"growth" Checkboxes On Gse Forms

[DWiley]

Lets not make a joke out of lenders needing appraisers to say markets are stable to slightly increasing. We can track ALL of real estate market activity and know that lenders don't lend when markets are declining...
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I have seen hundreds of loans made on properties where I personally reported that values were declining. Like many areas, it was very common in my market for a couple of years. To this day, FHA still requires additional analysis and reporting in declining markets, but the loans are still made. While much/most of the country has pretty good market conditions right now, I still occasionally see reports that indicate declining markets in some areas, and loans are still made.

It is true that there tends to be less market activity in declining markets (it is almost axiomatic - if there was a lot of activity the market probably would not be declining) but that does not mean that lenders are not lending in those areas.

 

[Meandering]

I can appreciate your experience is wide and varied, yet does not include your appraisal clients as being many of the same AMCs that so many appraisers have as clients,

That, and your credentials lets clients know to think twice before putting you on a black list for not making a number.

And you know what? I don't have any issue with that.

But there is no way on God's green earth, I'll call your experience "typical" for all appraisers.

But you know, I still loves ya,

And, yes Mike, that was a suck up.



So can we leave this at, you agree with me that the 1004MC, is not a stand alone Market Condition Addenda that meets the USPAP requirement for a discussion of Market Conditions, because even if you do write that the smallest homes sold in the most recent quarter, that is only a qualifying statement to the raw data and not a condition of the market.

So,
Thanks for supporting what I was saying. It is always a pleasure hashing things out with you.



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[Terrel L. Shields]

If anyone has not recognized the artificially low interest rate policy of the Feds as being part of the "market conditions" that impact price and volume of property sales and listings...

Off topic but quarry rock, sand & gravel, other industrial mines often were valued by sinking fund methods, Inwood or Hoskold's formulas. Using T bills as a starting point, risk was often measured in multiples of current rates. Low Fed contrived rates meant apparent cap rates were way too low. Adding recapture to say 3x T bill rate was still only 7% on many rather risky gravel pits. Basically until normalization happens, one simply cannot accept those kinds of metrics without adjustment.

 

[Meandering]

Agreed,

and is one of the reasons Ms Yellen states that commercial real estate is currently over valued.



Has the "bond method" fallen out of favor with appraisers since the election??



Someone told me once that working the Hoskold formula was foreplay for appraisers.

I have funny friends.

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[Ahhhh Yeahhhh]

I don't know what a Hoskold formula is, but I heard if you shake it more than three times you are playing with it.