We, like you, tend to reflect on the year as it comes to a close. Looking back, 2017 was eventful with the prospect of significant change coming in 2018. We thought would share some of comments we received related to articles in 2017.
Here are some of our favorite comments on Appraisal Buzz Newsletters articles:
“Woody: I think this is a fair an unbiased article on an important issue. Thank you for writing it.”
“A great article. As indicated if Fannie and Freddie loans were not backed by the federal government they could assume any risk they desire but they are not and tax payers would be left holding the bag again if their experiment fails. It wasn’t the appraisers that caused the last collapse of the housing market it was the lenders and the Fannie and Freddie who were suppose to be the gate keepers that allowed lax underwriting and failed to require reasonable safe guards……”
“Many good and worthwhile discussion points however the entire system of residential real estate valuation needs overhauled starting with abolishing AMCs”
“I couldn’t have said it better!”
“Thanks for the great article, and everyone’s professional opinion on the subject. These desktops are not for everyone, but many appraisers have physical and personal reasons for working at home, so these are a great benefit……”
“Of course, as an appraiser I think this is a terrible idea. Here’s the other side; as a Realtor, I still think this is a terrible idea. There are any number of local real estate agents that I think the world of, that I would trust to sell my own home, yet I’ve seen each and every one of them over-value a home. I’ve had heated discussions with some of the agents with whom I work regularly about a listing they have that didn’t meet the contract value, that they think should have. They’re just not trained to do what we as appraisers do, and it shows….”
“Nice start on analyzing the market nuances that affect our statistical analyses every day. It takes more time to approach these differences, and consequently much of the analyses are lumped together in a software program designed to give quick “down and dirty” numbers to plug into a form and shoot off to the client. Fact is, most lender clients don’t really want to pay for thorough analysis. If it looks reasonable given their data crunching software, it’s good to go! We have a long way to go in the appraisal industry to convince our clients the best way is not even close to the cheapest…garbage in, garbage out. But, faulty analysis always catches up in the end and contributes to housing bubbles and consumer disappointment in a system that can’t/won’t repair itself. Once appraisers are treated like the professionals they are (and show themselves in action to be), compensation won’t be an issue…”
“Those are great points. Most people do try to take statistics from the larger market and use them for their property but that may not always give the most accurate estimate of value. This is why communication and being able to tell the story of value on the local level makes boots on the ground appraisers so valuable. I’m not sure lenders would have this type of good data if they passed on an appraisal with the new waivers that are available.”
“Right on. You hit the nail on the head Brent. I hope that you will also bring up the Principle of Substitution. The major problem I have had doing reviews across the country are appraisers insisting that you can build a house 30% cheaper than you can buy one that is 20 years old and nearly fully depreciated.”
“So True, I have read other appraisals in the last year where the description of the neighborhood and market conditions is a “boiler plate” statement so vague that the reader of the report could never tell what area of the county the property was located. It is all about speed these days and many of the appraisers are looking to get it done fast to meet the deadlines of the AMCs. Taking the time to paint the picture and give the reader of the report a better understanding of each neighborhood is something we must do or we won’t be needed.”
Our New Year’s resolution it to support and promote the appraisal profession by offering best in class networking opportunities, education, and information via The Appraisal Buzz Newsletter and Magazine. Your feedback is greatly appreciated.
From the entire team at Allterra Group and Appraisal Buzz, we wish you a prosperous 2018!