Hybrid and Desktop Inspectors

[Dale Floyd]

Perhaps I read too much into the written words of others.

I keep seeing the various letters and announcements from potential clients involving the new hybrid and desktop products coming next month. It is interesting to me that the majority are specifically touting their use of “realtors“ for these professional inspections to be done.

Why specifically state “realtors” instead of independent real estate agents, home inspectors, appraiser trainees, licensed appraisers, adjustors, or other professionals to complete these inspections? Since the title “realtor” is exclusive to NAR membership, is the National Association of Realtors more involved in these coming changes than we first perceived?

Perhaps I’m reading more into this than it appears. Your thoughts?

 

[jay trotta]

An island of comfort if you name an entity, but who knows Who is really doing the measuring?

If you can't get a name or contact information to question what they did or did not do? IMO I do not believe NAR is supporting any type of measuring and therefore, it would land on the Broker of the Agent. Are they measuring to ANSI? No idea

 

[J Grant]

Perhaps I read too much into the written words of others.

I keep seeing the various letters and announcements from potential clients involving the new hybrid and desktop products coming next month. It is interesting to me that the majority are specifically touting their use of “realtors“ for these professional inspections to be done.

Why specifically state “realtors” instead of independent real estate agents, home inspectors, appraiser trainees, licensed appraisers, adjustors, or other professionals to complete these inspections? Since the title “realtor” is exclusive to NAR membership, is the National Association of Realtors more involved in these coming changes than we first perceived?

Perhaps I’m reading more into this than it appears. Your thoughts?

Idk, they might just be using the word as an umbrella term - but who thought it was a good idea to turn a bunch of Realtors loose to inspect houses - they will be leaving business cards, trolling for listings , giving opinions what they think it is worth _ RE agents or Realtors are going to use these inspections as marketing opportunities, the puny fee for a drudge inspection is of less interest.

 

[Mark K]

Idk, they might just be using the word as an umbrella term - but who thought it was a good idea to turn a bunch of Realtors loose to inspect houses - they will be leaving business cards, trolling for listings , giving opinions what they think it is worth _ RE agents or Realtors are going to use these inspections as marketing opportunities, the puny fee for a drudge inspection is of less interest.

In the retail world its referred to as a 'loss leader'. Put some items on sale at cost or below to get people into the store in hopes that they'll buy more crap that they may or may not need.

In this case, the realtors won't make any money on the inspection, but they may make a lot of money selling their line of crap that they have high standards, training, etc. and can make more for the owner than FSBO.

In reality, odds are, whoever writes the copy doesn't know that a 'realtor' is a copyrighted trade name and they should refer to them as brokers.

 

[J Grant]

In the retail world its referred to as a 'loss leader'. Put some items on sale at cost or below to get people into the store in hopes that they'll buy more crap that they may or may not need.

In this case, the realtors won't make any money on the inspection, but they may make a lot of money selling their line of crap that they have high standards, training, etc. and can make more for the owner than FSBO.

In reality, odds are, whoever writes the copy doesn't know that a 'realtor' is a copyrighted trade name and they should refer to them as brokers.

I have a friend who managed a RE brokerage locally and she told me many agents did BPO's for this reason - the fee stank, but it gave them an opportunity to market to the properties around it they just did a BPO on a neighbor, they are the market experts, they'd be happy to drop by and give a CMA etc - end goal is to procure listings or buyers

Inserting them into the appraisal elevates the status of the RE agents or REALTORS, and weakens status of appraisers. In the eyes of an owner or buyer, it just looks like the appraiser was too lazy to inspect or the RE agent is "better" at it, so that is why they are there instead.

This debacle is a failure of USPAP. USPAP does not require an inspection, but it could make inspecting a property for appraisal use/purpose part of appraisal practice. Instead, inspections are treated as a grey area, if they involve an opinion they are considered part of appraisal practice, if no opinion then not.

Note that the appraiser will not be having interaction or contact with the third party inspector, lest the conversation bring forth an opinion from the inspector -

 

[alebrewer]

This debacle is a failure of USPAP. USPAP does not require an inspection, but it could make inspecting a property for appraisal use/purpose part of appraisal practice. Instead, inspections are treated as a grey area, if they involve an opinion they are considered part of appraisal practice, if no opinion then not.

Huh? How is measuring a property considered appraisal services? And how is this a failure of USPAP? Unless you're saying that USPAP should preclude anyone other than the assigned appraiser providing any third party information at all about the property. Wonder how long USPAP would be relevant if the ASB went down that path?...

