Atlantic Homes is leading the way in Modular Green Building

It ain't easy being green !

Who says?

Atlantic Homes, builder dealer of EPOCH Modular Homes, is leading the way in in bringing quality modular, systems built, environmentally friendly sustainable eco-healthy housing to it's customers in New England; including Greater Boston & Martha's Vineyard.

OK so technically this isn't appraisal news, BUT Green is the buzzword of the day and it does affect appraisers.

Everyone wants to "Be Green", "Build Green" or "Go Green", but what is Green exactly? And are there shade of Green? As a builder and appraiser I thought I could shed some light on this subject (as well as help my other company, Atlantic Homes, gain ground in organic Google and Yahoo searches!)

What does it mean to have a green house and for appraisers, how does it affect value. Some of you may know that in addition to being an appraiser, I am also a builder, and therefore I have some experience in the explosion in the interest in green housing.

There have been numerous environmentally friendly initiatives that have come and gone over the years. It is a bit early to predict for certain, but I believe that this time around, "Green" may be here to stay and there are a number of factors that influence my thinking on the matter.

1. Its the environment stupid.
There is a heightened awareness of the environment today. Changes are taking places, not for the better, at an unprecedented rate. Its in the news daily and as a story, it is not going away. Unlike the energy crisis of the 70's, this is not going away I believe this story will be the story for quite some time.

2. There is a heightened awareness for all things "Green"
Its affecting everything from light bulbs to automobiles to clothing to paper products and more. This heightened awareness is translating into people seeking and demanding more efficiency and environmentally friendly choices in their housing.

3. There are numerous products and choices, more so today than ever
We are no longer limited to just "solar panels on the roof". There are numerous products and materials available today to be incorporated into new construction. With the advent of the Internet, consumers are now much more educated and can bring themselves up to speed on the latest technologies with ease. Smarter more educated consumers are demanding alternatives that satisfy their need for green. Its changing how everything is made and percieved, and I predict housing will be no different.

4. The demographics, they are a changin'
Its no longer about the "Boomers". What??? Yes I said it, move over folks, you are no longer what matters.
Yes its true. There is a new generation of home buyers coming of age and they have different values. Although I am not of this generation, but closer to Boomer (the barely, not really, technically yes but philosophically no, boomer age bracket) Age, I can see it every day in the choices they make. Gone are the days of Gaggenau Ranges, Jenn-air cook tops, Sub-Zero Fridges, 4 car garages and 2 story GREAT rooms. It just doesn't seem as important to younger buyers, who value energy efficiency, healthy living, smart size and care more if their houses are "wired".

Boomers will still be a force, but sadly, and continually, in all the wrong ways. I predict now that they have plastered the country with McMansions, they will shortly, and just as abruptly, start abandoned them in droves to head to the water, more temperate climes and start demanding over sized ranches (one story living!!) with double master bedrooms, leaving (or rebuilding) the suburbs, and the inventory of hulking McMansions to rot, or be bought and taken down in favor of appropriately scaled housing. (Yes, I believe the lux condo/hotel phase is just that, an interim phase, or something that will be long term for a select few, not the masses).

OK so what does this all mean for appraisers? Alot. Reverting to my central theme that appraisers do not "determine" value as much as they "observe" value, pay attention. With rare exception, value of residential, non-income producing real estate is not intrinsic. It is inflated to precisely the degree that market perception allows. Values change when enough buyers decide that something has value or doesn't.

Appraisers have alot on their plate these days, keeping up with shifting values, an uncertain market, an oversupply in most areas, increased liability and exposure. More is expected of appraisers these days and more of the blame is unfairly directed toward them. Appraisers are generally aware of things that have a short term impact on value, such as an oversupply, which is almost always a temporary, short term phenomenon.

But appraisers should also be aware of things that have a long term affect on value, such as a shift in demographics or a wholesale change in what buyers perceive as important.

Is green worth more? worth less? worth the same? As an appraiser it is not your job to decide. It is your job to observe what the market determines.

Good Luck!

AOL Reports that Appraiser is the # 1 Job!!!!

Feeling down about the profession lately? This should cheer you up. AOL is reporting that "Real Estate Appraiser" is the top job in the country. Top job being defined as the highest paying salary for a non-degree employee!!

Six-Figure Jobs:
No Degree Required

Listen & Look

• 

  1. Real Estate Appraiser
  
  Highest Salary With No Degree: $100,000
  
  - More Salary Info
  - Compare Your Salary
  
  - Who's Hiring

Naked Real Estate Appraisers meet to discuss changes to sweep the industry !!

