Apr

Getting The Right Home Appraisal

admin on April 12th, 2010

Selling your home without getting a proper appraisal done is like opening your bulging wallet in a hurricane – your hard-earned money will be sucked away with the wind. This is because without a good appraisal, your home may be under priced and you could lose a great offer, or overpriced so it won’t sell. Either way, you have done yourself a disservice.

You may also want to get an impartial appraisal done on your home if you are not immediately selling for other reasons such as: refinancing a mortgage, purchasing home insurance, reducing property taxes, or facilitating divorce proceedings, to name a few.

Who can you trust to give you the best appraisal?

No matter who you hire for an appraisal, the underlying purpose is to develop a carefully documented estimate of your house and property value through in-depth research. The completed document protects the interests of several parties, including the buyers, sellers, mortgage lenders and other people involved in the transaction.

If you require an appraisal for your mortgage lender, you will be responsible for the cost of the document, which is approximately $200-400. Most lenders will have a list of appraisers they trust, so it is in your best interest to play in their ballpark and choose a company they are familiar with. Although you actually pay for the appraisal services, the lender is the one who owns the document, unless they legally release the papers to you. You will receive a copy for your reference.

Be aware that some areas do not require a license or certification for real estate appraisal. However, it would serve you well to find a qualified and certified person for the job.

Ask if the appraiser is accredited with a professional Canadian designation including AACI (Accredited Appraiser Canadian Institute) and the CRA (Canadian Residential Appraiser). Appraisers who have made the effort to receive these certifications are committed to their craft and upholding the ethical standards for which the designations stand.

Be sure your appraiser knows your neighbourhood.

When you are dealing with an appraiser, ask how many homes he or she has appraised in your neighbourhood. This is important, as these appraisers will be very familiar with property values in your area. They will also have a strong knowledge about additional factors that affect property values, such as nearby schools, shopping and fire department access.

Home appraisals are primarily subjective, so it is important to have up-to-date information including the current market value in your area. This figure could change in coming months depending on the volatility of the real estate industry.

Find out more about Calgary luxury real estate opportunities at SmartCalgaryHomes.com, your resource for Calgary luxury homes

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Apr

2010 U.s. Offices Of Real Estate Appraisers Industry Report-Aarkstore Enterprise

admin on April 12th, 2010

The U.S. Offices of Real Estate Appraisers Industry report, published annually by contains timely and accurate industry statistics, forecasts and demographics. The report features 2010 current and 2011 forecast estimates on the size of the industry (sales, establishments, employment) nationally and for all 50 U.S. States and over 900 metro areas. New to the report this year are: financial ratios, number of firms and payroll estimates. The report also includes industry definition, 5-year historical trends on industry sales, establishments and employment, a breakdown of establishments, sales and employment by employee size of establishment (9 categories), and estimates on up to 10 sub-industries, including real estate appraisers.

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Table of Contents :

Users’ Guide
Industry Definition and Related Industries
Industry Establishments
Sales and Employment Trends
Financial Ratios
Establishments
Firms and Payroll

Sub-Industries – 2009 Estimated Industry Sales ($Millions)
Sub-Industries – 2009 Estimated Number of Establishments
Sub-Industries – 2009 Estimated Number of Employees
5-Year Trend – Estimated Industry Sales ($Millions)
5-Year Trend – Estimated Number of Establishments
5-Year Trend – Estimated Number of Employees

2010 U.S. Metropolitan Areas – Estimated Number of Establishments
2010 U.S. Metropolitan Areas – Estimated Industry Sales ($Millions)
2010 U.S. Metropolitan Areas – Estimated Number of Employees
2011 U.S. Metropolitan Areas – Estimated Number of Establishments
2011 U.S. Metropolitan Areas – Estimated Industry Sales ($Millions)
2011 U.S. Metropolitan Areas – Estimated Number of Employees
2010 U.S. States – Estimated Number of Establishments

