Hybrid Appraisals

[Tom D]

This thread is talking to itself, or complaining to itself. Find some better source of income & no aggravation. For an educated group, most of you seem stuck in the mud, yelling to the winds, to be rescued.

 

[DWiley]

But don’t let that get in the way of the kickbacks, bribes, and steak dinners.

You make this allegation so much that I have to assume you truly believe it happens. In my career I will say that I was offered something like that exactly one time - back when I was the ASB chair a certain forms provider wanted the ASB to adopt something that would have been very favorable to a new thing he wanted to do. He offered that if I wanted to discuss it he could arrange for a private jet to fly me to ASB meetings so we could have one-on-one time to chat. I politely declined.

My support for the hybrid appraisal process is based on one thing, and one thing only - the data from the testing. Appraisals based on a PDR rather than a personal inspection are far more likely to report an appraiser condition rating that aligns with the actual definitions, and such appraisals are far less likely to overlook necessary repairs and/or inspections. As far as I know, no one questioning those findings has actually done any analysis of their own.

Lastly, if one asserts that data collectors are providing appraisal assistance and need to be cited as such, do we also need to cite the tax assessor or whatever source we used for the site size? I assume that most are not personally measuring the site size. The truth is that appraisers use third party data, specifically third party data about the subject, in every appraisal. They are just accustomed to gathering certain data elements themselves, because for many years there was no other way to do it.

 

[chad hampton]

Has it ever crossed your mind that you might be part of the problem?

I’m so glad to be phasing out of this profession, at least making it part time for extra money. The main reason is I can’t have my livelihood be dependent on decisions being made by in my opinion, some of the most unethical, immoral human beings I have ever encountered.

Sit back and give common sense a try once in a while. If you think people being paid $25 aren’t making up **** as they go, I don’t know what to tell you.

 

[CGinMN]

My support for the hybrid appraisal process is based on one thing, and one thing only - the data from the testing.

Even your appraisal institute doesn’t believe it.

Appraisal Institute's Response to Freddie Mac Research on Hybrid Appraisals

The Appraisal Institute strongly recommends caution when considering recent research findings from Freddie Mac's justification for expanding the use of hybrid appraisals.

shorturl.at

 

[shrubberyvaluation]

I think that once appraisers get past the learning curve that any new system would entail they will love the new UAD. Just look at the samples that have been posted and compare those reports to the reports we have today. No more unorganized 10 page text addenda - all text will be in the relevant section of the report. That alone will reduce revisions.

Also, no more flipping back and forth to find a relevant photo. Photos will be imbedded in the logical place within the report rather than all being stuck at the end.

Acknowledging that there will be a learning curve, once the dust settles I think revision requests ill go way down just from eliminating the "easter egg hunt" that results from the current forms structure.

Client orders an appraisal thinking it is a condo, and report is delivered on the condo form - but turns out it isn't really a condo. In the new UAD there will be no need to type a completely new report starting from scratch.

I rarely get revisions, and they have nothing to do with the forms when I do. Can't avoid the revisions on why I didn't use a new construction 10 miles away that is twice as big when all of my comps are within the same community and similar older construction.

I research whether there is condo ownership before starting. I wouldn't deliver it on the wrong form, I let the client know. I get pushback and I give them the information.

I have no problems with it being more organized.

 

[shrubberyvaluation]

Even your appraisal institute doesn’t believe it.

Appraisal Institute's Response to Freddie Mac Research on Hybrid Appraisals

The Appraisal Institute strongly recommends caution when considering recent research findings from Freddie Mac's justification for expanding the use of hybrid appraisals.

shorturl.at

It doesn't pass the smell test for me and I agree with most of this message from the appraisal institute.

 

[J Grant]

d.

My support for the hybrid appraisal process is based on one thing, and one thing only - the data from the testing. Appraisals based on a PDR rather than a personal inspection are far more likely to report an appraiser condition rating that aligns with the actual definitions, and such appraisals are far less likely to overlook necessary repairs and/or inspections. As far as I know, no one questioning those findings has actually done any analysis of their own.

Lastly, if one asserts that data collectors are providing appraisal assistance and need to be cited as such, do we also need to cite the tax assessor or whatever source we used for the site size? I assume that most are not personally measuring the site size. The truth is that appraisers use third party data, specifically third party data about the subject, in every appraisal. They are just accustomed to gathering certain data elements themselves, because for many years there was no other way to do it.

I find it incredibly hard to believe that appraisals based on a PDR are far more likely to report an appraiser condition rating that aligns with the actual definitions. (or recommend repairs ) How would you know that for every house unless you had both a PDR and a personal appraisal inspection done on the same house?

Especially since the same appraisers in an area would do the appraisal, whether using a PDR or they themselves inspected. Let us see 100 reports of each with redacted data to see if we concur..

WRT "data" - a house is composed of many elements that integrate into a whole, which is not the same thing as "data".


Purchasers don't spend 400k to buy a list of data. The buyer spends 400k ( for example ) to buy an integrated whole property, with some features far more vital to them than others, which is how an appraiser views a property when they personally inspect.

Working from a PDR and notes is like getting a list of ingredients of a meal and a photo of the meal instead of being allowed actually to taste and eat the meal - people eat meals, they don;t consume a list of "data" ( a list of ingredients and a photo )

Cutting an appraisal into a fast food split of labor results in a PDR collection that profits the AMCs and, at the same, effectively keeps fees low since an unlimited supply of nonappraiser people are available to inspect vs a limited supply of appraisers. I highly doubt this product would be in use if it did not deliver these two things.i

 

[BRCJR]

Client orders an appraisal thinking it is a condo, and report is delivered on the condo form - but turns out it isn't really a condo. In the new UAD there will be no need to type a completely new report starting from scratch.

Is that not as much an Appraiser problem as a lender problem?

Where does what the Appraiser has done, in your illustration, cross the line and become negligent, careless and misleading?

If I do my due diligence, I can inform the client before I deliver a report as a condo that is not a condo. If no need to start from scratch it may very well be best to do so. All verbiage will be non-condo. All comps, highly likely, will not be condos.

No different than the client saying it is a site built single-unit residential dwelling, I discover it is a doublewide manufactured product but still appraise it as site/stick built.

Should an Appraiser that does as you illustrated be sanctioned?

 

[DWiley]

It doesn't pass the smell test for me.

I don't make decisions based on my personal views or how something "smells" I analyze data and see what it indicates. Data often indicates exactly what I suspected, but at times it reveals things that are contrary to what I thought it would. In such cases, I look at the data and analysis again. In the end, it is what it is - regardless of what I thought it would be.

 

[shrubberyvaluation]

My support for the hybrid appraisal process is based on one thing, and one thing only - the data from the testing. Appraisals based on a PDR rather than a personal inspection are far more likely to report an appraiser condition rating that aligns with the actual definitions, and such appraisals are far less likely to overlook necessary repairs and/or inspections. As far as I know, no one questioning those findings has actually done any analysis of their own.

How can I test this out? Where is the data from your findings?

Its like bringing me in to a hospital, having me diagnose patients off of a checklist with no experience (perhaps using the checklist on myself for experience) and then claiming the data shows that it helps the doctor out more than using their own assistants that are trained or looking themselves. It doesn't pass the smell test.