Appraiser Price Opinion (APO)

[Elliott]

Zaio should be knocking at Chad's door....or maybe
they'll want to rub him out.

GLA adjustments....."I don't need no stinkin' footage adjustments."

I imagine Chad is piggy backing on the CMA Realtor systems...and
apparently dumping it into a "forms" package.

So much data, so little experienced judgement.

 

[Terry McCulloch]

Can't you right a scope that is very limited and do these appraiser price opinions and not be in violation of USPAP? They have appraiser assisted AVMS and from what I have read are perfectly legal. These seem no different.

Bu why would you want to? Why would any qualified appraiser want to skip around any guidelines and/or USPAP for a lousy $65 piece of crap? It's not a matter of "what if we can?" but rather, why would you want to in the first place? Jeez... this is so frustrating...

 

[Scott Kibler]

Can't you right a scope that is very limited and do these appraiser price opinions and not be in violation of USPAP? They have appraiser assisted AVMS and from what I have read are perfectly legal. These seem no different.

Desktop appraisals can be done in compliance with USPAP. There's like 100 threads addressing the very subject. Just search "comp checks" and find the largest thread.

The problem is not so much the compliance aspect, it's the business plan. Quite frankly it puts you in direct competition with the Zillow/AVM crowd which provides instantaneous value estimates at a cost of $0-$40ish. A $65 appraisal which takes 1/2 to 2 hrs to complete with a similar (real or perceived) credibility would have limited appeal to potential clients.

 

[OSU Beavers]

Bank o A, TransUnion and CountryWide/LandSafe all have these "Desktop" products which they pay $35 to $75 for. They call every so often.

Me: "I am sorry but all of the information needed is not available online, therefore we need to, research files at the courthouse, interview buyers/sellers/realtors and physically verify the information inorder to develop a credible opinion of value." Phone Monkey: "What?" Me: "I'm sorry there is not enough public information available in this county to complete Desktop valuations." Phone Monkey: "OK well then we'll upgrade this to a 2055 exterior and send it over."

 

[Mr Rex]

That dude has been smoking the Zowie wowie man. He better come up with $9k quick like, for a zone or bail, know what I mean dude?

 

[hastalavista]

APO will identify the 3-6 best comparable sales and 3-6 best comparable active listings, utilizing the MLS. The APO is completed by a licensed or certified appraiser to give you a professional market analysis with real adjustments based off market data in your area.

I didn't read the link, but here's the significant problem as I see it:
In order to make the adjustments as claimed, the appraiser must either-
A. Have the existing knowledge to make these adjustments.
B. Take the time to analyze the market in order to make the market based adjustments.
Yes, theoretically it is possible to either know all these markets or learn them so that the adjustments are consistent with a properly written SOW (which, again, I haven't read).
In practice, I doubt such research could be done within the $65 fee to be profitable.

Perhaps its just a re-sale of an AVM?


But, here's a suggestion for all you analysis experts:
Rather than making adjustments to individual comps, why not just rank the comps against the subject in certain parameters?
One could have 25 sales from MLS, and rank the subject in terms of:
1. Location (in terms of proximity to the subject: 1/4, 1/2, 3/4's of a mile, or a similar correlated distance depending on the type of neighborhood)
2. Condition
3. Bed/Bath Count
4. Lot Size
5. GLA

With the exception of condition (which would require a judgment call by someone, presumably the appraiser), all the other rankings could be automated.

Five categories and five rankings. I bet the regression whizzes could find some correlation between the variables and come up with a market ranked valuation?

 

[Fred]

Perhaps its just a re-sale of an AVM?

That would have to be disclosed as the scope of work.

With 25 sales, ranking would take too long. Regular regression.

 

[Marcia Langley]

Like to know what you think about this service?

http://www.appraiserpriceopinion.com/

Appraiserpriceopinion.com will basically perform a full appraisal for $65 without the physical inspection of the property. The client (realtor, Investor, Homeowner, or anyone else inquiring as to the estimated market value of a property) will be prompted to input information and photos of the property. County data is used for the subject property information unless the person inputting data informs the appraiser of differences that should be considered. APO will identify the 3-6 best comparable sales and 3-6 best comparable active listings, utilizing the MLS. The APO is completed by a licensed or certified appraiser to give you a professional market analysis with real adjustments based off market data in your area.

APO emphasizes that these are not full appraisals and not to be used for lending puposes.

(my red)

A little contradiction.

 

[xm72mhd]

Nice catch Marcia. Course we've been hearing a lot about appraisals that aren't appraisals. I wonder how long it will take us to realize that most of our clients don't want we sell and that we don't have any choice about whether it is USPAP compliant or not.

Oh wait, we know that. Why hasn't it changed?

"perform ... full appraisal(s) ... that ... are not full appraisals"

Don't wish you could learn to talk like that?

 

[Marcia Langley]

The sample report looks like a compliant restricted use desktop appraisal except he says again in there that it is not an appraisal. Of course it is.

It almost sounds like he thinks if it can't be used for lending that it can't be called an appraisal.

What do you guys think about him using unverified client supplied information to override public data?

It seems it hurts no one but the restricted use client, if false data is supplied but it just seems wrong.