Has Anyone Completed A 3.6 Yet

[Zoe]

You won't be able to see the forest for the trees. A good appraiser can group all of the like things together and single out the value differentiators pretty fast. So forcing the appraiser to document every detail just invites many avenues of attack from the potential aggressor (whoever that might be) - and will likely obscure the features that impact value. This is especially true of secondary bedrooms, bathrooms, and certain other kinds of rooms, which are individually typically not so important. You always focus on the kitchen, master and secondary bathroom and bedrooms, probably grouping most of the other rooms together if they are in the same ballpark of C/Q.


All of this division, again, it opens the appraiser to attack on specifics, without adding to value. Condition and Quality for the entire property can be accurately measured by the residual, provide you have a good regression R2 or 70-80%. Then the math says you are free to break that down anyway you want into parts and there will be no impact on value. But, FM/FM will have you go in the opposite direction, break everything up into dozens of components, estimate them subjectively and combine the subjective values into a. total adjustment to the net sale price - AND NO THAT WILL NOT BE ACCURATE!!

It was working just fine before, and this is the cost of making changes, stupid changes at that.

Why? It shouldn't matter one way or the. other - unless you are trying to hit some value and are hoping the site will save you in the end!

Well, if. you don't you might (and I do mean "might") regret it. I don't know;


Well as long as they get paid for their time, which they probably won't.


Yep. The knotheads over at FM/FM are genuine knotheads. Always have been. I like the word "knot heads" - it suits them well.


Honestly, they should have left long ago.


Be concerned about your NET INCOME and retirement. We are now seeing many baby boomers retiring with no savings. I see it. They spend most of their lives dreaming that it will all work out and in the end wind up living in self storage units - if they are lucky. That is a story in itself. And time slowly, so slowly, creeps upon them, and, oddly, they just keep dreaming it isn't. But the time will come if they don't have any savings. And with a little bad luck, really bad things can happen.

Maybe you should get geo competent. USPAP just says competent.

 

[Zoe]

Competent is a broad term. Borrower gets copy of appraisal. I promise you I am not competent in many areas close to me in Tennessee. I could get competent in a few days.

 

[Non Sequitur]

You won't be able to see the forest for the trees. A good appraiser can group all of the like things together and single out the value differentiators pretty fast. So forcing the appraiser to document every detail just invites many avenues of attack from the potential aggressor (whoever that might be) - and will likely obscure the features that impact value. This is especially true of secondary bedrooms, bathrooms, and certain other kinds of rooms, which are individually typically not so important. You always focus on the kitchen, master and secondary bathroom and bedrooms, probably grouping most of the other rooms together if they are in the same ballpark of C/Q.

Bolding mine.

Ding-ding-ding, we have a winner! Appraisal reports were never meant to account for the fall of every sparrow, but here we are. And multi-units are going to be nightmares of ".... but I installed a new Lowe's Property Brothers vanity in unit 4's 1/2 bath and you rated it C4" pick the appraisal apart nonsense when the borrower or agent doesn't agree with the value. SFRs will be hard enough, multi-units will be near impossible especially with what appears to be an industry wide effort by AMCs to push back against raising fees for 3.6 reports.

 

[Overimprovement]

I currently feel like I am not really developing an opinion of value instead just filling out forms with drop downs and check boxes.

This summarizes the end goals. Opinion of value will come from AI. Appraisers will be completely replaced by data gatherers. This is just stage 1, where appraisers are lied to and told how relevant we will always be.

The profession is getting its last rites as we speak. Wake up and polish off your resumes...

 

[chad hampton]

That’s what I’ve said since I first heard of this thing. They ***** about appraisers being form fillers, and then appear to give us a giant form to fill out one drop-down box at a time. But then they make a point of saying no this isn’t a form.

At this point it’s comical.

 

[chad hampton]

This started when they made a point of trying to determine in their view what was the fact and what was an opinion. they said GLA is a fact. No it isn’t. Maybe if 10 of us measured the exact same 25‘ x 40‘ rectangular home we’d all get the same number, but if we measure a 3700 square-foot home, we would get 10 different living areas. Hopefully all within a couple percent of each other. That by definition is not a fact.

And we’ve seen it time and time again. They’re pushing to say quality and condition is a fact. That’s a little tougher sale, but I don’t underestimate the level that the snake oil folks will go to. They have to throw that out there long enough and hope it gains traction, after that they’ll say since it is a fact, computers will be able to analyze photos and give you Q/C ratings.

At the core of appraising, you are supposed to have opinions by experienced real estate professionals in your market. We’ve seen an effort over the years to completely eliminate that. The reason is obvious.

