Help us build a better appraisal solution

[Red Flint]

George,

I'm going to need you to go ahead and care a little bit less about our business, spend less time on such robust, knowledgeable, well-written posts and simply stop bestowing the vast depths of your knowledge on the general valuation populace.

With that being said, if you published a book which was simply a compilation of your AF posts, I'd buy it.

I have not even graduated from his Cold Coffee Course, still trying to figure out how to split the grounds.

 

[George Hatch]

Define “better”. There’s probably a big disconnect with regards to that definition depending on who you ask.

That is literally the operative question for everything we do: "what is it going to take for me to meet this user's expectations with respect to development and reporting?"

I think appraisers are already capable of providing "more" nd "better" , but IRL most of those various forms of "more" aren't widely marketable.


Q: Can I write a 100pg narrative report on a house?
A: Yes

Q: Can I sell a 100pg narrative report on a house to most of my clients?
A: No

See tagline below.....

 

[Mike Kennedy]

"We understand that if we're going to make meaningful improvements to the appraisal process hiring experienced appraisers must be our very first step."

Fixed it for yah.

 

[Meandering]

Hi everyone,

I'm a consultant working with a team that's been active in the mortgage finance space for the last 15 years and we're exploring how some recent technology innovations could be applied to the appraisal process. The team is also in discussions around partnering with one or more AMCs.

We understand that if we're going to make meaningful improvements to the appraisal process hearing from experienced appraisers must be our very first step. If anyone is interested in providing your own industry expertise and advice, we would love to connect with you for a ~30 minute phone call to pick your brain and learn from your experience. If we end up getting the chance to chat, the team would be happy to compensate you for your time.

If you'd be interested in helping out with this project and having your experience be a part of what we're building, you can reach out to me directly at mitchell.bremermann@gmail.com

All the best,
Mitchell Bremermann

"Appraisers must have an understanding of statistical analysis and not employ terminology and/or
methodology with which they are not familiar." (USPAP AO 37)

So forget changing the "appraisal process" unless you also want to TEACH appraisers the METHODOLOGY you want to impose on them.

HOWEVER,

If the APPRAISAL PROCESS you want to "improve" involves removal of AMCs, stupid stips, incomplete information required for appraisers to correctly identify an appropriate scope of work, without bias toward the lending side of the lending transaction, then, by all means, please proceed on finding that separation of lenders and their "agents" from the appraisal process.


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[George Hatch]

Ima generate some hate on this one, but I think it would be interesting if a lender hosted their own appraisalware application and amped it up to include their own appraisal policy requirements which they control from their end. That way if one of their quirks occurs in an assignment the program would actively prompt for that response with a footnote linked to wherever it is in the report they want it addressed. Easier for the appraiser, easier for any reviewers or underwriters to follow because that situation is handled the same way and addressed in the same place in the report regardless of who is doing it.

Then if a footnote pops up it could include a menu with a couple of the stock answers as well as a "other' option the appraiser could use to write their own from scratch. If the appraiser used one of the stock responses it would save them that much time/effort in not having to write it out themselves.

Another potential application would be if the program could bring up and display every public record entry and every prior MLS listing for the subject and every comparable sale. You click into the property and the catalog of 1-liner references shows up; then the appraiser can read any of these entries that have ever occurred. Autoload the MLS listings from the last 3 years into the report and if there's a comment to be made then the appraiser is at least saving the time/effort on the data entry part.

Seeing what ratings, features and comments other appraisers have previously attributed to the various sales data in that database could be helpful to an appraisers, too. Spend less time researching and more time analyzing.

 

[bnmappraisal]

I'm a consultant working with a team that's been active in the mortgage finance space for the last 15 years and we're exploring how some recent technology innovations could be applied to the appraisal process

Are you just talking about RES lending or also COMM lending ???
"Appraising" is a big world

 

[Tejus]

Number 1 issue you can address is a consolidated MLS. The recommended minimum is a statewide MLS. A national MLS would be much better, especially for areas along state boundaries.

Without access to the market data, the appraisal report is garbage. Searching a single MLS when there are multiple overlapping MLS's is not adequate and may lead to inaccurate results.

