Future Of The Industry

[Eli]

A machine can't verify a sale. MLS is a sales brochure . It isn't a database of facts. But from what I hear appraisers don't always do such a great job of this task.

Your treading on thin ice based on several factors. Your friends may not like you. But march on

Get a little more gut JT.

I get the jist.

Fastest and cheapest is in the mix.

 

[offtherecord]

Your treading on thin ice based on several factors. Your friends may not like you. But march on

Get a little more gut JT.

I get the jist.

Price isn't the same thing as value. I hold a joint conference every year with the American Enterprise Institute . There are a lot of very smart people in that room. A lot of Economists. But the input into their models is sales price, not value. Scares me to death.

 

[Eli]

Price isn't the same thing as value. I hold a joint conference every year with the American Enterprise Institute . There are a lot of very smart people in that room. A lot of Economists. But the input into their models is sales price, not value. Scares me to death.

Lets get down to cause and effect. Like fastest and cheapest. There may be many other factors they bring up like market structure that I would love to hear about. Just spill it out.

 

[Eli]

Don't toy with me JT. You could be so much help, more than you know.

 

[Eli]

When have you seen an appraiser report anything less than a 30 year life?

That is degrading. Again, you could be so much help if you would just try.

 

[offtherecord]

That is degrading. Again, you could be so much help if you would just try.

Telling truth isn't always flattering . Don't ask the question " do I look fat in these jeans" if you don't want a real answer.

When is the last time you saw an appraisal that reported any less than 30 years? CU has been quite revealing.

 

[Restrain]

Having worked for a Big Bank and Fannie, I can truly say the goal is to eliminate appraisals. CoreLogic has access to the great bulk of the MLS systems. Based on the data bases being developed in F/F along with data obtained from CoreLogic, the lenders will be able to generate an AVM for the property. The lender will order a 2075 or equivalent, and not from an appraiser. Real Estare agent will suffice ($25). The confidence score will determine whether an appraisal is actually needed. 90% of the appraisals in 'conforming' loans will go away.

On the outliers, the rural properties, very complex properties, and non-conforming properties, yes there will be appraisals. But these constitute maybe 10% of the current appraisal business.

I am just glad that the wife and I are semi-retired and not just getting started. For those of you planning to make this a long-term profession, get the MAI, plan on doing litigation, ROW, commercial, machinery&equipment, anything other than lending appraisal work. But just remember that there is only so much of that to go around.

As an example, at the turn of the 20th Century, there were many stables, wagon makers, buggy-whip and harness manufacturers. Now, that is a cottage industry. Yes, there are still companies but much is done by small companies. You may find one blacksmith in a several county region. This is the probable type of future for appraising.

 

[Eli]

Telling truth isn't always flattering . Don't ask the question " do I look fat in these jeans" if you don't want a real answer.

When is the last time you saw an appraisal that reported any less than 30 years? CU has been quite revealing.

Not very long ago because I did it. When is the last time you saw one? I guarantee you FNMA sees a bunch of them.

There is no telling how many I have done over the past 10 years or even the past 30 years.

CU and UAD are going to change things more and more. We are in agreement there. AMC's will be graded too.

You may just not realize how many are less than 30 years. I understand how you may not realize. Fastest and cheapest may have a bearing.

I may be skinny instead of "fat" but I know this dance ain't over. AMCs are in trouble.

Notice new regulations are on AMC's

 

[Terrel L. Shields]

When is the last time you saw an appraisal that reported any less than 30 years? CU has been quite revealing

Total what? TEL or REL? I certainly extracted depreciation from the market and frequently has 20 or less REL. Problem on 30 year loan, yes? Not my problem. So you see why lenders don't call me for secondary market and I stick to commercial now. So if you are correct then a majority of appraisers are doing it wrong and arm-waving REL.

 

[Eli]

Total what? TEL or REL? I certainly extracted depreciation from the market and frequently has 20 or less REL. Problem on 30 year loan, yes? Not my problem. So you see why lenders don't call me for secondary market and I stick to commercial now. So if you are correct then a majority of appraisers are doing it wrong and arm-waving REL.

I was assuming she was referring to REL. Nothing else even made sense to me considering the context. I guess I should have called it an EA.