Anyone complete a UAD 3.6 report ..... yet

[HVNY]

I can barely keep up with my workload conforming to increasingly dictatorial non value related standards, so if it takes me longer to do one appraisal I will need to charge more for each appraisal and will produce less overall work. How is that good for this industry or for the consumer? Who's gonna pay the higher fees, if we ever even get them? What about the holy grail "turnaround time"? What is happening is that FF are culling as much data as they can until they can get rid of us and "AI" takes over... The bottom feeder low bidders will work for peanuts producing shoddy work that will feed more bogus data into this new utopian system they are building. It's already "less risky" to just go along with incorrect UAD data if you know it to be otherwise. If FF can't physically inspect every property to check the data, they cannot verify it. Much of the UAD stuff is wrong, made worse by ANSI, the MLS listings are mostly wrong, Matterport is wrong, the tax records are wrong, with some towns being horrible and some being more accurate, only an experienced appraiser can see that stuff. At the same time AMCs keep trying to lure me into a more employee like arrangement with offers of magic beans. Good luck with that. I will survive this, mainly because of my general appraisal practice, but I'm not stoked because I'm going to have to invest a lot of time and resource into promoting my business to fil the gap. I'm going to see this UAD deep six thing through, but it's not looking good at the moment and the more I learn about it the more the pit in my stomach grows.

 

[Trihard]

I can barely keep up with my workload conforming to increasingly dictatorial non value related standards, so if it takes me longer to do one appraisal I will need to charge more for each appraisal and will produce less overall work. How is that good for this industry or for the consumer? Who's gonna pay the higher fees, if we ever even get them? What about the holy grail "turnaround time"? What is happening is that FF are culling as much data as they can until they can get rid of us and "AI" takes over... The bottom feeder low bidders will work for peanuts producing shoddy work that will feed more bogus data into this new utopian system they are building. It's already "less risky" to just go along with incorrect UAD data if you know it to be otherwise. If FF can't physically inspect every property to check the data, they cannot verify it. Much of the UAD stuff is wrong, made worse by ANSI, the MLS listings are mostly wrong, Matterport is wrong, the tax records are wrong, with some towns being horrible and some being more accurate, only an experienced appraiser can see that stuff. At the same time AMCs keep trying to lure me into a more employee like arrangement with offers of magic beans. Good luck with that. I will survive this, mainly because of my general appraisal practice, but I'm not stoked because I'm going to have to invest a lot of time and resource into promoting my business to fil the gap. I'm going to see this UAD deep six thing through, but it's not looking good at the moment and the more I learn about it the more the pit in my stomach grows.

The GSE's do not give a crap about accuracy because if they crash the market congress is ready to write a trillion dollar check. The residential appraisal industry is a circling drain and UAD 3.6 proves it.

 

[J Grant]

Accuracy is the wrong standard for valuation. While the data reported should be as accurate as possible, the valuation process can never be "accurate", because of the way RE markets work . Credible and supported are the metrics - and the insane fast turn times and over reliance on auto data population to feed the AMC machine for fast and cheap works against what makes appraisals, or any valuation, credible and reliable.

USPAP says perfection is not possible, and these software autofill programs promise a faux idea of perfection with respect to mass data and "accuracy. " They do deliver slick charts and graphs, but it is the results that count and missing good market analysis and comp sale choices, the appraisal will be a slick-looking, yet can have a skewed or poorly supported value.

The GSE-enabled undermining of the appraiser's role and the stakeholders propping up AMC fee predation are the main problems on the res lending side, affecting appraiser selection and who remain in the field. This is why appraisers are jaded when profit-driven tech software solutions are pushed as a solution. Saving ten minutes with an auto-fill program will not compensate for fees being 40% or more lower than needed and for turn times that are too fast to verify or chase down important information.

 

[chad hampton]

For the price people are paying today for one appraisal, they could skip the middleman and order two appraisals and take the average of them. That would be far more reliable/credible than the current system. Hell, maybe they could get three.

But that wouldn’t be putting more money into the breakfast club firms so that’s not happening.

 

[HVNY]

Don't get me started on USPAP

 

[HVNY]

Accuracy is the wrong standard for valuation. While the data reported should be as accurate as possible, the valuation process can never be "accurate", because of the way RE markets work . Credible and supported are the metrics - and the insane fast turn times and over reliance on auto data population to feed the AMC machine for fast and cheap works against what makes appraisals, or any valuation, credible and reliable.

