Data Cancer Due to Waivers

[Tim Hicks (Texas)]

I was wondering what the racial makeup is of these "appraisal waivers." Can there be perceived bias if a disproportionate amount of waivers are only given to certain races?

 

[George Hatch]

Since I'm curious I wanted to take a look at a dataset to see what there is to see. I'm going to start a new thread where I'll explain the way I sorted and the limitations involved, but below is a breakdown of the residential condo sales for 2024 in the city of Riverside. I broke the data into 3 groups - the sales where the public records don't show any financing, the sales where the public records show a low LTV up to 80%, and the sales where the public records show a high LTV loan of 81+%



A couple notes:

The $779k sale is a singular outlier of a unit in a gated community of 21 units, the previous sale in that project was in 09/2023 @725k. High LTV financed

The $685k high sale in the low LTV group was also an orphan. 35 unit project with a mix of 2bd and 3bd units. This one sold in 10/2024. The next most recent sale of a 3bd occurring in 09/2023 @ $650k, so the 2024 sale sold for 5% more than the 2023 sale.

Here's what the 4yr sales history for the entire dataset looks like

 

[Non Sequitur]

 

[Joyce Potts]

Realtors providing details of the sale has been my greatest asset when completing dissolution of marriage appraisals, assessment appeals and standard 1004 appraisals when I needed more information. I haven't been doing this as long as you Joyce, but I know that calling a listing agent to verify and provide information is the best way to go. Also, I have received countless referrals from Realtors just by getting to know them. When you are in the courtroom and you can testify that the information regarding comparable sale #whatever has been verified by the Listing Agent, and you can tear apart the opposing parties appraisal because they haven't made the call you can then continue to make the claim that you have never had a client that was unsatisfied after a final decision has been made.

I was recently involved in another thread on a FB Appraisal Group where several appraisers claim that anything Realtors put in their MLS or tell appraisers cannot be trusted. This divide within the appraisal ranks is why AI is surely going to take over and be the primary valuation provider.

 

[Surf Cat]

Doxxing George Hatch?

When is this dude going to be a man, post on here and air it out instead of trashing GH on his show? What a pus*y.

 

[George Hatch]

LOL

Whatever you do, don't look at any property datasets in Ohio because wherever they are, they're too close to "Phil's" property to prevent TMZ and all 600 of his fans from stalking him and his family.

 

[Joyce Potts]

Doxxing George Hatch?

When is this dude going to be a man, post on here and air it out instead of trashing GH on his show? What a pus*y.

All’s fair especially when George came out after Phil claiming his example wasn’t credible. Apparently, Johnathan Miller agrees with Phil.

Data Cancer Infecting the Real Estate Market - Appraisers Blogs

They have created the phenomenon known as “data cancer” which reduces an appraisal to a rubber stamp that contaminates the comps used for future

appraisersblogs.com

 

[Terrel L. Shields]

I don't know why I thought this to be apropos to appraisers.

 

[Surf Cat]

All’s fair especially when George came out after Phil claiming his example wasn’t credible. Apparently, Johnathan Miller agrees with Phil.

Data Cancer Infecting the Real Estate Market - Appraisers Blogs

They have created the phenomenon known as “data cancer” which reduces an appraisal to a rubber stamp that contaminates the comps used for future

appraisersblogs.com

Well..... George is a realist.... he basically went where Phil was talking about and did an anecdotal investigation which, from what he posted, didn't provide conclusive evidence that a waiver(s) in the area were juicing the market. George also stated it wasn't his area of geographical competency and his search was basically, a quick overview.

The last thing, which George stated again and again, is that he wasn't looking for Phil's personal house. Yet, that is what Mr Crawford is contending and airing out on his show.

The reason for my post is not that waivers are or are not manipulating the market. My problem is that a person from his self proclaimed number one appraisal podcast show (are there any others??) won't come on an Appraiser's forum and discuss a simple misunderstanding. Instead, he uses his show to lob insults at a long time member here.

If I had an appraisal podcast, I would certainly post on an Appraisal forum to not only discuss appraisal issues and challenges we are facing but for my own selfish reasons of promoting my show.

But no, he comes on here, with his very first and only post, takes a sniper shot, and then bails. Then for a couple shows in a row, lobs bombs. My contention still stands...what a p*ssy....

I don't like waivers, especially on purchases. It goes against the very reason why an appraisal should be done. Plus, not indicating that a sale was a waiver to users in the MLS, like that of REO's, short sales, probate sales, Etc. Seems very disingenuous and lacks transparency.

 

[Surf Cat]

Johnathan Miller agrees with Phil.

I quickly looked at the article you posted after my initial post above. It's the same stuff including charts and graphs regurgitated from Phil's show. As much as I would like there to be, there's no conclusive evidence that waivers juice the market.

How come Jonathan Miller is not getting raked over the coals like George is? He mentions in the article you posted that it was from Phil's neighborhood.