New URAR Demo

[J Grant]

Changes in technology reducing the number of people required working in the appraisal business is not a new thing. Just compare what appraisers do now vs what they did when I first started, in 1982.

In 1982, the property sketch was drawn by hand, using a straight edge and a pencil. After the sketch was done, the GLA calculations had to be done manually and manually transferred into the report.
The photos were taken using a 35mm camera. After an inspection the photos had to be taken to a photo processing lab, and when they were ready you had to pick them up and then paste or tape them into a paper report. You had to make multiple copies of that report and tape/paste the pics into each one. When the report was ready, you would mail it or call a courier.

And that is just a few things I can think of off the top of my head. All those things took time, and time is finite, So, the work took more people back then than the same amount of work would take today. When I say it is likely that fewer people will be needed in the future, that is just saying I think the trend seen over the past 40+ years will continue.

Fewer people, or Different people? When a PDC collector AND an appraiser complete a hybrid, it is more people in the mix. And when a WAIVER is used sometimes with a PDC collection and sometimes not, different people prepare the AVM, the value estimate, and the data collection.
Usphot is the money that used to go to the appraisers now go to AMC's and third-party non-appraisers. Is that by coincidence or design?

Comparing it with more manual labor tasks time spent by an appraiser back s a wash, since the turn time was longer.

 

[Surf Cat]

I believe Glen Walker said it correctly in between his rants about Democrats and Woke Holes....

This is paraphrasing but it was something to the nature that appraisers are hung up on their licensure. We feel that because we went through the classes, 2,000 hours of training with a mentor, pass a test, and do a butt load of continuing education, that our license and experience is something important and makes us a "professional". And....most importantly, because of our licensure, we are a valuable asset to the lenders in determining collateral. We know as Mr. Ault succinctly put it in post #214, that that couldn't be further from the truth.

Our license is about as valuable as the free ones given out at the Autopia ride to the kids at Disneyland. Who's the leader of the club that's made for you and me...APP-RAI-SERSssss.

I wouldn't be so negative about it if it was as simple as film photography going to digital. However, taking the appraiser away from the physical inspection, the delineating of the neighborhood, the human aspect of actually determining the difference between the subject and the comparables. Relying strictly on data seems like it's going to come back and bite the taxpayers once again, in the a*s. Hey, no skin off the lenders nose. Process those loans..... determine the value of a dwelling from halfway across the country, no big deal.

 

[DWiley]

Usphot is the money that used to go to the appraisers now go to AMC's and third-party non-appraisers. Is that by coincidence or design?

Money that used to go to one hour photo shops, forms and worms, companies that made paper maps, companies that made and serviced photocopy machines, etc., now goes someplace else. Is that by coincidence or design?

 

[J Grant]

Money that used to go to one hour photo shops, forms and worms, companies that made paper maps, companies that made and serviced photocopy machines, etc., now goes someplace else. Is that by coincidence or design?

Totally different realms - the one hour photo shop money going instead to different people, same for anything else is an off product of an open market consumer shift in behavour, not the decison maker of a power user ( the GSE;s ) that saw the money go to affilaite AMC;s (who are the main provders of PDC collections and users of use thrid party non appraisers for a good poriton of the report.)

It is hard to believe the folks at the GSEs had no awareness of it. Which is fine, but then they should own it, keeping up a rationale about technology -just saying

Let me ask a question- if the WAIVER/value acceptance is the same or lower risk as claimed, then why don;t the GSE's who do the AMV/analyses backstop the loan? Or the lender that gives the value estimate for the property be responsible for a buy back if there are collateral value issues? Why are lenders provided relief from reps and warranties ( no buy back ) and it falls on the tax payer.

 

[DWiley]

...the human aspect of actually determining the difference between the subject and the comparables.

But the comparison you cite as your tipping point is not done based on personal observation now - not unless you are somehow gaining entry into all your comps.

 

[Mike Ault]

But the comparison you cite as your tipping point is not done based on personal observation now - not unless you are somehow gaining entry into all your comps.

My tipping point would be "has the appraiser ever physically set foot in the city that he's doing work in"? Is that a GSE requirement or is it being waived under the new guidelines?

 

[J Grant]

The backward thinking to excuse a non-appraiser doing the CDC collection because we do not inspect the interior of the comps is almost comical.

Nearly everyone would agree it would be a stronger appraisal if we could inspect the comps inside, right?

The reason we do not inspect inside the comps is that we would not be allowed access to them. But we do have access to inspect the inside of a subject when it is part of an assignment! We are appraising the subject, so how can the appraiser not personally inspect the interior and exterior site of the subject somehow be beneficial?

The appraiser becomes less well-informed than other parties by not inspecting the subject - the RE agents normally go inside as do buyers whenever at all possible. And of xourse, an owner in a refi knows their own property. Imo, it is harder to defend the value of a property one has never set foot in.

 

[JTip]

My tipping point would be "has the appraiser ever physically set foot in the city that he's doing work in"? Is that a GSE requirement or is it being waived under the new guidelines?

Your certification is good for the ENTIRE STATE. LOL

 

[Mike Ault]

Your certification is good for the ENTIRE STATE. LOL

I know, Fannie Mae has a headquarters in Dallas and I can see a cubicle dweller there doing all the GSE work in the entire state soon. That's one of the reasons I never pursued a commercial license, commercial appraisers in Dallas consistently underbid our CG's here and I guess they hope to make it up in volume somehow.

 

[Surf Cat]

But the comparison you cite as your tipping point is not done based on personal observation now - not unless you are somehow gaining entry into all your comps.

Sure it is. You're conveniently leaving out the personal inspection of the subject, the externalities, if the subject conforms to the other dwellings within the neighborhood as observed driving the comps.

No, we do not see the interior of the comps. However, curbside inspection of the comparables is huge. It always has been in determining the differences compared to that of the subject.

I get it though. Too many appraisers from the past ran through the subject in 10 minutes and barely came to a stop to take a picture of the comparables. No actual observing, taking notes, determining quality, differences/features inferior and or superior to that of the subject.

Appraisers shot themselves in the foot with the appraisal is needed yesterday mentality..... no substance/ boilerplate nonsense which led to inaccurate observations and valuations. Why not use an Uber driver and an AVM?