The New Appraisal Industry

[George Hatch]

It's not about me or you. It's about what these standards and GSE policies actually say.

And just so we're clear, I'm not even disagreeing with "your opinion". A lot of people share that same opinion and reasoning - that's what I'm disagreeing with and that's who I'm explaining to.

Now please excuse me because I have an SFR appraisal to write up today. DOD appraisal wherein I will be using an EA about its condition as of the prior effective date based on my more recent personal inspection.

 

[Surf Cat]

It is also unethical to take a "conservative approach" in developing or reporting any appraisal as a means of limiting our own personal exposure. We're not supposed to be taking sides with the borrower, the lender or ourselves. The prohibitions against bias or advocacy do not exclude the appraiser's self interests.

LOL.... now I'm biased even though I did not inspect the subject property or delineate the neighborhood inspecting the comparables curbside.

If you want to submit an opinion at the top end of the gross sales price range along with reconciling to the upper end of the adjusted sales..... even though you hadn't gone there personally...knock yourself out.

Do you really think the lenders or the AMC's care about the convoluted mess of Standards you're shaking at me? You are so oblivious to the AMC world....

 

[djd09]

it is hard to believe they left in charge the unethical stakeholders that accepted no doc loans...so tell me more about the gse policies

 

[J Grant]

LOL.... now I'm biased even though I did not inspect the subject property or delineate the neighborhood inspecting the comparables curbside.

If you want to submit an opinion at the top end of the gross sales price range along with reconciling to the upper end of the adjusted sales..... even though you hadn't gone there personally...knock yourself out.

Do you really think the lenders or the AMC's care about the convoluted mess of Standards you're shaking at me? You are so oblivious to the AMC world....

That's the problem ....for an avg house or price range, relying on a PDC might suffice - however, there are very few "average" situations anymore..

If I opine below a SC price or higher for a subject than typical in the area, I'd better be able to back that up. With a PDC collection, the appraiser is the least well-informed of all the parties. Typically, the other parties SAW THE SUBJECT IN PERSON- ( a RE agent, or the buyer, or the owner if a refinance ). And here I am, the appraiser, saying the value is worth X more or less than they expect or paid - and I never even set foot on the property.

I am appraising a property now for a refinance. I will probably appraise it for 100k less than what they paid for it 18 months ago. ( 1.5 million price range ). Painful, but the comps and mixed upgrades and condition of the subject indicate it. If I had not gone there in person, it would be hard to justify. And that is true of any price range - this just happens to be a higher price range.

 

[George Hatch]

LOL.... now I'm biased even though I did not inspect the subject property or delineate the neighborhood inspecting the comparables curbside.

If you want to submit an opinion at the top end of the gross sales price range along with reconciling to the upper end of the adjusted sales..... even though you hadn't gone there personally...knock yourself out.

Do you really think the lenders or the AMC's care about the convoluted mess of Standards you're shaking at me? You are so oblivious to the AMC world....

What did I say? It's unethical for an appraiser to lowball a property on behalf of anyone including themselves.

What did I not say? I did not say or suggest "If you want to submit an opinion at the top end of the gross sales price range along with reconciling to the upper end of the adjusted sales....."

 

[Surf Cat]

What did I say? It's unethical for an appraiser to lowball a property on behalf of anyone including themselves.

What did I not say? I did not say or suggest "If you want to submit an opinion at the top end of the gross sales price range along with reconciling to the upper end of the adjusted sales....."

And I never said anything about lowballing...

 

[George Hatch]

This is the post you made to which I responded, particularly to the meaning and intent of "take a conservative approach". Nobody here would interpret that meaning as being anything other than going low. As opposed to calling it straight down the middle as we normally assert.

 

[Surf Cat]

Yes, real estate appraisers have been receiving reconsideration of value (ROV) requests from AMC’s on hybrid assignments, though the frequency and nature of these requests can vary.

While hybrid appraisals are marketed as efficient and cost-effective, the increased ROV activity highlights ongoing tensions between AMC cost pressures and appraiser independence.

 

[Surf Cat]

This is the post you made to which I responded, particularly to the meaning and intent of "take a conservative approach". Nobody here would interpret that meaning as being anything other than going low. As opposed to calling it straight down the middle as we normally assert.

View attachment 107066

LOL...."Conservative" does not equate to "lowballing" if the appraiser follows standard appraisal methodologies and is based on sound reasoning. Sheesh

 

[J Grant]

I didn't say they were the same thing. I am saying that both assignment types involve appraisers making assumptions instead of performing the 1004-style interior/exterior inspection. Just like when appraisers are doing proposed construction or retrospective opinions in cases where those improvements don't even exist.

So "making more assumptions" about the accuracy of the data being used isn't something new or unusual in professional appraisal practice.

In the case of proposed construction/retrospective, and other such scenarios, there is a compelling REASON the appraiser did not inspect - the house does not exist in the proposed, and it is not possible to go back physically in time in a retrospective.

Barring extraordinary circumstances, there is no reason, other than greed, to order a hybrid using a PDC collection when the appraiser is available to do the subject inspection.