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Training for High End and Million + Homes

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Anitaihale

Thread Starter
Freshman Member
Joined
Mar 31, 2006
Professional Status
Certified Residential Appraiser
State
Georgia
I have been appraising REO and single family homes under 600,000 for about 3 years now. I want to start marketing to Million Homes regarding my appraisal services. Does anyone know of any training and/ or books that will help me.

Thanks in advance,

Anita
Visit me online at: www.TheAppraiserLady.com
 

Paul Isolda

Senior Member
Joined
May 20, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
I have been doing multi million dollar homes, including $20m+, for many years. I really don't think you are going to get the experience you need from a book. My best advice to you is find an appraiser doing these homes and try and work with them. I sometimes take appraisers I know on inspections of some of these big properties. They want to learn and I could use a little help with taking photos and measuring. We sometimes do some of the research and analysis together and they ask questions. It seems to work for both parties. I know that to some degree I'm helping someone who wants to take these assignments from me but in the long run, there is enough work to go around (at least there was until recently) and what goes around comes around. I would like to be doing more commercial work and the CG appraiser I'm working with is generous to me with his time.
 

The Warrior Monk

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
Paul gave some good advice I would recommend following.

Nearly all of the residential lending assignments I am involved in are 7-8 figure properties. Here's some general comments:
  • Entities lending millions of dollars typically expect plenty of experience in the appraisal of these property types. Off the top of my head, I don't know of any of my peers on the private banking lists with less than a decades worth of experience.
  • It is important to train with others. I used to go out with some of my senior associates to inspect these properties, years before I actually appraised one.
  • These properties often have particular features that greatly affect value (quality, design, etc.), and the appraiser must be able to identify them. They may be area specific. A 10,000 sq.ft. oceanfront contemporary may be headed for the scrapheap here, but may be very valuable out in California. Not recognizing these features is a very big problem that I have seen with reports I have been provided.
  • Data collection on such properties is often difficult, especially on the very-high value properties. Many of these brokers do not list such properties in MLS. The appraiser must learn where to get the info (especially interior info, such as photos), and must make the necessary contacts to get that info.
 

Joe Booth

Junior Member
Joined
Oct 16, 2003
Professional Status
Certified Residential Appraiser
State
California
The reviews of these assignments tend to be much more detailed. Make sure you know and understand the lenders specific requirements.

Some lenders will do more than one appraisal.

I also recommend attending as many open houses as possible...

My two cents (about what it's worth).
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
According to the AMC fee schedules, that extra $500,000 to $1,000,000
in value is worth a whole $50 to $100 to a $325 fee.

To market yourself, you could attend those swank charity events where
they take photos of the attendees and publish them on the society page.


As Captain Ron said,

"You take out the trash, swab."
- Oh, man! [Little Boy with glasses]

"Hey, swab. Come here."

"Listen up. The way it works
shipwards is, you do your job."

"You do it good, maybe you'll
get promoted from swab to mate."
 

Metamorphic

Senior Member
Joined
Mar 15, 2008
Professional Status
Certified Residential Appraiser
State
California
My supervisor and I do them fairly regularly; 1 a month maybe.

Interestingly, I dont see them as being that different than any other complex property type in terms of the skill that you have to apply to get at an OMV. There's no such thing as model matches. Turn over is lower so its the usualy "not enough or recent enough, or close enough, or similar enough" comps. Its likely you'll have to go to other developments justfity that and make locations adjustments. But that's "the usual" for non-conforming complex properties.

What is different is the level of documentation and thought you need to provide and the level of review you should expect. You dont just turn in the Jumbo and never hear anything back. Comments and explainations always follow. Also, for mil homes you should expect that a field review or second appraisal will happen on every assignment.

Its a little funny because 5% adjustment on a $200k tract house nobody breaks a sweat over but when you make a $100,000 single line adjustment on a $2 mil house dont be suprised if somebody has kittens so you better be prepared to back up the adjustment and you might as well just put it in the report from the get go. There's no just tossing a number out there because it seems right.

You also have to spend a little more time documenting the details of quality and condition, materials, location, neighborhood, etc because they turn into big number real quick.
 

Vegan702

Senior Member
Joined
Feb 24, 2005
Professional Status
Certified Residential Appraiser
State
Nevada
Don't confuse the amount that the house is being sold for with the complexity of the appraisal either. Just because it's selling for $5 million doesn't mean it's any more complex than the house selling for $200k in some areas. I've done some homes in CA and NV that were $1.5mil-$3mil with model match sales in the last 6 months that were a piece of cake. It's usually the one-offs that start to get into the more complex areas and require assistance if you are not knowledgeable in that area residential construction and appraising.
 
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