Voice of Appraisal

[alebrewer]

WTF specified it was the same clients? They had enough clients over 30 yeas that if they were incompetent, one wonders how they lasted that long.

One does for a fact. Nonetheless - it's true.

 

[alebrewer]

Appraisals are meaningless when the risk of default is zero.

 

[George Hatch]

I have this one ordered as a super rush closing in two weeks. It turns out it is an income restricted property and the buyer and both agents were not aware of it. Incompetence.

I am pretty sure an inexperienced appraiser would have just appraised it as if there were no covenants or resale restrictions.

This is exactly the risk the lenders are taking when they're using AVMs and Reduced SOW appraisals or are doing business with the drones. It's not a problem until it becomes a problem. They might consider it an acceptable risk but it is still a risk.

 

[Joe Flacco]

This is exactly the risk the lenders are taking when they're using AVMs and Reduced SOW appraisals or are doing business with the drones. It's not a problem until it becomes a problem. They might consider it an acceptable risk but it is still a risk.

For this scenario, title would have caught it for the lender.

For the sloped lot property scenario, the lender would be in very bad shape relying on an AVM for that one. That would be a problem for sure.

 

[J Grant]

Appraisals are meaningless when the risk of default is zero.

When is the risk of default a zero?

Nobody knows until the years go on whether there will be a default.

Bad valuation esp over valuation hurts markets and artificially juices markets -

 

[George Hatch]

I have this one ordered as a super rush closing in two weeks. It turns out it is an income restricted property and the buyer and both agents were not aware of it. Agent incompetence.

I am pretty sure an inexperienced appraiser would have just appraised it as if there were no covenants or resale restrictions.

I forgot to mention: "super rush" always prompts me to slow down so as to not miss what everyone else in this deal - except for me - already knows about the property. These often pop up on Friday afternoon when I can't get ahold of anyone and the request usually gets described as their hair is on fire and they positively absolutely need my appraisal by Monday morning.

I ain't like those guys. I'm not falling for the banana in the tailpipe trick.

 

[glenn walker]

What juices markets is positive and negative time adjustments in strong up and down markets because they feed on each other.

We saw this in California when each new sale was lower and negative time adjustments further pushed down prices and created more buyer fear.

The appraisers were scared of over valuing so they started and continued making negative adjustments for a year after the market's had flattened and were stable.

As investors we were buying for almost two years before many appraisers quit checking the declining boxes. The same here with positive time adjustments the apprasers were checking increasing as long as 6 to 12 months after we stabilized.

 

[chad hampton]

Might have something to do with the fact that 20 years anytime an appraiser would put in the market was increasing, we would get revision requests out the ***. It’s not our fault clients and investors struggle with that concept. Maybe they should get out of the lending business if they can’t handle it.

 

[glenn walker]

Might have something to do with the fact that 20 years anytime an appraiser would put in the market was increasing, we would get revision requests out the ***. It’s not our fault clients and investors struggle with that concept. Maybe they should get out of the lending business if they

Nobody's getting out of lending the
Tail Wags the dog and your the dog.

The appraiser is not part of the profit center and kinda like the return desk
in Wal Mart. No money being made just a necessary evil in retailer's business.

 

[djd09]

Might have something to do with the fact that 20 years anytime an appraiser would put in the market was increasing, we would get revision requests out the ***. It’s not our fault clients and investors struggle with that concept. Maybe they should get out of the lending business if they can’t handle it.

they will blacklist the appraiser for simply marking declining market...so stable it is