Appraisal | Gulf to Bay Appraisals

How could a “staff appraisal” exercise confer any value on an organization ?

Question by secret_schizoid207: How could a “staff appraisal” exercise confer any value on an organization ?
You’d be mad to commence the exercise without knowing what findings you wanted to obtain. Therefore the exercise would be purely cosmetic. Therefore the organization would move to tweak the numbers to achieve the desired result.

Best answer:

Answer by Froggie
Absolutely correct

Add your own answer in the comments!

Appraisal Management Company Directory 2009

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Appraisal Management Company Directory 2009

Getting The Right Home Appraisal

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.

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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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Why Use Appraisal Management Companies?

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.

Signing up with a complete list of

Looking for the best appraisal management services? As an appraiser, it has become imperative to use appraisal management companies if you want to stay in business. This article will cover the basics of what the AMC’s offer and how they can help you and your business.

If you are looking for more appraisal work, the best place to look is at the appraisal management services that are available through AMC’s. With constantly changing rules and regulations, they offer the best opportunity to help generate more income and keep you from having to abandon you career. There are less appraisers getting into the business than ever before and with so many current appraisers going out of business, it is leaving a large gap for current appraisers to step into.

Appraisal management services have become the bread and butter for almost all independent appraisers. Without using them, appraisers around the nation have discovered the difficulty of even staying in business without their services. Fortunately, they are becoming friendlier to appraisers and their needs.

With the changes the HVCC imposed in the middle of 2009, along with FHA basically following in their footsteps, close to 90% of all appraisals are ordered through appraisal management services, or AMC’s. Many of these companies have been around over 10 years and have established themselves within the lending community. Unfortunately, many appraisers refused to work with them due to the high commission rates they required and their demands of quick turn times.

Since the change to new HVCC regulations, hundreds of new appraisal management services have popped up and have been more “user friendly” to the appraiser. With fair commission splits and more generous turn times, they have forced the older companies to follow suit. This has created a great incentive for appraisers to join the growing number of AMC’s.

In the economic downturn, thousands of appraisers have been forced to close their doors due to lack of work. Some may have tried to get some work from appraisal management services and quit when they had unsatisfactory results.

The needs of each company changes due to two main factors. This is a huge reason why an AMC may bring in lots of work for one appraiser and no work for another.

Change in coverage area

Each AMC covers a certain area, whether a given city or nationwide. These coverage areas change based on need. Large changes occur when they obtain new clients which require an expanded coverage area or when a company loses a client and the coverage area shrinks

Change in appraisers in a given area

In this changing market, with so many appraisers going out of business, the appraisal management services needs are constantly changing. Even if you live in the middle of a large city there are still many openings in dozens of AMC’s. If you need to generate more business, the best advice is to sign up to as many appraisal management services companies as possible. It is worth the time and effort.

Signing up with a complete list of

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New Appraisal System Impacts Consumer

The HVCC or Home Valuation Code of Conduct was recently implemented by Fannie Mae and Freddie Mac as a new system of appraisals in the U.S. Under the rules, many of the appraisals are handled by management companies (some of which are also owned by the lenders themselves). The system is designed to reduce fraud and lower costs with an improved appraisal.

This new system has numerous flaws and has been widely criticized from both the Appraisal Institute (which represents over 20,000 appraisers nationwide), and the National Association of Realtors.

Some of the major criticisms include:

Homeowners don’t choose who they want to complete the appraisal of their home or how they calculate the value. The appraisal management companies are actually unregulated and the quality of their appraisals may be inferior to those of an established professional appraiser.

The costs are actually increased since the appraisal management companies charge extra for their role. Typically, an appraiser charges approximately $325, but when consigned by the management company they only receive about $200. The customer is charged $400 and must pay up front for the appraisal instead of during closing. If the deal doesn’t go through, the consumer absorbs the cost and the management company still pockets the extra charge.

There doesn’t seem to be any fee management and the costs for appraisals have increased dramatically. As reported by the National Association of Mortgage Brokers, one lender, EverBank, advertised its fees as follows: $465 for GHA appraisals and $390 for standard single family appraisals. Flat fees in Hawaii are a hefty $700.

The new system is being extended to FHA mortgages, even though they are not included under the new code of rules.

This new regulation increases the overall closing time and the waiting time before the customer can receive funds.

Appraisal portability is also decreased since each lender will require a new appraisal.

