Desktop appraisals officially rolling out

[Joe Flacco]

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.

Fees are mainly based on supply and demand.

I suspect that they are baiting appraisers in. I have to believe that once they get all the appraisers on board they will push the fees down as much as they can.

 

[residentialguy]

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.

Exactly!
Inspections are the best part of the job. Who wants to be cooped up inside all day?

 

[alebrewer]

One other consideration regarding the 'sketch with interior walls requirement'. Let's say that the home sketcher - whomever that may end up being - identifies functional obsolescence within the traffic flow of the home, as evidenced by the interior wall sketch. Should the appraiser adjust for that, given he/she doesn't have interior wall sketches of the comparables and, as such, doesn't know if they suffer similar obsolescence? AND - let's say we use the home sketcher's estimate of GLA - do we then compare that to comparables whose GLA was reported from public records? Of course, that one has always been somewhat of a conundrum for me, that we're required to develop a GLA for the subject, but then compare the subject's GLA against comparables - whose GLA came from public records.

Anyway - the last part of March should be an interesting ride.

 

[Mejappz]

Come March, we should open up a new “Sticky thread” with the prices AMCs and Lenders are sending these orders out for.

 

[J Grant]

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...

Since a lender can opt to order a regular appraisal -why would they go through all this desktop hiring trouble - it would seem to appeal to big box lenders and AMC's who use staff appraisers or could assign some clerk to wrangling inspectors or third parties - other lenders why bother especially if it is just a relatively small part of eligible loans they would just order a regular appraisal.

 

[alebrewer]

Since a lender can opt to order a regular appraisal -why would they go through all this desktop hiring trouble - it would seem to appeal to big box lenders and AMC's who use staff appraisers or could assign some clerk to wrangling inspectors or third parties - other lenders why bother especially if it is just a relatively small part of eligible loans they would just order a regular appraisal.

From a lender's perspective, ordering a 1004 Desktop is no different than ordering a 1004. It's the 'floorplan with interior walls' that is the big unknown...

 

[Joe Flacco]

Exactly!
Inspections are the best part of the job. Who wants to be cooped up inside all day?

Yeah but when you only desktops you can go live anywhere you want. You can travel.

 

[Dublin ohio]

Exactly!
Inspections are the best part of the job. Who wants to be cooped up inside all day?

Probably the one thing that kept me sane during the past 2 years.

 

[alebrewer]

I've heard day drinking helps as well, but don't take my word for it. I'm no doctor.

 

[jay trotta]

One other consideration regarding the 'sketch with interior walls requirement'. Let's say that the home sketcher - whomever that may end up being - identifies functional obsolescence within the traffic flow of the home, as evidenced by the interior wall sketch. Should the appraiser adjust for that, given he/she doesn't have interior wall sketches of the comparables and, as such, doesn't know if they suffer similar obsolescence? AND - let's say we use the home sketcher's estimate of GLA - do we then compare that to comparables whose GLA was reported from public records? Of course, that one has always been somewhat of a conundrum for me, that we're required to develop a GLA for the subject, but then compare the subject's GLA against comparables - whose GLA came from public records.

Anyway - the last part of March should be an interesting ride.

picked this up off CNN;
Among the most noteworthy examples of these practices cited by James is the treatment by Trump's financial documents of his penthouse in Manhattan. The apartment is large -- almost 11,000 square feet -- but, according to the state's filing, Trump documents indicated it was 30,000 square feet and thus worth a whopping $327 million. When questioned, former Trump Organization chief financial officer Allen Weisselberg said the figure was an overstatement, "give or take" $200 million.

Higher valuations permit a borrower to seek more funds from lenders and at better terms. But, in Trump's case, exaggeration is seemingly a pattern of practice: Nearly tripling the size of his home with mere words is also consistent with his way of insisting the world conform to his preferences.

So the question is; apparently it doesn't matter who measures and I definitely know it Wasn't done to ANSI Standards.....lol

I especially like the "give or take" $200 million comment from the financial guy