Hybrid Appraisals

[George Hatch]

It is the same 1004 in both cases - the only difference is that in one, the appraiser inspects the subject, and in the hybrid version, the CDC person inspects the subject.

I did not bring up desktops; you did. I personally did very few desktops, and most independent fee appraisers have only done a handful. The res lending the destkops I am ware of are low-paid quick-turn-time, short-form products. I assume staff appraisers might do a volume of these? I have no idea, I do know that as a fee appraiser from time to time an offer would come to do them for cheap fees with a bizarre turn time estimate of 30-45 minutes - the few I tried took me 3 hours and I never did one again.

A desktop is a low bar product one assumes is for a specific use on the client end .

"appraiser's SOW" is about what the appraiser did. Not about the combination that the user ends up holding in their hand. That's the distinction appraisers need to be making in any discussion about "Are hybrid appraisals USPAP compliant?"

 

[shrubberyvaluation]

It is the same 1004 in both cases - the only difference is that in one, the appraiser inspects the subject, and in the hybrid version, the CDC person inspects the subject.

I did not bring up desktops; you did. I personally did very few desktops, and most independent fee appraisers have only done a handful. The res lending the destkops I am ware of are low-paid quick-turn-time, short-form products. I assume staff appraisers might do a volume of these? I have no idea, I do know that as a fee appraiser from time to time an offer would come to do them for cheap fees with a bizarre turn time estimate of 30-45 minutes - the few I tried took me 3 hours and I never did one again.

A desktop is a low bar product one assumes is for a specific use on the client end .

I did some during COVID, they paid the same.

30-45 minutes there is no way you even familiarized yourself with the subject property and if you did there isn't much time to do actual research and analysis even with someone else typing for you.

 

[George Hatch]

I'll be interested to see what happens in the "hybrids" when the new UAD kicks in.

 

[Surf Cat]

Why are you sleeping? You could be doing 6-8 hybrids a day for $450 each...

 

[shrubberyvaluation]

I'll be interested to see what happens in the "hybrids" when the new UAD kicks in.

The thing is they will make the scope of work more for the new UAD and use that to sell people on doing more hybrids or other alternative products. They are not spending the money for the new UAD to help appraisers or lenders, or borrowers, it is there to data collect off of us and drive us out.

You can do this comprehensive 1004 or you can slam out a hybrid in 30-45 minutes that has little credibility.

 

[Surf Cat]

I did some during COVID, they paid the same.

30-45 minutes there is no way you even familiarized yourself with the subject property and if you did there isn't much time to do actual research and analysis even with someone else typing for you.

And now the AMC phone monkey is on your a** 90 minutes later asking where the report is.....and if you don't get it in soon, your tier rating is going to drop....

 

[J Grant]

"appraiser's SOW" is about what the appraiser did. Not about the combination that the user ends up holding in their hand. That's the distinction appraisers need to be making in any discussion about "Are hybrid appraisals USPAP compliant?"

I, for one, know they are, or can be, USPAP compliant.

USPAP in format being compliant is not the issue; the content is , and we determine that. Still, we rely on third parties for a subject we could easily inspect ourselves, but now they erect a barrier to that. I hold that unless I see the property, I have no idea if my conclusions would be different vs relying on thrid party data - not about the thrid party making an error (though that is possible ), more that When I do not personally see the property, site and neigobhordd /comps, I can form a different set of concussions fs when I do go and observe in person ( plus can talk to owners/RE agents and builders on site ).

Is that copmcd ore ) or m are lf Taht is not the issue - hIpn

 

[George Hatch]

The thing is they will make the scope of work more for the new UAD and use that to sell people on doing more hybrids or other alternative products. They are not spending the money for the new UAD to help appraisers or lenders, or borrowers, it is there to data collect off of us and drive us out.

You can do this comprehensive 1004 or you can slam out a hybrid in 30-45 minutes that has little credibility.

I was under the impression the UAD was going to be applicable regardless of property type. Now I'm wondering if it will be applicable to the hybrid assignments, too.

 

[Non Sequitur]

I am not expecting to see hybrid's scale in today's market. I think some lenders will use them in a targeted fashion like rural areas where they could pick up some efficiency. I think they could scale if/when the market picks up. A few years ago in testing when volume was high, we observed a ~5-6 day average turn time savings for hybrids. Weeks in some areas. High volume is when it really works for the appraiser too because they are not flipping back and forth between the traditional and hybrid process. Appraisers could sit at their desk with a queue of PDCs ready to go and complete 3-6 hybrids a day. At $350-$450 per, they were making good money and we had many say they didn't want anything but hybrids. It takes volume for this to happen, but we all know the market is cyclical and there will be high volume periods again.

It's important to remember, we do not dictate what valuation option a lender and consumer use. We present options based on our calculated risk of the loan.

Yeah, I'm sure the appraisers licensed in 10-15-20 states were eating up all they could during the pandemic. But unless you know something we don't, that was a once in a lifetime event not something the GSEs should write policy around. And implying the ridiculous volume during the pandemic as "cyclical" and will happen again because that's what markets do, is intellectually dishonest.

 

[ucbruin]

1,000 sf 3/1 unfinished basement for $100+ PDC located in close proximity....
Is something I'd give heavy consideration....
Especially during Spring & Fall....