Bifurcated, Hybrids and True Footage

[MrLA]

yawn, yawn, yawn.
maybe do a startup company so you can rake investors money for a non proven product. didn't what's her name do that with their medical sites. just brought in millions. not on trial for fraud.
i do think that in 20 years or less, how many of us old appraisers will be gone. that shortage will certainly attract these companies, or maybe create a new golden age for appraisers.

Those AMCs target the hungry low end appraisers. I did a few and it sucked. I charged an arm and a leg for them too. Lol. Sure pay me $500 to type one up and I will do it. Otherwise, I won't do it to so that my fellow appraisers can keep control of the market and charge high fees.

 

[MrLA]

Like it or not, this is where the industry is going. Perhaps Zaio has morphed.

True Footage

True Footage is a leading appraisal services and appraiser technology company. On this page, you can explore resources, learn more about our business, order an appraisal, subscribe to our tools, and more.

www.truefootage.tech

I disagree. Just deny the work. I get plenty of high paying traditional work.

 

[NC Appraising]

This reminds me of property flippers. When the market is high or at bubble status, they go to selling books, courses or doing seminars...instead of flipping properties and telling everyone else "this is the time to make money flipping homes, homes are at historic values".

Rates are going to increase this year, home prices are at record levels, everyone has already refi'ed, the stock market is about to crash, war could be imamate, etc.

Where is all of this business going to come from for these new products?

 

[MrLA]

This reminds me of property flippers. When the market is high or at bubble status, they go to selling books, courses or doing seminars...instead of flipping properties and telling everyone else "this is the time to make money flipping homes, homes are at historic values".

Rates are going to increase this year, home prices are at record levels, everyone has already refi'ed, the stock market is about to crash, war could be imamate, etc.

Where is all of this business going to come from for these new products?

That's when solid, loyal clients come into play. I also get a good amount of private work.

 

[Non Sequitur]

The problem I've always had with bifurcation, hybrids, and the mills/coach systems is that taking appraisers out of the field is wrong.

A good appraiser gets a feel for a property by walking around it, through it, driving to it, driving the comps, etc. It's the old 4th approach to value; Standing on the curb, judging the subject's appeal then forming an idea of where it fits into the market. I'm not saying the mechanical process of bifurcation, hybrids, assembly line mill/coach systems are technically wrong. What is wrong is those products/systems promote the idea that appraisers are pure analysists that are best at sitting behind a desk all day every day. This idea denies that there is an art side to what we do. The art side it is a very large part of what we do and why our conclusions are defined as opinions. At the core of real estate (especially residential) is people and their emotions, sitting behind a desk all day doesn't expose an appraiser to that very large part of what makes an appraiser an appraiser. Any appraiser who has never walked through a house, driven a neighborhood, or talked to the owner/borrower/agents, etc. has no idea what drives the market. Looking at numbers on a screen all day doesn't give you a feel of what the numbers mean, and pumping out multiple reports a day behind a keyboard doesn't give anyone the time to call an agent to figure out why a particular property is selling high or low, why it sat on the market or has multiple offers, what may not have been mentioned in the listing, what to do when there's inconclusive or no market data, etc.

The push to remove field experience via PAREA training or through a test per the ASC's recently published analysis paper will ruin this profession and turn future appraisers into widget producers.

 

[George Hatch]

These developments are being driven by the technology, which will only continue to improve in both efficacy and cost as we go. Back when CMDC was a thing that info had to be manually transcribed into that database. Now it's just an automated app which extracts the data directly from the original ENV or similar.

Some of the big operations have systems online now that pull up all the appraisals in their database and all the listings and display them on a map overlay, similar to what you see in Zillow except more refined in the search and analytics. Those reviewers can see more of what has gone on in your subject neighborhood than you could ever see because you simply don't have access to what the other appraisers have been doing. As much as we want access to the UAD data, that info only comprises a fraction of it.

The other thing to remember here is the context of their usage. These lenders only need enough precision in their values in order to avoid grossly overencumbering these properties when they write a loan. They don't need the level of precision that a divorce atty might aspire to due to trying to eke every last dollar of equity out of the property on behalf of their client. So as long as an appraisal doesn't grossly overvalue a property and doesn't omit other relevant data about the subject such as its condition then that will represent the point of diminishing returns insofar as appraisal development goes.

The only reason there has been some emphasis on adjustments in the last few years is because of how many appraisers weren't doing any analysis to get to those adjustments; they were literally just pulling numbers out of thin air or off some one-size-fits-all list that they inherited during their prior servitude to some puppy farm. The GSEs point was and is that something is better than nothing. Almost anything is better than nothing. Group comparisons, sensitivity analyses, paired comparisons, GRM derivatives, etc.

