AVM's

[Nancy in Friday Harbor]

Dave & Michael,
I guess for anyone, it's a business decision, BUT -- I sure wouldn't feel comfortable about putting a value on something---ok,ok, developing an opinion of value--without knowing the subject, the market, the comps, etc. Seems like a gross violation of USPAP to me.

Reference the AVM article -- what these bozo's don't want us to know is that, as they order fewer and fewer appraisals, thier data becomes less and less reliable. And, as they order fewer appraisals, there will be fewer appraisers to supply them with data. So this wonderful, magical computer "appraisal" racket will implode.

While it may be painful in the short run, I don't think we're going to become extinct.

Nancy

PS -- Was called by Chesapeake Appraisal (Citibank's AVM) this morning. After looking thru their faxed data, I have filed it, without response, in the proper receptacle.

 

[Joe Birrell (NY)]

Don't know about how to get in touch with little miss Linda, but you can make your point of view known to MSNBC thru their feedback button. Maybe time to let them know the true ins and outs of what the appraisal is about and for. Especially important I think, from some of you ladies and gentlemen who have lots of experience, and a grand way of expressing yourselves.

Brick

Brick:

I took your advise and fired off an e-mail to MSNBC about article written by Linda Stern...." biased and uninformed article. Try doing some research on the topic of AVM's and find out how property owners and buyers are being scammed by lenders across the country".

 

[bradellis]

Nancy,

Oh this type of work can easily be USPAP compliant. Problem is, for the money they want to pay you, you will find that USPAP compliance will take you much longer than they think it will.

Let's see, $40/hour=$160 for 4 hours work. Now, if you take 4 hours to do a SFR appraisal, that does not seem like much in most markets, does it?

AND, if you go through the steps to conform to SR-1 and SR-2, you might well find yourself making even less per hour!

I suggest anyone considering this read the standards before making their decision. Remember, buying and re-selling an AVM is permitted and is not covered by standards; however, the minute you start massaging them, offering any sort of opinion of value- even to agree with the AVM, is an appraisal and all the standards apply.

Bra Ellis, IFA,RAA

 

[BarbaraNJ]

Read the article---thanks for the "heads up".

I went to the site and after reading the article I did send an e mail to Newsweek. It is almost more insulting that the article came from them via MSNBC. If MSNBC was the source, I could almost accept it since the site is both news and entertainment. But when Newsweek gives this play, I am significantly more concerned.

In my e mail, I suggested Ms. Stern visit this site and get a REAL education.

In my opinion, the article read like an advertisement for Greenpoint, and that's very dangerous.

Like one of the posts said, why is there anger when you are advised by someone who is independent that you are paying too much? In any other profession, you would send flowers and a "thank you" card !!!!!

 

[andrea dennett]

I received the exact same form letter in the mail today. I pitched the envelope before I could see if its bulk mail or individual. Sad thing is, I had a conversation with another appraiser servicing the area discussing this gem, and they were in favor of signing on. So, I'm sure my other competitors will take it on. Other scary thought, this is usually a busy time for me, and things have been real slow. (according to my fellow competitors, its slow for them too unless they are liars.)

 

[Elliott]

Steve,
I emailed MSNBC and the 'editor' of the article,
and challenged her to a valuation contest....
I gave her the address of 4 properties I had appraised or
was going to appraise this week and we
would compare values.

I told her I thought the article was a typical
bashing report the media is famous for, without
considering the savings and loan failure of the
1980's.

So far, no email response.

elliott

 

[Richard Carlsen]

And still nobody is saying where they get the data for the AVM to generate the model value.

<span style='color:red'>
"Me thinks this silence doth give cause for an cautious attitude."</span>

 

[Donald Martin]

Given enough time AVM's will self distruct on their own. My office will not partake in them. Those that partake in performing AVM's become part of the problem, rather than the solution. Had a chat with one of the executives for Wells Fargo yesterday at his home and they will continue to use AVM's, not because they want to but beacuse of the competitiveness of the industry. It was his view that they must price consistently with other lenders and to perfrom other than the minimum required, forces them to price higher. On the plus side though, he also knows that the AVM is an inferior product. Makes you wonder if the lenders know it is an inferior product, exactly who is behind the push for the use of the AVM, seems to me it is the same companies that keep calling, faxin and e-mailing me to try and get our office to perform them.

Since lenders will do what FNMA & FHLMC allow them to continue to do, the changes must come from them not the lenders. We as a group must apply pressure first and foremost on a national level to our US Congress and US Sentate. When the losses start to roll in, then perhaps they will consider doing something about the elimation of the AVM.

 

[Pamela Crowley (Florida)]

Donald J. Martin, SCRP, RAA, GAA


I salute you!

 

[BarbaraNJ]

Donald-----

You have reinforced many of the statements a large number of the forum members have been making for many months. Happy to know our numbers are growing.

I join with Pamela in her salute !!!!