2010 U.S. States – Estimated Industry Sales ($Millions)
2010 U.S. States – Estimated Number of Employees
2011 U.S. States – Estimated Number of Establishments
2011 U.S. States – Estimated Industry Sales ($Millions)
2011 U.S. States – Estimated Number of Employees
Definitions and Terms

For more information please visit:

http://www.aarkstore.com/reports/2010-U-S-Offices-of-Real-Estate-Appraisers-Industry-Report-40377.html

PH.NO. 919272852585

Aarkstore Enterprise press@aarkstore.com http://www.aarkstore.com

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Apr

Appraisers lowball Everett real estate

admin on April 3rd, 2010

Appraisers should be independent from banks

When a “captured” appraiser sites the value on Everett real estate is it an honest market value? If the appraiser gets his work from the bank how can he give a true arms length valuation? A captured appraiser is one working for an appraisal management company. What they don’t tell you is that the major lenders own the appraisal management companies. Since the lenders now pick the appraiser they figured out that there was a huge revenue stream just waiting to be tapped here. They hire barely qualified to not qualified appraisers and pay them about half of what they used to receive. The appraiser is not stupid and realizes that if his appraisals lead to bad loans he gets fired. So he lowballs the appraisal. The client still has to pay for this junk so the bank makes a few hundred dollars even if the deal doesn’t happen.

We can thank Mario Cuomo for this. I must say this is pure speculation on my part. I have not a shred of proof. But this all fits so nicely that it simply makes to much sense. Mr. Cuomo has big political aspirations. First he wants to be governor of New York State and then I think he wants the presidency. Mr. Cuomo knows that to run for big time offices you need big time money. His desire for the governorship is well know. If the Wall Street banks back him he is half way there. Watch he will win this Novembers New York governors race.

If you follow the HVCC story you will know I am on the right track. HVCC is the home valuation code of conduct. This is another political boondoggle sponsored by Mr. Cuomo.

But let’s look at it from another angle. When valuing Everett real estate should you include distressed sales in the mix with non distressed sales. If you include a foreclosed home that sold on the court house steps is that a fair comparable to a regular arms length sale? Personally I think not. The facts back me up on this.

A new analysis of foreclosure and non-foreclosure sales by Zillow.com found that even when most of the market is made up of bank-owned homes, non- foreclosures sell for as much as 30 percent more. Another study by Harvard’s Joint Center for Housing Studies came up with a similar conclusion.

Now you say well the banks are not making any money if the mortgage doesn’t happen. Well guess again. Look for headlines in the next few days. Bankers will be receiving 6, 7 and many even 8 figure bonuses. If I wasn’t as old as I am I would change my profession. Right now there is no money in Everett real estate. There is in ripping off the US taxpayer.

My friend ever day some faceless bureaucrat or some noise some politician is stealing your liberty. Every day they take a little here and a little there and some day you will wake up and see your freedom gone. When will you finally get pissed off enough to do something about it. So the question remains do appraisers lowball Everett real estate?

Jim Johnson and comments are always welcome.

Everett Mortgage on Line

Jim Johnson E.A. retired; (Enrolled Agent, licensed to practice law in tax court) BS -19+ year experience as an independent loan officer. 15 years as an Enrolled Agent Licensed to Practice law in tax court, Real Estate Agent 15 years, BS Accounting, Economics University of Wisconsin – Milwaukee.
In 2009 I ran for mayor of Everett, WA I lost with 30% of the votes.
Currently I offer local political commentary in KSER Radio 90.7 FM every Wed at 9:05 AM.
Viet Nam Veteran

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Apr

Appraisal Management Companies – Who Owns Them?

admin on April 3rd, 2010

With a great number of appraisal management companies (AMCs) operating, someone can get confused inside the sea of assures, promises, and misrepresentations. It has been a trying point in time for appraisers over the past 12 months as they have worked through the clutter that has become the appraisal profession. No more are the days of getting compensated for excellent customer service and constructing business relationships with clients and becoming a leader in your area business community. Currently it is merely a career of availability when the phone call or email comes in from the AMC.

