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Spring/Summer 2007 Issue 16
Appraiser Blacklisting: Fighting Back -
Cary
Barker, Ast. Editor
Blacklisting can do damage to your
reputation, your bottom line and in some cases, your health- especially when
you can’t get answers or help. Here’s how one appraiser, banned
from the approved list of a large national lender, did get answers and
ultimately, satisfaction- but not without a fight.
Office
of Thrift Supervision Regional Offices
(to file lender blacklisting
complaints.)
Appraising Golf Course Properties -
Steven R. Smith,
MSREA, MAI, SRA
"It
was unbelievable! Property owners were leaving Board Meetings to take
my calls. The interviews were great. I got a better understanding of the
purchase decisions made by the owners of multi-million dollar homes and
about their understanding and knowledge of the location of their
purchases. I learned more about golf and country club issues during that
one week than I have in the two decades I’ve been appraising."
Appraising in a Deteriorating Market
-
Beverly
A. Bayer, SRA
Appraisers must watch
for signs to understand market changes. Most are
economically fueled but other factors, such as the desire of families to
move away, might be part of the changes as well. Many of the potential
signs and factors are covered in this story by Beverly Bayer.
(One
for the books! sales concessions)
A Rose is a Rose: Inspecting and Writing
You wouldn’t expect
home inspectors to be discussing the fine points of misplaced modifiers
or use of the passive voice when sharing report writing tips, but this
is exactly the kind of advice veterans give a newbie inspector who asks for
report writing do’s and don’ts.
AVM Tango! Man or Machine? - David Brauner, Editor
AVMs
are under fire from states, consumer groups and individual appraisers.
There are many issues and many points of view. Are AVMs
“appraisals”? Should AVMs be regulated like
appraisals? Who decides? Why has the state of
Arizona
put the AVM Zillow on notice to “cease and desist”? Read the latest
including a newsmaker interview with Greg Accetta, Chair of the Appraisal Standards Board.
Also:
Copyright Appraiser Takes on AVMs;
Fidelity National Information Solutions, Inc. v.
George D Sinclair (PDF); Vining summary of
Fidelity case,
Vining AVM Complaint,
AZ Board Cease and Desist Orders v. Zillow
(PDF); NCRC complaint
v. Zillow (PDF);
32 "Mandatory" states
and
AO-18
Copyright Appraiser Takes on AVMs
- David Brauner, Editor
“Right on to Tim Vining! Please let him know
hard-working appraisers
support him.”
- Eve Simpson
Tim
Vining, MAI is at it again. Vining is the appraiser who made national
news by bringing the first appraisal copyright infringement lawsuit. The
case settled in his favor. This time he is taking on AMVs. Read how and
why.
Dealing with Pressure
- David Brauner, Editor
Few appraisers
remain untouched by lender pressure to make a deal work,
whether the demand is to “adjust” a property’s value or its condition.
Besides losing business, honest appraisers are losing faith in their
ability to practice their profession reputably, because there are
so many who don’t. Here's how the most successful appraisers cope
with lender pressure. (Mortgage
Broker Best Practices:
Code of Ethics
&
Best Lending Practices)
Home Inspectors: Report Writing 101 - Alan Carson
"We all like inspecting houses. It’s fun and challenging and we
are really good at seeing things that mere mortals can’t. But let’s
be honest, most of us don’t get the same enjoyment from writing
reports. Writing inspection reports is hard because we have to take
complex technical issues and make them easy to understand."
Go back to school with Report Writing 101.
Lender
Pressure: Solving the Problem
- David Brauner, Editor
Two comments in the Readers Respond section
this issue highlight the most serious problem facing
appraisers today, and perhaps the best possible remedy. The problem is
lender pressure or put a better way– appraiser
independence. In his comments about the unfairness of unregulated
broker price opinions prepared by unlicensed persons, appraiser Richard
Schofield asks, “Who advocates for us?” Read what
works.
Scope of Work Software and
Book (Review) -
Doug Smith,
IFAS
"This software
represents a significant breakthrough in the overall reporting process."
Read all about it in this review first published in Appraisal Today.
