Hardly any AVMs or BPOs are being ordered these days. With rates going up no one will be refinancing they will be tapping equity through a HELOC. This is a huge opportunity for appraisers.
But they will mostly be Drivebys replacing an AVM. There will be lots of new desktop products too. Provided they are USPAP compliant these will be a great opportunity.
Appraisers seem to believe you must inspect. You don't. And the lender doesn't need you to.
Any appraiser who believes they don't have to inspect the interior of a property is an idiot and is setting themselves up to be fired by the client, sued or having their license revoked.
How many times have we seen the interiors of homes that look perfectly fine from the outside be totally trashed inside?
How many times have we seen totally inaccurate public data, or public data that may or may not have been updated in many years in the public records?
Have you ever seen a public record, or MLS data that told you about functional obsolescence issues?
How many times have you truly found enough data about a properties features and condition through public records to be able to stand in front of the judge and swear you had enough information to complete that assignment competently?
How many times have you found that the work you have to do to get the data you need is more work than actually seeing the property?
Your due diligence, liability and the work required of you is still the same as an interior inspection, (beyond a slightly shorter form) but if you don't go inside you do it for 1/2 the fee? (Brilliant!!!)
Of course, you are going to have to disclaimer the finished product up to the Wazoo Line for all those things you don't know, which really makes the end product useless to the client, beyond a number, which is probably suspect in any case.
Unless you live in some kind of perfect data area where the assessors regularly inspect and update their records to reflect updates and remodeling, room counts/additions etc., you will not have enough data. About the only time you will have enough data is if that property recently sold and you have a stellar MLS that requires significant required data from their Realtor members for submission, with penalties for false reporting.
I have declined every assignment where I could not get into a subject for several years now, since FNMA stopped doing them for their REO properties, prior to foreclosure. Even then they were followed up with an interior inspection once the property had been taken back.
Rarely, if ever, is there enough data to perform an assignment competently without getting inside.
As far as refinancing goes, I disagree. There are an awful lot of folks who bought repos over the last 5 years who will probably be seeing some appreciation from their fire sale purchase prices, particularly if they have done some work, who will want access to some of that equity. There were also a lot of folks who just couldn't refi once the bottom dropped out due to lack of equity. Many were borderline, and as values go up these folks, many of them trapped in higher rates since 2008 will be able to get at their equity too. Regardless of slightly higher interest rates. Which, when looked at from a historical perspective, are still dirt cheap. I remember jumping up and down back in 2003 when I bought my home with a fixed 30 year 6%. It was great back then and will be again.
Just my 2 cents.