Nude Real Estate Appraisal Inspections? Could this be the latest trend to combat the current slowdown of business, lender pressure and free compchecks?

It seems some appraisers are getting aggressive in their marketing approach and in an effort to differentiate themselves from the pack, some appraisers are fighting back by charging a surcharge (or discount!!) to arrive at the inspection in the buff!



Is this what our industry is coming to? Almost, but not yet. How did you arrive at this post ? Was it from a search engine? If so, then it was successful experiment. I placed this post to see how well or fast it catches on and spreads around the Internet.

No we are not yet at this stage of desperation, but there is no doubt, these are challenging times for appraisers, and now more then ever, appraisers need to differentiate themselves from the pack, formulate and execute creative and/or aggressive marketing tactics, polish up on skills, consider new markets or supplemental services. You mustn't just show up every day and simply wait for the phone to ring. Take charge of your future! We have created one such service available to help appraisers, AppraisalCoach. Visit our website today at http://www.appraisalcoach.com/ to see how we may help you!

Appraisal Coach Mentoring service offers trial discount!

Trying Appraisal Coach Services has never been easier....and now, it just got more affordable.


Gain the confidence to tackle more complex assignments
Get help with current appraisal problem assignments NOW
Learn how to GROW your business in these challenging times

Don't just sit in the office waiting for the phone to ring, get started building your future Today

Try Appraisal Coach Services ....and SAVE $$

Now through the end of September, Appraisal Coach is offering its Single Session Telephone Coaching Session for $99.00. This service is normally $150.00, but as a member of our mailing list, it is available to you for $99.00.

These are challenging times for many appraisers. There is much uncertainty in this industry. We are sensitive to the fact that appraisers in many areas are slower, and we have responded by creating this special offer and lowering our fees, to get you the help when you need it most.

I am so certain that you will find AppraisalCoach to be of immediate benefit that I am discounting the service to get you to try it.

This is the best investment in your future that you can make as an appraiser. Invest in yourself.

Email order@appraisalcoach.com and type SINGLE SESSION DISCOUNT in the header, and we will mail you a special link.

Check it out.
_________________________________________________________________________

Put Me in Coach !!! Appraisal Coach interview in AppraisalBuzz

AppraisalBuzz interviews Ed Miano, founder of Appraisal Coach mentoring service and BetterAppraisers.com, a community forum for appraisers.

Appraisal Buzz interview with Edward L Miano, SRA, AppraisalCoach.com

Buzz: Ed, Welcome to AppraisalBuzz. Tell us about Appraisal Coach, what is it exactly?

Ed: AppraisalCoach® is a unique concept, conceived for appraisers who have a desire to be the best they can be. AppraisalCoach® was created to help mentor, inform, educate and guide appraisers, we can help you develop your professional skills and empower you with the confidence to succeed and excel in the appraisal profession. In conjunction with the site, we publish a blog and a forum; both called “Better Appraisers”.

Buzz: Appraisal Coach sounds exciting, something I think many younger appraisers and trainees can benefit from, especially today.

Ed: Exactly. AppraisalCoach® was developed to bridge the gap between what conventional appraisal education and the current workplace environment do not provide.

I think resources such as AppraisalBuzz are great. You are covering the broader issues that affect the appraisal profession; I applaud that, as you are doing it quite well. Our focus is on the day-to-day issues, how to measure a house, get a sticky assignment completed properly, etc.

AppraisalCoach® provides appraisers and trainees with real time, real advice, specific to their issue, whether it is general day to day “how-to” stuff, a current tricky assignment, career counseling. We help them develop the skills and habits necessary to perform and compete at the top of the appraisal profession. Appraisers today must be better educated, informed and enlightened. Especially now in an environment where appraisers are being forced to compete in an ever evolving marketplace that seems to want to put less value on the experience and wisdom of a hands on professional. As AVMs continue to gain ground, and free online valuation tools become available to the masses, appraisers more than ever need the skills and insight to be able to differentiate themselves from the pack and demonstrate their relevance.

read entire interview here

You TOO can be a Star!!!

Here is an idea to supplement your appraisal income, and it doesn't involve Comps Checks or USPAP!!, become a TV star........

Now Casting the New Season of Flip This House on A&E!

Flip This House, A&E's #1 rated lifestyle show, has been to Charleston, Atlanta, San Antonio, and New Haven. Which city will be next?!!

813 Casting and Departure Films are conducting a nationwide search for the new cast of characters who will be featured on the upcoming season of Flip This House! Will it be your team?