USL
Appraisal Report Documenter II Software;
Click
for User Guide/Audio Tutorial
Readers Respond
Appraiser Blacklisting:
Fighting Back - "Thanks for the story but my experience with
lenders is that most are arrogant and won't listen or take the time to
address the problem. The problem is that there is no notice, ever..."
Read more.
Professional Marketplace
Save on E&O and other goods and services.
Industry News
ACI acquires Real Estate Exchange
Depot; try these new websites: Mold and Indoor Air Quality Forum,
Appraisal Fraud
Reporting/advice, and a new Cell Tower Blog on how to approach this
lucrative niche.
Winter
2007 Issue 15
After the Boom: Surviving & Thriving (in any
market)
-
by Dave Biggers
The real question is not what’s going on in the “new” market but
rather what are the strategies that work in any market. Marketing,
advertising- succeeding: in this story,
Dave Biggers shows you how it’s done.
Brave New World for Appraisers: Welcome to
AppraisalWorld™
- by Jeff Bradford
After 25 years of serving the appraisal industry, Bradford Technologies's
CEO Jeff Bradford introduces a new online community for appraisers
designed in the belief that there is strength in numbers.
Comp
Checks: Learning to Live Without You
According
to most appraisers, the only way to “move on” when it comes to comp
checks is to make a clean break. Go cold turkey. Just say no. This story
begins with an online posting by a distraught trainee wondering how he can
survive without giving customers what they want. We’re sure he’s not
the only one tossing and turning over the issue of “comp checks.”
Cost Segregation Studies: Why Working with
Accountants Adds Up
-
by Guy P. Reese, MAI and Kevin Cavasos, CMI
As a new source of business, supplying Cost Segregation Studies for
accountants really adds up, according to appraisers Guy P. Reese, MAI and
Kevin Cavasos, CMI.
Cost Segregation Studies:
Background
Cutting
Expenses as Business Slows - by David Brauner, Editor
This story for all real estate professionals shows how to avoid inadvertently losing your E&O insurance
coverage for past work and being left unprotected, should a claim arise;
the consequences to your business and personal life could be disastrous.
Fortunately, this is one problem you can avoid. If you have no insurance, the
story brings you up-to-speed on current market conditions that make having
E&O worth considering.
Doing it Faster and Better
- by Rick Foos,
SRA
Somewhere in appraiser training it becomes ingrained that if we do not take
a lot of time doing an appraisal, it can’t be a good appraisal:
that there has to be labor involved. But are appraisers paid to be
laborers or analysts? Because appraisers sell their opinions of value,
their income is
limited directly by how many appraisals they can complete in the hours in a
day (time is money). So how do appraisers give themselves a raise? By doing it
faster and better.
Inspecting on a Rainy
Day
In many places this winter there’s more rain than snow – at least so
far. Do you inspect on a rainy day? In case you’re wondering, most
inspectors we talk to do not slow down when it rains – in fact many
assert there are items they can see far better on a rainy day-such as
leaking roof, gutters or downspouts.
Lower-Liability
Appraising
According to John Harris, appraising machinery and equipment (ME) is USPAP-compliant
appraisal work that offers more
opportunity and less liability than appraising real property. Forms used
in ME appraising are created to serve the appraiser and the appraisal- not
the lender, as is the case with the Fannie Mae forms. While no one is completely insulated from liability, the limiting conditions in these
forms, developed by Harris over three decades to protect ME appraisers, do
their job very well. He calls them fanny
blankets.
Sample Limiting Conditions
(Fanny Blankets)
Mind Your Business (and survive)
The
message in 2007 is that business is not only slowing down but it’s
changing also, and that those who want to keep appraising in the years
ahead will have to pay greater attention to managing their businesses
today. Here’s what we hear from appraisers on how they are managing to
succeed using AVMs & AMCs; by diversifying,
becoming the local expert and more.
OREP E&O: Professional Service, Competitive
Premiums
The OREP Mission
is
to be
the best insurance resource for real estate professionals; to follow the Golden
Rule by treating all who contact us for help as we would expect to be
treated: with honesty, courtesy and efficiency. Read
why you can have it all- low rates and great service.
