Appraisal Today  
NEWZ://
NEWZ://Change your templates/Happy appraisers?/Terrible photos - 
December 17, 2015
General liability insurance
 
________________________________________________________________

Thanks to our sponsor!! 
No email newsletter for the next two weeks (Xmas and New Years)
 ... I may send a Special Mailing with some Holiday Humor ;>
 
-----------------------------
 
Change your templates for 2016!! 
Don't be like me and keep using last year instead of this year for a while. Don't get me started on my personal manual checkbook. Just caught myself using 12/15/14 a few days ago.
 
---------------------
 
Terrible Real Estate Agent Photos
 
They can't be described. You just gotta see them. Very Entertaining and Funny!!
 
Even the very brief commercials for their calendar are funny!!
 
Thanks to Jonathan Miller for this great link!!
 
--------------------------------
 
Search Parameters and the Best Comparables
By Rachel Massey, SRA and Tim Andersen, MAI
 
Excerpts:
Watch any house hunting show on HGTV and it is apparent that buyers often restrict their search for property to a price range. So why shouldn't appraisers? We must all have heard one variation of this argument at one time or another. From a logical standpoint, it does "seem" to make sense because appraisers try to mirror the actions of buyers in the marketplace. The simple answer to this question is that by limiting our search to a price range, we are apt to miss the most potentially relevant comparable sale. Restricting the comparable search by price is one of the easiest ways to miss good data, as well as to analyze the market improperly.
...
We have something to gain by watching these shows, as they demonstrate how buyers often act. Savvy real estate agents don't let the buyer's price range constrain them from finding the right house. A good agent will try to determine the buyers "needs" versus their "wants," and try to find properties that meet their needs. While the buyer may think their need is to stay within a certain price range, that range quite often does not suffice. Instead, the buyer needs to look at what is available and what substitutions there are when the desired property is not available.
 
Read the full article here and the comments.
Don't miss the suggested samples describing your search to put into your report. 
 
My comment: MLS searches are tricky. For example, you search MLS to see if the subject has been listed before. The listing agent had a typo in the address on the listing and it doesn't come up. Or, you search by map code and it is wrong in the MLS.
 
I never search just by price range and often printout 20-30 sales and listings to consider. Of course, I was not trained to search by price ;>
 
-------------------------------
 
Appraisers Should Be Cautious of MLS Price Discrepancies: 
The Appraisal Journal, published by the Appraisal Institute
 
Excerpt from press release:
"Reported Price Errors: A Caveat for Appraisers," by Marcus T. Allen, Ph.D., Kenneth M. Lusht, Ph.D., MAI, SRA, and H. Shelton Weeks, Ph.D., documents the magnitudes and signs of differences in prices reported in a multiple listing service in comparison to prices reported on HUD-1 settlement statements. The authors advise valuation professionals to seek additional sources to verify reported sale prices, especially when a sale price contradicts sale prices of comparable properties.
 
Read "Reported Price Errors: A Caveat for Appraisers" in the Fall issue of The Appraisal Journal. http://www.myappraisalinstitute.org/webpac/pdf/TAJ2015/TAJ_FA15_p289-294_Feat1_ReportedPriceErrors.pdf

---------------------------------------------------

 CU Version 3.1 Now Available

The Collateral Underwriter® (CU™) Version 3.1 was implemented this past weekend. The updates included new data discrepancy messages for attachment type/project description, water view, and waterfront locations. These messages identify when attributes are reported differently from what the appraiser previously reported or from what other appraisers have reported.

An additional message highlights cases where the subject property does not have an accessory unit, but prior records indicate that at least one of the comparable properties does. Other model enhancements to improve functionality and accuracy were implemented, including expanded availability on condo units. These enhancements may cause minor changes to CU risk score distributions.

Review the CU Version 3.1 Release Notes for more information on the updates in CU 3.1. Visit the CU web page for more information on CU or attend an upcoming webinar:

--------------------------------------------
 
Negative Equity Down 20.7% Year Over Year
 
· 256,000 US Properties Regained Equity in the Third Quarter of 2015
· 4.1 million properties remain in negative equity
· At the end of Q3 2015 46.3 million or 92% of all homes with mortgages had equity.
 
Click here to read the full press release with lots more info:
 
My comment: more equity, more loans, and more appraisals!!
Quick Links
  
How to change your email address - go to the bottom of this email. 
Looking for an old email newsletter? Click here to access the email archive!! 
Two weeks left to Subscribe to the paid Appraisal Today 
and get a Tax Writeoff on your 2015 income taxes!!

Some articles from previous issues of the paid Appraisal Today
- What lenders don't use AMCs and how to get work from them - VA, local banks, mortgage companies, hard money, etc.
- Managing yourself to get more appraisals completed and make more money - How to get more appraisals done before rates go up!!
- Supporting adjustments: Lets be reasonable!  Why CU and AVMs cannot replace appraisers by Denis DeSaix, SRA
2016-2017 USPAP changes have low impact by Doug Smith, SRA
- Tips on dealing with AMC engagement letter fine print and report clutter - USPAP, MLS sheets, etc. By Doug Smith, SRA
- Is it jUSt PAP? Abrasive, interesting and amusing comments
- Start your own local appraisal group with information on 13 groups
- Will you still be appraising when you're 85 (or 90)? How to plan for retirement

Cancel at any time. For any reason!!