The overlapping MLS's are a disaster for the entire real estate industry. The overlapping MLS's are costing my local Realtor Association Members (approx. 13k members, subset have multiple MLS memberships) $8m per year in unnecessary costs. This includes direct costs (overlapping MLS fees) and indirect costs (wasted time learning and using overlapping MLS's on a daily basis). My local Realtor Association Leaders were shocked (and in denial) when I documented and explained the member's cost. The entire industry supports a consolidated MLS, except the local Realtor Association Leaders since it will lower their profit.

There is no technical reason why a consolidate MLS cannot be done. Obtain a license from the different MLS's to access their data, map this into an industry std MISMO db schema and make it available to the real estate industry members for a fee similar to a single MLS fee. As the popularity increases, cut out the local Realtor Association MLS's and let the users enter their info directly in the consolidate MLS. The local Realtor Association MLS's will disappear after awhile.

bueno suerto.

 

[Tejus]

NAR has already confirmed the entire industry supports MLS consolidation. I should have included these links in my earlier msg.

https://www.nar.realtor/about-nar/policies/MLS-consolidation-resources
NAR web page describing the MLS Consolidation issues and industry support for consolidation.

https://www.nar.realtor/about-nar/policies/MLS-consolidation-resources/challenges-and-obstacles
NAR web page which describes in detail the MLS consolidation issues and how to address them. It also exposes and disproves many of the fallacies claimed by the local Board leaders. This is the most thorough and accurate explanation I've found on the topic. Kudos to NAR for writing this article.

My favorite quote from the article is when the article explains why local Board leaders refuse to survey their members to determine if they want MLS consolidation:
“We know what our members want and we know what’s good for them.”

My local Board is scared to death to ask the members if they want MLS consolidation because the response will be overwhelmingly in favor of it.

I received a lot of abuse from my local Board leaders when I attended their meetings and claimed the members supported MLS consolidation. Later on, I found the NAR web page and presented the NAR research supporting my claims. The local Board leaders were shocked and had no response.

If the Members want MLS Consolidation, then you have to convince your local Board leaders to do so or replace them with someone who will.

bueno suerto.

 

[J Grant]

The only effective appraisal "solution" would be to convince clients that the 2 day turn time from inspection and other high pressure around due dates is not compatible with what an appraisal is ( just as the 45 minute desktop is not ) Unless they change an appraisal to an AVM with a signature ( and then it is not an appraisal ), the process takes time to do it right - it is either an appraisal which takes time to research, verify and analyze, or it is another product. And I am not talking about adding weeks to delivery, how about even an extra day or two - ( 3-4 day turn time after inspection ) Appraisers could turn it in sooner if they can of course and many would, but the reality is every assignment having such tight turn times makes it overall impossible to be efficient in juggling assignments and appointments and only way to deliver like that in volume as far as research and time for analysis is to cut corners and or rote dump in data and sign. THAT is the price of speed, and what is the point, we are not in an emergency room or race where speed has life of death or gold medal hanging on it. And appraisers are faster now then ever, but if clients keep upping the bar, we can never be fast enough. So it has to change from the client end.

Of course a third party trying to sell software or programs will not profit from that so have no interest in actually solving the problem at its source. ( client/AMC unrealistic time expectation not compatible with what an appraisal is, )

People keep looking to "technology" to solve the problem, BUT it is a client created problem in the first place ( and it generated with AMC;s trying to out speed each other to get client business with zero regard for the appraisal or appraiser ) Seems they came to a dead end at the 48 hour turn time from inspection since even the cowardly FHFA warned that a one day/24 hour turn time was too fast ( paraphrasing but that was their message when a few years back AMC;s were agitating for a 24 hour turn time )

And the speed of the appraisal is not issue alone, often it is due to other factors... delays with assigning, ROV , (usually nonsense) client issues , delays waiting for condo/builder/other info from parties. etc-

 

[Terrel L. Shields]

We understand that if we're going to make meaningful improvements to the appraisal process hearing from experienced appraisers must be our very first step.

Go away. You bother me. All you are trying to do is cut costs and that cut comes solely from the appraisers pocket. No one else's. The appraiser gets little besides the LIABILITY and the borrower is going to pay a huge price still, but the middle men LIKE YOU get to pocket the money....You are a leach. And nothing is going to "automate" all but the most benign of cookie cutter properties. The complexity of a rural property, unique property, etc. are singularly not amicable to some process, shortcut, or formulaic solution. Again. Go away. I hope you go broke.