New Commercial AVM.hmmm.

[hastalavista]

There is one AMC who keeps sending us request for "evaluations". To top it off, they conveniently put in a maximum fee, usually $800 or $1,000. Their last request... was a foreclosed full developed subdivision. m2:

Incredible.
You (or, at least I :new_smile-l really wonder if anyone actually takes an assignment like that and completes it for that type of fee.

 

[GregoryK]

Ironically, I have seen summary appraisals completed on similar properties for less.

 

[Vernon Martin]

Being an LA appraiser, I recognize all of his comps as being from the blighted Pico-Union district, considerably inferior to the subject's West Hollywood location. But the proof of the dissimilarity is the price that this property just sold for three weeks ago -- $1,900,000, considerably above the $760,000 appraised value.

 

[leasedfee]

This is a marketing sample. Marketing samples have spin and polish. Not knowing the area like Vernon, my first impression was that the three sales have a tight array.

Good luck to them when they have a harder property like urban land or a retail building where the $/sf of comps vary by a factor of x2 or x3 or more. How much time will the "analyst" from India -- and it will be outsourced at those fees -- take to figure out what makes sense. . . . This may provide new opportunity for traditional appraisals, review appraisers, and expert witnesses to sort out the resulting mess.

 

[tsiegel]

This is a marketing sample. Marketing samples have spin and polish. Not knowing the area like Vernon, my first impression was that the three sales have a tight array.

Good luck to them when they have a harder property like urban land or a retail building where the $/sf of comps vary by a factor of x2 or x3 or more. How much time will the "analyst" from India -- and it will be outsourced at those fees -- take to figure out what makes sense. . . . This may provide new opportunity for traditional appraisals, review appraisers, and expert witnesses to sort out the resulting mess.

I agree with you. Not all the time, but it seems like when the banks get themselves into messes trying to cut corners and getting greedy (which seems to happen every 7-10 years) it can mean a lot of work for real appraisers. This was the case for the firm I was working with through the last downturn.

Evals and AMC's will potentially be at the root of the next bubble, it seems.

 

[Mountain Man]

Incredible.
You (or, at least I :new_smile-l really wonder if anyone actually takes an assignment like that and completes it for that type of fee.

Yep. To top it off, this AMC has "staff" who does these "evaluations". They obviously sent this one out as they, themselves, didn't want to do it. Just looked at my brother and said... Jeeezzzus! Some idiot will do it for that and probably won't do a cash flow.

 

[Roger Murdock]

Being an LA appraiser, I recognize all of his comps as being from the blighted Pico-Union district, considerably inferior to the subject's West Hollywood location. But the proof of the dissimilarity is the price that this property just sold for three weeks ago -- $1,900,000, considerably above the $760,000 appraised value.

And it's simply amazing how all three comps have an identical land value per SF! What are the chances?! Clearly they are working with highly accurate and carefully calibrated data here!

 

[Lost Cause]

Correction

I agree with you. Not all the time, but it seems like when the banks get themselves into messes trying to cut corners and getting greedy (which seems to happen every 7-10 minutes) it can mean a lot of work for real appraisers. This was the case for the firm I was working with through the last downturn.

Evals and AMC's will potentially be at the root of the next bubble, it seems.

There! I fixed it for you.

 

[tsiegel]

There! I fixed it for you.

Thanks. Typo...

 

[DaveH]

As appraisers we can do similar work, "Evaluations", and still comply with USPAP. We just have to have certifications involved and the SOW determination. I have had several commercial guys provide their own templates for an evaluation, with certifications attached and do them relatively cheap.

Remember just think outside the box, there was an article about appraisers doing evaluations, and i sent it to many appraisers who always said that they could not do evaluation. Now they are producing them USPAP compliant and at a reduced rate. Just my $0.02 worth.