Out-Competing AVMs
-
by
Thomas Inserra, SRA
Appraisers can
combine their expertise with technology to compete and beat AVMs, according to appraiser and Zaio Chief Executive Officer
Thomas Inserra, SRA. Read how.
Professional Marketplace
Save on E&O and other goods and services. Pros
and Cons: Lowering Fees in Slow Times
This time of year inspectors agonize whether to lower fees to make it
through the traditionally slow winter months. Appraisers are facing
similar issues in this slowing real estate market. Some inspectors drop
fees to generate business using “coupons” and “seasonal specials,”
but seasoned pros say lowering fees is a slippery slope to be avoided–
for several reasons.
Scope of Work Q&A: Deflecting Pressure, Reducing
Liability
- by David Braun,
MAI, SRA
This question and answer about how to report a crooked floor in the face
of pressure from a crooked lender, demonstrates what a powerful tool a
good Scope of Work can be in deflecting pressure, limiting liability and
producing more professional reports.
Supply-Demand Balance: How do you Measure a Balanced
Market? -
by Steven R. Smith, MAI, SRA
Previous Editions
A
Word of Caution: Hold your Tongue (Issue
13)
Sometimes it is
better to count to 10 before speaking or writing in anger: especially if
you don’t want to be sued. One appraiser learned the hard way.
Appraisal
Form “GOTCHA” Traps (from an appraiser who knows) (Issue
14)
by Beverly A. Bayer, SRA
Bayer, SRA says that lenders, fed up with shoddy appraisals, are laying
traps for unsuspecting appraisers. Fannie Mae has said as much, indicating
that one of the goals with the new forms is to make appraisers more
accountable for their work. In this story, Bayer exposes several
“gotcha” traps designed to snare the careless.
Appraiser Treasure Map: Ten "Rs" for Mentoring New Appraisers (Issue
13)
by Karen Oberman, SRA &
Alan Hummel, SRA
Appraisers
put AVM Zillow to the Test
(Issue 14)
by Sean Heath
Appraiser Sean Heath and others test the new AVM Zillow
and caution that while the name may be on everyone’s lips, let the zill-er
(consumer) beware. That said, the results are far from black and
white.
Clarifying
Copyright (from the appraiser who won)
(Issue 14)
by Tim
Vining, MAI
Vining, MAI sets the record straight about copyright ownership, transfer
of copyright, works made for hire, confidentiality, remedies for
infringement- damages and profits, and the steps to avoid being an
infringer.
Copyright
Controversy Flares Up (Again)
(Issue 13)
by David Brauner,
Editor
Appraisers are not alone in
grappling with the
copyright controversy: agents, inspectors and surveyors also have an
interest in copyright protection and controlling work product. The copyright issue is not going
away- here’s why. Unlocked
copyright stories- Appraiser Wins Copyright Suit, source
documents and analysis.
Compliant
Appraisers: Leveling the Playing Field
(Issue 13)
A
growing number of appraisers are compelled to turn in colleagues for what,
in their judgment, is incompetence and/or fraud. Here is a template of an
actual complaint which was heard and acted upon by a state board.
Dealing
with Pressure
(Issue 14)
by
David
Brauner, Editor
Few appraisers remain untouched by lender pressure, whether the demand is
to “adjust” a property’s value or its condition in order to make a
deal work. Besides losing business, honest appraisers are losing faith in
their ability to practice their profession reputably, mainly because there
are so many who don’t. Many are as frustrated and angry at their
appraiser-colleagues who go along to get along, as they are at the lenders
who squeeze them. But lenders have their own rules. Read more about this
and the strategies successful appraisers use to deal with pressure.
(National
Ass. Mort. Brokers:
Code
of Ethics &
Best
Lending Practices)
Eminent
Domain after Kelo: Battle Continues
(Issue 14)
by David B. Snyder, Esquire
Everything
You Don’t Know about Measuring
(Really)
(Issue 14)
by Patrick J. Butler
Appraiser Pat Butler shares little-known but common measuring mistakes,
revealing why two competent appraisers might produce varying sketch
measurements-including analyzing measuring tools, the varying
characteristics of houses and more, and provides the best ways to
reconcile these differences.