 

[Trihard]

Bolding mine.

Ding-ding-ding, we have a winner! Appraisal reports were never meant to account for the fall of every sparrow, but here we are. And multi-units are going to be nightmares of ".... but I installed a new Lowe's Property Brothers vanity in unit 4's 1/2 bath and you rated it C4" pick the appraisal apart nonsense when the borrower or agent doesn't agree with the value. SFRs will be hard enough, multi-units will be near impossible especially with what appears to be an industry wide effort by AMCs to push back against raising fees for 3.6 reports.

That’s what I’ve said since I first heard of this thing. They ***** about appraisers being form fillers, and then appear to give us a giant form to fill out one drop-down box at a time. But then they make a point of saying no this isn’t a form.

At this point comical.

The GSE's have never cared if the appraiser gets taken to court. All they care about with 3.6 is vacuuming enough data to get rid of the appraiser or put enough pressure on the industry that appraisal fees remain low. Meanwhile, everyone else in the process jacks up all their fees and the appraiser subsidizes closing cost profits for the lenders and AMC's. All the smart people are selling $2k boot camps. 30 people x $2,000 = $60,000 for a weekends work. Meanwhile the appraiser makes jack. Appraising is the worst profession in the United States.

 

[J Grant]

That’s what I’ve said since I first heard of this thing. They ***** about appraisers being form fillers, and then appear to give us a giant form to fill out one drop-down box at a time. But then they make a point of saying no this isn’t a form.

At this point comical.

Funny yet scary at the same time -Orwellian, Machiavellian, deceptive -
If the profiteers can control the valuations and regulation, they can also profit from the RE market itself.

Unfortunately, the American residential housing market, which used to be a way for the working person to gain a foothold in life via some equity and security, has been co-opted to be owned and traded by the wealthier and rented out to a permanent underclass ( the American worker, whether that be white collar or blue collar ). FWIW, it is strategic to divide us with petty cultural issues because a divided population can be distracted while they rob us of sight.

The housing market in my area has an increase in property flippers, RE agents who buy and sell to each other, and investors, compared to owner-occupant buyers. Every week, I see more appraisal orders are for a 1007 rental form added . The more housing becomes unaffordable for an owner-occupant to purchase, the more they are trapped into renting -
At the same time, many comps or subjects that I research show delinquent property taxes. The profiteers make it easy it is to buy a house (such as with a waiver /value acceptance) yet what happens after the sale... RE taxes that double as soon as they close, soaring homeowner insurance rates, rising HOA fees, and rising repair costs.

A whole list of leeches set up to carve out a piece of the meager appraisal fee - even at full fee with no AMC, a fee of $500-$600 is below what is needed, and I can not imagine doing it for $300 to win an AMC order. Now the new leeches are software companies that promise to save time and auto-fill - for $$ per order, rising portal fees, AMC's taking half if they can, etc.

It is shameful that the GSE references PAREA as a way to get minorities into the business. Whether a minority or not, young people find out the truth on social media from boots on the ground appraisers and they can do the math - even if they got a PAREA grant, the time invested might be better spent learning to be a beauty stylist or becoming a nurse or a learning a skilled trade. A dog groomer earns more. My hairstylist makes more an hour than I do, and they get cash tips. Nobody is scrutinizing their work and threatening a board complaint because they are not happy with a value or the appraiser made a petty USPAP violation.

Not every job is high-paid, but some jobs offer other perks - an intrinsic reward of accomplishment or a less stressful or more social environment.
The intense scrutiny and time pressure for a res lending appraisal is out of balance with the low pay.

A corrections officer in a prison makes more than many appraisers with a res license. Am sure being a corrections officer can be a tough job but the benefits are great and at least the crooks are on the other side of the bars.

 

[chad hampton]

It’s hard to find a profession that makes less than your typical residential appraiser these days. That’s why it’s a gig job for me. High 5 low 6 gig job.

The AMC model I could’ve lived with. There’s a few benefits to it. But it requires both parties operating in good faith and following the laws and rules that are set up. And that’s how it started. But these days they aren’t clients, and the truth is, there’s only a handful of them that matter. That’s not how it was intended to be. And it certainly wasn’t intended to have AMC’s Morph into their own appraisal companies.

At this point, the system has been bastardized so much that it’s unrecognizable to what was originally set up in HVC and Dodd Frank

 

[Alsie35]

As I've said, the UAD 3.6 Abomination is basically indistinguishable in terms of its effect on our profession from a Communist top-down 'diktat' eliminating our small business model outright.