We're looking for confident, charismatic, motivated and opinionated people who "flip" residential properties for a living. We want real-estate adrenaline junkies who love the high risk, high reward nature of their jobs and who are devoted to doing a great job!

If you would like your team to be featured on the upcoming season of Flip This House, send an email to fth@813casting.com. Include your contact info, bios on you and your team, and some reasons why your team should be the next to be featured on Flip This House! Teams should consist of four or more people.

Schedule an interview with Casting Director Steve Grant. Email fth@813casting.com

Judge refuses to close appraiser's Web Site

According to a FloridaToday.com story today by Keyonna Summer and Wayne T. Price:

Judge refuses to close appraiser's Web site

California-based company can't prove defamation, Moxley rules

A Brevard County judge on Thursday refused to shut down a Palm Bay appraiser's Web site that contained comments critical of the California-based appraisal management company First American eAppraiseIT.

The company was seeking a temporary injunction to prevent appraiser Pamela Crowley from making any comments, or posting comments from others, about it on her Web site, www.mortgagefraudwatchlist.org.

Crowley's Web site serves as a discussion platform for issues in the appraising industry. It also is a place for appraisers to report lending and appraisal fraud, and questionable activities in the industry.

First American eAppraiseIt acts as a middle party, finding appraisers for clients such as banks and mortgage
companies.

Circuit Court Judge John Dean Moxley Jr. dismissed eAppraiseIT's request, because the company had not proved defamation or any financial harm based on the postings.

"If it's not defamation at this point, there's no need for an injunction," Moxley said. "What you asked for is not permissible under the law in the state. Therefore, I deny it."

The case revolves around Crowley's disclosure about eAppraiseIt's former practice -- the company says it stopped doing it in April -- of opening electronic reports compiled by appraisers for lenders.

Crowley and others contend that, when those secure files are open, there is an opportunity to manipulate data -- typically to the benefit of the lender -- and for a property owner's private information to be released to unauthorized parties.......

Click here for full story

Pamela Crowley and Mortgage Fraud Watch List being sued

According to Pamela Crowley's Mortgage Fraud Watch List


Pamela sent an "Open Letter To All Appraisers" today to alert them of her pending lawsuit with eAppraiseIT and to request their financial assistance. Download eAppraiseITvPamelaCrowley.pdf (18.1K) I've included the contents of her letter in the second half of this blog post.


The controversy centers around a claim by Pamela that eAppraiseIT is unlocking and changing security settings in appraisal reports that pass through them to lender clients.

Pamela Crowley provided this email quote from an exchange with eAppraiseIT:

Quote: "In response to Ms. Crowley's statement regarding unlocking the PDF file, I can state that we do add the eAppraiseIT watermark at the bottom of every page indicating that it was prepared on behalf of EA. This was a business and anti-fraud, risk avoidance decision made several years ago.

We discovered certain unethical appraisers, who were not on our panel, completing work for a few of our clients independently and without our supervision or approval and at the loan officer's request, stipulating it was an "eAppraiseit approved file". This created claims and liability issues for both the lender and eAppraiseit.

All of our clients, who are national lenders much like WAMU, know that if the watermark is not present it is not an eAppraiseit managed appraisal. They take great comfort in that. We do unlock the file to add the watermark. We do not edit the file's content.

Anthony R. Merlo, Jr.
President
eAppraiseIT, LLC.
12395 First American Way
Poway, CA. 92460"
End Quote


Better Appraisers has invited Pamela to join us and elaborate on this troubling issue she faces personally, but in a larger sense affects all appraisers and the public at large.


Go to BetterAppraisers.com for a link to her open letter and other information regarding this case.

More on this developing story shortly........

ABA & AI Sponsor joint Teleconference: Effective Appraiser/Banker Communication

Effective Banker-Appraiser Communication

ABA/Appraisal Institute Telephone Briefing
Tuesday, August 21, 2007
2 p.m. - 4 p.m. (ET)

Effective communication is vital to the success of every business relationship, and especially in the relationship between bankers and appraisers, where critical information is delivered from the initial engagement to the appraisal report and review.

In this live, joint ABA/Appraisal Institute telephone briefing, bankers and appraisers will learn where communication breakdowns occur and how imprecise communications contribute to misunderstandings, unmet expectations, and even discontinued relationships. More importantly, you will learn how to avoid these pitfalls.

Our panel of experts will discuss:

• How banker-appraiser communication can be facilitated in keeping with bank regulations and USPAP.
• How to develop an effective engagement letter.
• Best practices for the use of approved appraiser/lender lists.
• How banker-appraiser relationships have changed since the federal bank regulators reemphasized appraisal independence.
• How the latest regulatory and USPAP changes impact lenders and appraisers.