USPAP says perfection is not possible, and these software autofill programs promise a faux idea of perfection with respect to mass data and "accuracy. " They do deliver slick charts and graphs, but it is the results that count and missing good market analysis and comp sale choices, the appraisal will be a slick-looking, yet can have a skewed or poorly supported value.

The GSE-enabled undermining of the appraiser's role and the stakeholders propping up AMC fee predation are the main problems on the res lending side, affecting appraiser selection and who remain in the field. This is why appraisers are jaded when profit-driven tech software solutions are pushed as a solution. Saving ten minutes with an auto-fill program will not compensate for fees being 40% or more lower than needed and for turn times that are too fast to verify or chase down important information.

I recently appraised a house that doubled in size but nobody noticed so UAD is reflecting a comp that is 50% off in size so the adjustments the appraisers are making are 50% off.. So should I use the UAD GLA or what I know to be true when I used it as a comp? The GSE has an appraisal on their books that is inconsistent with their own reflection of the property as a comp.

 

[Tim Hicks (Texas)]

Accuracy is the wrong standard for valuation. While the data reported should be as accurate as possible, the valuation process can never be "accurate", because of the way RE markets work . Credible and supported are the metrics - and the insane fast turn times and over reliance on auto data population to feed the AMC machine for fast and cheap works against what makes appraisals, or any valuation, credible and reliable.

USPAP says perfection is not possible, and these software autofill programs promise a faux idea of perfection with respect to mass data and "accuracy. " They do deliver slick charts and graphs, but it is the results that count and missing good market analysis and comp sale choices, the appraisal will be a slick-looking, yet can have a skewed or poorly supported value.

The GSE-enabled undermining of the appraiser's role and the stakeholders propping up AMC fee predation are the main problems on the res lending side, affecting appraiser selection and who remain in the field. This is why appraisers are jaded when profit-driven tech software solutions are pushed as a solution. Saving ten minutes with an auto-fill program will not compensate for fees being 40% or more lower than needed and for turn times that are too fast to verify or chase down important information.

Well, we have one poster that thinks their appraisal product is absolutely accurate. This is hard to believe in a totally imperfect market. Take for example when California buyers were bidding $50+100,000 more for Texas properties. Those properties were not worth that until they closed and created a new market. Other examples, new homes will have clearance pricing at the end of the year to get them off the books, which makes the previous buyers angry because "why didn't they get this price?" Sometimes rural properties make no rhyme or reason. Some are grossly over listed and some listen to inexperienced agents who talk them into listing and selling lower that market value because they don't understand the contributory value of outbuildings. Heck, we have agents that think a 30 year old home will sell for the same as a 2 year old home.

 

[J Grant]

The solution is round robin ordering at full fee and let identified low competence appraisers take a course of mandatory education and give them a probation period to improve.

Let the mortgage lender have GSE-backed leeway to go up or down by 3-5 % on a supported market value opinion, if they feel confident in the borrower's credit - that gives stakeholders some relief while keeping values within reason for the health of marketrs while at the same time fostering appraiser integrity.

 

[TerryRohrer]

The solution is round robin ordering at full fee and let identified low competence appraisers take a course of mandatory education and give them a probation period to improve.

Let the mortgage lender have GSE-backed leeway to go up or down by 3-5 % on a supported market value opinion, if they feel confident in the borrower's credit - that gives stakeholders some relief while keeping values within reason for the health of marketrs while at the same time fostering appraiser integrity.

Who will be tasked with identifying "low competence" appraisers? That is currently mandated by law, yet no one does it. This "solution" would simply become another weapon to use against competent appraisers willing to be ethical and honest, and consequently, unpopular. Nor is the notion of a range in values or a range in leeway going to matter. It will expand the problem by creating two numbers for an appraiser to defend without compensation.

 

[Tim Hicks (Texas)]

We see appraisers and agents constantly stating that 6% interest is historically low, but nobody wants to face the real facts on that. Homeowners are less likely to sell their 3% mortgage home to buy a 6% mortgage home. Home values are significantly higher now than in previous history with higher interest rates. My first home only cost $70,000, but the interest rate was 9% which was $1,000 a month. Now a starter home is rarely under $300,000 and that 6% mortgage rate will be $2500 or more with taxes and insurance. Income is better, but not that much better than the 1980's.