Voice of Appraisal

[ucbruin]

What difference does that make? An appraiser who is doing his job looks at his local market through the eyes of an area buyer. And should apply the same principles and procedures that the typical buyer in the market would.

Whatever fancy app the latest tech bro in his extra small T-shirt has come up with really shouldn’t factor into the equation

Refi borrowers are no longer purchase borrowers....
So they no longer "look" at 2 homes and to compare them to their's....
Seems most of the "bias" appraisals are refis....
Not purchase appraisals....

 

[Terrel L. Shields]

Ya mean giving a 99 year old a 30 year Fannie loan may have a problem...lol

That's the crazy thing. I could borrow money for 30 years - meaning I'd be 104 years old when I paid it all back.

Seems most of the "bias" appraisals are refis....
Not purchase appraisals...

Good point. Hard to make the case that the property is under or over-valued when offered on the market

 

[Mike Ault]

Good point. Hard to make the case that the property is under or over-valued when offered on the market

Until they start playing games with seller concessions again. I'm seeing more of them and articles being written by real estate agents who are couselling their sellers not to lower their asking price but instead throw all sorts of inducements into the transaction to confuse everybody.

 

[glenn walker]

Until they start playing games with seller concessions again. I'm seeing more of them and articles being written by real estate agents who are couselling their sellers not to lower their asking price but instead throw all sorts of inducements into the transaction to confuse everybody.

Once everyone is making concessions it' becomes a zero sum game. All new construction in my city has a menu of concessions to choose from.

 

[Mike Ault]

Once everyone is making concessions it' becomes a zero sum game. All new construction in my city has a menu of concessions to choose from.

At least you have "a menu" and a chance to figure out what's going on with them. In non-disclosure states, we won't know. Particularly egregious in new construction. So many kickback schemes involved with those it's pathetic.

 

[glenn walker]

At least you have "a menu" and a chance to figure out what's going on with them. In non-disclosure states, we won't know. Particularly egregious in new construction. So many kickback schemes involved with those it's pathetic.

That keeps values up you should be happy.

 

[shrubberyvaluation]

Appraisal school to the real world of appraising.....

I was taught to do what Glenn said..and .make sure to adjust right up to the 15% net...25% gross...never exceed them.....same with 10% line item.

Later on it was 20% GLA....I was thinking who is coming up with this bs? Do AVMs have the same guidelines?

No, sometimes you have larger adjustments to account for reporting requirements such as ceilings being below a certain height or two identical houses except one has the 1st floor partially below grade.

 

[Terrel L. Shields]

Once everyone is making concessions it' becomes a zero sum game.

I am seeing more of them, but they are not common in NE Oklahoma yet. But not so in NW Arkansas where builders are incentivizing everyone to use them. The county is happy, as it just jacks up the list price of the sales and boosts their valuations.