kurt Posted December 12, 2005 Report Share Posted December 12, 2005 Les, you got enough hair to tingle a little. Brian is trying to establish hard borders for something that is malleable, and imagining that little #'s that someone writes down on paper lock value onto a commodity whose worth is dictated by complex economic conditions. I'm trying to edumacate the boy to the idea that the appraisal is a subjective ditty that has little attachment to anything other than constantly fluctuating economics. Most folks wouldn't disagree on a leaking roof, other than realtors. I've fielded appraisals on houses I've built that have discrepancies of >100%. Of course, both appraisals were scientific & conducted by licensed practictioners to Federally established guidelines, so they're both "right", I guess. Quote Link to comment Share on other sites More sharing options...
Brian G Posted December 13, 2005 Report Share Posted December 13, 2005 Originally posted by Les Brian, up here in the Water Wonderland, the appraiser can't possibly do an appraisal unless an offer to purchase is presented to him/her along with credit score. Down here they get neither. The offer price is ingeniously transfered by the mortgage people saying somewhere on the appraisal order that value is "believed to be" X amount, or "estimated to be" X amount. Clever, eh? The buyer's credit score is irrelevant, even to crooked appraisers. Now, I am not an appraiser - never been one and never played one on TV, but other than sitting on the office chair and pulling up cma's and solds then hitting the mark for price, what else happens?? In the world of mortgage toadies, that's about it. You go through the motions of comparing and adjusting on the required forms, but you know where you're going with it. If you wind up someplace else you start tweaking your butt off. Oh, and it is often necessary to go out to the property to take a few photos, to prove you checked it out for general condition (a meddlesome detail toadies would like to be rid of). Brian G. Bullseye Appraisals - "We Hit the Target" [] Quote Link to comment Share on other sites More sharing options...
Brian G Posted December 13, 2005 Report Share Posted December 13, 2005 Originally posted by kurt Brian is trying to establish hard borders for something that is malleable, and imagining that little #'s that someone writes down on paper lock value onto a commodity whose worth is dictated by complex economic conditions. Now it's "complex economic conditions", not just the interest rate? That I can live with. If the market moves enough the value will change, but that sort of thing usually ticks up or down slowly (barring "boom" or "bust" conditions). I'm trying to edumacate the boy to the idea that the appraisal is a subjective ditty that has little attachment to anything other than constantly fluctuating economics. Boy? Better feel again old man! [:-dev3] I've fielded appraisals on houses I've built that have discrepancies of >100%. Of course, both appraisals were scientific & conducted by licensed practictioners to Federally established guidelines, so they're both "right", I guess. Of course they weren't. At least one was crooked. Would the standards you work to prevent you from doing a soft-soap inspection if you wanted to do it that way? Nope. Brian G. Still Waiting on That Original Statement to Be Justified, Geezer-Boy [:-skull] Quote Link to comment Share on other sites More sharing options...
kurt Posted December 13, 2005 Report Share Posted December 13, 2005 Brian, I've been trying to be nice; now you're name calling. OK. Feller sez property valuations have nothing to do w/interest rates. Thinks that if interest rates go up, prices/values remain the same. Thinks appraisers actually "set" value based on scientific principles. Thinks Chicago was the only place hit by recession of 1978-79. I realize that Mississippi is backward, but basic economics still apply, I think. To summarize from the title of this thread... "naahh, don't really need 'em" OK. Now I'm really through...... Quote Link to comment Share on other sites More sharing options...
Bill Kibbel Posted December 13, 2005 Report Share Posted December 13, 2005 I'm rather fond of appraisers that "make it work". I tend to purchase major pos's that no sane person would ever make an offer on. Example: 300+ year old, re-muddled beyond recognition, tenant occupied for 12 years, vacant for 3, on market for 2 years home in a very nice nat'l historic district. I need a mortgage to purchase and restore and the bank's appraiser could not find any comps in the area to justify the loan. My friend, a Realtor, says "No problem, I'll get my guy that will make the numbers work". This facilitated the purchase, authentic restoration and subsequent sale of the property for a 320% profit. Quote Link to comment Share on other sites More sharing options...
homnspector Posted December 13, 2005 Report Share Posted December 13, 2005 I amnot one to demean a profession, but it seems that in my area, the appraisals nearly always come in at the asking price of the property. I guess the Realtors who set the price are really astute.... Quote Link to comment Share on other sites More sharing options...
