Hybrid

[RCA]

Here's yet another question that has no right or wrong answer: If some lenders are going to start using these things, would you rather see them performed by a licensee who has the knowledge and experience to appraise properties, or by a non-licensed person with fewer qualifications?

Could we only apply some common sense here? The clients are looking for a rubber stamp they can show to someone else to justify their actions, like approving an LOC for $150,000. The licensee has skin in the game, in that if he is wrong, he can lose his license. The public trusts that. So the rubber stamp means something to the public.

BUT, if it turns out that that particular rubber stamp is not worth much as a certification of value, the public will loose their trust in said rubber stamp and it will become worthless. Also, we should mention that the appraiser may loose his license and suffer public disgrace, should his judgement prove wrong.

- And, that is the point, NOT WHETHER YOU OR ANYONE ELSE WOULD RATHER OR NOT GIVE UP BUSINESS TO A NON-LICENSEE!! Caveat: IF that is what you mean. If you mean that a licensee should do Hybrids, because the result would be better than that of a non-licensee, I would still object: The value must be based on reasonable assumptions, and must be sufficiently accurate for the SOW. For Hybrids, an appraiser should be very cognizant of the tolerances allowed and whether he can fit a result into those tolerances. I would maintain that a Hybrid probably takes too many links out of the valuation process chain for a licensed appraiser to get involved with. A run-of-the-mill appraiser on a run-of the-mill Hybrid will likely be a disaster, especially if the subject happens to be complex - or has had, say, an unusual occupant of one sort or another (and they come in all kinds of flavors, from workaholics who don't take care to remove their dog's poop from the living room to creative and energetic individuals who are, unfortunately, not exactly talented at renovation to those who manufacture certain substances in some secret room --- all in a spanking less the 5 year old development of $800K homes).

 

[George Hatch]

"How to scope away misleading"

Explain what is misleading in a report that discloses the appraiser never personally inspected the property.

 

[George Hatch]

Could we only apply some common sense here? The clients are looking for a rubber stamp they can show to someone else to justify their actions, like approving an LOC for $150,000. The licensee has skin in the game, in that if he is wrong, he can lose his license. The public trusts that. So the rubber stamp means something to the public.

BUT, if it turns out that that particular rubber stamp is not worth much as a certification of value, the public will loose their trust in said rubber stamp and it will become worthless. Also, we should mention that the appraiser may loose his license and suffer public disgrace, should his judgement prove wrong.

- And, that is the point, NOT WHETHER YOU OR ANYONE ELSE WOULD RATHER OR NOT GIVE UP BUSINESS TO A NON-LICENSEE!!

Yawn yawn yawn

Nobody is going to lose their license for their good faith usage of a 3rd party inspection report with mistakes in it. Not unless the state can demonstrate an ETHICS violation, at which point we're no longer talking about the COMPETENCY RULE. You've got 20 years of summaries at our state appraisal regulator to comb for examples of appraisers getting into trouble for honest mistakes. Good luck with that. Appraisers get into trouble for telling lies of omission and commission. As they should.

 

[Addie]

I’m going to spout hate speak. Sorry. If choose not to read that’s fine.

Outside client looking in:

I want to order a faster appraisal and a cheaper one. Why? Technology allows for my risk tolerance. (The appraiser is not involved yet so you have zero say)

I want very basics. I don’t care if it meets USPAP or not. I want characteristics, and comps. I do not want financing in the grid. That’s irrelevant to me. If it’s relvant to you, guess what, you tell me. (Appraiser not involved yet so you have zero say)

I want to bring this to market. I’ve decided appraisers are too expensive. Repeat. I HAVE DECIDED AS A CLIENT APPRAISERS ARE TOO SLOW AND EXPENSIVE. They want $400-$800 a report. I feel I can make that cheaper as a capitalist in 2018. I grab laborers to do the labor. I grab appraisers to appraise.

“Light bulb goes off” bifurcated process (Appraisers have zero say so far as this is drawing board in my head)

Exactly as Wall St works. “Hey, Goldman, make me this product” and its done.

Now comes when appraisers can speak. Here’s the rules. You gonna do this product or not? And here’s the fee I’m willing to pay. What you have to adhere to as an appraiser is not my problem as a hypothetical banker. Bottom line. I want this. Can you deliver it? After that it’s capitalism .

 

[Evincere]

All this talk about the public trusting...trusting what and who? That those who will make financial loan decisions - usually borrowers aka general public who more often than not are uneducated about appraisals let alone hybrid evaluations will even know the real differences between these products?

That a realtor or some other 3rd party lackey will be hired to provide 2nd or 3rd hand information to the “appraiser” about their property? I’m sure those LO s will go to great lengths to explain these products to the “public” consumers Assuring them through the process that they can be “trusted”. What a joke.

 

[Terrel L. Shields]

when pushing its products?.

It is quoting its CUSTOMERS...who do you think hybrid customers will be? The tooth fairy? These are the people saying they rely upon the report because an APPRAISER DID IT...and if they catch it from their investors, who do you think they are going to blame? House Canary? Not hardly. They will accuse the APPRAISER of be a fraud and not being "accurate" - testimonial from their site. Come on, tell me what provider of hybrids counsels their clients that these are something less than a bonafide appraisal from a real appraiser and are accurate... can ya, can ya... I thought not.

When you need to understand the true
value of a home​

"I do SFR, hard money lending, and NPL/RPL investing. In order to satisfy my financial backers’ valuation requirements I need a fast, highly accurate, trustworthy appraisal."



​

 

[Terrel L. Shields]

The clients are looking for a rubber stamp they can show to someone else to justify their actions,

. I would

maintain that a Hybrid probably takes too many links out of the valuation process chain for a licensed appraiser to get involved with.

Amen Brother Bert...

Nobody is going to lose their license for their good faith usage of a 3rd party inspection

That is one bet I would not take. I have seen two state boards actions that suggest to me otherwise is very possible. This requires a very thin plank to walk and bobble either way, and you are toast... all for $65? $100? What does it matter, if I am sanctioned at least let it be for a $1,000 fee.

 

[Terrel L. Shields]

One last thing. Do these trainees and newbies, and then see what the state says when they monitor your work log and you claim 8 hours time while the AMC/whomever says you did it in 45 minutes. Then see what the investigator says about the report. I bet a lot of folks may end up not being licensed over faulty hybrids.

 

[Michigan CG]

Danny's company is for Profit only.

My company is for profit only. The company my wife works for is for profit. I would guess 99% of Americans who work, heck, 99% of the world's population who work, work for a company that wants to make a profit. That is kind of the point of being in business.

 

[Michigan CG]

You gonna do this product or not? And here’s the fee I’m willing to pay.

Is this different than any other appraisal product?

We want you to do a 1004 and are willing to pay $235.

We want you to do a 2055 and are willing to pay $195.

We want you do to do a DESKTOP report and are willing to pay $150.

We want you to do a Hybrid and are willing to pay $100.

What are your answers to the above?

We want you to provide these reports back in 48 hours? What is your response?

We want you to work as a staff appraiser for $17/hour and you get bonuses based on some insane system that take a math major to interpret. What is your response?

If you don't like the above scenarios then just say no. Those are fees that appraisers ARE accepting in parts of the country. In my own market there are appraisers who are accepting fees $100-$200 less than I charge and I turn down work. Why are they taking those fees? I don't know, but they are. If I have clients that will pay fees acceptable to me then I am OK and will refuse the low fee work. The AMC or client can OFFER a fee, doesn't mean anyone has to ACCEPT the fee.

Once again, it is all about fees..............