Hybrid Appraisals

[George Hatch]

As usual, it’s quite a leap going from a nurse practitioner or PA, who are typically still at the top of their class at every level of education they’ve been to along with years of advanced collegiate degrees to USPAP doesn’t even require an inspection so send this out of work agent to act as the field appraiser.

When you can talk your AMC buddies into sending people with doctorate degrees out to do the fieldwork, let me know

You guys are funny

I would say that as far as the appraiser's SOW is concerned the question comes down to whether or not the appraiser has reason "To the best of my knowledge" believe that the information is accurate enough to use in the assignment. That's the same assumption they are using WRT all the other sources of data they're using.

If they do doubt the accuracy of some PDR then they're supposed to either renegotiate the terms of the assignment to clean the data up - including doing their own inspection if it comes to that - or to withdraw from the assignment.

 

[Terrel L. Shields]

Desktops and exterior drive byes starting at $500.00

If Drive Bys and hybrids paid the appraiser $500, then they could do a far more credible job if they wanted to. With a $75 hybrid the appraiser must fill out numerous reports in a single day to make a living. Hybrids will drive appraising back into the days of part-time work while you broker sales or sell time-shares the rest of the day.

while freeing the professional up to concentrate on the thing the professional was formally trained to do.

I guess I was one of those people who though that observation was important enough that I ought to be doing it myself. Are you aware of any appraisers who have NEVER inspected a single property before? Me, neither. Yet the implication is that someone without any field experience can competently value property. A sort of living breathing AVM.

 

[glenn walker]

Of course..... when I did drive-bys, I always came in at the most probable price....on the conservative side of the adjusted sales. After all..... I only viewed the subject's front and side views from the street, I didn't walk through, observe, inspect the interior as, it's wasn't part of the scope.

When appraisers do hybrids, if the number is not right, even though they didn't inspect, they get ROV's Lol

But most on sales did have access to interior photos and or prior photos so most the appraisers had a good idea of overall condition. On a hybrid where someone else inspected you have even a better idea of condition.

As stated it's all about the $$ fee being paid. If the appraiser pulls up the subject and feels it needs to be a traditional 1004 then he simply rejects the assignment if he/she believe they can't produce a credible report.

All these wonks talking about ethics and how everyone is a crook is all just a lot of pent up anger and rage against the machine, because their business model can't make enough money. That's fine the fees today no longer make sense for many to keep the doors open but that's a new and different subject.

 

[George Hatch]

I wonder what would happen to the PDC who showed up to the subject, and stated "I'm the appraiser" to the borrower....

Our state has regs which prohibit misrepresentation as a licensed/certified appraiser.
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Regardless and in terms of the fundamentals:

Does it matter to the appraiser or affect their assignment how one 3rd party (the PDC) to the appraiser's assignment presents themselves to another 3rd party (borrower or broker or tenant)?

 

[Terrel L. Shields]

"To the best of my knowledge" believe that the information is accurate enough to use

Isn't that what we call "Plausible Deniability"? The Sgt. Schultz defense? The debil made me do it? We basically divorce ourselves from liability for someone's action so that we can claim we were never questioning of the Property Inspectors report being accurate (I mean why would you admit you didn't trust the information from the village drunk?) I don't buy it.

 

[shrubberyvaluation]

Since you are making that comparison, can you provide a list of the formal training that appraisers are required to have related to property inspection? Thanks.

Apprenticeship for 1+ years.

 

[glenn walker]

Actually most especially in our large Hispanic community call us home inspectors and don't differentiate us much because they know we walk around mumbling and taking photos.

In Mexico professionals don't get their hands dirty or wear flip flops shorts and bring their therapy dogs with them. Hell being A Notary in Mexico gets more respect then a evaluator or appraser.

 

[George Hatch]

Isn't that what we call "Plausible Deniability"? The Sgt. Schultz defense? The debil made me do it? We basically divorce ourselves from liability for someone's action so that we can claim we were never questioning of the Property Inspectors report being accurate (I mean why would you admit you didn't trust the information from the village drunk?) I don't buy it.

Plausible deniability is a strategy to disavow responsibility for what we already know.
"I'm going to engage in this pretense that I don't know this is untrue so that I can proceed as if it was true"


Not an acknowledgement of the assumptions and limitations of what we know. Which we always apply to all manner of the data we use.
"To the best of my knowledge this is true"

 

[Surf Cat]

But most on sales did have access to interior photos and or prior photos so most the appraisers had a good idea of overall condition. On a hybrid where someone else inspected you have even a better idea of condition.

Oh please......

When the wife and I were looking for our second property, I was an appraiser then. Licensed, the MLS, data.... the whole nine yards.

My wife would get so excited when I showed her the MLS listing photos. "This is the one!" she'd exclaim. Then we go view the property......oh, the disappointment and let down... the look on her face said it all. Then we'd be driving back home and she'd be ranting in the car about the misrepresentation and angles of the photos.

Point being, not everything is as it seems.

 

[George Hatch]

The bottom line on the controversy is that the appraisers think the desktop+PDR combination is inferior to the conventional 1004 to the point that it poses an unacceptable risk to the lenders and the public.

Some of the lenders think that - for certain assignments - the risk is minimal and is completely acceptable.

What the combination ISN'T is a violation of the minimums in USPAP, the rules/regs at the state appraiser regulators, the appraisal policies of the GSEs or of the applicable rules and regulations which apply to the development and usage of these assignments.

That which isn't impermissible is effectively permissible.