Two Questions?

[Claude From NY]

Two questions,

I have noted in a lot of posting many are waiting for the turn around in the Residential Appraisal business. When do you think this will happen?? woohoo


The second question is; when do you think fees for residential work will be raised to a level where the residential appraisal business is treated the same as commercial work, equal pay for the amount of hours spent and to cover all business expenses and pay a decent fee?

I'm thinking 36 to 48 months.

Only if and when the residential oversupply abates. There are over 7,300 appraiser licensees (assistants included) in New York. Only 1,654 of them are CGs.

 

[Mztk1]

It is guns or butter.

We are in a decline because the dollar in droves is going overseas to fight foriegn wars.

At first, when popular opinion believed Iraq would pay for the war with its oil, there were no problems. Eventually the sucking sound of our money woke up the big money investors from their opium slumber and they began pulling their money from real estate for bigger and better investments, where that money flying out of America might land in their own wallets.

When the election is over, since one candidate is talking about a time line and the other a time horizon, we'll see a boost in the market and if the president elect is Obama and he keeps to his promise of scaling down the war effort leaving more dollars for here at home, we'll see a sustained recovery. If we get McCain we better all get civil service jobs, preferrably in the defense department.

As for the residential/commercial money, in my office the price per hour is about the same. Several years ago when residential appraising was easier, it was a better preformer on an hourly basis than commercial.

 

[Jim Buckner]

Residential market is 3 years out from turn around but I think that residential appraising will continue to be under utilized. Even with this recent debacle I believe the residential appraisal report is going to become an extinct species in the near future. Ergo the answer to the second question is that fees will not be recovering.

 

[JSmith43]

When the election is over, since one candidate is talking about a time line and the other a time horizon, we'll see a boost in the market and if the president elect is Obama and he keeps to his promise of scaling down the war effort leaving more dollars for here at home, we'll see a sustained recovery. If we get McCain we better all get civil service jobs, preferrably in the defense department.

That's lounge bait, Jim. Alas, the lounge is no more. It went "kitty" up.

The time to be hopeful is at the peak of despair. That will probably be when the spring market 2009 is flat. I predict the housing market will get on a mild uptick by July 2009, when the more shy bottom feeders will emerge.

It will still be a buyer's market (envision sharks rolling in chummed red water). The masses will slowly re-enter the market and spring 2010 will have a relatively traditional uptick in sales activity. Still, no fun for owners, but they have capitulated.

Short sale "experts" will become more flimflam in an attempt to keep volume at levels past.

Commercial RE office sector is in the dumper thanks to new breakthroughs in video conferencing. Basically, it is the start of a paradigm shift to virtual meetings in special virtual meeting rooms-almost as good as being there, but without the jet lag. Even some ordinary Joe types will have media conference areas in their home office to do business without driving. Virtual sales calls, etc.

 

[Terrel L. Shields]

It will turn around when it turns around and it ain't turning around until the market decides that bottom has been hit. Bottom will be marked by capitulation in the market. If we see a 3,000,000 share day on NYSE and 4,000,000 on NASDAQ and the market plunges by 5% percent...then that is market bottom. From then on the people with money will be ready to lend again or buy again.

The second question is; when do you think fees for residential work will be raised to a level where the residential appraisal business is treated the same as commercial work, equal pay for the amount of hours spent and to cover all business expenses and pay a decent fee?

imho, I make as much or more per hour for residential properties than for commercial ones. I never have reduced my residential fees unlike a lot of folks. And I charged for post-report requests including extra comps.