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By on July 6, 2013   /  4 Comments

This blog has all my free weekly email newsletters since 2012. Plus other topics. Please note that the original email newsletter subject line has been significantly shortened. To see the original email newsletters, click here to go to the newsletter archives. The newsletter has been sent out weekly since June, 1994. To subscribe to the free email newsletters and receive them on the date they are first issued, go to www.appraisaltoday.com and sign up in the big Yellow Box!!

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Looking for a topic? Use Search box on the right side. There are hundreds of posts on this blog, starting in 2012. 

Every week I send out my FREE email newsletter with info on strange and weird homes and buildings, what Fannie, FHA, AMCs, UAPAP, etc. Hot topics important to appraisers. See info on the right column for topics.

I have also been publishing a paid Appraisal Today monthly newsletter since June, 1992 with in-depth articles on topics important to appraisers. This newsletter has detailed articles on appraisal topics such as Adjustments and Collateral Underwriter plus business topics such as fees, marketing tips, and productivity to get more appraisals done. Click below for more info!!

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Paired Sales Analysis

By on September 12, 2025   /  Leave a comment

Newz: Paired Sales Analysis, The Last Appraiser,
24 Hour Turn Times?

September 12, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Why do Claims get Settled?
  • Paired Sales Analysis: Tips and Tools for Appraisers
  • Home on rare stretch of California’s Lost Coast hits market for $11M in Ferndale, CA Some Assembly Required
  • Combining Tools for Appraisals By Brent Bowen
  • The 24-Hour Appraisal Diet: Slim on Time, Light on Credibility
  • A Review of MEIN COMP: The Last Appraiser by Desiree Mehbod
  • Mortgage applications decreased 1.2 percent from one week earlier

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Tools To Support Appraisal Adjustments

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news

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Paired Sales Analysis: Tips and Tools for Appraisers

By Kevin Hecht

Excerpts: As a professional real estate appraiser, you know that paired sales analysis is a reliable and popular method for determining the value of specific property features and providing market-based evidence to support appraisal adjustments.

Though not without challenges, paired sales analysis is a valuable technique to have in your appraisal toolkit. Mastering this method will help you develop more accurate, credible, and defensible appraisals.

Uses

Primarily used in the sales comparison approach, paired sales analysis is particularly useful for estimating the value of unique property attributes such as:

  • Location advantages (corner lots, cul-de-sac positions, or waterfront access)
  • Scenic views or privacy features
  • Property upgrades (pools, finished basements, luxury kitchens)

Importance

For property appraisers, paired sales analysis is an essential tool because it helps ensure that appraisal adjustments are supported by quantitative data. Rather than relying on cost estimates or subjective opinions, you can use actual sales data to support your value conclusions. This evidence strengthens your appraisal’s defensibility and helps you comply with USPAP.

Additional Topics

  • Step-by-Step Methodology of a Paired Sales Analysis
  • Paired Sales Analysis Tips and Best Practices

My comments: Paired sales has been used for decades by appraisers. Now, statistical analysis including graphs is available plus software that can determine adjustments. In the 8/25 issue of this newsletter, an appraiser survey of appraisal adjustments said that paired sales was the number one adjustment method used by appraisers.

I use paired sales for unusual adjustments, such as discussed above. For example, for many years I lived in waterfront homes, which is not unusual in my city. One of my homes was in a small development of similar homes built in the 1940s. Matched paired sales was very easy. Another non tract home built in the 1940s did not have similar homes nearby and paired sales did not work very well there.

To read more, Click Here

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Home on rare stretch of California’s Lost Coast hits market for $11M in Ferndale, CA

Excerpts: 4 bedrooms, 3 baths, 5,500 sq.ft. 788 acre lot (working ranch)

The estate features a rare, walkable mile of Lost Coast shoreline

When Alex and Miranda Moore bought a historic Humboldt County ranch on the edge of the iconic Lost Coast five years ago, the deal came down to a single condition. It wasn’t financing, insurance or whether the century-old barn still stood square.