Expand
Your Mind (and Income)
(Issue 14)
by John Harris
As business slows, some of us need a little nudge when it comes to
expanding our minds, our skills and hopefully our income.
John
Harris points out that there are significant opportunities for
professional and financial growth appraising items other than real estate.
Fannie
Fix: Cert #23 verbiage + background
Appraisers
Respond: Cert #23 -
Big
bad Fannie, Cert. 21#- they DON’T have that right; Never
having to say you’re sorry; Just let me appraise
& more
Fighting
Fraud: Digital Security on Appraisals
(Issue 13)
by Kirk Pruitt
WRE
reported last issue that according to the FBI, state regulators and
appraisers themselves, fraud and identity theft are rampant throughout the
industry (Best
of Show, Feb. 2006). According to Kirk Pruitt, appraisers now have the ability as
well as the responsibility to take action.
Getting
Full Fees
(Issue 14)
Some appraisers manage to command full fees. How do they do it?
Health
Care for the Little Guy:
Understanding Health Savings Accounts (HSAs)
(Issue 13)
by Clelland Green,
RHU
Consumer Driven Health Plans (CDHPs) are one of the best strategies
available to help small businesses manage their health care costs. CDHPs address the root causes of the rising cost of health care
by providing incentives for the wise use of health services.
Home
Inspectors: Key to Limiting Liability
(Issue 13)
by Ross Herlands, ESQ
Probably the single most important thing a home inspector can do to
protect him or herself in the event of a lawsuit is to obtain a signed
pre-inspection agreement with a limitation of liability clause.
How
to Make Six Figures Appraising
(Issue 13)
What began as a “pep talk” for trainees turns out to be pretty good
advice for every appraiser.
How to Make Six Figures Appraising (Part 2)
(Issue 14)
Don’t
believe a Trainee (or you) can make six figures? In this follow up, Walt
Humphrey- the appraiser profiled in the first story- gets specific.
Inspecting Wet Basements
(Issue 13)
by Alan Carson,
Carson-Dunlop
The problem is all-too-familiar to many homeowners. It is said that more
than 98 percent of all houses have had or will have basement leakage at
some point.
Inspecting
Your E&O Insurance
(Issue 14)
by
David
Brauner, Senior Broker, OREP
Here’s a riddle that more and more home inspectors are solving easily:
how do you obtain $1 million in errors and omissions insurance (E&O)
from an “A” Rated carrier that covers your entire firm- one, two,
three inspectors or more, including an Additional Insured Endorsement for
Agents and other Referring Parties, Termite and Radon coverage, coverage
for commercial inspections, pool, septic and new construction/code
compliance- for a premium under $4,000? The answer is you call OREP.
Inspectors:
Golden Rules for Avoiding Liability
(Issue 14)
Seasoned home inspectors say the golden rules for avoiding
liability are simple- write what you see, say
what you write and don’t sugarcoat anything!
And more.
Making
Scope of Work - Work for You
(Issue 14)
by
David
A. Braun, MAI, SRA
Appraisers
may be getting tired of hearing about Scope of Work but there are several
reasons why they cannot afford to keep sweeping it under the rug.
Braun, MAI shares the benefits that can result from a
well-documented appraisal report; especially with respect to SOW. Here are
a few: liability management, being able to showcase your appraisal
product to clients and dealing successfully with compliance issues.
New
USL Report Documenter II Software allows for fast,
complete assignment documentation. Read more.
Mythbusters:
Are AVMs Stealing Your Data?
(Issue
14)
WRE
asked five AVM experts whether “intelligent systems” (AVMs) are
actually “mining” appraiser’s data-including FNC, Fannie Mae, Veros
and two chief appraisers who would know. Here’s what they say.
Navigating
(New) USPAP
(Issue 13)
by
Lee R. Hess, PhD
USPAP instructor and author Lee Hess takes you through a series of common
questions and answers to help you shorten the learning curve and keep
working.
New
Scope of Work: Making it Work for You
(Issue 13) Interview with
David Braun MAI, SRA author of Appraising in the New Millennium: Due
Diligence and Scope of Work- Second Edition
Braun’s updated
second
edition is now available.
