The New Appraisal Industry

[Surf Cat]

The reason the inspection is considered significant is because a lot of opinions are determined during the inspection.

Agree....that and delineating the neighborhood, inspecting the comparables curbside, verifying comparable descriptions as described in the MLS against that of the subject. Determinations are made in this aspect as well.

Lenders and AMCs don't think it's important for the appraiser to inspect as they don't want to deal with the appraiser checking any "subject to" boxes or calling out deferred maintenance or deficiencies.... all that does is delay things when they can simply make the loan happen without the appraiser being there.

 

[George Hatch]

The reason the inspection is considered significant is because a lot of opinions are determined during the inspection.

Two things:
1 . That's where the appraiser forms those opinions in the 1004 inspection but @ inspection isn't the only step where the appraiser can form opinions about these elements. Not even you can deny that.

2. The whole purpose of developing those opinions is in order to take the next step in the process which is to figure out which attributes they're working with and using those attributes as a filter for comp selection. Then the appraiser makes the comparisons to the subject's attributes before reconciling to their value conclusions.

I cannot use YOUR opinions to make MY comparisons.

 

[George Hatch]

Agree....that and delineating the neighborhood, inspecting the comparables curbside, verifying comparable descriptions as described in the MLS against that of the subject. Determinations are made in this aspect as well.

Lenders and AMCs don't think it's important for the appraiser to inspect as they don't want to deal with the appraiser checking any "subject to" boxes or calling out deferred maintenance or deficiencies.... all that does is delay things when they can simply make the loan happen without the appraiser being there.

I wrote an article that pointed out these additional steps a couple years back and how the appraiser had to make additional efforts at their desk in order to offset what they're missing when they're working at their desk.

Less is always less, but less can also (sometimes) be sufficient. There are plenty of precedents for that in professional appraisal practice.

 

[OSU Beavers]

Not to mention the PDC fraud. During the lock downs when work was hard to come by for regular non-essential folks, one fella was on YouTube letting people know how to pick-up side hustle PDC work. Since he was a felony, he just had his girl register with the PDC company in order to pass their background check. LOL.

Good luck home sellers with nice collections or kids!

 

[George Hatch]

So do you think single-signing PDCs are as common as the single signer appraisers who are also using unvetted runners?