It was the zebras. The animals — five of them now — are a legacy of previous owners who tried to transform the ranch into a French country estate, complete with imported thatch roofs and hand-chiseled stone walls. That vision fizzled, leaving behind half-finished projects and a herd of zebras that have since claimed the property as their own.“

The kitchen features high-end appliances and is “ready for your final finishing touches,” according to the listing. While most of the main level has been modernized, the second floor “remains unfinished” but the sale includes conceptual plans to create four bedrooms and three bathrooms.

There is also a hay barn from the 1800s along with a 900-square-foot garden house found on the sprawling lot that is also home to an abundance of wildlife.

It lies just below Cape Mendocino, the westernmost point in California, and just north of the King Range Wilderness, the federally managed sweep of mountains and shoreline that defines the Lost Coast.

Unlike the sheer cliffs that dominate much of the Lost Coast, this property offers a rare mile of gentle, walkable shoreline. “There’s no, like, big erosion or cliffs or slides like you see in a lot of … California’s really rugged coastline. This one is really gentle,” Moore (agent) said. Beyond the beach, the land cuts inland into forests and meadows,

To read more, Click Here

To see the listing with 53 photos and a virtual tour, Click Here

My comments: Many thanks to subscriber Joe Lynch for this listing. He says

“The Lost Coast is amazing. If I’d won the lottery, this might have been on my shopping list. ”

If you have an interesting listing in your area, send me the link. Your name may appear in this newsletter!

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Some Assembly Required

Combining Tools for Appraisals

By Brent Bowen

Excerpts: Many appraisers have expanded their tool kits, learning to apply different tools in different circumstances. An example would be an appraiser deciding that depreciated cost is best when adjusting for a detached garage, while grouped pairs is best for an adverse view, and regression is best for gross living area. However, in each case the appraiser is still using a single tool to solve each problem.

What can work even better is combining tools, much in the same way that you might use a hammer and chisel together to accomplish a task that neither does as well on its own. To use the tools to best effect, order matters. For example, in masonry or woodworking, using the hammer to strike the chisel works very well, whereas using the chisel to strike the hammer just makes a mess.

Consider what it might look like to combine the tools of theory, logic, experience, cost, and sales data analysis (itself, comprised of many tools) to a solar PV system on the roof of a residential property. The ordering of those tools was intentional, beginning with theory and ending with sales data. That may seem counterintuitive, but data by itself is a poor storyteller. (In a recent presentation, I showed how the same set of data could indicate a GLA adjustment from $110/sf to $190/sf, depending on how it was analyzed.)

The author uses a solar PV system on the roof of a residential property as a sample property

Other topics:

  • Theory
  • Logic
  • Experience
  • Cost
  • Sales Data

To read more, Click Here

My comments: I had never thought of this. I love to read about new ideas for doing appraisals! This is my 50th year of appraising. Great that there are still new ideas.

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What is New in the New URAR/UAD 3.6?

In the June 2025 issue of Appraisal Today

What you can do now – learn to use a tablet for data collection in the field

A tablet is strongly recommended for data collection on the New URAR. Get

your forms software company’s current inspection app and start using a tablet for your current form reports now. If your software company has a new inspection app, start practicing with it.

Can the New URAR be used for non-lender appraisals?

No, per the GSEs who developed the New URAR. Much of the data they

want does not apply to non-lender appraisals. You can use the old forms from your software vendor.

Why do the GSEs want so many more fields that don’t seem to relate to appraisals?

They want more data and consider appraisers to be the most reliable source.

What about AMC fees? The most important question!

The testing period recently started. Maybe we will get an idea on fees. They will definitely need to be significantly higher than current AMC fees.

For this article, I went though sample Scenario SF-1 (Report) and looked at every new data requirement.

