That's what they were saying about Bear Stearns Hedge funds last year...Where's it going to go?
Compared to most other investment classes, real estate is still as solid as can be.
The main rap against IRR has always been the incredible inconsistency of product provided, much the same as with C&W and CBRE. The difference with the "C"s is that, if you have a problem, you could always call up the food chain and get your issues resolved. Blow in a phone call to Doug Haney or John Busi and your problems are over. To the best of my knowledge, that pretty much a hit or miss proposition with IRR.Having previously worked on the lending side for 17 years, I was more impressed by Integra (IRR) than CBRE or Cushman. It didn't start as a national company, but as a consortium of some of the most reputable appraisal firms in individual markets -- Winius in Phoenix, Mark Lamb in Dallas, and so on.
Within any larger appraisal firm, you will have the good, the bad and the ugly. The more appraisers working within a firm, the larger absolute number of great appraisers will be in that firm - and the larger absolute number of idiots. The thing that separates the "good" firms from the "bad" firms is how they respond to the inevitable problems that will occur during the process.I was constantly disappointed by most national firms, and at the prodding of the OTS, limited my institution's approved appraisers list to individual appraisers. If the approved appraiser worked for a national firm, it was sometimes a struggle to have the report done by the same appraiser who was actually engaged.
We also approve individuals, not firms, and it is a constant struggle to make sure that the approved individual sign all reports done for us. It's a standard part of our engagement letter....and at the prodding of the OTS, limited my institution's approved appraisers list to individual appraisers. If the approved appraiser worked for a national firm, it was sometimes a struggle to have the report done by the same appraiser who was actually engaged.
The simplest way of ensuring that the approved appraiser signs/inspects or whatever the requirement is, is to reject reports where the requirement is not met. If you aren't willing to do that, don't complain. If you aren't willing to take your requirements seriously, why should the appraisers?We also approve individuals, not firms, and it is a constant struggle to make sure that the approved individual sign all reports done for us. It's a standard part of our engagement letter.
You have now. It may be a constant struggle, but we send every one back for the proper signature. I have yet to see that person refuse to sign, lol.The simplest way of ensuring that the approved appraiser signs/inspects or whatever the requirement is, is to reject reports where the requirement is not met. If you aren't willing to do that, don't complain. If you aren't willing to take your requirements seriously, why should the appraisers?
BTW, I have yet to see any bank reject a report because of the lack of an approved appraiser's signature or inspection.
No, I mean REJECT the report, not send it back for modification. If the approved appraiser didn't sign it the first time, it's a very good bet he didn't have anything to do with the preparation or review of the report. If he didn't do more than provide a cursory signature after the report is sent back, what's the purpose of the requirement?You have now. It may be a constant struggle, but we send every one back for the proper signature. I have yet to see that person refuse to sign, lol.
The purpose of the requirement is to have a specific party on the hook. If the approved appraiser has that much confidence in his/her subordinates, that's fine. Personally, I wouldn't sign anything that I had not reviewed in detail myself. Nonetheless, it's not like the report doesn't get reviewed in detail to determine if it is compliant and supported.No, I mean REJECT the report, not send it back for modification. If the approved appraiser didn't sign it the first time, it's a very good bet he didn't have anything to do with the preparation or review of the report. If he didn't do more than provide a cursory signature after the report is sent back, what's the purpose of the requirement?