PAREA Update

[Overimprovement]

Ideally we would want to quantify the extent of the problem really is so as to enable a well-targeted solution to the problem.

Unfortunately, I believe those striving the hardest to quantify the alleged bias are full of their own biases.

 

[alebrewer]

Unfortunately, I believe those striving the hardest to quantify the alleged bias are full of their own biases.

No doubt.

 

[George Hatch]

I don't want to beat the bones on this dead horse, but it seems to me that at least some of these appraisers are contributing to their own problems, much of it being report content related.

Take the Marin City situation: that neighborhood only yields 1 or 2 sales a year of the lower quality pole homes; there might not have even been any in the 12mo prior to the effective date. If an appraiser wrote a slightly more detailed neighborhood summary showing the 50/50 composition of pole homes vs conventional slab homes of superior quality, and had included a real analysis of the pricing history and relationships between the two SFR types that would have made it more more difficult for a subsequent appraisal to get away with glossing over these distinctions. From there they could go on to talk about the higher pricing for the conventional homes within the Sausalito neighborhood at the bay. They could have then supported both the location and the quality adjustments necessary to use those outside comparables. Time consuming, but not difficult to do.

The Columbia City situation could also have been addressed similarly. Write a good summary of the overall composition and pricing trends in the neighborhood, rank the subject in relation to the neighborhood based on it's attributes, zero in on the dominant factors of affect with that subject property and then make the case with an extended comp selection consisting of similar condition 1bd homes. A casual reader couldn't read such a report and fail to accurately understand how the appraiser came to their conclusion. The irony is that it wouldn't even take a heroic effort or a lot of time to write such a summary. Two or three paragraphs, tops. One for the neighborhood composition and trends and the other for how the subject relates to both it's neighborhood and it's market segment.

 

[ucbruin]

Unfortunately, I believe those striving the hardest to quantify the alleged bias are full of their own biases.

Could work the other way too....
Those trying hardest to deny/downplay alleged bias....
Could also be full of their own bias...

 

[djd09]

On Wednesday, the Real Estate Valuation Advocacy Association (REVAA), a year-old trade group that represents firms and professionals in the appraisal, BPO and automated valuation model (AVM) industries, issued a media release contesting the letter’s assertions. Don Kelly, REVAA’s recently appointed executive director, previously worked at the Appraisal Institute. [W]e believe that financial institutions and investors should be able to choose from a wide variety of proven and reliable valuation tools,” REVAA said. “Unfortunately, the ability of our customers to order “the appropriate product for the appropriate purpose” is under enormous attack.” “BPOs, AVMs and other alternative valuations are important and necessary tools which reduce costs, increase speed and strengthen overall valuation accuracy,” the letter continued. “Their use benefits homeowners with reduced costs (reduced pass-through servicing costs), mortgage investors (decreased cost of due-diligence) and credit risk departments (to verify appraisal accuracy).”

don kelly and AI but who knew

 

[jay trotta]

On Wednesday, the Real Estate Valuation Advocacy Association (REVAA), a year-old trade group that represents firms and professionals in the appraisal, BPO and automated valuation model (AVM) industries, issued a media release contesting the letter’s assertions. Don Kelly, REVAA’s recently appointed executive director, previously worked at the Appraisal Institute. [W]e believe that financial institutions and investors should be able to choose from a wide variety of proven and reliable valuation tools,” REVAA said. “Unfortunately, the ability of our customers to order “the appropriate product for the appropriate purpose” is under enormous attack.” “BPOs, AVMs and other alternative valuations are important and necessary tools which reduce costs, increase speed and strengthen overall valuation accuracy,” the letter continued. “Their use benefits homeowners with reduced costs (reduced pass-through servicing costs), mortgage investors (decreased cost of due-diligence) and credit risk departments (to verify appraisal accuracy).”

don kelly and AI but who knew

So they have the figures to back up the claims of reduced costs; valuation accuracy, and Benefits to the homeowners??

Sounds like they're rounding the clubhouse turn to take over, Financing/Appraisal and 100% control of any Owners Equity (True or Made Up). When anyone Controls the "end game" nothing good will happen. The Public at large will suffer the consequences of the greedy.

 

[DWiley]

Sounds like they're rounding the clubhouse turn to take over, Financing/Appraisal and 100% control of any Owners Equity (True or Made Up). When anyone Controls the "end game" nothing good will happen. The Public at large will suffer the consequences of the greedy.

Actually, it sounds like DJD is going through the archives to find things to get some riled up. That quote he posted is from 2010.

 

[djd09]

AMCs Save Consumers Money- What?
In the suit, Coester makes an argument that will certainly raise some eyebrows among appraisers. Coester says that because AMCs pay appraisers less than non-AMCs, the removal of Coester from the marketplace will harm the public. Coester states that it is a “lower cost competitor” of the Virginia Appraiser Board members, and other appraisers throughout the state, asserting that the denial of Coester’s application will “drive up the price of single family residential appraisals” and will increase costs that “will be passed on to homebuyers.”

Who is Behind the Lawsuit
The law firm representing Coester in this case is Weiner, Brodsky, Sidman, Kider PC (Brodsky firm). This is the same law firm used by the veteran AMC advocacy group the Real Estate Valuation Advocacy Alliance (REVAA), in past legal filings throughout several states, and the one also picked to represent a new AMC coalition, the National Home Valuation Alliance (NHVA). NHVA appears to be led by former REVAA Executive Director Don Kelly.

AI, don kelly, coester, and 15th st but who knew

 

[djd09]

Actually, it sounds like DJD is going through the archives to find things to get some riled up. That quote he posted is from 2010.

it is called history

 

[djd09]

Real estate appraisals fall short of superheated prices, locking out buyers​

Sellers looking to make top dollar and anxious buyers in a low-supply market often grapple with significant differences in asking price and estimated value set by appraiser​

An appraiser’s work


Becoming an appraiser is a serious feat. Alongside a bachelor’s degree, they are required to undertake a rigorous training program that includes studies in engineering, real estate law, taxes, finance, statistics, and valuation theory, a year as an intern, and finally national exams. Their work falls under the Justice Ministry, which, through the Board of Real Estate Appraisers, has laid out a detailed framework that governs how they should evaluate property for lending purposes (it’s called standard 19).

Real estate appraisals fall short of superheated prices, locking out buyers

Sellers looking to make top dollar and anxious buyers in a low-supply market often grapple with significant differences in asking price and estimated value set by appraiser

www.timesofisrael.com

the sold out usa regulators are just racing to the bottom