A lot has of data from the current URAR has been moved to different locations in the New URAR Report. there is much new data required.

To read the full article, plus 2+ years of previous issues, subscribe to the paid Appraisal Today. I have several other articles on UAD 3.6 also.

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If you are a paid subscriber and did not receive the

September 2025 issue emailed on Friday, September 2, 2025 please email info@appraisaltoday.com, and we will send it to you. You can also hit the reply button. Be sure to include a comment requesting it.

The 24-Hour Appraisal Diet: Slim on Time, Light on Credibility

by AppraisersBlogs

Excerpts: Brian Zitin’s declaration that the appraisal “bottleneck” has been obliterated by Reggora’s 24-hour turnaround reads less like a breakthrough and more like a tech startup’s victory lap around a profession it barely understands. According to the post, decades of valuation nuance, regulatory compliance, and boots on the ground expertise have now been solved, at no extra cost to the borrower, in every location, and without compromising standards. All it took, apparently, was a few million dollars and a launch video.

It’s a bold claim, not because speed isn’t desirable, but because speed without substance is just marketing. The idea that rural appraisals, where town records are locked behind part-time clerks, and urban or suburban assignments, where tenant access is more art than science and rarely on demand, can all be completed in 24 hours without cutting corners is a fantasy dressed in venture capital.

If this were truly USPAP compliant, it would mean appraisers are now clairvoyant, able to verify data that hasn’t been shared, inspect properties they haven’t entered, and reconcile comps that don’t exist, all while maintaining the same fee structure. Miraculous.

If Reggora has truly cracked the code, if they’ve built a system that supports appraisers in meeting every standard, verifying every detail, and delivering credible results in a single day, then let’s see it. Not in a sizzle reel, but in a full report, from a real assignment, in a real town. Until then, the applause will remain on mute, because in the real world, valuation isn’t a bottleneck, it’s a safeguard, and some things are worth waiting for.

To read more, Click Here

My comments: I have been following Reggora since the VC (Venture Capital) funded company started. Thanks to Appraisers Blogs for writing this article.

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A Review of MEIN COMP: The Last Appraiser (Book)

by Desiree Mehbod

Excerpts: If Orwell moonlighted as an appraiser, and Kafka had a side hustle in compliance, “MEIN COMP: The Last Appraiser” by David Samnick would be their love child. But this isn’t dystopian fantasy, it’s a forensic autopsy of a profession that was methodically dismantled while regulators smiled, and algorithms sharpened their knives.

Samnick’s book is fiction the way a courtroom sketch is fiction. The names are changed, but the faces are familiar, and the tactics are real. Through a cast of fictional appraisers, each representing a phase in the slow-motion collapse of independent valuation, we witness the insertion of middlemen, the tightening of compliance nooses, the scapegoating campaigns, and the final algorithmic coup.

The foreword opens with a chilling riff on Niemöller’s famous warning: “First they came for the underwriters…” It closes with a line that doesn’t need carving into stone. It just needs to be remembered by anyone who thinks their profession is safe: “They came for the appraisers. Tomorrow, they will come for you. Who will be left to speak?”

This book doesn’t ask for pity, it demands attention. It documents how appraisal management companies (AMCs) inserted themselves into the process, siphoning fees while adding no value. How compliance morphed into a stranglehold. How accusations, often baseless, were weaponized to silence dissent. And how automation was sold as progress, while expertise was quietly buried.

To read more plus the appraiser comments, Click Here

My comments: Written by an appraiser. Amazon has a good sample from the book. I purchased the book the day I read this blog post. I had never heard of the book. Thanks to Desiree (Founder of Appraisersblogs) for letting us know about it. The September issue of Appraisal Today has articles on Appraisal Regulatory Chaos.

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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, Click Here.

Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.

My comments: Rates are going up and down. We are all waiting for rates to drop in 2025.

