Top Ten Reasons Why It Is Great To Be an Appraiser

appraisal, appraiser, stamford, ct
Top ten reasons why it is great to be an appraiser:
1. Dazzle your friends with your knowledge of external obsolescence.
2. Enjoy the wonderful world of rats, bats, and spiders.
3. Join the profession blamed for the collapse of the financial world.
4. See places in people’s houses that usually require a search warrant to access.
5. Arouse the suspicion of an entire neighborhood when inspecting comparable sales.
6. Get a chance to irritate annoying real estate salespeople.
7. Walk around holding a clipboard just like “Skipper” at the Jiffy Lube.
8. Spend hours researching comps to justify the market value of a property you decided on when you pulled into the driveway.
9. Find out that some people really do hang black velveteen pictures of Elvis in their living room.
10. Be one of a handful of people who know that USPAP is not a medical term.”

By Kimberly Tanzer-Schneider‎
Chino Hills, CA •

 

Confused about Collateral Underwriter?

CU images

What is really happening with CU? How does it affect you?

My Appraisal Today FREE email newsletter can help.
I report the facts, plus my opinions on what it means for you.

CU Facts:
– Not all loans go to Fannie Mae – Freddie, VA, FHA, jumbo, etc. do not.
– Lenders are not required to use CU.
– Fannie guidelines, including CU, are the minimum. Lenders can add their own.
– Gradual implementation of CU’s web based interface, which has the list of the “20 comps” suggested by CU. This information is not available to AMCs or appraisers.
– Some appraisers get few or no appraisal warning message and some get on a lot of them, depending on their clients.
– A new Fannie Letter (dated 2-2-15) specifically tells lenders to manually review the appraisal warnings before sending any to appraisers.
– CU sends out warning messages for adjustments on only 6 factors: GLA, lot size, view, condition, quality, and location. For example: GLA adjustment for (comp x) is smaller than peer and model adjustment.
– CU warning messages for “data consistency”: the 6 factors above. Plus, CU also looks at consistency, not adjustments, for 6 additional characteristics: quality rating, condition rating, total below grade areas, finished basement areas, above grade bedroom count, and above grade bathroom count. For example: “The condition rating for (comp x) is materially different than what has been reported by other appraisers.”
– Per Fannie, there is no direct relationship between AQM and CU. However, Fannie uses data analytics like those seen in CU to find patterns of behavior. AQM decisions are not based on automated results. Humans are required.

Original Article Here

DAY 4

 

Day 4, reflections of yesterday November 19thCREA, completeREA, Nana Smith, 203-858-6727, 203-212-3788

GOOD THING:

  • Did field work
  • Saw parts of Connecticut which one would love to see, if it would not be for working on reports.
  • Beautiful rolling hills, pastures and lamas!
  • Software did not crash
  • Thinking about #3. a lot!

 

BAD THINGS:

  • Nothing really exceptional had happened today
  • Still trying to figure out how I can make APPRAISAL business more SYSTEM oriented.
  • It’s almost like they (THE FNMA) came up with UAD to have all reports to look and sound conforming/systematized; its seems to me that this is what I have to do in my office. However: A) still do not know how to systemize everything, B) after I know, how do I implement, what I know.
  • Seems like cookie cutter appraising/assembly line to me, like in a factory, but I always thought that appraising was an art.

 

Nana

 

PCV Murcor

appraisalA must read for all appraisers! Please read comments too!

PCV Murcor

I stumbled upon this blog/article after PCV started boiling me, by giving me feedback. Deborah Smith (Apparently she is a vendor MANAGER) gave me 2ND OFFENSE on OFFENCE LEVEL , under the CATEGORY PCV Business Process/Practice,  and apparently action taken was COUNSELING. What a joke!

I am planning on writing a blog and hopefully article too which I will do my best to publish.

—-

Contact C.R.E.A.