Small business appraisers will be squeezed out even though they may have a better knowledge of the area and may be considerably more qualified than the employees of the designated unregulated appraisal management company. This removes competition and equitable pricing guidelines for the consumer. The larger management companies will distribute orders through a central area which may be located hundreds of miles from the property being appraised. The chances of the consumer of receiving a below standard appraisal by employees who are not familiar with the area are increased.

The HVCC was never required to pass through the Administrative Procedures Act, the regulatory Flexibility Act or any other procedural filter generally required by a federal agency. There are some that consider the HVCC code invalid and unenforceable due to its failure to comply to the Administrative Procedures Act.

The Real Estate Settlement Procedures Act (RESPA) regulates the the way lenders and mortgage brokers close a sale and do business. The HVCC is in violation of rules against up-charging and fee-splitting. Every lender could leave themselves open to a possible HUD lawsuit on each loan they issue.

Work with a qualified, dedicated agent for your next Montgomery County real estate purchase. Justin Lee will help you find the perfect home in Lakelands MD.

I have been in the real estate markets for 16 years now and I find it amazing how much change can be sold to the American citizens through the lack of proper information, the press and our beloved federal government. The new revelation is that appraisals now should be under the control of the lender – a.k.a. the reputable banks because they will look out for the best interest of the consumer or in a real estate transaction the buyer and the seller. The big, bad Mortgage Brokers will no longer be able to manipulate value and appraisers will be held accountable to a higher power by big brother. What a crock! Let us look at why truly moving the conflict of interest from the Mortgage Broker to the Banks is really not as solid a decision as we would like to believe.

1. The Banks will provide a more accurate value measure.

In reality, the bank will always look for a lower value than fair market value because it is always in their best interest to do so. Leverage on a lower value will always benefit the bank – not the consumer. Why on earth would anybody think Banks, as credible as they have not been would do an about face on practices and take better care of the consumer? The true reality of the situation is that the Bank has a major conflict of interest when it controls value and may use it to it’s best advantage as it feels the need .

How Else Might The Bank Use This Leveraged Position of Value?

A few ways immediately come to mind and I will share them with you. Lending in the real world is automated through either a Fannie, Freddie or FHA Approval that will give a borrower based on the information provided an approval. Banks and Wholesale Lenders will now have the ability to use the appraisal as a reason to decline an approved loan based on value. Will a Bank effect value on an appraisal. You bet they will if it is in their best interest to do so. Banks can now get back into predatory lending and appraisal fee increases to the detriment of the consumer, but a major profit generator for them. The war cry has been – “Get rid of the mortgage broker and we can then get lending back to profitability by not having to compete for business.” For example, a bank charges the consumer 425.00 for an appraisal and the lender in turn pays the appraiser 225.00 – who gets the difference? You guessed it – the bank!! If you ask Barney Frank and the boys up at capitol hill they will all tell you hogwash – however when was the last time any of these gentlemen told the truth about anything and truly how many of the players in this game are not rewarded by the bank lobby? And for this discussion let us bring up one last topic – Discriminatory Lending – now the banks can fall back on the appraisal and say – Gee Mr. and Mrs. Jones – We just do not have the ability to get value on this property so your loan is declined!

Anti Trust Law Suits

This one is coming soon from the appraisers lobby. The banks have now truly destroyed a reputable appraisers business because every business relationship that the appraisal company has nurtured over the years in the business no longer matters. How would you like to be told that your 20 year business is being chopped up and a portion of it is now being given to under qualified appraisal services. What a tough sell this is. Now that is consumer protection at it’s finest folks.

The Senate and Sub Committees – These guys might be the most uninformed morons on the planet. They no absolutely nothing about real estate and mortgages, however they want to be involved in the decision making process. That is as effective and logical as talking to a Country Club board about the business side of golf and believing they understood a word of what you said. The ego gets in the way of the brain as a general rule and Washington has alot of egos. We are in the mortgage mess because of these morons – not because they tried to stop bad practices. Hey, wait a minute, let’s give them more authority to ruin, oh wait protect the consumer.

http://www.tombrewerjr.com

Over 12 years of experience in the Real Estate and Mortgage industry with an MBA from Georgia State University. I have 2 teen age children and enjoy a good game of golf.

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The Value of a Home Appraisal

Unless you are a professional real estate broker with a degree, you may only have a small idea about what happens in a typical real estate exchange. A person could get really confused when a realtor starts throwing out terms like “terms of loans”, “exchange process”, “investments”, “ARM’s” and the processes that come with buying or selling a home. A homeowner or home buyer who is researching these and many other terms may forget a key element in the selling or buying process. And that is making sure you get an accurate appraisal. This article will outline the key elements and the importance of an accurate appraisal process. Maybe it will help you find the right market for your home.