Brian G Posted December 13, 2005 Report Share Posted December 13, 2005 Originally posted by kurt Brian, I've been trying to be nice; now you're name calling. No offense intended there frequent sparring partner. Since you referred to me as "boy" (I grinned, no offense taken) I assumed you were assigning yourself the role of the wizened one. Please, pardon the rashness of youth (if you can call 43 youth). Brian G. Jest a Sprang Chicken [:-propell Quote Link to comment Share on other sites More sharing options...
Brian G Posted December 13, 2005 Report Share Posted December 13, 2005 Originally posted by inspecthistoric I'm rather fond of appraisers that "make it work". I can understand that. It also reminds me of another reason I couldn't hang with appraisal. In almost every case where there was no legitimate way to get the numbers to work, the buyer was just as mad about it as anyone. I don't get that in HI work at all. I've never had a client complain about me doing my job well in this field (just "others"). Brian G. 320%...You Call That a Margin? [:-tophat] Quote Link to comment Share on other sites More sharing options...
paul burrell Posted December 13, 2005 Report Share Posted December 13, 2005 Ok now youse guys have got my head spinning and staying up at night with this appraisal thing. One more time: # 1- Appraisers do not set home prices the MARKET DOES. # 2- Income, price of home and current interest rate dictates price range a home buyer can afford. Realtors pre qualify buyers this way so as to know what price home a prospective client can afford. I they can only afford a $200,000 home they do not show them $300,000 homes. It would be a waste of rubber and gas. # 3- Interest rates are factored into what a builders selling price is of new home. Higher interest on construction loan = higher price for home. Lower interest rate on construction loan = lower price for home. Cost for construction money is factored in same as cost for a pile of 2x4s. # 4 - Of course I could be wrong on all of this so don't take it serious just take it for what it is worth. Ok I am going back to bed now. Paul Burrell Quote Link to comment Share on other sites More sharing options...
Bradd Judd Posted December 14, 2005 Report Share Posted December 14, 2005 Ok, Hausdok, I hope your sitting down...... Here in The "Peoples Republic of Illinois" we pray for our appraisers to undervalue the house.... Why is this you ask? God where should I start.....[:-bigeyes 1. We have (in accordance with a recent study from the International Realtors Association) more local, county and state government offices than any other state in the union. So the anarchy, kaos and lack of communication is worse than the The CIA and FBI pre/post 911 fiasco. 2. On almost any house the Approximate square footage is never listed. [no not even on the MLS] I can't begin to tell you all the reasons and excuses I've heard for this blatent omission [:-taped] 3. We are taxed on every thing from The houses approximate room(s) square footage, our Driveway Square footage, Deck Square footage, and if you think your going to add pavers for a patio, you'll be taxed on that square footage as well. [:-weepn] They catch us with satellite photo's. (I believe the same one google has on it's search engine site) It's insane and we beg for our appraisers to value the house and the square footage less than what it truly is. So, for example we'll use my house...... My house was appraised for 282,000 we gladly paid 310,000.......and the mortgage company had no problem with this. It's now 3 years later, and It's probably worth $400,000 ......which udoubtly means a tax increase soon......It will probably appraise for $389,000. My taxes (are you ready) are almost $8000.00 dollars a year and I live in the middle of Corn Fields.....An hour from the O'hare Airport, 2hours (with favorabe traffic conditions) from Downtown Chicago.......... It's rediculous.......But that's the way it is. Oh, and new shopping centers with all the usuall low quality goods and crappy places to eat are going up like wildfire....more taxes for the increase in police, utilities and local township workers, their benefits, and their pensions.....Yahoo!!!![:-crazy] Brad Quote Link to comment Share on other sites More sharing options...
Erol Posted January 12, 2006 Report Share Posted January 12, 2006 I spent several years performing residential appraisals for some Chicago north side lenders back in the mid-late 80's. Very tough business back then. Inspections starting around 7:00 AM then back to the office late afternoon - early evening. That's when the real work began. Had to search for comparables in thousand page directories since we didn't have software then. Working until midnight was common. The bottom line: If you couldn't find the comparables that the lender needed to make the loan, you were out of work. I know the appraisal software programs have made things easier, but if you kill a deal even though the home is way, way over priced you'll end up as popular as Kurt would be at the NAR convention. Erol Kartal ProInspect Quote Link to comment Share on other sites More sharing options...
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