Speakers:

• John C. Rasmus, Senior Counsel, American Bankers Association, Washington, DC
• Gregory Accetta, Chair, Appraisal Standards Board, The Appraisal Foundation, Washington, DC
• Residential Chief Appraiser, TBA
• Tim Reiter, MAI, Senior VP, Credit Officer, Citizens Bank, Boston, MA (invited)
• Jim Amorin, MAI, SRA, Vice President, Appraisal Institute, Chicago, IL
• Representatives from the federal bank agencies have been invited to
  to be on hand to answer any compliance and regulatory questions.

Register today and get your questions answered by the experts!

Registration Fees:
Fee: $385 per site license
Appraisal Institute Member fee: $255 per site license
Each site license entitles you to one phone connection at one location where an unlimited number of listeners can participate.

Get the Credit You Deserve:
Earn 2.0 Appraisal Institute credit hours

Register Today. Its Easy!
Register online at www.aba.com/teleweb/tb082107.htm. Or, call 800-775-7654.

Not a member of the Appraisal Institute? Join today at www.appraisalinstitute.org/join, and start enjoying all the benefits that membership can offer.

When a Pencil and Paper just wont do

Las Vegas -

Software giant Alamode debuted it's revolutionary field gathering software this week at it's convention at the Rio, in Las Vegas Nevada.

Click on the link above for full story and press release.

http://www.alamode.com/labs/DV.aspx

Appraisal Organizations Support STOP Fraud Act

The Appraisal Institute and its partners have called for Congress to “consider and enact legislation designed to uphold integrity in the real estate valuation process while protecting government related financial interests and consumers.” The directive came in a letter in support of S. 1222, the STOP Fraud Act, introduced April 25 by Sens. Barack Obama, D-Ill., and Dick Durbin, D-Ill.

The Appraisal Institute, American Society of Appraisers, American Society of Farm Managers and Rural Appraisers and National Association of Independent Fee Appraisers stated in their letter that S. 1222 “addresses many of the concerns we have identified and have raised before Congress over the last several years.” These include improving the appraiser regulatory structure; providing federal and state appraiser regulatory bodies the resources and authority necessary to fulfill vital oversight of the profession; and promoting a case for professionalism to be fostered and encouraged.

The groups also called for “greater resources to be made available to law enforcement to conduct active and aggressive investigations and prosecutions of mortgage fraud, and that meaningful oversight of other real estate professionals is critical to protect safety and soundness of our financial markets and consumers.”

The legislation is aimed at stopping mortgage transactions that promote fraud, risk, abuse and underdevelopment. It would provide the first federal definition of mortgage fraud and authorize stiff criminal penalties against those who commit fraud. The bill would require a wide range of mortgage professionals to report suspected fraudulent activity, and give these same professionals safe harbor from liability when they report suspicious incidents. It also would authorize several grant programs to help state and local law enforcement entities fight fraud, provide the mortgage industry with updates on fraud trends, and further support the Departments of Treasury, Justice and Housing and Urban Development in their fraud-fighting efforts.

Appraisal Institute, ASA & Farm Managers discuss Merger

The Institute, ASA and American Society of Farm Managers are in merger talks.

I have yet to make up my mind on this issue, but my initial knee jerk reaction (sometimes not a good thing) is that it is less beneficial to the Institute than it is for the other groups. The Institute has time and again missed opportunities to be the voice of the Appraisal profession and promote the value of a designation. I am an SRA and a proud member of the Institute and I know the value of a designation, but sadly few in the lending community or the general public do.

If this merger helps create a stronger voice with more powerful lobbying

then maybe it will be a benefit to designated appraisers. If however it is being done to consolidate office staffs, pool dues revenue, and is a pure business decision then I vote no. I confess I know little if anything about these other organizations and I mean them no disrespect, I promise to get educated on them.

It certainly feels like a move in the wrong direction. Any initiative that further dilutes the brand, decreases awareness of our designations, or worse complicates matters in the eyes of the public by incorporating yet more designations into the fold is not progress.

Those of us around long enough to recall the merger of the Society and the Institute will remember that despite all the designations (SRPA, SREA, RM), the public really only knew and cared about 2, the MAI and the SRA...... however bowing to compromise, we kept them all for time, sort of like "New Coke".

The very same thing occurred when Appraisal reform came into being. Another opportunity for the Institute to take the lead and knock out the lesser players (remember all those Arizona based organizations, the ones that conferred designations by mail??). Instead we got a hodgepodge of associations, each needing their "say" such that we are now left with a tortured document, USPAP, that needs such constant revision, the ink is barely dry on one version, and it is replaced with another.