=================================================================================

$8.25 per month, $24.75 per quarter, $89 per year (credit card only),  
or $99 per year or $169 for two years (no credit card required) 

Subscribers get, FREE: past 18+ months of newsletters plus 4 Special Reports!!

 
To purchase the paid Appraisal Today newsletter  go to
www.appraisaltoday.com/products.htm  or call 800-839-0227. 

 
If you are a paid subscriber and did not get the December 2015 issue, emailed Dec. 1 2015, please send an email to info@appraisaltoday.com  requesting it and we will send it to you!! Or, hit the reply button and request it. Be sure to put in a comment requesting it ;>
                         
Not sure if you want to subscribe to the Paid Appraisal Today?
CLICK HERE TO GET A FREE SAMPLE OF THE 
PAID APPRAISAL TODAY NEWSLETTER!! 
 
How to Stay Happy as an Appraiser with Ann O'Rourke
Dustin Harris Podcast 12/13/15
 
In a recent paid Appraisal Today newsletter I wrote an article: "Staying positive with unreasonable fees and Scope Creep from AMCs". In my article I go over many ways to be positive. These ideas are not new and have been around for many decades. I applied them to appraisers.
 
Whenever I do public speaking, I am much more "out there" than I am when I write. I am much more spontaneous, similar to when I am interviewed for podcasts.
 
I don't think that there have ever been as many dissatisfied residential appraisers as there are now, primarily due to several factors:
- AMC and over-management of appraisers
- Low AMC fees for the work required
- Ever increasing requirements from investors and lenders
 
I know many long time residential appraisers who have quit appraising because they don't want to work for AMCs. If I could only get work from AMCs, I would have quit also. But, I also know appraisers who do a lot of AMC work and they are satisfied with it. Dustin is a good example. They modified their businesses. I also know appraisers who do very little AMC work.
 
All successful business people have a positive attitude. Some of us are fortunate to be born that way. But, you can change your attitude.
 
Click here to listen
 
WHAT DO YOU THINK? POST YOUR COMMENTS AND READ OTHER COMMENTS AT www.appraisaltodayblog.com  
 
To subscribe or listen on other web sites, go to
- iTunes - Subscribe to the podcast so you don't miss any! I am a subscriber.
 
-----------------------------------------
 
Appraising -  residential vs. commercial - the gap widens
 
I see very little changes in commercial appraising and dramatic changes in residential lender appraising. I keep looking for an analysis of appraiser "shortage" and no new appraisers that separates residential and commercial.
 
In the "old days", when most appraisers were staff appraisers, prior to licensing, most appraisers started in residential, then some moved into commercial. But, that is long gone. Moving from residential to commercial is very difficult. A bachelors or masters degree in finance or economics helps, of course.
 
Since HVCC, residential lender appraising has changed more than it ever has since the Great Depression, when lenders started using appraisers. AMCs, with low fees and ever increasing requirements from their lender clients, have driven many appraisers out of the appraisal profession.
 
There is only solution for bringing in new residential appraisers. Investors must allow trainees to sign on their own after a period of training. Requiring that all appraisers must be certified before signing on their own means very, very few new residential appraisers.
 
FYI, fees for commercial appraising are still down from the pre-2008 highs, but trainees are still being hired. Also, there is very little bitter complaining about low fees.
 
Maybe someone will notice the dramatic difference between commercial and residential and what it means for the appraiser "shortage".

---------------------------------------------

Mortgage applications decreased 1.1 percent from one week earlier, 

according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending December 11, 2015.
 
The Market Composite Index, a measure of mortgage loan application volume, decreased 1.1 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 2 percent compared with the previous week.  The Refinance Index increased 1 percent from the previous week.  The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. The unadjusted Purchase Index decreased 7 percent compared with the previous week and was 34 percent higher than the same week one year ago.
 
The refinance share of mortgage activity increased to 60.7 percent of total applications from 58.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.0 percent of total applications.
 
The FHA share of total applications remained unchanged from 14.0 percent the week prior. The VA share of total applications increased to 11.2 percent from 10.8 percent the week prior. The USDA share of total applications decreased to 0.6 percent from 0.7 percent the week prior.
 
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 4.14 percent, with points increasing to 0.45 from 0.43 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  The effective rate remained unchanged from last week.
 
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.01 percent from 4.02 percent, with points decreasing to 0.30 from 0.40 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.
 
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.90 percent from 3.91 percent, with points decreasing to 0.31 from 0.43 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.
 
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.38 percent from 3.39 percent, with points decreasing to 0.35 from 0.39 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
 
The average contract interest rate for 5/1 ARMs increased to 3.25 percent from 3.23 percent, with points increasing to 0.36 from 0.30 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.
 
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990.  Respondents include mortgage bankers, commercial banks and thrifts.  Base period and value for all indexes is March 16, 1990=100.
     Join Our Mailing List!!

 
Ann O'Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
2033 Clement Ave. Suite 105
Alameda, CA 94501 Phone 510-865-8041
Fax 510-523-1138
Email   ann@appraisaltoday.com