C calculator and I took Marshal & Swift, Environmental Issues, 12C, Narrative writing, and pre-test class. Again, excellent instructor. But he had a bunch of trainees and got in trouble to the point he lost his license to the state. He moved to Oklahoma where he had a license there. Fast forward a few years.

I ran into a fellow who knew him that was a well-known appraiser as was his son and was also a past NAIFA president. He said the fellow went to work for him and he had to let him go. He couldn't appraise his way out of a wet paper bag and as a property appraiser was not worth a hoot. Despite his expertise and teaching ability, he was simply not a person who had any real judgment when it came to houses.

 

[MMing5000]

The way you tell is that the effective date is the same date as the report date.

Yes that is correct date: effective date is the inspection date, same as signature date.

 

[Kitarkus]

If ever I am offered a RUSH ONE DAY turn time assignment I immediately decline. There is only one TRUE reason to request such an assignment. It is a great way for the Clients to learn who will 'play ball' for their team. I am not that type of team player.

 

[alebrewer]

It seems a lot of folks are indignant towards the appraisers who can provide credible services that quickly - assuming there are those types of folks. To my earlier point, if there is evidence that those services are 'sloppier' than folks who take longer, then that (IMO) is a valid gripe. Sans such evidence, though, folks are really railing against people who believe they are capable of providing such services - not the services themselves. And I am one of those people. Depending on the property, I have no doubt I could render credible results in one work day.

 

[Kitarkus]

It seems a lot of folks are indignant towards the appraisers who can provide credible services that quickly - assuming there are those types of folks. To my earlier point, if there is evidence that those services are 'sloppier' than folks who take longer, then that (IMO) is a valid gripe. Sans such evidence, though, folks are really railing against people who believe they are capable of providing such services - not the services themselves. And I am one of those people. Depending on the property, I have no doubt I could render credible results in one work day.

Yes a bit I suppose...but for good reason.

I could not credibly guarantee completion of a credible report within 24 hours. No Appraiser could do so. There are too many variables necessary to ensure a credible Report and quite often this takes time. Time to confirm, call, receive return calls, obtain data from sources, access and on and on and on.

My acceptance of a 24 turn-time requirement is quite potentially contrary to my credibility. It may not always be the case but I don't wish to have the dilemma.

 

[shrubberyvaluation]

Now that appraisal work volume has slowed significantly from last year, review work is increasing. I have come across reviewing several appraisal reports that have same-day turn time, in other words, inspect today, complete the report today, and deliver to the lenders today. Needless to say, the appraisal assignments were most likely awarded to the lowest fee appraiser with the fastest turn time, where the Lender can easily afford to send the cheap appraisal out for a review.

Refinancing work is pretty much close to dead, where most of the review work are for purchase transactions, but the market is still going strong in terms of property values even though sales volume have declined, where analysis are needed in order to make appropriate market timing adjustments to justify value than the last sale.

Those sloppy "5-minute" appraisal jobs really hurt the appraisal profession. If i am the property buyer, i would value toilet paper more than the thick 35-45 page appraisal reports that i have been reviewing. At this point, we can't blame the AMCs for low balling the appraisal fees because it is the appraisers who are undercutting the fees in order to get the work, or starve.

I can only think of one person to give credit to, for those "5-minute" appraisal jobs, he considers himself a coach and brags in his Youtube videos on how he can complete an appraisal in 4 hours. Unless it is an apartment condo that an appraiser has just done one in the same project last month, i just don't see how anyone can spit out a credible appraisal report.

All the appraisal reports i have reviewed recently all came in at the purchase price, but the report lacks credibility when there are so many minor errors such as a high-rise condo building having masonite wood siding and composition roof shingles. And because sales volume have slowed significantly, many appraisers use the verbiage that the comps provided are the best available in order to justify using a 3-bedroom apartment to value a 2-bedroom apartment unit due to lack of recent sales within the past 90 days as required by the lenders.

The Lenders seem to love these reports for 3 reasons: 1) cheap appraisal fee with fast turn time, 2) value is never an issue, 3) these cheap appraisals are fluffy 45-page reports filled with superfluous info such as the history and nuances of the neighborhood that has nothing to do with supporting the appraisal value, but is thick and impressive to "justify value", that has no substance at all.

No matter how sloppy and careless the appraisal, the value is supportable, but not within the report. It is very time consuming and becoming not feasible to do review work if the reviewer must re-write the report to justify and support the value in the report.

I've done some, but its only when I'm already knowledgable. For instance I just did a model match on the same row of housing a week ago. I've also had some where I have revisited the property so I may already have the appraisal almost completed. Sometimes you can do a lot of research ahead of time when you have a good idea of what the property is before physically seeing it. In general even in most of these circumstances I still sleep on it for a day. Sometimes I think I can complete them fast and I am waiting on return calls from agents or others I need information from.