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Human Real Estate Appraisers Unnecessary?---[A distorted view]

ramrcdk

Senior Member
Joined
Jan 15, 2008
Professional Status
Certified Residential Appraiser
State
North Carolina
Appraisers who are better inspectors, more adept at using computers and statistics, are needed. Appraisers also need to improve skills in GIS, in particular ArcGis, as well as CAD, and various statistical tools.

So, the answer is that the "legacy" appraisers are insufficient for the coming era. Or, in other words, the final solution is the combination of computers and humans for appraisal. That should be obvious, in my opinion.

For appraisers who can't hack the self-study, the learning curve, computer technology - they might think the other route is specializing in inspections - but that will also get to be more of the same. A good inspector needs to be well versed in architecture, construction, engineering, biology and chemistry - and very good at using CAD.
{/QUOTE]

BERT, buddy you are such a DOWNER! Fortunately, I just do what I do and have had no problems for about 36+ years.
There is always a "learning curve" to NEW stuff. You just get informed ...

Otherwise, I have not read all of your posts, so perhaps ...I just don't understand your pessimistic continued comments about educated appraisers.
 

djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
go call that 3 time chair, you know the one, he will tell you they have not been verifying for 10 years.
 

Bert Craytor

Senior Member
Gold Supporting Member
Joined
Jun 27, 2017
Professional Status
Certified General Appraiser
State
California
BERT, buddy you are such a DOWNER! Fortunately, I just do what I do and have had no problems for about 36+ years.
There is always a "learning curve" to NEW stuff. You just get informed ...
Otherwise, I have not read all of your posts, so perhaps ...I just don't understand your pessimistic continued comments about educated appraisers.
You are right. When I say better appraisers are "needed" - that is by my standards. The standards of the appraisal market place are currently much lower. And any appraiser, like myself, who does more than is required, is a little crazy.

However, having said that, of course, many in the industry rightly criticize the quality of residential appraisals done for GSEs. Like I have said many times before, guys at the banks reviewing appraisals for portfolios come across instances where they see many appraisals for the same property for the same approximate date, and notice the big differences in the reports. They compare the values to AVMs and come to the conclusion, that they might as well go with AVMs. .... Heck I got pulled into a lawsuit, where the state told me there were 7 different appraisals for 7 different lenders for a property. None of the loans went through, the owner sued one of the lenders, and all the appraisals were pulled in for review by the state - since there was a civil suit. I saw two of the other appraisals ... and they were way off in so many respects; I'm pretty sure I was the only one who measured the GLA accurately, created a detailed CAD floorplan (using Chief Architect) and that included an in-law over the garage and a separate cottage in the back, ..., it was a difficult appraisal for various reasons.

But, while there are major complaints regarding appraisal quality, no one, in particular lenders or AMCs are going to pay you for the time to do a decent (by my standard) appraisal on a complex property.

However, I believe that 30 years from now, give or take, a higher level of quality in appraisals will be standard. The reason for that is that appraisers will be better educated and have better tools, ... and our society is trending to a higher degree of sophistication in reporting, in general. So, I would call current appraisers, myself and perhaps a few others not included, "legacy appraisers" -- because in 30 years that will be the appropriate term. Maybe I'm jumping the gun, but I don't think so.

In the meantime, if you want to make a living as an appraiser, your only choice is to be a so-called "legacy appraiser".

In other words, even though I am a Certified General Real Estate Appraiser, SRA and Licensed Real Estate Broker, I'm really far more of a software engineer and statistical analyst. And, for me there are far better ways to make money than doing appraisal. However, I do some appraisal, for some additional income when I need it, as I am semi-retired.

You might think that accurate and well-supported appraisals would be appreciated in a court of law; but that's a circus as well when it comes to divorces and the like.
 
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ramrcdk

Senior Member
Joined
Jan 15, 2008
Professional Status
Certified Residential Appraiser
State
North Carolina
You are right. When I say better appraisers are "needed" - that is by my standards. The standards of the appraisal market place are currently much lower. And any appraiser, like myself, who does more than is required, is a little crazy.

However, having said that, of course, many in the industry rightly criticize the quality of residential appraisals done for GSEs. Like I have said many times before, guys at the banks reviewing appraisals for portfolios come across instances where they see many appraisals for the same property for the same approximate date, and notice the big differences in the reports. They compare the values to AVMs and come to the conclusion, that they might as well go with AVMs. .... Heck I got pulled into a lawsuit, where the state told me there were 7 different appraisals for 7 different lenders for a property. None of the loans went through, the owner sued one of the lenders, and all the appraisals were pulled in for review by the state - since there was a civil suit. I saw two of the other appraisals ... and they were way off in so many respects; I'm pretty sure I was the only one who measured the GLA accurately, created a detailed CAD floorplan (using Chief Architect) and that included an in-law over the garage and a separate cottage in the back, ..., it was a difficult appraisal for various reasons.

But, while there are major complaints regarding appraisal quality, no one, in particular lenders or AMCs are going to pay you for the time to do a decent (by my standard) appraisal on a complex property.

However, I believe that 30 years from now, give or take, a higher level of quality in appraisals will be standard. The reason for that is that appraisers will be better educated and have better tools, ... and our society is trending to a higher degree of sophistication in reporting, in general. So, I would call current appraisers, myself and perhaps a few others not included, "legacy appraisers" -- because in 30 years that will be the appropriate term. Maybe I'm jumping the gun, but I don't think so.

In the meantime, if you want to make a living as an appraiser, your only choice is to be a so-called "legacy appraiser".

In other words, even though I am a Certified General Real Estate Appraiser, SRA and Licensed Real Estate Broker, I'm really far more of a software engineer and statistical analyst. And, for me there are far better ways to make money than doing appraisal. However, I do some appraisal, for some additional income when I need it, as I am semi-retired.

You might think that accurate and well-supported appraisals would be appreciated in a court of law; but that's a circus as well when it comes to divorces and the like.
Hey Bert, I appreciate your time...for that post.
7 different x 7 = a lot of deviation no doubt AND over time, perhaps! Hope for you, it's long resolved.
I very much agree...IF you expect to REMAIN in this business then you better get your scheet together, have a business plan & a back-up!
In that, I also agree IF you are NOT a TOP you will be a BOTTOM!
Just saying for me: CAD Yes, Engineering Yes, RE: 2nd generation: commercial & residential= all of my childhood throughout my life...in my blood.
Sunsetting: Now, I don't have to worry whether I get fired, not a Bottom, and enjoy "working the puzzles of RE", so to speak. Until then...
 

Non Sequitur

Elite Member
Supporting Member
Joined
Feb 14, 2002
Professional Status
Certified Residential Appraiser
State
Louisiana
We invited a third party into our space, even demanded licensing for them. Now that they’re here I’m not sure we can kick them out. Along the same path, real estate agents supported Zillow, how’s that working out? Watch the video:

 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
go call that 3 time chair, you know the one, he will tell you they have not been verifying for 10 years.
I never call him. If he wants to chat about something he calls me. I haven't gotten any more phone calls since he started at the new job, not do I necessarily expect him to be in a position to continue on with the outside contacts as before.

I do recall him saying back then that the hybrid program that company had been selling was set up so that they did cross check the info they're getting and they sometimes do reject the inspection if it looks to be out of line. So maybe their program is set up a little more intelligently than how you're arbitrarily assuming most fee appraisers will handle the situation.
 
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djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
gee wally after seeing all their pending lawsuits, i find it hard to believe they would do the right thing. carry on.
 
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