 

[DWiley]

I have a friend who managed a RE brokerage locally and she told me many agents did BPO's for this reason - the fee stank, but it gave them an opportunity to market to the properties around it they just did a BPO on a neighbor, they are the market experts, they'd be happy to drop by and give a CMA etc - end goal is to procure listings or buyers

Inserting them into the appraisal elevates the status of the RE agents or REALTORS, and weakens status of appraisers. In the eyes of an owner or buyer, it just looks like the appraiser was too lazy to inspect or the RE agent is "better" at it, so that is why they are there instead.

This debacle is a failure of USPAP. USPAP does not require an inspection, but it could make inspecting a property for appraisal use/purpose part of appraisal practice. Instead, inspections are treated as a grey area, if they involve an opinion they are considered part of appraisal practice, if no opinion then not.

Note that the appraiser will not be having interaction or contact with the third party inspector, lest the conversation bring forth an opinion from the inspector -

Why do appraisers inspect properties? This is actually covered in the USPAP courses, but many overlook that content. The purpose of inspecting is to gather information about the relevant characteristics of the subject property. The personal inspection by the appraiser has been the norm, because that was the only way to get that info. That is changing and like with most change there are some who dont like it and want to push back

Now, let us look at the suggestion that USPAP should be changed so that the appraiser was required to personally collect such information and not rely on third party data. If you really think that through you will realize you don’t want that, because even in the traditional appraisal with an interior/exterior inspection the appraiser relies on some pretty critical third party data (E.g., age, site size, legal description, etc)

 

[glenn walker]

Perhaps I read too much into the written words of others.

I keep seeing the various letters and announcements from potential clients involving the new hybrid and desktop products coming next month. It is interesting to me that the majority are specifically touting their use of “realtors“ for these professional inspections to be done.

Why specifically state “realtors” instead of independent real estate agents, home inspectors, appraiser trainees, licensed appraisers, adjustors, or other professionals to complete these inspections? Since the title “realtor” is exclusive to NAR membership, is the National Association of Realtors more involved in these coming changes than we first perceived?

Perhaps I’m reading more into this than it appears. Your thoughts?

Because licensed agents who do not belong to NAR have no political clout or lobbyists and NAR has a code ethics and some control over its members. Also 90% of all people in America think that anyone licensed is a Realtor. BUT finally NAR wants to be able to capture a part of this market as it can easily be incorporated into the Listing Realtors Marketing Package - IE Professional Photos- A Floor Plan all done before a sale. This will solve the problem of appraisers having to wait for someone to go out to the property and it will be incorporated into the MLS Platform and a Floor plan will be like opening a plat map. We are alreday seeing it out here in my MLS- Floor Plan- Professional Interior-exterior photos etc. My Guess as I have no insde info but NAR knew about this way before we did.

My guess is within 36 months large Urban and Suburban MLS Systems will all be green for go. Rural and small places may never get up to speed.

 

[J Grant]

Why do appraisers inspect properties? This is actually covered in the USPAP courses, but many overlook that content. The purpose of inspecting is to gather information about the relevant characteristics of the subject property. The personal inspection by the appraiser has been the norm, because that was the only way to get that info. That is changing and like with most change there are some who dont like it and want to push back

Now, let us look at the suggestion that USPAP should be changed so that the appraiser was required to personally collect such information and not rely on third party data. If you really think that through you will realize you don’t want that, because even in the traditional appraisal with an interior/exterior inspection the appraiser relies on some pretty critical third party data (E.g., age, site size, legal description, etc)

The appraiser does not inspect merely to gather information, but also to form first hand impressions, observations, judgements ( and can get info from participants onsite )

The appraiser has long been able to get information via a third party, a trainee or RE agent or other, but it has been prohibited by many clients/users. Now suddenly it is allowed. Even in a traditional appraisal where appraiser inspects, yes they relied on additional third party data , but that still did not replace their own personal inspection.

Personally, as an appraiser who wants to semi retire within next few years, not inspecting so much can work well for me. But overall I think it will not work well for the profession - how it plays out in large scale use wrt to participants or agents having issues or not as efficient as the users hope -remains to unseen !

 

[DWiley]

Perhaps I read too much into the written words of others.

I keep seeing the various letters and announcements from potential clients involving the new hybrid and desktop products coming next month. It is interesting to me that the majority are specifically touting their use of “realtors“ for these professional inspections to be done.

Why specifically state “realtors” instead of independent real estate agents, home inspectors, appraiser trainees, licensed appraisers, adjustors, or other professionals to complete these inspections? Since the title “realtor” is exclusive to NAR membership, is the National Association of Realtors more involved in these coming changes than we first perceived?

Perhaps I’m reading more into this than it appears. Your thoughts?

Just to clarify, only the desktops are being widely adopted by the GSEs at this time. Hybrids are still being tested and have not been formally adopted for GSE use.