Appraise This

I'm offering a new service to try to help Listing Agents escape the pitfalls of the FHA Appraisal!!!!!

FHA Lending is dominant in our area.  To qualify for an FHA Loan, your property needs to meet Minimum Property Standards as outlined by HUD.  When the Appraisal is completed, the Appraiser must list any items which do not meet FHA Standards.

Here is the problem: the Appraiser doesn't get to just call the Listing Agent and detail all the items in need of correction.  So, the game of telephone begins: the Appraiser tells the AMC who tells the Lender who tells the Buyer who tells their agent who tells the Listing Agent.  And then the Listing Agent has to make heads or tails of the mixed bag of information and try to meet the conditions...  Somehow...

This wacky system is causing problems - delayed escrows and LOST BUYERS!!!!!! 

I hope to help Listing Agents get ready for the FHA inspection - prior to escrow.  I'm offering a $50 full personal walk-thru to assess all FHA Conditions that may impede a fast and easy closing.

Stop the Appraisal from stopping you!

Emilie

Recently the county of Sacramento sent oodles of letters to rental owners.  There is a new inspection policy - but don't be afraid!  The program should be of minimal hassle and minimal expense - to those of you who are properly maintaining your rental properties...

The first step is a Registration Form which must be returned to the County.  The form basically registers YOU as the owner of record.  On this form you may choose Self-Certification to inspect your own property.  This only means that rather than having a COUNTY INSPECTOR come out to do your inspection, you OR someone of your choosing will conduct the inspection.  As the owner you have the right to have anyone who is CERTIFIED perform the inspection on your behalf.

I really like the idea of putting the inspection in the hands of the owner.  It's great to go out and see your rental property occasionally to make sure all is up to your high standards.  Or, if you are unable to - or plain just don't want to - go out to see your property, you can have an inspector of your own choosing go out for you!  This gives you the control - and the ability to get any additional information you want and have any repairs completed prior to the County paying a visit!  REMEMBER - you need to have a CERTIFIED RENTAL HOUSING INSPECTOR. 

For your convenience we would like to introduce Jeremy Barnes: he is a civil engineer, is Certified to perform Rental Housing Inspections, and performs most minor home repairs.  You can find his contact information on our "Rental Inspections" webpage.

Also at the bottom of our Rental Inspections webpage is a button link to the Rental Housing Association website - they have all the details on this program.

Contact us any time if you have questions or concerns about this program - we are here to help!

I am proud to be a member of the Sacramento Chapter of REAA (Real Estate Appraisers Association).  I think our group has the best of the best Appraisers in the Sacramento region.  If you are a local Appraiser and want to better yourself with group dinner meetings and included Continuing Education credits, I advise you to become a member as well!

http://www.reaaca.org/

You should also check out the Forum - a lot of great Appraisers bounce around some smart ideas!

http://finance.groups.yahoo.com/group/REAAForum/

And if you are in the business of hiring an Appraiser, well, call me...  Or check out the list of members on the REAA website - you will have a good idea that you are hiring somebody who strives to be the best at what they do!

http://www.reaaca.org/sac/roster.php

There are also North Bay and East Bay Chapters - you can check out their rosters through the main site - just click on the Chapter Name on the map, go to Membership, and down to Roster.

Let's all resolve to improve in 2010.

Hello everybody!

I hope all of you have a wonderful Christmas and happy holidays.  The season is wonderful, but can also be stressful.  Remember to take this time to focus on the blessings in your life!

With the new year I hope to take some time to streamline my website and make it more informative and easier to use than ever.  Stay tuned for new content and other changes!

Emilie

I just read about 4 AMCs that are in trouble for attempting to influence Appraisers to favor a predetermined value.  And by "in trouble" I mean facing fees and court judgements.  This is SOOOO funny to me...

The HVCC is imposed on us driving half of us out of business.  Many are taking jobs at well below acceptable rates and are expected to complete them in times well under what would be necessary to complete an Appraisal Report with full due diligence.  I have started a second business to cover what I have lost in my Appraisal business.  All this in order to prevent appraiser influence on the part of lenders.

Hahahahahahahahahahahahahahahahahahaha!

That worked well!  Great job folks!  What a winner!

I do work for some AMCs.  But I don't accept bargain basement fees.  Hopefully that will keep me from working for the ones with poor practices.  And I guess, at least for a while, I'll keep the second business to cover my liability costs!

My recommendation for the day: join an Appraiser Forum.  I like REAA Forum and Inland CA Appraisers Forum.  Great place for current information and great advice.  Both are on Yahoo Groups.  I follow each of them daily.

I just read about a study somewhere - don't really know (or care) what it was or where it was from exactly - detailing the number of mortgages under water.  It irritated me.

First, for those who are not real estate geeks who know all the terms: under water means the homeowner owes more to their lender than their home is now worth. 

Second, California is in the top 5 worst...  Big surprise...

So, the article I was reading implied that the next obvious assumption is that those homes under water are on their way to foreclosure.  But here's the thing: just because you owe more to a lender than the house is worth doesn't mean you stop paying!!!  Ever buy a new car?