Mortgage applications decreased 1.2 percent from one week earlier

WASHINGTON, D.C. (September 3, 2025) — Mortgage applications decreased 1.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 29, 2025.

The Market Composite Index, a measure of mortgage loan application volume, decreased 1.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 3 percent compared with the previous week.  The Refinance Index increased 1 percent from the previous week and was 20 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. The unadjusted Purchase Index decreased 6 percent compared with the previous week and was 17 percent higher than the same week one year ago.

“Mortgage rates declined last week, with the 30-year fixed rate decreasing to its lowest level since April to 6.64 percent. However, that was not enough to spark more application activity,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Refinance applications saw a small increase from the previous week, driven by FHA and VA refinance applications, but conventional refinances declined. The FHA rate is averaging about 30 basis points lower than the conventional rate in 2025, which has made those loans relatively more appealing to eligible borrowers. Purchase activity pulled back, after a four-week run of increases, as slower homebuying activity led to declines in applications across the various loan types.”

The refinance share of mortgage activity increased to 46.9 percent of total applications from 45.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.8 percent of total applications.

The FHA share of total applications increased to 19.9 percent from 19.1 percent the week prior. The VA share of total applications increased to 13.8 percent from 13.3 percent the week prior. The USDA share of total applications remained unchanged at 0.5 percent from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.64 percent from 6.69 percent, with points decreasing to 0.59 from 0.60 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) decreased to 6.58 percent from 6.67 percent, with points decreasing to 0.39 from 0.44 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.31 percent from 6.35 percent, with points decreasing to 0.74 from 0.80 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.84 percent from 6.03 percent, with points increasing to 0.84 from 0.77 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 5.90 percent from 5.94 percent, with points decreasing to 0.34 from 0.68 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.Ann

 

O’Rourke, MAI, SRA, MBA

Appraiser and Publisher Appraisal Today

1826 Clement Ave. Suite 203 Alameda, CA 94501

Phone: 510-865-8041

Email:  ann@appraisaltoday.com

Online: www.appraisaltoday.com

Posted in: adjustments, appraisal, appraisal business, appraisal forms, appraisal how to, UAD 3.6
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Appraisal Regulator Chaos

By on September 5, 2025   /  Leave a comment

Newz: Appraisal Regulator Chaos , Cat and Raccoon Damages, Wildfire Risks

September 5, 2025

What’s in This Newsletter (In Order, Scroll Down)
NOTE: Scroll down to see Appraisal Regulator Chaos

  • LIA AD: Legal Request for Old Appraisal
  • The Kitty Litter Duplex: An Appraisal I Wish to Not Remember
  • $300K Maryland Home Is Overrun by Feral Cats and Raccoons
  • The Full Measure August 2025: Navigating Rates, Inventory, and Affordability
  • Appraisal Regulatory Chaos
  • The Town With No Bank: How Rural America Lost Its Mortgage Lifeline By Dallas T. Kiedrowski, MNAA
  • New Cotality Wildfire Risk Report finds more than 2.6 million homes are exposed to moderate or greater wildfire risk
  • Mortgage applications decreased 1.2 percent from one week earlier
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Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news

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The Kitty Litter Duplex: An Appraisal I Wish to Not Remember

Excerpts: How one property’s furballs left an unforgettable impression on an apartment and an appraiser

Introduction

In the world of real estate, surprises abound. Industry professionals, especially appraisers, all expect the unexpected, but even the most seasoned professionals can stumble across situations that test the limits of their experience, composure, and their judgement. There are stories of haunted houses, collapsing ceilings, and outlandish tenant actions and decorative choices (Live, Laugh, Love), but the tale of the cat-soiled duplex stands out for its sheer yuck-factor. This is the story of what should be a routine property appraisal, which became cemented in my experience stories, due to its unfathomability and coated in an unmistakable, noxious layer of feline mischief.

