Appraising in Texas

[Mike Ault]

I have had them provide me with deeds wanting me to change the prior sales price and had to point out the number they are reading is the loan amount and not a sales price. Of course, this is usually two months later.

Some of my banker clients showed me some AVMs that they were proud of and using them in lieu of appraisals when they could. I had to point out a substantial number of those sales in the reports weren't sales at all, they were refinances and they were using the loan amount as a point value then adding estimated appreciation from that date to come up with a current value for that "comparable". A comparable that never sold. Maybe that's what went wrong with "Zillow".

 

[Tim Hicks (Texas)]

Some of my banker clients showed me some AVMs that they were proud of and using them in lieu of appraisals when they could. I had to point out a substantial number of those sales in the reports weren't sales at all, they were refinances and they were using the loan amount as a point value then adding estimated appreciation from that date to come up with a current value for that "comparable". A comparable that never sold. Maybe that's what went wrong with "Zillow".

That is what Zillow actually did way back here in Texas. They would see a loan amount and divide it by 80% for their sales price.

 

[Tim Hicks (Texas)]

Back before the crash, when refinances were like they were now, I was constantly having lenders give me sales that were not sales. Sometimes they would give me sales that were actually sales but the price would be way off. I have also learned that neighbors lie. They will tell you their neighbor sold their home FSBO for a certain price and when you actually got a closing statement provided, the price would be a little (but mostly a lot) over stated. Everybody likes to brag how much they sold their house even if it might be a bit exaggerated.

 

[Mike Ault]

They will tell you their neighbor sold their home FSBO for a certain price and when you actually got a closing statement provided, the price would be a little (but mostly a lot) over stated. Everybody likes to brag how much they sold their house even if it might be a bit exaggerated.

Those "down payment assistance programs" that plagued honest practitioners during that time contributed to the general dishonesty surrounding real estate prices. Most people would not walk into a convenience store and walk out with something without paying for it. Those same people had absolutely no problem letting their realtor write contracts "gifting" all sorts of nonexistent equity to purchasers and manipulating list & sales prices to conceal the fact.

 

[Cob]

I don’t have a clue about appraising in Texas, but I wish you the best of luck.

You know the O.P. posted this in the Texas section of AF correct????

 

[Cob]

You guys better enjoy it while you can Austin and other cities people are starting to look and act more like San Fransisco and Bay area Liberals : ) LMAO

Not sure how familiar you are with Texas, I'm thinking not very, Austin has ALWAYS been the MOST liberal city in Texas, although it's not really starting to look like SF, there are no mountains here, still no bay or Pacific ocean, no Golden Gate or Bay bridge here as of yet.

As far as the rest of Texas, I have lived here my entire life, for people to think that some California, San Francisco and Bay area Liberals are going to somehow flip the state politically??? Good luck, it's like trying to push a boulder up a mountain, I have seen all the California people move here in the 80's, 90's 2000's and 2010's and now, same thing happens, 80% end up living here for 2-3 years and then realize how hot it is here and that Texas is not California and they can't change it to California, they move away.

 

[Cob]

yea, get them out. after that, i hope you can write your appraisal in spanish, or spanglish.

WTF is that supposed to mean??????

 

[Alsie35]

WTF is that supposed to mean??????

He was responding to a post that may have been inartfully worded sarcasm. So, he may have replied with more sarcasm. (If folks would only remember to put [sarcasm] after their posts, it would help to avoid a whole lot of misunderstanding on the Internet in general. Without inflection and facial expressions to judge by, its sometimes real difficult to figure out ...

 

[Tim Hicks (Texas)]

Whatever Alsie says! (sarcasm)

 

[TerryRohrer]

I just had one that was kicked back for that very thing from a CA UW. she sent me this: "Per Texas law on this and Section 92.255 specifies where the smoke detectors shall be installed “outside, but in the vicinity of each separate bedroom.” That said, as this is a requirement for Texas the appraiser should address it."

https://texas.public.law/statutes/tex._prop._code_section_92.255

Texas Property Code​

Sec. 92.255​

Installation and Location​

(a)​

A landlord shall install at least one smoke alarm in each separate bedroom in a dwelling unit. In addition:

(1)​

if the dwelling unit is designed to use a single room for dining, living, and sleeping, the smoke alarm must be located inside the room;

(2)​

if multiple bedrooms are served by the same corridor, at least one smoke alarm must be installed in the corridor in the immediate vicinity of the bedrooms; and

(3)​

if the dwelling unit has multiple levels, at least one smoke alarm must be located on each level.

(b)​

If a dwelling unit was occupied as a residence before September 1, 2011, or a certificate of occupancy was issued for the dwelling unit before that date, a smoke alarm installed in accordance with Subsection (a) may be powered by battery and is not required to be interconnected with other smoke alarms, except that a smoke alarm that is installed to replace a smoke alarm that was in place on the date the dwelling unit was first occupied as a residence must comply with residential building code standards that applied to the dwelling unit on that date or Section 92.252 (Application of Other Law; Municipal Regulation)(b).

This appears to be for rental properties, based on the first line (a). Must be Class Valuation, huh?