 

[Non Sequitur]

Another supposed firewall/AMC turned fee shop that is directly competing against indie appraisers:

Class Valuation Announces Acquisition of Valuation Link - Class Valuation

TROY, MICH – January 27, 2022 – Class Valuation announced today another key acquisition in Metro-West and subsidiary, Valuation Link. Metro-West is the largest independent residential appraisal firm in the nation, with staff appraisers located in over 80 major metro markets in the US...

www.classvaluation.com

"Class Valuation announced today another key acquisition in Metro-West and subsidiary, Valuation Link. Metro-West is the largest independent residential appraisal firm in the nation, with staff appraisers located in over 80 major metro markets in the US. Metro-West’s partner company, Valuation Link, also touts nationwide coverage through management of a traditional 1099 appraiser panel."

"This is the fifth acquisition Class Valuation has made in the last 12 months, and the seventh of the last several years. Through these strategic acquisitions, Class has added strength in specific regions of focus around the country, built out a robust, national Staff Appraiser model, and gained superior market data analysis capabilities."

 

[djd09]

Another supposed firewall/AMC turned fee shop that is directly competing against indie appraisers:

Class Valuation Announces Acquisition of Valuation Link - Class Valuation

TROY, MICH – January 27, 2022 – Class Valuation announced today another key acquisition in Metro-West and subsidiary, Valuation Link. Metro-West is the largest independent residential appraisal firm in the nation, with staff appraisers located in over 80 major metro markets in the US...

www.classvaluation.com

"Class Valuation announced today another key acquisition in Metro-West and subsidiary, Valuation Link. Metro-West is the largest independent residential appraisal firm in the nation, with staff appraisers located in over 80 major metro markets in the US. Metro-West’s partner company, Valuation Link, also touts nationwide coverage through management of a traditional 1099 appraiser panel."

"This is the fifth acquisition Class Valuation has made in the last 12 months, and the seventh of the last several years. Through these strategic acquisitions, Class has added strength in specific regions of focus around the country, built out a robust, national Staff Appraiser model, and gained superior market data analysis capabilities."

the crooked commie coumo AMC system sold out the independent appraiser. just like i have been saying. i bet eappraisit had staffers too. see how that worked. of course the banksters wanted that system, they control the appraiser with paychecks and work flow.

 

[Mejappz]

Another supposed firewall/AMC turned fee shop that is directly competing against indie appraisers:

Class Valuation Announces Acquisition of Valuation Link - Class Valuation

TROY, MICH – January 27, 2022 – Class Valuation announced today another key acquisition in Metro-West and subsidiary, Valuation Link. Metro-West is the largest independent residential appraisal firm in the nation, with staff appraisers located in over 80 major metro markets in the US...

www.classvaluation.com

"Class Valuation announced today another key acquisition in Metro-West and subsidiary, Valuation Link. Metro-West is the largest independent residential appraisal firm in the nation, with staff appraisers located in over 80 major metro markets in the US. Metro-West’s partner company, Valuation Link, also touts nationwide coverage through management of a traditional 1099 appraiser panel."

"This is the fifth acquisition Class Valuation has made in the last 12 months, and the seventh of the last several years. Through these strategic acquisitions, Class has added strength in specific regions of focus around the country, built out a robust, national Staff Appraiser model, and gained superior market data analysis capabilities."

Classless Valuation is breaking the law by blasting orders to anyone with a license. Where are the regulators and state boards? Every single filled-out compliance document from Classless should be sent to the state.

 

[jay trotta]

The problem I've always had with bifurcation, hybrids, and the mills/coach systems is that taking appraisers out of the field is wrong.

A good appraiser gets a feel for a property by walking around it, through it, driving to it, driving the comps, etc. It's the old 4th approach to value; Standing on the curb, judging the subject's appeal then forming an idea of where it fits into the market. I'm not saying the mechanical process of bifurcation, hybrids, assembly line mill/coach systems are technically wrong. What is wrong is those products/systems promote the idea that appraisers are pure analysists that are best at sitting behind a desk all day every day. This idea denies that there is an art side to what we do. The art side it is a very large part of what we do and why our conclusions are defined as opinions. At the core of real estate (especially residential) is people and their emotions, sitting behind a desk all day doesn't expose an appraiser to that very large part of what makes an appraiser an appraiser. Any appraiser who has never walked through a house, driven a neighborhood, or talked to the owner/borrower/agents, etc. has no idea what drives the market. Looking at numbers on a screen all day doesn't give you a feel of what the numbers mean, and pumping out multiple reports a day behind a keyboard doesn't give anyone the time to call an agent to figure out why a particular property is selling high or low, why it sat on the market or has multiple offers, what may not have been mentioned in the listing, what to do when there's inconclusive or no market data, etc.

The push to remove field experience via PAREA training or through a test per the ASC's recently published analysis paper will ruin this profession and turn future appraisers into widget producers.

Bingo - the Failure of those (now running the business) is they have not a clue what goes into the art of development, as you explained.
For every other service I can think of, there is a "Training Period", PAREA & the ASC are traveling down a very Dangerous road and will put our children and grandchildren at Risk period.