I know why its so slow

[Crunch Hardtack]

A real estate agent with several years experience should easily be able to do a good appraisal in their area of service. They spend far more time studying the market than a typical appraiser and are far more qualified than a typical recently licensed appraiser to give an opinion of value. I would take the opinion of a randomly chosen broker over a randomly chosen appraiser any day of the week. I much prefer someone who works in the market over a form monkey that traveled an hour just to reach the area. :new_all_coholic:

I disagree Couch. Realtors are basically cult members who are nothing more than lobotomozed cheerleaders and would not know a legitimate value if it jumped up and bit them in the butt.

For example: At one time in my area the ubiquitous old T-Farmhouse had a very narrow value range provided the houses were of similar footprint, condition etc. The value range was in the 95k-105k range. Now you have Realtors who will tell a seller anything to get the listing (and they eventually find an uninformed buyer to overpay) and Realtors who want a quick sale (i.e. quick commission) so they tell the seller the house is only worth $X. My value range on T-Farmhouses is now 80k-120k. A 40k range. If I find 3 good comps at 80k am I screwing the owner out of equity? Conversely, if I go with 3 comps at 120k am I a number hitting skippy?

If you read your appraisal history you will see that back in the day each owner named their price and had to find a willing buyer to pay that price. As mortgages became more common, banks wanted some value consistency and real estate appraising as we know it today was born. The system worked fine as long as Realtors were all on the same page ethics and professionalismwise. Today we are in a different boat. As Realtor competence and ethics have nose dived we have, in some ares, such wide value ranges that we might as well be back in the pre-formal appraiser days. Couple these wide Realtor caused value ranges with appraiser incompetence and we are truly a worthless tool at determining value. Realtors are SALESPEOPLE not appraisers. No Realtor should be allowed to have an appraisal license or value a property IN ANY WAY. There is just too much chance of abuse by Realtors. Only licensed real estate appraisers should be valuing property. There is no room for any middle ground on this.

 

[Couch Potato]

One ought to have noted the should in the first line.

As for studying the market, I did not say they spent more than 5 seconds doing so, merely that they did it more than a typical appraiser.

 

[Lawrence R.]

Only licensed real estate appraisers should be valuing property. There is no room for any middle ground on this.

How about appraisers who hold a real estate sales license?

What do they do?

 

[Carnivore]

Interestingly that in times past Lenders would not engage any appraisers who are also involved in real estate brokerage as a broker or even as a sales person.

Why do you suppose that is?

 

[mp2277]

"...A real estate agent with several years experience should easily be able to do a good appraisal in their area of service. They spend far more time studying the market than a typical appraiser and are far more qualified than a typical recently licensed appraiser to give an opinion of value. I would take the opinion of a randomly chosen broker over a randomly chosen appraiser any day of the week. I much prefer someone who works in the market over a form monkey that traveled an hour just to reach the area..."

I don't know enough about you to form an opinion, but two things are obvious...

1. You don't know the Realtors in my area. One so called "expert" and btw, very sucessful and well known Realtor in the area just called me every name in the book because I wouldn't use a 2200 sf colonial as a comp for his 1100 sf ranch on the street with a finished basement. In his mind 1100 X 2 = 2200 GLA. Another one was irate that I would not call a DW a stick built home because of the improvements. His words, " well, it used to be a DW but it isn't now"
2. You really seem bitter. If your business is declining, maybe it's your attitude, not so much the current market conditions.

 

[JSmith43]

It is hard to view the appraisal profession objectively. For the lending industry, appraisers have become the range of value dart thrower, the cya gatherer of UW stip's that help vaccinate a lender from future repurchases, etc. The E & O of last resort, the licensed and regulated third party entity to throw under the bus if something goes wrong. A cosigner of sorts, for hire. An added piece in the file of evidence to illustrate due diligence.

There is a lot to be discovered by talking daily with market participants, observing their behavior, knowing how much back and forth really took place in a sampling of negotiated sales.

It really sharpens one's senses, previewing competing properties while in the process of gathering information to present a referral customer that needs a sale in 3 months.

It doesn't matter if you are labeled an appraiser or broker or whatever. Relevant, recent experience such as depicted above will help you form better opinions of value. To some degree, so will that little check list shown in the OP that ****** many of you off.

 

[Kevin Mc]

A real estate agent with several years experience should easily be able to do a good appraisal in their area of service. They spend far more time studying the market than a typical appraiser and are far more qualified than a typical recently licensed appraiser to give an opinion of value. I would take the opinion of a randomly chosen broker over a randomly chosen appraiser any day of the week. I much prefer someone who works in the market over a form monkey that traveled an hour just to reach the area. :new_all_coholic:

In theory I would agree with you, in reality there are just as many pathetic realtors as there are appraisers. I know many on both sides who are clueless.

 

[Karl]

It is slow because there is a new concept in lending. You actually need a job, a decent credit history, & some money in order for a lender to even consider you. & that does not even gurantee you'll get to stage two. Not many Refi's in a declining market, when you have 60% Loan to Value. In order to buy a home your actually going to see that lenders are going to have to have in the file a formula showing a Debt to Income Ratio. Add these (NEW) improved rules to the FACT!!! That over 50% of the Appraisals done in 05-07 were CRAP!! Appraisers are now even placed lower on the totem pole.

The primary reason it is slow is due to so many bad Appraisers producing more bad appraisers. ( I don't think that was the intial intention just that greed got in the way) We destroyed ourselves!!! Once we realize that & FIGHT to get back to a professional status the better off we'll be. Prior to the "BOOM" there was ample work for most Appraisers. Now that we destroyed our credibility during the "BOOM" We better start getting together & FIGHT to restore credibility.

Banks know that eventually the Tax Paying working folks will be bailing them out again. However this time the working folks are actually making less than what they were during the last bail out. Therefore the word DEPRESSION is going to be seen much more in the coming months.

Buckle up!!! it's going to be a very RUFF ride & many you yougun's have NEVER experienced a RUFF RIDE. This crisis is NOT yet at it's peak.

 

[Workbox]

So True, Karl.

 

[Kevin Mc]

Buckle up!!! it's going to be a very RUFF ride & many you yougun's have NEVER experienced a RUFF RIDE. This crisis is NOT yet at it's peak.

No Doubt...