I created this Substack because I’ve become increasingly aware of a void in the real estate conversation taking place online, and I hope in some small way to fill it.
Happy to be here, as a 22 year veteran real estate appraiser let’s get real. Appraisers are undervalued and not appreciated, as Fannie and Freddie try to get rid of us with AVMs (computer valuations) and appraisal waivers.
Appraisers and realtors who put the time in, are the first boots on the ground to see what the market really is doing.
What’s happening is downright scary folks, but then again we have been playing a bad game for too long. I am looking forward to being part of this conversation.
Since March, there have been 5 interest rate hikes. With each hike, the market slows down and prices are starting to dip in some areas (not all areas). In a declining market you need to look at the active and pending sales and note the price reductions, if there are any. As an appraiser (in this market) we try to use the most recent sales that went under contract (preferably) in August and September. Anything else that went under contract prior to those rate hikes "may" have a downward market adjustment.
In Florida, I've never seen an appraiser ask to look at reserves, or lack thereof when "appraising" condo resales. They take ignorant sale numbers and extrapolate. A condo with full reserves "appraises" no higher than a place needing $50k/unit assessments for deferred (no) maintenance. I bet the shmoe who bought the penthouse that Champlain Towers a month before it collapsed got a sterling appraisal...and did -0- due diligence looking at minutes of the association, financials, nothing. Like I once said to a friend, MAI means "Made As Instructed." He said, no, "Made As Imagined." Change my mind...
That is about to change with the new condo rules, where appraisers need to learn about condo reserves and how they work. Typically that was not part of the regular appraisal curriculum, but now it is.
Kira, this is spot on. I have a finance degree and a previous experience in international banking, and I absolutely LOATHE the colorful but dim-witted infographics, often provided with absolutely no context, that plague our industry. THANK YOU for doing this. Robert at Move to Chattanooga on YouTube
Robert, thank you so much for this feedback. The feeling is so mutual. I'm glad there are people like us delivering the goods. I'll be sure to check out your YouTube channel! Thanks for reading.
thanks for the info about newsfactories. i heard those very same words from my realtor not long ago.
Hello - Your article on Zerohedge is good news! Home prices have been farrrr too high for too long.
Agreed, Karen. It's going to be a bumpy ride, but it's the only way to regain some semblance of balance.
Great Insights... love the column name .. LGI !
Thanks Adam!
Happy to be here, as a 22 year veteran real estate appraiser let’s get real. Appraisers are undervalued and not appreciated, as Fannie and Freddie try to get rid of us with AVMs (computer valuations) and appraisal waivers.
Appraisers and realtors who put the time in, are the first boots on the ground to see what the market really is doing.
What’s happening is downright scary folks, but then again we have been playing a bad game for too long. I am looking forward to being part of this conversation.
So glad to have you, Dana! As an appraiser you offer a really valuable perspective. I'd love to hear it whenever you feel like contributing. Welcome.
Since March, there have been 5 interest rate hikes. With each hike, the market slows down and prices are starting to dip in some areas (not all areas). In a declining market you need to look at the active and pending sales and note the price reductions, if there are any. As an appraiser (in this market) we try to use the most recent sales that went under contract (preferably) in August and September. Anything else that went under contract prior to those rate hikes "may" have a downward market adjustment.
In Florida, I've never seen an appraiser ask to look at reserves, or lack thereof when "appraising" condo resales. They take ignorant sale numbers and extrapolate. A condo with full reserves "appraises" no higher than a place needing $50k/unit assessments for deferred (no) maintenance. I bet the shmoe who bought the penthouse that Champlain Towers a month before it collapsed got a sterling appraisal...and did -0- due diligence looking at minutes of the association, financials, nothing. Like I once said to a friend, MAI means "Made As Instructed." He said, no, "Made As Imagined." Change my mind...
That is about to change with the new condo rules, where appraisers need to learn about condo reserves and how they work. Typically that was not part of the regular appraisal curriculum, but now it is.
Stoked to be here! Great read - looking forward to insights on the market that aren't canned or part of the "official" company line.
Stoked to know you!
Great substack I'm in Chicago and I know what you mean but the lack of online dialogue clients need straight talk not narratives
Kira, this is spot on. I have a finance degree and a previous experience in international banking, and I absolutely LOATHE the colorful but dim-witted infographics, often provided with absolutely no context, that plague our industry. THANK YOU for doing this. Robert at Move to Chattanooga on YouTube
Robert, thank you so much for this feedback. The feeling is so mutual. I'm glad there are people like us delivering the goods. I'll be sure to check out your YouTube channel! Thanks for reading.