It seeks to emulate the Standards used by the American Institute of Certified Public Accountants (CPA's) but it is not a flattering imitation.

(Speaking of which, now there is an organization we should consider merging with or at least emulating. EVERYONE knows the difference between a CPA and someone who is not.

Here's something else, and this will tell you everything you need to know about what’s right with their profession and leadership and what's wrong with ours: CPA's prepare their own tax returns and no one thinks twice abut it, not the government, not the public, not the licensing boards And why? Because they are professionals and can be trusted to do the right thing...if an appraiser appraised his own house, he could possibly end up in jail! (ok maybe a bit of an exaggeration but only a bit)

Appraisers today spend all their time worrying about USPAP and compliance while the Appraisal Boards kinoodle endlessly over what its boilerplate content of a URAR should be.

How is this progress ? A properly trained Appraiser can deliver his results on the back of a napkin!

I would much prefer to see the Institute take the initiative and spend all their efforts promoting the designation, mandate its excellent educational offerings be the standard that anyone else must meet, educating the public as to the value of a properly trained appraiser, demand that this profession be accorded the respect it deserves and create and protect and environment whereby appraisers can work without the fear of silly litigation that hangs over our heads.

To most lenders, an appraisal is just a $300 insurance policy they take out on a loan. It’s a license to sue when the loan goes bad.

Enough with the dumbing down of this profession.

I promise to do more research into this merger and a more thoughtful and detailed opinion will be forthcoming. I am all for real progress in any form, so it remains to be seen if this is real progress or a just trying to plug a leak in a sinking ship.

For more details on the merger, read this interview in AppraisalBuzz.

Appraisal Buzz Interview with Ray Brownfield, AFM, ARA, President, American Society of Farm Managers & Rural Appraisers; Terry R. Dunkin, MAI, SRA, President, Appraisal Institute; and Leslie H. Miles, Jr., ASA, International President, American Society of Appraisers

Thursday, June 14, 2007[/i]

[b]http://www.appraisalbuzz.com/newsletter/2007/newsletter_06_14_07.htm[/b]

Appraisalfoundation Seeks candidates for vacancies

The Appraisal Foundation Seeks Candidates for Vacancies on National Boards

Washington, DC--The Appraisal Foundation is in the midst of its annual search for qualified candidates to serve on one of its three Boards. Completed applications for vacancies on the Board of Trustees, the Appraiser Qualifications Board (AQB) and the Appraisal Standards Board (ASB) must be received by August 17, 2007.

* Board of Trustees: There are three At-Large Trustee seats available this year, with two incumbents eligible for re-appointment. The Board of Trustees of The Appraisal Foundation is charged with funding the work of and appointing members to the AQB and ASB, as well as providing oversight of these two Boards. The Board of Trustees meets twice a year, in the Spring and Fall. Trustees are reimbursed for travel expenses and are not compensated for their time. The individuals selected for positions on the Board of Trustees will serve three-year terms commencing January 1, 2008.

* Appraisal Standards Board: There are up to three vacancies on the Appraisal Standards Board (ASB), with two incumbents eligible for re-appointment. The ASB is charged with developing, interpreting and amending the Uniform Standards of Professional Appraisal Practice (USPAP). Familiarity with USPAP is a pre-requisite of service on the ASB, and a minimum of ten years of appraisal experience is required. The ASB meets five times per year for approximately fifteen days. Individuals serving on the ASB are compensated for their time and are reimbursed for travel expenses. The individuals selected for a position on the ASB will serve a term of up to three-years commencing January 1, 2008.

* Appraiser Qualifications Board: There are up to four vacancies on the Appraiser Qualifications Board (AQB), with three incumbents eligible for re-appointment. The AQB is responsible for setting minimum qualification criteria for state licensure and certification of real estate appraisers and has established voluntary qualification criteria for personal property appraisers. Familiarity with appraiser qualifications is a pre-requisite of service on the AQB, and a minimum of ten years of appraisal experience is required. The AQB meets four times per year for approximately ten days. Individuals serving on the AQB are compensated for their time and are reimbursed for travel expenses. The individuals selected for the AQB positions will serve a term of up to three-years commencing January 1, 2008.

The Appraisal Foundation is interested in expanding the diversity of all Boards by considering applications from business leaders with an interest in valuation or involved in various appraisal disciplines.

Application packages for all positions outlined above are available by clicking here.

If you have any questions please contact Anne Haynes (anne@appraisalfoundation.org).