New
USPAP/Scope of Work: (More) Valuable Q&A
(Issue 14)
by Lee
Hess, PhD
We found the following quote online: “I took the seven-hour USPAP class
to update myself on the new changes to USPAP. Most of the class left
confused and unclear with regard to some of the changes.”
(Appraiser wishes to remain anonymous.) This Q&A is excerpted from Navigating
New USPAP by USPAP instructor Lee Hess, PhD, designed
to keep your down time down and productivity up.
USPAP
Q&A: Clarifying Competency, Reviews, Past Sales & More
(Issue 14)
by
Lee
Hess, PhD
The following Q&A is from Lee Hess, PhD, author of Navigating USPAP.
“The USPAP Q&A that have appeared in Working RE previously have
generated many additional questions from readers,” says Hess. Here
are more questions and answers that affect the every day
practice of appraising.
“Virtual”
Debate: What does “Inspection” Mean?
(Issue 13)
by David
Brauner, Editor
Technology
may have evolved enough to make “virtual” inspections a reality but do
they meet state and other regulatory guidelines? Is it ok for supervising
appraisers to use trainees as surrogates to inspect properties?
|
Special
Features
Help Wanted/Available
- Trainees-Mentors (bulletin board)
Special for Home Inspectors - specific articles
pertaining to the Home Inspecting Industry.
Industry News:
Find the
following stories; Anatomy of a Scam; Appraiser fired for NOT
bending to pressure tests RICO (Part 1 and 2); IRS vs.
Appraisers; British Medical Journal study- cell phones and
driving don't mix; Pressure/Fraud Postcard and more.
How to Ruin your Business without
even Trying
Blueprint for Success: Experience,
Education, Ethics, Effort
by George K. Cox, MAI, SRA
Reflections of a Life-Long Appraiser
Remember the slogan: "A $500,000 loan decision shouldn’t take
all day?" Is it
heresy
to suggest that it should?
What Agents Should Know
Mold Inspections: Proceed with
Caution
How to "Date" a House
Moisture & Mold: Steering Clear of
Liability;
Fraud or Incompetence
(Recognizing Scams)
Privacy Laws and Your Real Estate
Practice
New laws mean new requirements: Are you ready?
Something to Talk About:
Fannie's New Forms
(opinion)
Mobile Appraiser Beware: It's Virus
Season!
Employee or Contractor? You (Don’t)
Make the Call – IRS Does
Theirs is the only opinion that counts. The consequences are
back taxes owed that can easily bankrupt a small business.
Consider yourself warned.
>NEW
USL
Appraisal Report Documenter II Software
Click
for a Video Introduction to the USL
Documenter by David Braun
Click
to read review
•
Click
for User Guide/Audio Tutorial
"This software represents a significant
breakthrough in the overall reporting process.”
- Doug Smith, IFAS, review from Appraisal Today
"The
report documenting software
provides
professionalism in my appraisals
and keeps me from worrying about liability issues.
I wouldn’t send out an appraisal without it."
-
Gregory Beck
>Appraising
in the New Millennium: Due Diligence & Scope of Work Second Edition
by David Braun, MAI, SRA (Click
to read review)
"It is a thinking
appraiser’s guide to the current appraisal business environment and
appraisal process universe.”
-
Doug Smith, IFAS, review from
Appraisal Today
"Absolutely
first-rate SCOPE book."
- Leroy Michael
Eide, CCIM
"I compliment you on an exemplary product."- Red
Blumenstock
>Navigating
(new) USPAP
by
Lee Hess, PhD
"This
is the best short summary and memory jog regarding Scope of Work that I
have seen to date."
-
Lee Ann Patterson
Fannie
Mae Q&A (11/4/05) - Cert.
#23, nature of 'inspection,' 'as-is' versus 'as-repaired,'
Scope of Work
More
Features
10 Steps to Avoid Bad Debt
(Issue 9)
Choosing whom to do business with is a marketing decision. Learn
how to avoid spending time and effort on projects where there is
a high risk of not being paid.
Can AVMs Work for You?