I actually heard a homeowner say, "It isn't even worth what we owe on it.  Why would we keep paying?"  My answer: BECAUSE YOU SIGNED LEGAL PAPERWORK PROMISING YOU WOULD!!!!!!! 

In a vacuum, an under water mortgage should not have any effect on foreclosure rates.  Step out of the vacuum: some people have to move for one reason or another, and some of those will likely end in foreclosure; add a down economy and high unemployment, now you have a problem; finally, figure in the homeowners with little knowledge of the system and no shame for shirking their obligations due to the sympathetic media bent in this story, and NOW you have a DISASTER.

I am VERY sympathetic to those who were misled by their mortgage broker or realtor or both.  I am sorry for those who have lost their jobs or are forced into furlough - many family members and friends included. 

The appraisal business is suffering.  Badly.  I have a house worth 20% less than when I bought it.  And I'm thankful it hasn't dropped more!  I pay my mortgage every month.  I take money out from retirement accounts.  I started a second job.  My husband works overtime.  It isn't easy, but we have obligations.  We made promises.

If you are under water, hold your breath.  I don't want to hear you asking, "why would I pay that?"  I want to hear you say, "would you like a cart today?"

Here is my thought of the day:

We are hearing about real estate markets bottoming out, stabilizing, beginning to recover...  I like the news, I really do.  But is it real?

If you add an $8000 credit to favorable FHA financing, do you get an inflated sale price?  Do it times 10 or 20 and do you get what LOOKS like a stabilized market, but is really just propped up values due to Government intervention?

Look carefully at your markets, my wise friends.  And beware the credits and favors and concessions and 100% financing...

I was happy to see a story regarding the destructive effects of the HVCC on the local news - see it here:

http://www.news10.net/news/local/story.aspx?storyid=65815

There is a nice article, and you can see the TV piece by clicking in the video pane at the right.

Finally, a news story that didn't blame the "corrupt appraisers" for the unsustainable price inflation, mortgage meltdown, and economic downturn!

Let me just recap: the HVCC (Home Valuation Code of Conduct) prevents selection of an appraiser by the loan originator or those involved in the transaction (homeowner/realtor).  Now AMC's have become the dominant channel by which lenders acquire an appraisal.  Due to the AMC's flawed practices (only hiring the fastest and cheapest rather than the most experienced...) the appraiser used is often from a distant area and has little knowledge of the subject area.  Remember, this is the appraiser who agreed to work for the AMC with a 50% pay cut and to deliver the work twice as fast as could possibly produce credible results...  So, they get a bad appraisal and the deal falls through.  Thus George Warren's story: Realtors: Home Appraisal Rule "Destroying" Recovery

I was less impressed with the comments regarding the story.  More blame without knowledge.  Very sad.

If you look to place blame, please understand the people/professions involved and the underlying rules and processes.  In each profession are those who are dishonest and SHOULD be held accountable.  Blame those few, not an entire profession.  It just makes your argument petty and makes you look silly.

I was pleased to attend the AI Summer Conference this year.  I learned a lot and talked with some great people.

Greg Harding from the OREA (Office of Real Estate Appraisers) gave updates on typical mistakes made by appraisers.  It was good to hear some of the stuff that is getting appraisers in trouble - and knowing I haven't been making the same mistakes!!!

Jim Glickman presented information on how bonds can effect the value of properties.  In a Community Facilities District (areas with Mello-Roos taxes), the CFD is senior lienholder.  So, if the special taxes are delinquent the CFD may foreclose on the property - and the lender loses more than they bargained for!

Garrick Brown from Colliers International made jokes about being called Dr. Doom or some such thing.  He was there describing the grim outlook for commercial real estate.  And the economy as a whole.  If he knows his pants from his shirt (and he was dressed nicely) then we are in for a double-dip recession...  Bummer.  But Garrick gave a great talk and even some hope for the future (after 2010...)

I think I may be a USPAP geek - my favorite part was the Spotlight on USPAP - Appraisal Review.  Dawn Molitor-Gennrich gave a great presentation.  And, since Appraisal Review is my favorite assignment, I really loved it!  And I felt really good about my appraisal skills - I have not been making the "commonly made errors"!  http://www.barnesfamilyappraisal.com/Review

Finally, we learned a bit about Appraising for Tax Appeals.  Bob Rubin from McDonough Holland & Allen pc led us through some of the special requirements and gave a great deal of information about the process.  It was great to get some more information on the subject, especially since I am on a personal mission to educate homeowners on their ability to appeal their tax based on a value decrease.  http://www.barnesfamilyappraisal.com/TaxAssessment

Hoorah!!!!!

Just wanted to let everybody know, per Freddie Mac's "Best Practices", I am a proud new member of the National Association of Independent Fee Appraisers, or NAIFA.  Stay tuned for a new web page talking about the organization etc.  www.naifa.com

I have also signed up with the California Real Estate Appraiser's Association.  And I am looking forward to attending my first meeting on Tuesday the 11th.  www.reaaca.org

I encourage all Real Estate Appraisers to join one or more of these groups.  I learn more talking to other appraisers than I do in most Continuing Education classes.  I am excited to broaden my knowledge base through membership in these groups!