Words of Wisdom

I get a ton of email forwards....jokes, letters, photos, chain letters, etc., from friends and strangers. It is hard to keep track of it all. BUT every once in a while something worth passing along shows up. I think this message fits nicely with the "Better Appraiser" concept so here it is.
The first day of school our professor introduced himself and challenged us to get to know someone we didn't already know. I stood up to look around when a gentle hand touched my shoulder.I turned around to find a wrinkled, little old lady beaming up at me with a smile that lit up her entire being. She said, "Hi handsome. My name is Rose.I'm eighty-seven years old. Can I give you a hug?"I laughed and enthusiastically responded, "Of course you may!" and she gave me a giant squeeze."Why are you in college at such a young, innocent age?" I asked.She jokingly replied, "I'm here to meet a rich husband, get married, and have a couple of kids...""No seriously," I asked. I was curious what may have motivated her to be taking on this challenge at her age. "I always dreamed of having a college education and now I'm getting one!" she told me.After class we walked to the student union building and shared a chocolate milkshake.We became instant friends. Every day for the next three months we would leave class together and talk nonstop. I was always mesmerized listening to this "time machine" as she shared her wisdom and experience with me. Over the course of the year, Rose became a campus icon and she easily made friends wherever she went.She loved to dress up and she reveled in the attention bestowed upon her from the other students. She was living it up.At the end of the semester we invited Rose to speak at our football banquet. I'll never forget what she taught us. She was introduced and stepped up to the podium. As she began to deliver her prepared speech, she dropped her three by five cards on the floor.Frustrated and a little embarrassed she leaned into the microphone and simply said, "I'm sorry I'm so jittery. I gave up beer for Lent and this whiskey is killing me! I'll never get my speech back in order so let me just tell you what I know."As we laughed she cleared her throat and began, "We do not stop playing because we are old; we grow old because we stop playing. There are only four secrets to staying young, being happy, and achieving success. You have to laugh and find humor every day. You've got to have a dream. There is a huge difference between growing older and growing up.If you lie in bed for one full year and don't do one productive thing, you will turn one year older .....anybody can grow older. That doesn't take any talent or ability. The idea is to grow up by always finding opportunity in change. Have no regrets. You will likely never regret the things you did, but rather the things you did not do. One week after graduation Rose died peacefully in her sleep. Over two thousand college students attended her funeral in tribute to the wonderful woman who taught by example that it's never too late to be all you can possibly be. These words have been passed along in loving memory of Rose. GROWING OLDER IS MANDATORY. GROWING UP IS OPTIONAL. We make a living by what we get, We make a Life by what we give.

We Have a New Forum !!

Thanks to the suggestion of one of our members, we have established a new forum. I know there are a few "well established" appraiser forums out there, and we are not trying to compete, but I have observed that the discourse is abit overwhelmingly cynical in some of them...we aim to be kindler and gentler (again no disrespect) place.....irreverence is welcome (I'm likely to be the worst offender), but not every post needs to demonstrate your obvious brilliance to the world, ya know!

It is a newborn baby, but we love her.

It is an extension of our yahoo Group but hopefully will be easier to use.

Come on over !

Our Forum
www.betterappraisers.com


Our Yahoo Group
http://finance.groups.yahoo.com/group/betterappraisers



"Better Appraisers" - changing the world, one report at a time !

"Comp Checks" A Survival Guide

Comp Checks, a survival guide.

OK I know, comp checks are a bad idea, they may violate USPAP, they are insulting to the profession. I have heard all of the arguments and I agree completely with all of those points. Don't do them, if at all possible......Now having said that, lets pretend for a moment that you have to do a comp check for a client; perhaps your employer is insisting, if you are self employed, maybe your spouse is making you, or maybe you just need to eat this week and don't want to send another client packing, lastly, maybe you are genuinely want to just help a legitimate client out....how do you deal with comps checks without compromising yourself as a professional? Is it even possible? Yes, I believe that it is.

Try to remember, not every client is gunning for you. Sometimes it is a legitimate request from a legitimate client, sometimes not. A recent visit to blogs and chat rooms regarding this issue illustrates that appraisers have gotten very cynical and many are operating strictly out of fear and self preservation. In my opinion, if the profession is so troubling to you, that you go to bed with a USPAP tucked under your pillow, perhaps you need to think about doing something else for a living.

So herewith is an unofficial guide, in rough order of priority, to dealing with comp check requests.