(Issue 8)
by Bradley H. Ellis, IFA, RAA
By now, most of us have utilized technology to change the way we
do business. We’ve been able to leverage technology to work
faster, smarter and cheaper. But what do we do about AVMs, which
many feel will eventually put appraisers out of business?
Changing Fortunes: Appraising to
Consulting
(Issue 9)
Moving from “form-filler” to consultant requires an
expanded concept of appraising that looks beyond market value as
being the solution to every problem.
“Comp” Checks: Turning Requests into
Orders
(Issue 9)
Instead of giving up (or hanging up), appraisers are
finding ways to turn some of these calls into orders.
Cost Approach: Why Sidestepping it
Can be Costly
(Issue 9)
by Gretchen Gary and Richard Vishanoff
Fannie's New Forms: Jury Out/Reviews
In (Issue
8)
by George
Hatch
Regular contributor George Hatch, a Certified General Appraiser
in Calif. and Certified USPAP instructor, argues that the new
forms do not meet USPAP requirements and may result in a further
disintegration in the quality of appraisal reporting.
Fitch, Fannie and Fraud: Conference
Roundup
(Issue 8)
WRE hit the road to bring you the latest from several important
industry gatherings (see insert). With many practitioners
working from home offices, these conferences help us all stay
connected and up to speed. The issues that emerged this year are
familiar but include some new twists: AVMs, fraud, Fannie’s new
forms, lender pressure.
Five Step Program (for Honest Appraisers)
(Issue 9)
Phil Boehm of
Appraisal 911 offers a few tips for successful and ethical
appraising in trying times.
How to Create a Winning Brochure (Issue 9)
by Nick Gromicko,
Exec. Dir. Natl Ass. of Cert. Home Inspectors (NACHI)
The home inspection business is different than any other
business because you typically don’t meet your client until
after he/she hires you. Key to successful marketing is your
brochure. You might only get one shot, so make it a good one.
Importance of Answering Your Phone (Issue 9)
In this high tech-world it’s easy to forget how important it is
to do a simple little thing like answering your phone. Many
appraisers and inspectors will tell you, however, that having a
live person answering phones is key to the success of their
business.
Leveraging AVM Technology
(Issue 9)
What business are you in?
It’s a question that every forward-looking appraiser ought to be
asking themselves right now.
Making Money with AMCs
(Issue 8)
by Christie
Bond
So you have heard the arguments for and against working with
appraisal management companies (AMCs), weighed the pros and
cons
and are ready for a change. You have decided to work with AMCs.
But you don’t know where to begin or what to expect.
Measuring Up: Understanding ANSI
Standards
(Issue 8)
by Scott
Austin
“Would you mind going back to the house and re-measuring? There
is more than a five percent difference in GLA (gross living
area) between your sketch and that of the other appraiser.” I
received this question from a specialist with a large relocation
company. As per Employee Relocation Council (ERC) standards, my
appraisal was one of two ERC appraisals required prior to
purchasing a home from a transferee. So, what is one to do in
this scenario? Should both appraisers go back and re-measure
hoping for a different outcome? The answer I gave the
relocation specialist surprised her.
New Cold War: Fighting Spyware
(Issue 8)
by R. Wayne Pugh, SRPA, CRE
Spyware can sabotage your business and make personal information
that you may wish to remain private- quite public. Here’s how to
protect the home front from spyware using one of the highest
rated and free tools available.
Raising the Scope: New Role of Scope
of Work
(Issue 8)
by Sean Heath
Ah, the law of unintended consequences. As defined, it means
that the actions of people-especially governments - always have
effects that are unanticipated or unintended.
Readers Respond: Dos and Don’ts:
Readdressing, Reassigning and Transferring Report
Speaking Like a Pro
(Issue 10)
by Mike Casey
Newbie: "It’s old." Pro: "The component is nearing the end of
its useful life and may require repair or replacement at any
time."
Succeed by Setting Yourself Apart
(Issue 9)
Learn how distinguishing yourself from the competition can
transform your product from a commodity to a sought-after
service.
Survival 101: Getting Ahead without
Going Along
(Issue 8)
by Tim Cullen, IFAS
Why
are so many appraisers angry and bitter?
|
