New condition property with damaged flooring "as is."

[Terrel L. Shields]

how many CG's and MIA's flock to the residential world when commercial work is slow?

Actually, I went the other way. 1 CR working for me retired, one went independent and my assistant and I ceased to do any secondary market except 1 client who finally started making us bid and after they sent us to do a report that was supposed to residential and turned out to be a new house on a commercial cabinet factory site, i fired them, about 8 years or more ago. So all the residential work I do is in house bank or estates....

 

[gregb]

The problem with a "ton of data', which applies here, is that there is plenty of ammunition to shoot down the value or to shoot up the value, for those with an agenda. Just means one has to be proactive, and disqualify data not used in the report with comments.

 

[alebrewer]

Actually, I went the other way. 1 CR working for me retired, one went independent and my assistant and I ceased to do any secondary market except 1 client who finally started making us bid and after they sent us to do a report that was supposed to residential and turned out to be a new house on a commercial cabinet factory site, i fired them, about 8 years or more ago. So all the residential work I do is in house bank or estates....

I'd say our current panel mix is about 75% to 25% CR vs. CG... can't speak to what one individual may, or may not, do. Only to what I've personally seen.

 

[CANative]

 

[alebrewer]

The problem with a "ton of data', which applies here, is that there is plenty of ammunition to shoot down the value or to shoot up the value, for those with an agenda. Just means one has to be proactive, and disqualify data not used in the report with comments.

I personally think that is part of the motivation for the change in forms - that is, again, a personal opinion, though. Not confirmed with anyone at the agencies. As long as appraisers are allowed to 'choose' three comps, there is opportunity to miss high or miss low.

 

[CANative]

MUCH, MUCH easier to appraise where there is a ton of data... Remember when we were asked to submit sample reports for inclusion on a panel? I'd never submit a rural appraisal.

I tell them to order an appraisal. It comes with a free sample.

 

[Terrel L. Shields]

our current panel mix is about 75% to 25% CR vs. CG

That's because a lot of CGs have more profitable jobs outside of banking. Banking, especially regional and national mortgage banks, has always been the lowest paying clients. And demand from lawyers and estates for CRs is muted by comparison. If I recall correctly, of certified appraisers in my state more than half are CG. And many CGs are strictly oriented to 1-4 residential work, or perhaps the occasion apartment.

 

[alebrewer]

That's because a lot of CGs have more profitable jobs outside of banking. Banking, especially regional and national mortgage banks, has always been the lowest paying clients. And demand from lawyers and estates for CRs is muted by comparison. If I recall correctly, of certified appraisers in my state more than half are CG. And many CGs are strictly oriented to 1-4 residential work, or perhaps the occasion apartment.

The mix I quoted ebbs and flows depending on commercial activity...

 

[alebrewer]

Fannie Mae treats their appraisers like rubbish and data mines their work. Watch the end of the vid and you get an idea what I think of them.

So if this is true (which I'll address momentarily), and if it's true that as many CG's as you say do residential work, your statement would apply to commercial appraisers as well as residential appraisers, no? And to take that to a logical conclusion, you'd have to say that the commercial appraisers are 'underwater' as well, no?

As to how Fannie treats appraisers - (a) we are not 'their' appraisers - we are independent contractors who choose to perform appraisal assignments that may ultimately be part of a loan sold to Fannie or Freddie, and (b) as far as I know, I've never seen Fannie treat any appraiser like rubbish? Fannie sets appraisal and underwriting guidelines, and appraisers either choose to, or choose not to, perform work in accordance with those guidelines. Last I checked, no one was forced to do agency work?

 

[gregb]

75% of my work is residential (GSE, VA & Private), 25% limited to residential income over 4 units. It has been a record setting year. Highest fee ever on a 45 unit apartment, $4500, followed by a personal highest fee ever on a residential property, $4000.