1. Don't do them. This needed to be re-stated and placed at the top of the list, for reasons you already know.

2. Evaluate the client making the request. Not all clients are created equal. Providing a comp check is a business decision, not an ethics decision (if you do it incorrectly, it could become an ethics problem however). You are giving away free services and you need weigh the benefits. In this respect, I rank the client making the request. If it's a stranger who has called out of the blue, they are usually appraiser shopping and you owe them nothing. If you turn someone like this down you have not really lost a client, you have lost a potential client, but it may be a client you are better off not having. Use the call as an opportunity to engage the client, let them know how good your services are, that you have good turn times, return calls, act professionally, will represent them well in the field, all the real reasons they should consider you.

If on the other hand it is client that you have had a longstanding relationship with, and rarely asks for a comp check, but it just feeling out a loan, consider accommodating them.

Lets say it is that in between client, the one you have known for a while, but asks for one on nearly every order. For this type of client, the comp check is not the issue, it is your relationship with the client that needs re-examination. You have not trained this type of client properly and their expectation is that they get a comp check with every request. Evaluate your history with this type of client......are the requests invariably unrealistic? or do they almost always work out.

If it is the type of client that is always pushing the envelope, dump the client. Its that simple. Even if it your only client.

Let me say that again....dump the client, even if it is your only client.

If it is client who often asks but is never really pushing the envelope; they just want reassurance. Maybe they are covering appraisal fees themselves, maybe they are cheap or cautious or need handholding........these are the clients that I try to save as clients but wean off comps checks per se.....

3. Collect more info than you give. Talk but don't say much. Use the magicians "slight of hand" Sometimes clients just want to discuss an assignment. Don't be afraid to ask questions. Appraisers gather facts, that's what we do. We are like reporters; we observe, ask questions, gather facts. In my view this is the best place to start gathering your facts. You don't need to know anything about a value to know that if you are the 4th appraiser this client has called to appraise this property, it likely isn't worth what the property owner thinks it is ( it is possible that there are some extenuating circumstances and the prior appraisers were less skilled than you and all missed something. It is unlikely but possible). On the other hand, if the client is only looking for a small mortgage and you know the area well, a comp check is not necessary, just ask the client for the order.

You see this often in our area on Martha's Vineyard and many upscale markets. We will get calls from loan officers. They have a small modest ranch, they are from a part of the county where median home prices are say $200,000 and they can not fathom a small ranch selling for say $850,000. They will call and say, "Don't laugh, but I have this house, the borrower thinks it worth $850,ooo and it only has 1,200 sf!! (you can actually hear them pull the phone away from their ear, waiting for the laughing or screaming). Its no big deal we tell tell them, send it over.

Ask questions. Its your job. The more you know the better your work will be.

4. Convey data not opinions. There are two main issues regarding comp checks that can get you into trouble. The first is the rendering of an opinion. Appraisers must be very careful in what they say and how they say it. If you as an appraiser mention anything about a property and a related number, a range of numbers (higher than, at least as much as, etc. ) you have made an appraisal. Don't convey an opinion, don't impart anything subjective into the comp check. For example if the client asks for "nice colonials" respond by just asking just the address of the property. No one can dispute its address, but someone could argue endlessly over whether it is "nice" or not.

So when talking about comps for a property, convey only the comp info, do not discuss the subject or how the comps related to the subject at all. The easiest way to do this is just provide the activity on the street, raw data, not filtered by any of your inputs. If there is no activity on the street, then broaden the search radius to adjacent streets, 1 mile, whatever is appropriate but it is important to convey just raw data.

For example lets say a client calls and says " I need a comp check on a property, the property is on 12 Jones Street, and we are looking for $500,000."

You say " According to my data source, there have been 2 sales on Jones Street, 1 for $400,000 and 1 for $490,000. As well there is 1 house on the market for $525,000. I will let you decide if you think you want to order the appraisal.

This is a comp check....legal, moral, ethical, helpful.....nothing wrong with it. I still don't like them, I almost never do them, I am not advocating that you do them, BUT if you have to do them, this is how you should do them.

IF the client persists and wants some sort of reassurance that the appraisal is going to "come in" , this is your red flag, your slippery slope!!! This is not a comp check, this is a contingent assignment. This is simply not worth doing at any fee.

5. Take 2 Zillows and call me in the morning. If there was ever a reason to love Zillow, this is it. I hope it stays around forever if for only this reason. Run the address through Zillow, print it and report back the Zillow results....Always with the pre-emptive "According to Zillow".... Its not your opinion, it's Zillows.

