Today we received some good news from FHA concerning rules to support appraiser independence. If you are concerned with reliable appraisal services from a qualified professional appraiser then today a good first step was taken. For details follow this link. http://appraisersforum.com/noref.php?url=http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-28ml.doc
Inside the appraisal profession
April 14, 2009 – 2:15 am
Inside the Appraisal Profession
Up until May 1st 2009 mortgage brokers ordered appraisals from real estate appraisers and the appraiser did research on the subject property found comparable sales and developed and estimate of market value. If the estimated value was too low to make the loan work, chances were the appraiser was in jeopardy of losing the client he performed the report for. After all what good is the appraiser if she/he can’t “make the number”. This scenario has been very frustrating and financially punishing to an honest appraiser.
As of May 1st 2009 and after the collapse of the housing market a Home Valuation Code of Conduct (HVCC) will be enacted. Now all loans going through Fannie Mae, Freddie Mac, and FHA (In declining markets) will have to go through a buffering process. One process is for banks to set up a separate independent division for ordering appraisals. In order for this to do any good there will be a need for strict oversight. I talked with one banker and he admitted to me that he will just walk to the other division and handle it. Another option is to go through an appraisal management company. These companies are springing up everywhere and with good reason. Many of these companies are cutting the appraisers fees in half and taking the ones that will do the quickest turn around times possible. The problem with this method is the fastest is not what the profession needs. As of April 1st 2009 a market conditions report is required on each of these appraisals. This requirement was a step forward. In addition I add 2 more pages of market data to help the lender to see clearly what is going on with the subject market area. Again it looks like the appraiser that does an honest comprehensive report is at a disadvantage. Hopefully we will have at least 1 more change to take place. It is called the Dodd/Crowley IVPI Proposal. The hope for this bill is to hold the appraiser more accountable for the quality of the appraisal report. This could be the equalizer that is needed to tie all of these parts together making sense of it all.
Sun Coast Appraisal Services Blog
November 25, 2008 – 10:29 pm
Well, we are hearing a lot from the new administration coming in now. It looks like they will be traveling the middle road. Not too far left or right. Hopefully we can start getting some balance in the Real Estate Markets going forward. The current administration seems to be allowing a seamless transition. Today they announced that the next pile of money coming will be aimed at freeing up the mortgage markets. As a real estate appraiser, I welcome the news. After the announcement mortgage rates continued the decline that started Monday. Last week the Wells Fargo website had the 30 year fixed rate listed at 6.125% and now it is at 5.625. Hopefully this trend continues and we begin on a responsible road to recovery.
Sun Coast Appraisal Services Blog
November 6, 2008 – 3:13 pm
Well we now have a new president elect and it will be very interesting to see what kind of changes we are in for. One thing for sure is that more regulation for our banks and mortgage markets is in the works. As an real estate appraiser in Sarasota Florida’s Sun Coast, I am optimistic that once we get through this rough period we will emerge with a much more stable market for many years to come. Free markets and deregulation on the surface seemed like a good idea to stimulate growth and big profits, but in my opinion, they can also be fuel for the greed that naturally follows. If the main objective of an appraisal is to come up with accurate estimate of market value rather than to meet the number that makes the deal work our markets will become more balanced and dependable.
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For real estate property appraisals in Sarasota, Charlotte, or Manatee County, Florida, visit www.suncoastreappraisalservices.com
Appraisal 101
October 22, 2008 – 6:09 pm
I have read a lot lately about the need for appraisers to relate a better and more accurate appraisal report. It is very important, if we as appraisers want to be considered more professional, respected and independent. It is true additional information should be added to the report to reflect the current market conditions and so on. But to me, the most important thing we can do is go back to the basics and pick the best comps available in the market area. I don’t mean the highest comps available. Not the the ones that are closest to the estimated price. To get to what should be the most important part of the appraisal, the estimated market price, you have to use the best comps available. You have to start with a strong foundation, just like you do when building a sports program, or a home.
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For real estate property appraisals in Sarasota, Charlotte, or Manatee County, Florida, visit www.suncoastreappraisalservices.com
Welcome to the Sun Coast Appraisal Services Blog
October 18, 2008 – 7:31 pm
I’m Tommy Wells and I run SuncoastREappraisalServices.com – a real estate appraisal company in the Sarasota, Florida area. We serve Sarasota, Manatee, and Charlotte Counties.
I asked Daniel at www.mixmysite.com to set me up an external blog, for search engine optimization purposes, and so I could do some frequent blogging about real estate and appraisals in Sarasota, Florida. I plan to keep this up to date with fresh thoughts, perspectives, observations, and experiences, so stay tuned.
Daniel also runs some fantastic blogs, himself: MarketMoose.com and RulesOfWork.com and is the author of HTML in 30-Minutes which you can get free right now at MarketMoose. Check out his stuff – he’s good! And visit here often, for more on real estate and the perspectives of a real estate appraiser, especially in Sarasota, around Sarasota Bay, and the area of the SouthWestern coast.