First off, an appraisal is basically a trained opinion about a property. Remember, everyone is trained differently so the appraisal decision can vary substantially. Some people are color-blind, which makes them see things differently than others. With an appraisal, several factors determine what that opinion ultimately is. In the end, the appraisal will conclude (hopefully accurately) what the market value is of your property. Sometimes the final figure is not well-defined. A well-trained appraiser will know where to find someone who can judge accurately different parts of the proper to make an accurate determination and opinion of what the property value is in your market area. This is where a home inspector enters the equation. This professional is trained to unveil areas that have been, shall we say, swept under the rug.

Every mortgage company requires an appraisal before they decide terms of a pending loan. Sometimes an appraisal may even be required during the property insurance process. An appraiser will view several external factors that relate to the property in his quest to determine his most accurate opinion.

Various factors affect the housing market and an appraiser’s estimates will most likely be based on these factors. An appraiser will take into account the neighborhood and recent home sales of properties similar to yours.

By receiving an accurate appraisal, you will gain valuable information in knowing the value of your home, the outside factors that determine that value, and your own needs. This opinion will help you find ways of increasing that value plus it will help you determine when it may be a good time to sell.

Bryan Missey is the author of hundreds of private label rights articles like this one, which are available at www.honestplr.com. If you are looking for great content for your website, check out the latest article sets Bryan has to offer at www.honestplr.com.

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Commercial Real Estate Appraisal

Commercial Real Estate Appraisal

Commercial real estate appraisal is a combination of art and science. Knowledgeable appraisers gather and analyze data prior to making informed decisions about real estate value. The appraisal profession has developed a series of well-established analytical techniques; the cost approach, income approach and sales comparison approach. The most appropriate approaches depend upon the characteristics of the subject property.

The cost approach is considered most applicable for commercial real estate appraisals for relatively new properties and special-use properties. Commercial real estate appraisers are less likely to use the cost approach for older properties due to the difficulty of precisely calculating the amount of depreciation.

The income approach is considered most applicable for investment or income properties. Appraisers gather data regarding the actual income and expenses for the subject property, rental comparables, expense comparables, industry expense data, market occupancy, and rental market trends. The commercial real estate appraiser then estimates gross potential income, other income, effective gross income, operating expenses, and net operating income. Net operating income is converted into an indication of market value using a conversion factor termed the capitalization rate, using the following formula:

Market value = net operating income/capitalization rate. This process is termed direct capitalization.

The income approach can also be calculated using a discounted cash flow analysis. Revenue and expenses are estimated for a period of years and the resulting annual cash flows and gross proceeds from a projected sale of the property are discounted to a present value using a discount rate.

Commercial real estate appraisers also utilize the sales comparison approach to estimate market value. The sales comparison approach is often considered most comparable for owner-occupied properties. After obtaining data regarding similar properties that recently sold, the appraiser makes adjustments to generate an indication of market value for the subject property.

After considering each of the three approaches to appraisal and preparing an analysis for the approaches which are considered relevant, the appraiser reconciles the indications of value to a final value conclusion. The quality and quantity of data for each of the approaches is considered when reconciling to a final value conclusion.

O’Connor & Associates is the largest independent appraisal firm in the southwestern United States and has over 40 full-time staff members engaged full-time in valuation and market study assignments. Their expertise includes valuing commercial real estate, single-family, business personal property, business enterprise value, purchase price allocation for businesses, valuation for property tax assignments, partial interest valuation, estate tax valuation, expert witness testimony and valuation for condemnation. They have performed over 20,000 commercial real estate appraisals since 1988.

To obtain a quote or further information for a commercial real estate appraisal, contact either George Thomas or Craig Young at 713-686-9955 or fill out our online form.The appraisal division of O’Connor & Associates is a national provider of commercial property real estate appraisal services including cost segregation studies, due diligence, insurance valuations, business personal property valuations, business purchase price allocations, single family litigation support and business valuations.

All commercial property types benefit from our appraisal services including multi-family housing, retail stores, hospitals, hotels, industrial properties, manufacturing facilities, medical offices, commercial offices, restaurants, self-storage units, shopping malls, shopping plazas and warehouse/distribution centers.

Patrick C. O’Connor has been president of O’Connor & Associates since 1983 and is a recipient of the prestigious MAI designation from the Appraisal Institute. He is also a registered senior property tax consultant in the state of Texas and has written numerous articles in state and national publications on reducing property taxes.