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George Hatch
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Someone apparently thinks the appraisers and lenders drive the prices and not the buyers/sellers/brokers.
If that assumption was correct then the low LTV and all-cash transactions would go off at higher prices than the high-LTV transactions
George Hatch
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Last line of this graphic. They apparently haven't thought these ideas through yet. I can't wait to see what explicit assumptions it will take to make this definition of value work.
J Grant
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If any instructors include it then it would be a way to fill up dead space about a topic that would take 30 minutes to cover.
I also said the above in my post, (that you did not paste in your excerpt) - which indicates I realize some instructors might include it. It is an incredibly nitpicky item for you to bother posting about -AI confirms my perspective on it. See Sputnam post # 32- their instructor in CE did not present anything on Restorative Competitive Value.
AI Overview
Based on current search results, "Restorative Competitive Value" is a niche, proposed valuation technique rather than a standard topic in mainstream appraiser continuing education (CE) classes. While it has been presented in specific seminars (such as those by the Appraisal Institute's Northern California chapter)
, it is not currently part of the required, standard appraiser CE curriculum, which focuses primarily on USPAP updates, valuation bias, and traditional sales comparison approaches.
orthern California Chapter of the Appraisal Institute +4
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George Hatch
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Well see, that's the thing. There are a lot of people who think that the various social justice themes are in decline just because the current administration is agitating against them and because the activists are on their back foot. I think those themes are in momentary hiatus and that they'll all be back, except with the volume dialed up to an 11. They're not going away, and anyone who thinks differently isn't paying attention .
Personally, I don't care if the lenders cave to the political pressure or not. I only care that appraisers don't get tasked to tell lies about what they're actually doing in a RCV assignment.
J Grant
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I agree with you about that appraisers should not lie or appraise to other types of value ( unless another type of value is part of the assignment).
I personally do not think the nutty advocates blame appraisals and valuations for the loss of value in certain communities in a vacuum. Part of the problem is that the fallacy was never corrected which would have put the advocacy into perspective
I hold the GSEs accountable for this nonsense gaining traction, because they did not step up to defend the market value methodology, which is the foundation of appraisals and is location-based, because that is what drives the RE market. Imo the GSEs exploited the bias theme because it dovetailed with their agenda to reduce the role of appraisers. I understand they were under political pressure, but people of integrity stand up to pressure when it is wrong.
I'm open to taking CE classes and not using certain verbiage.- I never used that verbiage anyway. And imo, I doubt Competitive Restorative value will gain traction in lending - if it does, I will deal with it at that time. It's just troubling that appraisers are now burdened with additional fear of lawsuits, which is one more stress point for the RE license mortgage work.
I would add that the Brookings Institution does not care about the communities they are whining about. If they cared, instead of blaming low valuations, they would be raising funds for grants or sweat equity trade to repair and upgrade the homes of people who can not afford it. A major reason for a lower price is a home in disrepair or one that has not been upgraded in 40 years.
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George Hatch
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On the one hand you might be right about the application not gaining any traction with the lenders, but on the other hand it's hard to say what the political landscape will look like in 2030. I doubt most people thought DEI and related themes would decline as quickly as they have due to external conditions. That implies they can resurge just as quickly when those conditions change.
In any case, there's little point in anyone getting excited about the issue one way or another unless/until it starts showing up as an element of our assignments. In the meantime it don't cost nothing for appraisers to put a little thinking into the idea and coming up with a plan for how to safely comply prior to such a request popping up. Have a plan beats having no plan and then suddenly having to react at the last minute. Proactive > Reactive. IMO
In any case, there's little point in anyone getting excited about the issue one way or another unless/until it starts showing up as an element of our assignments. In the meantime it don't cost nothing for appraisers to put a little thinking into the idea and coming up with a plan for how to safely comply prior to such a request popping up. Have a plan beats having no plan and then suddenly having to react at the last minute. Proactive > Reactive. IMO