Desktop appraisals officially rolling out

[Overimprovement]

I think one possible solution Fannie MAY have in mind is to have whoever does the inspection end of the bifurcated do these floorplans. But with minimum wage effectively $15/hour now in most of the country (may or may not subside after COVID), who is going to do these? Gas and travel time HAVE to be considered here, and unless the realtors end up getting these gigs, I don't see too many doing it for less than $75. Floorplan sketches are not 10 minutes and you are done, especially if one requires dimensions as well. I don't even like doing those. It's fine on a simple ranch, but some of these 1.5 level contemporary monsters with seemingly random walls on the upper level would be nightmares to floorplan. I could easily see some of those being an hour job.

I actually predict the floorplan requirement will be gone by year's end. Quote me on that.

 

[Highlander416]

I think one possible solution Fannie MAY have in mind is to have whoever does the inspection end of the bifurcated do these floorplans. But with minimum wage effectively $15/hour now in most of the country (may or may not subside after COVID), who is going to do these? Gas and travel time HAVE to be considered here, and unless the realtors end up getting these gigs, I don't see too many doing it for less than $75. Floorplan sketches are not 10 minutes and you are done, especially if one requires dimensions as well. I don't even like doing those. It's fine on a simple ranch, but some of these 1.5 level contemporary monsters with seemingly random walls on the upper level would be nightmares to floorplan. I could easily see some of those being an hour job.

I actually predict the floorplan requirement will be gone by year's end. Quote me on that.

How about this. Take that monster contemporary. I am thinking they will want us to walk the broker or homeowner through the floor plan sketch remotely as they do it. These are tough to do when you are actually there holding the tape. Imagine trying to direct someone else to do it by zoom.

 

[alebrewer]

I actually predict the floorplan requirement will be gone by year's end. Quote me on that.

My crystal ball says the same thing - certainly as regards the interior walls. I'm still not sure what a sketch is going to tell an appraiser that would have a quantifiable effect on the appraiser's OMV. GLA I get - that's one of the primary elements of comparison for residential properties. GLA, however, is generally available through public domain websites. Sketch, though? (a) you can see the shape of the home via aerial views, (b) I can't tell you the last time I saw an appraisal where adjustments were made for 'home shape', and (c) unless the sketch is being provided by a qualified professional, who is to say the 'sketched' GLA is more credible than the public domain GLA?

I COMPLETELY get needing to know interior and exterior condition, amenity package, room count, etc. I'm just not following the logic on the sketch part. We shall see.

 

[DTB]

Originally sketches were for GLA and any possible functional issues shown, that's it.
No need for floor plans now.

A better solution would be to provide a video walkthrough with specific requirements called out.

 

[alebrewer]

Just saw this on LinkedIn from one of the Exec's at Mueller:

"Are you ready for March 19th, 2022 and the new Fannie Mae Desktop Appraisal that can be used on qualifying SFR purchase loans? If not or you would like to learn more on how these Desktop options can expedite your loan closing please send me a message. Mueller has completed thousands of Desktops during the test and learn phase so we are experienced and have the staff to complete these new forms correctly the first time. Also, take advantage of our Mueller@Home service for Floor Plans anywhere in the 50 states that can be completed by either a Mueller Inspector or we can assist the homeowner to provide a Floor Plan using the CubiCasa sketch program over the phone. Don't wait, contact Mueller today so you are ready for spring/summer 2022."

The post was/is directed at the lending community, not appraisers, but my takeaway is that folks are, in fact, preparing for a niche market in 'home sketching'. Problem is that loan originators won't know they need a sketch until DU kicks out the desktop appraisal option. Then they send Mueller (or CC, or whomever) an order for a sketch. Then they wait a week to get the sketch back. Then they send the desktop order to an appraiser and wait another week (if they're lucky) to get that back. We're now two weeks into the appraisal process - which isn't too far removed from where we're at now.

I know I'm slow, but at least I'm dumb. I don't get it.

 

[Overimprovement]

How about this. Take that monster contemporary. I am thinking they will want us to walk the broker or homeowner through the floor plan sketch remotely as they do it. These are tough to do when you are actually there holding the tape. Imagine trying to direct someone else to do it by zoom.

Oh I SO hope that is what they want. That means even the skippys that want to do these for peanuts will do them exactly once. Product dies due to lack of response from appraisers. I actually chuckle when I see some text-first millenial try to talk a 70 year old with hearing loss through something like that.

And who gets that coveted 2 digit floorplan fee? The appraiser taking their time to walk HO or LA through the process? Or the HO/LA? I think the best response is: Hey Fannie--you want a floorplan in the report? YOU supply it to ME.

Again, I think desktops have their place--recent refi's, low LTV 2nd's, etc. But for purchases? That you and I will have to bail out Fannie when they fail again? No. Just no.

 

[alebrewer]

I forgot to mention that now, direct engagement lenders (and, I'd assume, AMC's) will have to build an order management platform for 'home sketches'. Being as that is a mutually exclusive product as compared to appraisals, I'm guessing the respective panels will be made up of home inspectors, Realtors, appraiser trainees, etc. Who knows what platform they'll have to use, as Mercury and AppraisalPort are appraiser based platforms...

 

[Joe Flacco]

Dude on Reddit says that he is getting $300-$400 for the hybrid/desktops.

 

[alebrewer]

I doubt if the fees will drop substantially. After all, part of what the appraiser is compensated for is the risk associated with his/her opinions of value - not just the inspection or the analysis.

 

[residentialguy]

Again, all that falls to the appraiser, who now bears greater risk (because they have to rely on more 3rd party info) and receives less fee.

Charge less fee for more risk? Sounds like a stupid personal decision of the appraiser to charge less.