You cannot be held liable for transmitting Zillows opinion, UNLESS you make the opinion your own, convey the impression that it is your own or give your opinion of the Zillow opinion. For example, if you communicate that that according to Zillow, the house is $250,000. The client says "but I need $300,000". If you say "well Zillow is usually low, or Zillow is usually high, or "we can probably make t work" you are operating in violation of USPAP and you have gone beyond a comp check...you are now doing an appraisal (a pre-appraisal is an appraisal)

YOU NEVER GIVE AN OPINION ABOUT THE PROPERTY - IF YOU DO IT IS AN APPRAISAL AND YOU BETTER BE RIGHT.

6. Be careful about HOW you turn down a property on the basis of a Comp Check. This is something many appraisers overlook, but I have seen it cause trouble for appraisers that were only trying to be helpful. Lets say you have a property that is worth $250,000. Its a condo, every condo in the development has at $250,000. The 5 on the market are all asking $250,000. In short, you are pretty confident the value is $250,000. Client calls, wants a comp check, says they need $300,000. You are just bubbling because you know its not worth it, and you cant wait to let this client know how smart you are, so you blurt out " No way, I know that area well, its not worth $250,000." Even if you just want to be genuinely helpful and save them money on a wasted appraisal, guess what....you just made an appraisal. YES even by trying to be helpful you can get into trouble. Worse, you could be accused of some type of bias. I know appraisers who have been sued on the basis of bias because they concluded a property wasn't worth something before they undertook the steps necessary to know for certain (file this under "you cant win).

How to deal with this situation? Same as above, just convey the data... " I checked that address, the past 3 sales were $250,000, $250,000 and $250,000...Oh and there is one for sale, asking price $250,000. You need to decide for yourself if its worth ordering the appraisal because I can't predict how its going to come out".

This last phrase is key "You need to decide for yourself" . Put the risk on the client. If things don't work out, they are less likely to blame you.

7. Avoid email or reducing anything to writing.

I know I will get email on this, appraisers telling me that verbal communication is is the same as written. In theory yes this is true, but in reality, for the day to day appraiser, it isn't the same. NEVER leave a paper trail.

Do not read into this more than is here. I am not advocating that you misrepresent anything, or that verbal communication is a way to get away with anything. Just simple practical advice, in a litigation happy society, never make it easy for the idiot out there that wants to do damage to your reputation.

In summary, don't fear comp checks. Be upfront with your clients, be helpful to them if you can. They are your bread and butter, give them good reliable service, make their life easy-get things to them on-time, communicate. Be confident in your skills and abilities, you are a professional. Don't back away from client requests, evaluate if what is being requested is reasonable.

And the simplest of all....... don't cross the line, you know you know where it is.

Good Luck!

Appraisal Coach

New Feature - "Ask the Appraiser"

Got an appraisal question????

If you have an appraisal related question, email it to me at ed@appraisalcoach.com and be sure to put "Ask the Appraiser" in the header.

We will post the best questions on the blog each week. Of course not all questions can be answered here, BUT if you absolutely need to know, please visit us as Appraisal Coach where you can getreal answers to to real questions in real time utilizing our Hotline service.

Put Me in Coach !!! Appraisal Coach announces a new training and mentoring program for appraisers

Do you feel as though you hit the ground running as an appraiser without all the necessary skills or knowledge?

Would you like to learn how to make the most of your appraisal career?

According to Edward L. Miano, SRA, "Appraisal Coach® was conceived for appraisers who have a desire to be the best they can be. Appraisal Coach® was created to help mentor, inform, educate and guide appraisers."
Ed says, "We can help you develop your professional skills and empower you with the confidence to succeed and excel in the appraisal profession"

AppraisalCoach® is meant to supplement traditional appraisal education and experience, not a substitute. They believe you need:

A good Education. Education is the key to a strong foundation. Choose the best courses you can afford.

Experience. Like many things, you learn from your mistakes. There is no substitute for practical experience.

A Mentor – A

good mentor will help you make sense of all you have learned. A good mentor can help accelerate your learning curve and help you maximize your potential.

"You may be able to become a better appraiser without any one of these components, but it will take you longer.

AppraisalCoach® is designed to be affordable but it is not a mass-market product like a piece of software or a book. It is individualized, personal, one on one attention.

According to Ed Miano, "For the equivalent cost of maybe 1 or 2 assignments, you may be able to increasing your earning power by 10, 20, 50 maybe 100%."

Getting started is simple. Interested appraisers and trainees can visit their website at

www.AppraisalCoach.com Ed will also be editing a monthly Q & A column in AppraisalBuzz. It will be a “Dear Abby” of sorts for appraisers. A forum for appraisers and trainees to get answers to current questions. Questions for the column may be submitted to Ed by email at ed@appraisalcoach.com

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