The Setting: An Unimposing Duplex with a Dirty Little Secret…

The Appraisal Appointment: An Unforgettable First Impression

…I could only see the flooring in the opening and a few other spots around the living room from about a foot outside the threshold, the rest of the floor was completely caked with cat poop. The walls, ceiling, and windows were all enveloped by heavy spider webs in a variety of states, while some were fresh looking, others clearly blackened from a long life filled with dust, dirt, fur, and of course fecal matter. Also, you could see multiple patches of orange mold scattered throughout the walls and ceiling. I quickly replied I would not be going in there, because it was a danger to my health and safety, which somehow surprised her….

Financial and Health Implications: When Cleanliness Becomes a Value Killer

Hygiene, general maintenance, and property values parallel each other. This may be why we have condition codes for our appraisals. Just saying…. I made sure to thoroughly explain the situation and how the value was determined in the report. I did not want this rolling back downhill and getting me. Luckily, a very gracious Fresno Construction, was able to give me a quote very quickly, which came just over $100,000 for an estimate to redo the unit in its entirety.

Conclusion

The Kitty Litter Unit stands as a testament to both the resilience of a property and the unpredictability investors face. Especially in this case, since it was for an estate of a deceased former owner.

To read more, Click Here

My comments: I appraised a house for a relocation company – one story with 3 bedrooms. There were cats on every surface above the floor, such as dressers, – all staring at me of course. In the rear of the home was a very large cat enclosure. They were rescue cats, temporarily at the home. I did not ask the owner where the cats would go when she relocated – back to the shelter or with go with her.  I will never forget about all those cat eyes staring at me!

I had another relocation appraisal where the male cat had sprayed urine along several walls in the living room. I told the relocation company to replace the drywall.

Of course, I could fill up a book with dog stories. Such as two Dobermans that broke down the door of a trailer to get to me. I somehow made it to my car and I will never forget it. Or the small dogs who bit my ankles as I was trying to get through the front door (home was owned by an appraiser I knew). For both appraisals, I told my lender client to get another appraiser.

Read more!! →

Posted in: appraisal, Appraisal Foundation, appraisal how to, appraisal regulations, Appraisal Subcomitee, climate risk, Economic analysis, HOME INSURANCE, liability, real estate market, state appraiser regulators
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Appraisal Adjustments

By on August 29, 2025   /  Leave a comment

Newz: Appraisal Adjustments, How Freddie and Fannie Inflated Home Prices, FHA to Adopt UAD 3.6

August 29, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD Navigating Value Revisions in Appraisals
  • Appraisal Adjustments: Types, Methods, and Cheat Sheet Appraisal By Kevin Hecht
  • Inside Artificial Heart Inventor’s $4.8 Million Midcentury Modern Salt Lake City Utah Home
  • Inflated Prices, Taxed to Death, by Jeremy Bagott
  • Can the direction a home faces affect its value? By Ryan Lundquist
  • The Competence to Perform an Assignment, by Timothy C. Andersen, MAI
  • FHA to adopt UAD 3.6
  • MBA: Mortgage applications decreased 0.5 percent from one week earlier

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Time Adjustment Changes for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news

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Appraisal Adjustments: Types, Methods, and Cheat Sheet Appraisal By Kevin Hecht

Excerpts:

Types of Appraisal Adjustments

Appraisal adjustments can take several forms, depending on the property characteristics being compared. Each type of adjustment addresses a different element that may influence value. Below are descriptions of common adjustment categories and their uses, followed by a “cheat sheet” chart with examples.

  • Qualitative Adjustments
  • Quantitative Adjustments
  • Transactional Adjustments
  • Market Conditions Adjustments
  • Property Adjustments
  • Locational Adjustments

Common Methods for Making Appraisal Adjustments

A long list, from matched paired sales to Cost Analysis

Appraiser Survey: What’s Your Go-To Method for Adjustments?

Paired sales/matched pair analysis (Most popular answer!)

