Inversion

[RCA]

So, I just received an order for a Desktop Appraisal 1004/70, stating that they were supplying the floorplan if the order was assigned. I quoted them a standard fee for a full appraisal - so I know I won't get the order.

But it got me to thinking:

1. Apparently FNMA and Freddie Max are going to accept Cubi Casa floorplans which over estimate GLA by as much as 10-15% or more.
2. On the other hand, they require appraisers to comply with the ANSI standard which is far more accurate.

So, appraisrs are being driven out of the profession. - But at the same time we seem to be on a path to the future point in time where buyers will really not be sure what they are buying, without hiring an expert on measurement and valuation.

So, it looks like the current profession, which is geared towards lenders and real estate sales agents, is being destroyed to create a new generation of valuation engineers that will most likely answer to buyers and property managers.

The Appraisal Insitute and most other legacy appraisal organizations will become useless except for commercial appraisal. But even that will die eventually, given time, to be replaced by more capable methods.

 

[shrubberyvaluation]

So, I just received an order for a Desktop Appraisal 1004/70, stating that they were supplying the floorplan if the order was assigned. I quoted them a standard fee for a full appraisal - so I know I won't get the order.

But it got me to thinking:

1. Apparently FNMA and Freddie Max are going to accept Cubi Casa floorplans which over estimate GLA by as much as 10-15% or more.
2. On the other hand, they require appraisers to comply with the ANSI standard which is far more accurate.

So, appraisrs are being driven out of the profession. - But at the same time we seem to be on a path to the future point in time where buyers will really not be sure what they are buying, without hiring an expert on measurement and valuation.

So, it looks to be like the current profession, geared towards lenders and real estate sales agents, is being destroyed to create a new generation of valuation engineers that will most likely answer to buyers and property managers.

I imagine we are still supposed to verify the floorplan with an uninterested source.

 

[RCA]

I imagine we are still supposed to verify the floorplan with an uninterested source.

"Do you expect me to talk?"

"No, Mr. Bond, I expect you to die!"

--- Goldfinger.

 

[Fernando]

If client/lender supplied the sketch, then scope of work is relying on what was given as accurate.
If sketch gross area matches near assessor's records then verification not necessary. Right?

 

[shrubberyvaluation]

If client/lender supplied the sketch, then scope of work is relying on what was given as accurate.
If sketch gross area matches near assessor's records then verification not necessary. Right?

Fannie Mae says different, they say you have to verify with an uninterested party. Does the assessor sketch have interior walls?

 

[DWiley]

... going to accept Cubi Casa floorplans which over estimate GLA by as much as 10-15% or more.

Can you cite the source for this assertion?

 

[Fernando]

Fannie seems to be living in their own unpractical world. The only sketch I'm comfortable is mine.
Even if disinterested (other appraisal report files), I'd seen their inaccuracies so many times.

 

[Terrel L. Shields]

The 5/30 rate is inverting. Not a good thing. Recession coming. Last inversion was 2006. Remember?

 

[Fernando]

The 5/30 rate is inverting. Not a good thing. Recession coming. Last inversion was 2006. Remember?

I heard about today's inversion but didn't understand the significance. Today we have inflation so 2006 is not a good comparison.

 

[Dublin ohio]

Can you cite the source for this assertion?

I am truly getting confused. So what floor plans will be acceptable for the 1004 desktop?