Senate VA Appraisal Modernization Measure

[djd09]

(3) Complex appraisals for residential real estate transactions of more than $400,000. All complex appraisals for residential real estate transactions rendered in connection with federally related transactions shall require a State certified appraiser if the transaction value is more than $400,000. A regulated institution may presume that appraisals for residential real estate transactions are not complex, unless the institution has readily available information that a given appraisal will be complex. The regulated institution shall be responsible for making the final determination of whether the appraisal is complex. If during the course of the appraisal a licensed appraiser identifies factors that would result in the property, form of ownership, or market conditions being considered atypical, then either

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[shrubberyvaluation]

(3) Complex appraisals for residential real estate transactions of more than $400,000. All complex appraisals for residential real estate transactions rendered in connection with federally related transactions shall require a State certified appraiser if the transaction value is more than $400,000. A regulated institution may presume that appraisals for residential real estate transactions are not complex, unless the institution has readily available information that a given appraisal will be complex. The regulated institution shall be responsible for making the final determination of whether the appraisal is complex. If during the course of the appraisal a licensed appraiser identifies factors that would result in the property, form of ownership, or market conditions being considered atypical, then either

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Complexity is not based on price. One could argue almost all appraisals in the past couple years were complex due to changing market conditions. Complexity is from a lack of good readily available market data.

 

[RCA]

Complexity is not based on price. One could argue almost all appraisals in the past couple years were complex due to changing market conditions. Complexity is from a lack of good readily available market data.

I don't agree. In the SF Bay Area, complexity comes largely from (1) The wide variety of home architecture and design features, (2) The wide variety of locations, including view and terrain, (3) The wide variety of updating, - and the wide range of conditions.

 

[shrubberyvaluation]

I don't agree. In the SF Bay Area, complexity comes largely from (1) The wide variety of home architecture and design features, (2) The wide variety of locations, including view and terrain, (3) The wide variety of updating, - and the wide range of conditions.

1) Lack of good market data. 2) Lack of good market data 3) Lack of good market data

 

[RCA]

1) Lack of good market data. 2) Lack of good market data 3) Lack of good market data

In the SF Bay Area, we have good market data. The best. Besides all the charts, tables and data from the Matrix MLS, I can dump the latest sales and listing data. Easy.

What is, is this: The relationships needed to explain price differences are complex. This is NOT an area where your typical SCA is going to give solid support to your adjustments. This is an area for Data Mining & MARS Regression. Otherwise, you are going to be talking mumbo jumbo. You can value - as most appraisers do around here - by subjective judgment constrained by similar comps --- but don't ask questions!!!! This is my world -- I can point to objective analysis, despite the complex nature of the housing here. A -> B -> C. I can answer questions like: "Why didn't you value this or that feature?", "Why did you adjust that amount?" "Why is my house not as valuable as house X?" ....

 

[LesPaul59]

Personally I think this is all about desktop appraisals.

 

[Zoe]

Always remember VA has an ACE in the hole. They have the lowest loss ratio of any long term mortgage program. They beat them all. Conventional inhouse or GSE, HUD, whatever program you like. VA beats them all on loss ratio.

It is hard to argue with success. That's the VA's Ace in the hole if you push them.

 

[Zoe]

One more point. VA required no bailout that taxpayers paid for.

 

[glenn walker]

In

(3) Complex appraisals for residential real estate transactions of more than $400,000. All complex appraisals for residential real estate transactions rendered in connection with federally related transactions shall require a State certified appraiser if the transaction value is more than $400,000. A regulated institution may presume that appraisals for residential real estate transactions are not complex, unless the institution has readily available information that a given appraisal will be complex. The regulated institution shall be responsible for making the final determination of whether the appraisal is complex. If during the course of the appraisal a licensed appraiser identifies factors that would result in the property, form of ownership, or market conditions being considered atypical, then either

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In my area of California, a $400K home is a 1,200 Sf Box or cookie cutter and not complex and a $1 Million is also a tract home or not complex .

 

[shrubberyvaluation]

Price is not really complexity, but higher priced homes in the market tend to be more complex due to the tendency for less similar comps. Atypical properties in any price range could be complex. I understand drawing the line somewhere, but I think it makes more sense to phase out the licensing level. It has little to no purpose in my opinion.