Opinions of Value

Your source for appraisal news and trends

Current Appraisal Institute Efforts to Have Broad Impact on Valuation Profession

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blog_presidentheadersA number of exciting initiatives are under way at the Appraisal Institute that will impact both members and the valuation profession at large.

Candidate Signup is Coming

The Candidate for Designation program will take effect Jan. 1, 2013, and all current State Certified Associate members (or equivalent) can sign up beginning June 1. Webinars have been held for chapter leaders, and a webinar for all members will be scheduled in the coming weeks. This is an ideal time for nonmembers to take that next step in their careers and join the Appraisal Institute.https://www.youtube.com/watch?v=Jd9E-Kz7aKM

Click here to learn more about the Candidate for Designation program, and to download the recorded webinar.

Candidates for Designation will receive:

  • Dedicated advisors to help them on the journey to designation,
  • Program support from local chapters and
  • Structured timelines with milestones to help keep Candidates on track.

Emails, postcards and other communications with all the information needed to sign up will be coming soon. [Read more…]

AVMs No Substitute for Real Estate Appraisals

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With lenders facing myriad challenges and consumers seeking cost reductions, it might be tempting to take a shortcut with real estate valuation — but the negative impact could be significant and long lasting.

Some lenders utilize automated valuation models in certain cases. However, AVMs are not real estate appraisals; the two are not comparable. An actual appraisal typically requires the appraiser to visit the property and to perform a visual inspection. This enables the appraiser to accurately report property information, which they then verify. Appraisers use their experience, expertise and education to determine which comparable sales to use and what adjustments, if any, to make. A qualified, competent appraiser conducts thorough research and thoughtful analysis to develop a reliable, credible opinion of value.

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AVMs, on the other hand, largely aggregate data from public records, which are often inaccurate, incomplete or outdated. AVMs are an unregulated method of obtaining opinions of value that undermines federally created appraisal standards. Lenders’ use of AVMs put both banks and consumers at risk of receiving unreliable valuations. [Read more…]

Article in The Appraisal Journal Says Market Knowledge Key to Preventing Delays

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In today’s real estate market, a variety of issues can cause delays, which can result in appraisers being tasked with providing a credible, reliable opinion of value under challenging circumstances.

The appraisal process can cause delays in a property’s development or sale, according to an article published in the current edition of The Appraisal Journal, reinforcing the need to have appraisers with local market knowledge provide reliable opinions of value – especially in the current market.

[Read more…]

Don’t Shoot the Messenger: Appraisers Not to Blame for Real Estate Woes

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Many in the real estate industry have tried to blame the market’s distressed condition on appraisers, saying that appraisers are at fault for producing opinions of value that don’t match a home’s contract or sales price, delaying a recovery in the housing market. But appraisers don’t set the market; they reflect what’s happening in the market.

 

It’s important to keep in mind that appraisals completed for mortgage transactions are not provided to confirm a sales price; they are used to assist lenders in making lending decisions. It’s troubling that some homebuyers and sellers (not to mention some real estate agents, home builders and others) assume that an appraisal is somehow “wrong” if it doesn’t match the listing or contract price. This is simply not the case. There’s no reason to assume the contract price is the “correct” price simply because it is higher than the appraisal.

house12_12_11 [Read more…]