Email: info@CompleteREA.com

Phone: +1 203 858 6727

Complete Real Estate Answers, Inc.
27 Fifth Street, 2nd Floor, Stamford CT 06903

Nana G. Smith, Proprietor

Web & Blog: CompleteREA.com (you are here)
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To share your experience about PCV or any AMC companies use comments space bellow

C.R.E.A. – comment using this form to be in touch :

 

 

USPAP Standard 1-6

 

Standards Rule 1-6

In developing a real property appraisal, an appraiser must:

(a)

reconcile the quality and quantity of data available and analyzed within the approaches used; and

(b)

reconcile the applicability or suitability of the approaches used to arrive at the value conclusion(s).

Comment: See the Comments to Standards Rules 2-2(a)(viii), 2-2(b)(viii), and 2-2(c)viii) for corresponding reporting requirements.


5.

See Statement on Appraisal Standards No. 9 (SMT-9), Identification of Intended Use and Intended Users.

6.

See Statement on Appraisal Standards No. 9 (SMT-9), Identification of Intended Use and Intended Users.

7.

See Advisory Opinion 19, Unacceptable Assignment Conditions in Real Property Appraisal Assignments. References to Advisory Opinions are for guidance only and do not incorporate Advisory Opinions into USPAP.

8.

See Statement on Appraisal Standards No. 6, Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions. See also Advisory Opinion 7, Marketing Time Opinions, and Advisory Opinion 22, Scope of Work in Market Value Appraisal Assignments, Real Property. References to Advisory Opinions are for guidance only and do not incorporate Advisory Opinions into USPAP.

9.

See Statement on Appraisal Standards No. 3, Retrospective Value Opinions, and Statement on Appraisal Standards No. 4, Prospective Value Opinions.

10.

See Advisory Opinion 2, Inspection of Subject Property, and Advisory Opinion 23, Identifying the Relevant Characteristics of the Subject Property of a Real Property Appraisal Assignment. References to the Advisory Opinions are for guidance only and do not incorporate Advisory Opinions into USPAP.

11.

See Advisory Opinion 17, Appraisals of Real Property with Proposed Improvements. References to Advisory Opinions are for guidance only and do not incorporate Advisory Opinions into USPAP.

12.

See Advisory Opinion 28, Scope of Work Decision, Performance, and Disclosure, and Advisory Opinion 29, An Acceptable Scope of Work. References to Advisory Opinions are for guidance only and do not incorporate Advisory Opinions into USPAP.

13.

See Statement on Appraisal Standards No. 2, Discounted Cash Flow Analysis.

14.

See Advisory Opinion 24, Normal Course of Business. References to Advisory Opinions are for guidance only and do not incorporate Advisory Opinions into USPAP.

15.

See Advisory Opinion 1, Sales History.  References to Advisory Opinions are for guidance only and do not incorporate Advisory Opinions into USPAP.

Original content was published in The Appraisal Foundation site.

—-

Contact C.R.E.A.

Email: info@CompleteREA.com

Phone: +1 203 858 6727

Complete Real Estate Answers, Inc.
453 Webbs Hill Road
Stamford, CT 06903

Nana G. Smith, Proprietor

Web & Blog: CompleteREA.com (you are here)
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USPAP Standard Rule 1-5

 

Standards Rule 1-5

When the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business: 14

(a)

analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal; and

(b)

analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal. 15

Comment: See the Comments to Standards Rules 2-2(a)(viii), 2-2(b)(viii), and 2-2(c)(viii) for corresponding reporting requirements relating to the availability and relevance of information.

Original content was published in The Appraisal Foundation site.

—-

Contact C.R.E.A.

Email: info@CompleteREA.com

Phone: +1 203 858 6727

Complete Real Estate Answers, Inc.
453 Webbs Hill Road
Stamford, CT 06903

Nana G. Smith, Proprietor

Web & Blog: CompleteREA.com (you are here)
Facebook
Twitter
Google+

 

USPAP Standard Rule 1-4

 

Standards Rule 1-4

In developing a real property appraisal, an appraiser must collect, verify, and analyze all information necessary for credible assignment results.