There has been much argument with regards to AMCs and their contribution towards appraisal process. These issues have come from numerous factions but most of the worries appear to be originating from individual appraisers who will work for these management companies. Long established, professional appraisers have been completely relegated to a role of waiting for their turn to come up within the AMC roster.

At the heart of the debate are AMCs, through which the major financial institutions manage appraisals on home loans that they will sell off to Fannie Mae and Freddie Mac. The system that is set up has many tens or hundreds or thousands of appraisers signed up with a individual AMC to perform work in a specified county. So, as an example, and i’m making these figures up, but say that with a particular AMC, there are 769 home appraisers signed up with appraisal management company A to carry out appraisals in Cook County, Illinois.

Now, how do you think the appraisal management company decides what person does a particular appraisal. Yes its true, it is based on the “rotation” of appraisers inside that corporations list. So, when you, as an appraiser, receive an request from Company A, you may expect that an additional 768 appraisals will be directed by that company before it comes back to you in the rotation. Where is the professional incentive in that model?

Appraisal management companies came towards the headlines with the implementation of the HVCC. The Home Valuation Code of Conduct (HVCC) attempts to eliminate possible appraisal sway by prohibiting mortgage brokers from selecting his or her appraisers, and by encouraging banking institutions to accept anonymous appraisals organized by a 3rd party. Even though financial institutions may hire appraisers directly, the personnel picking the appraiser cannot be associated with mortgage loan production.

The biggest difficulty is that finance institutions are allowed to own the appraisal management companies they do business with. One example is, Bank of America owns the appraisal management company LandSafe Inc. And nearly every single AMC is held at least in part from the bank or mortgage loan lender that uses them. That is just crazy, people.

The AMCs seem to be legitimized by the big banks without rein on their business activities. Since AMC’s will not be going away, I’m in support of regulating all of them Intensely!

Visit Appraisers Gone Wild to find out more.

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Apr

Why Use Appraisal Management Companies?

admin on April 3rd, 2010

Many appraisers are completely against using appraisal management companies. But there are a number of great reasons to use them to your advantage. This article will discuss the three main reasons to use AMC’s.

It has been almost a year since the appraisal industry instituted the new HVCC rules which required most real estate appraisal transactions to be handled through appraisal management companies. Many appraisers have been reluctant to use AMC’s because of the bad reputation that many of them garnered for various reasons. While there are many reasons to stay away from appraisal management companies, there are more reasons why you should use their services.

The first and most obvious reason to sign up for appraisal management companies is to bring in more work. While it is possible to bring in local work from attorneys, CPA’s and independent banks, the quantity of work is so minimal that it would probably not sustain you in the lifestyle that you desire. Obviously, during economic downturns, we all expect a loss of work, but without the use of AMC’s, you are most definitely setting yourself up for trouble.

The second reason to sign up with appraisal management companies is because the marketplace seems to be setting itself up for more regulations, not less, as we all hope. Despite all the petitions of appraisers and opposition, regulatory organizations do not appear to be backing down. While amendments may be conceded to in the future, the complete HVCC rulings will probably not be thrown out.

Third, there has been a drop in the number of appraisers due to bankruptcy and also a dip in the number of new appraisers because of more stringent rules for new trainees. Many appraisers have closed their doors due to lack of work, with their numbers reaching into the thousands. Pair this together with more education requirements for new incoming appraisers and it leaves a big gap that needs to be filled by current appraisers. There are still many appraisal management companies searching for more appraisers to fill their needs.

With FHA implementing their new rules at the beginning of 2010, it appears well over 90% of all jobs are flowing through AMC’s. The work is available to those who are looking for it.

Getting The Right Home Appraisal

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Appraisers lowball Everett real estate

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Appraisal Management Companies – Who Owns Them?

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