Hybrid Appraisal Reports

[J Grant]

Then don't do hybrid appraisals. It's a personal choice for each appraiser what they feel comfortable with.

My problem with them is not the third party photos, I presume the fees are low (the only ones I was ever offered were a fee of around $45, thus I declined)

 

[Bobby Bucks]

Currently I don’t feel comfortable completing an REO desktop hybrid report, but I won’t say I never will. If, and it’s a big if….if the agent completing the BPO is someone I know and trust, I might consider it. On the REO subject, I’m a strong believer in the 2055 for pre-foreclosures. Having completed thousands of them and also seeing the interior of most of them when the client finally sticks a fork in the property, I have confidence in the general interior condition based on all those little tell-tale signs on the exterior and the site, it comes from experience. IMO, a 2055 completed by an appraiser will be far more accurate than a hybrid product relying on an interior observation by a non-appraiser.

What I love about this business is there is an unorganized group that manages to rally and impugn anyone who doesn’t do things exactly the way they do. I recall a guy at a CE course after one of the form changes indignantly stating that he would never complete a residential report unless it had 1004 6-93 in the bottom right hand corner. He also that Fannie was shamelessly sinning by ordering REO assignments on the 1004 form dated March 2005. I often wonder how busy he is these days.

 

[J Grant]

I don't believe most of these hybrid reports concern REO work, my understanding is that they are home equity loans /similar use.

My brief experience with this type of work is that unless one is a speed reader, it takes awhile to absorb the information and read the BPO, the photos, download from website, look up own information etc. Clients try to "sell" appraisers on doing them saying it takes a half hour to make a fee of (low $X, they boast about it as an hourly rate predicated on unrealistic speed time) Ms Janet who posted as she did some did not disclose the fee , only that she never saw a fee over $100, she did say it took her 90 minutes, which sounds realistic, then she described why the fee is further eroded with client sent revisions and requests for comments after first send.

It might be the only work around one day so never say never, but what I have seen so far is the fees are dismal considering the effort involved.

 

[GWISC]

Bobby, I am not sure if I am the one you are referring to as part of "an unorganized group that manages to rally and impugn anyone who doesn't do things the exact way they do". I also see you share the same discomfort with completing an REO hybrid report even when you know the observer as I do. I am not comfortable whether it is an REO or an equity line.

I don't believe I have impugned anyone. I am also not sure that was directed at me and I apologize if this seems like I am picking a fight; I am not. I believe we are all snowflakes (you know, no two are alike) and have a different take on things and different comfort levels. Hence, the Forum is here for a friendly exchange of ideas and opinions. I have learned quite a bit from The Forum even though I have been in the biz for 25 years and was trained by an MAI. Anyway, thanks for the feedback.

 

[Bobby Bucks]

Bobby, I am not sure if I am the one you are referring to as part of "an unorganized group that manages to rally and impugn anyone who doesn't do things the exact way they do". I also see you share the same discomfort with completing an REO hybrid report even when you know the observer as I do. I am not comfortable whether it is an REO or an equity line.

I don't believe I have impugned anyone. I am also not sure that was directed at me and I apologize if this seems like I am picking a fight; I am not. I believe we are all snowflakes (you know, no two are alike) and have a different take on things and different comfort levels. Hence, the Forum is here for a friendly exchange of ideas and opinions. I have learned quite a bit from The Forum even though I have been in the biz for 25 years and was trained by an MAI. Anyway, thanks for the feedback.

GWISC my comment wasn't specifically about this thread, but at discussions in general over the years in here. I tend to ramble and cross-post frequently, I certainly didn't mean to offend anyone on this thread, however; I may delberately be insulting someone on a previous thread on the topic.

 

[GWISC]

Thanks Bobby. Anyway, I appreciate that you share the same "discomfort" with hybrids as I do. At least there are two of use. Now we are a trend.

 

[DWiley]

We already rely on a LOT of data that is provided by others. Where do you get your comp data? There are 3 to 6 comps, and only one subject.

 

[J Grant]

Dwiley, can you disclose the range of fees you see being paid to appraisers for this product?

Is it mainly staff appraisers, or independent fee panel doing them?

I would think perhaps for a retired, semi retired, or home bound /of fill in work could be a source of income

 

[TRESinc]

i recall attending a conference in Dec 2013 and one of the presenters said these were the wave of the future and that one day every appraiser would be doing them. 3 years later and i have never even had a request for one. i guess the future is still the future but i don't see any of these in my future...

 

[timd354]

The liability is very high

A lot of appraisers make that argument for anything other than a so-called "full" appraisal, but I have never heard a convincing argument that supports that conclusion