(a)

When a sales comparison approach is necessary for credible assignment results, an appraiser must analyze such comparable sales data as are available to indicate a value conclusion.

(b)

When a cost approach is necessary for credible assignment results, an appraiser must:

(i)

develop an opinion of site value by an appropriate appraisal method or technique;

(ii)

analyze such comparable cost data as are available to estimate the cost new of the improvements (if any); and

(iii)

analyze such comparable data as are available to estimate the difference between the cost new and the present worth of the improvements (accrued depreciation).

(c)

When an income approach is necessary for credible assignment results, an appraiser must:

(i)

analyze such comparable rental data as are available and/or the potential earnings capacity of the property to estimate the gross income potential of the property;

(ii)

analyze such comparable operating expense data as are available to estimate the operating expenses of the property;

(iii)

analyze such comparable data as are available to estimate rates of capitalization and/or rates of discount; and

(iv)

base projections of future rent and/or income potential and expenses on reasonably clear and appropriate evidence. 13 

Comment: In developing income and expense statements and cash flow projections, an appraiser must weigh historical information and trends, current supply and demand factors affecting such trends, and anticipated events such as competition from developments under construction.

(d)

When developing an opinion of the value of a leased fee estate or a leasehold estate, an appraiser must analyze the effect on value, if any, of the terms and conditions of the lease(s).

(e)

When analyzing the assemblage of the various estates or component parts of a property, an appraiser must analyze the effect on value, if any, of the assemblage.  An appraiser must refrain from valuing the whole solely by adding together the individual values of the various estates or component parts.

Comment: Although the value of the whole may be equal to the sum of the separate estates or parts, it also may be greater than or less than the sum of such estates or parts. Therefore, the value of the whole must be tested by reference to appropriate data and supported by an appropriate analysis of such data.

A similar procedure must be followed when the value of the whole has been established and the appraiser seeks to value a part. The value of any such part must be tested by reference to appropriate data and supported by an appropriate analysis of such data.

(f)

When analyzing anticipated public or private improvements, located on or off the site, an appraiser must analyze the effect on value, if any, of such anticipated improvements to the extent they are reflected in market actions.

(g)

When personal property, trade fixtures, or intangible items are included in the appraisal, the appraiser must analyze the effect on value of such non-real property items.

Comment: When the scope of work includes an appraisal of personal property, trade fixtures or intangible items, competency in personal property appraisal (see STANDARD 7) or business appraisal (see STANDARD 9) is required. 

Original content was published in The Appraisal Foundation site.

—-

Contact C.R.E.A.

Email: info@CompleteREA.com

Phone: +1 203 858 6727

Complete Real Estate Answers, Inc.
453 Webbs Hill Road
Stamford, CT 06903

Nana G. Smith, Proprietor

Web & Blog: CompleteREA.com (you are here)
Facebook
Twitter
Google+

 

USPAP Standard Rule 1-2

Standards Rule 1-2

In developing a real property appraisal, an appraiser must:

(a)

identify the client and other intended users; 5

(b)

identify the intended use of the appraisers opinions and conclusions; 6

Comment: An appraiser must not allow the intended use of an assignment or a clients objectives to cause the assignment results to be biased. 7

(c)

identify the type and definition of value and, if the value opinion to be developed is market value, ascertain whether the value is to be the most probable price:

(i)

in terms of cash; or

(ii)

in terms of financial arrangements equivalent to cash; or

(iii)

in other precisely defined terms; and

(iv)

if the opinion of value is to be based on non-market financing or financing with unusual conditions or incentives, the terms of such financing must be clearly identified and the appraisers opinion of their contributions to or negative influence on value must be developed by analysis of relevant market data;

Comment: When developing an opinion of market value, the appraiser must also develop an opinion of reasonable exposure time linked to the value opinion. 8

(d)

identify the effective date of the appraisers opinions and conclusions 9

(e)

identify the characteristics of the property that are relevant to the type and definition of value and intended use of the appraisal, 10 including:

(i)

its location and physical, legal, and economic attributes;

(ii)

the real property interest to be valued;

(iii)

any personal property, trade fixtures, or intangible items that are not real property but are included in the appraisal;

(iv)

any known easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, or other items of a similar nature; and

(v)

whether the subject property is a fractional interest, physical segment, or partial holding;

Comment on (i)(v): The information used by an appraiser to identify the property characteristics must be from sources the appraiser reasonably believes are reliable.

An appraiser may use any combination of a property inspection and documents, such as a physical legal description, address, map reference, copy of a survey or map, property sketch, or photographs, to identify the relevant characteristics of the subject property.

When appraising proposed improvements, an appraiser must examine and have available for future examination, plans, specifications, or other documentation sufficient to identify the extent and character of the proposed improvements. 11

Identification of the real property interest appraised can be based on a review of copies or summaries of title descriptions or other documents that set forth any known encumbrances.

An appraiser is not required to value the whole when the subject of the appraisal is a fractional interest, a physical segment, or a partial holding.

(f)

Identify any extraordinary assumptions necessary in the assignment;

Comment: An extraordinary assumption may be used in an assignment only if:

  • it is required to properly develop credible opinions and conclusions;

  • the appraiser has a reasonable basis for the extraordinary assumption;

  • use of the extraordinary assumption results in a credible analysis; and

  • the appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions.

(g)

identify any hypothetical conditions necessary in the assignment.

Comment: A hypothetical condition may be used in an assignment only if:

  • use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable analysis, or for purposes of comparison;

  • use of the hypothetical condition results in a credible analysis; and

  • the appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions.

(h)

determine the scope of work necessary to produce credible assignment results in accordance with the SCOPE OF WORK RULE. 12

Original content was published in The Appraisal Foundation site.

—-

Contact C.R.E.A.

Email: info@CompleteREA.com

Phone: +1 203 858 6727

Complete Real Estate Answers, Inc.
453 Webbs Hill Road
Stamford, CT 06903

Nana G. Smith, Proprietor

Web & Blog: CompleteREA.com (you are here)
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STEPS FOR SUCCESS

CREA, CompleteREA, Nana Smith, 203-858-6727, Stamford, CT

  • Surround yourself with and meet like-minded individuals.

  • Participate in a mixed-agenda format challenges for connecting, creating, learning and sharing.

  • Listen to veteran entrepreneurs share their successes and struggles.

  • Have your most-pressing business challenges, concerns, and questions discussed in an open.

  • Sick for practical advice, feasible solutions, and innovative ideas to work into your business strategy.

  • Hear from seasoned business owners, entrepreneurs, and experts during informative panel discussions.

  • Discover what it really takes to build a thriving, profitable business.

  • Identify growth strategies, business opportunities, and resources for your entrepreneurial venture.

  • Uncover steps to expand your company in the midst of economic challenges.

  • Continue conversing and connecting with your peers.

Source

STANDARD 1: REAL PROPERTY APPRAISAL, DEVELOPMENT

 

STANDARD 1: REAL PROPERTY APPRAISAL, DEVELOPMENT

In developing a real property appraisal, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analyses necessary to produce a credible appraisal.

Comment: STANDARD 1 is directed toward the substantive aspects of developing a credible appraisal of real property. The requirements set forth in STANDARD 1 follow the appraisal development process in the order of topics addressed and can be used by appraisers and the users of appraisal services as a convenient checklist.

Original content was published in The Appraisal Foundation site.

—-

Contact C.R.E.A.

Email: info@CompleteREA.com

Phone: +1 203 858 6727

Complete Real Estate Answers, Inc.
453 Webbs Hill Road
Stamford, CT 06903

Nana G. Smith, Proprietor

Web & Blog: CompleteREA.com (you are here)
Facebook
Twitter
Google+

 

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