“I typically cover rural areas where sales are scarce and there is not enough data for meaningful statistical analysis to be performed. Due to this, paired sales analysis is the most reasonable and defensible analysis position available.”

“I use linear regression to understand market changes and to calculate any necessary market change adjustments.”

“Depends on what item is being adjusted. If it is site or GLA, it is usually a percentage of the per acre or per square foot sales price. Other items are usually paired sales analysis or consideration for depreciated cost.”

To read more, Click Here

My comments: Comprehensive lists and interesting appraiser comments. I quit doing grid dollar adjustments many years ago. A person from our state regulator, speaking at a local appraisal meeting, said they would require support for all adjustments. I started by doing Plus and Minus grid adjustments and then went to “total property comparison” with a value. I do a qualitative analysis comparing the comps.

The only supported dollar adjustments I make are for market conditions and high dollar features such as a fantastic view of the Golden Gate Bridge from very high up a hill.

Inside Artificial Heart Inventor’s $4.8 Million Midcentury Modern Salt Lake City Utah Home

Excerpts: 4 bedrooms, 4.5 baths, 5,447 sq.ft., 0.55 acre lot, built in 1957

The mastermind behind the one-of-a-kind estate was none other than Swiss architect Eduard Dreier, who brought Bauhaus principles to the modernist movements of Utah and Nevada.

Lovingly restored and awarded the Utah Heritage Award for Restoration and Renovation, this 5, 447 sq ft architectural gem blends timeless Dreier elements-exposed steel beams, walls of glass and cantilevered roof line, granite rock walls-with warm modern luxury. The 1,110 sq ft glass-and-steel attached guest house, designed by Dreier protge Brent Groesbeck in 2016, floats above the main home, expanding living where entertaining is elevated to an art form.

To read more, Click Here

To see the listing with 43 photos and a video tour, Click Here

Read more!! →

Posted in: adjustments, appraisal how to, FHA, liability, New URAR, UAD, UAD 3.6, USPAP
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What AI Means For Appraisers

By on August 22, 2025   /  Leave a comment

Newz: AI and Appraisers, FHA Handbook Updated,
History of Residential Appraisal Regulations

August 22, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Should I consider this an actual claim?
  • 7.5 Things Appraisers Can Do That Artificial Intelligence Cannot, By Mark Buhler
  • Home Made Entirely Out of Shipping Containers Hits the Market for $5.2 Million in New Hampshire
  • FHA Handbook Updated
  • The New Appraisal Report: How One Company Is Rethinking Appraisal Software
  • A Primer on Regulations and the Practice of Residential Property Appraisal
  • Mortgage applications decreased 1.4 percent from one week earlier

AI and Appraisals – the Future

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7.5 Things Appraisers Can Do That Artificial Intelligence Cannot

By Mark Buhler

Excerpts: Artificial intelligence is making waves in nearly every industry — and real estate appraisal is no exception. Computer generated algorithms and valuations promise quick results and lower costs, and some headlines are already asking the question: “Will appraisers be replaced by AI?”

The short answer? Not even close.

What appraisers can do

1. Judge Condition and Quality

An AVM might see a listing that says “4 bedrooms, 3 baths, 2,400 square feet.” What it won’t know is that one of those bedrooms hasn’t been updated since the Nixon administration and still sports avocado-green shag carpet. Appraisers evaluate condition, quality of construction, level of maintenance, and updates — all of which have a direct impact on value. Without physically inspecting a property, AI misses these nuances entirely.

2. Interpret Unique Features

3. Spot Red Flags the Data Misses

4. Smell the House

5. Explain and Defend Adjustments

6. Testify in Court

7. Apply Professional Judgment

7.5 Half Point: Remember to Knock

How to Start Leveraging AI in Your Practice – 7 ways

AI won’t replace appraisers — but appraisers who embrace it will leave others behind. Here are a few easy ways to get started:

1. Use AI‑Driven Comp Tools: Platforms now exist that can quickly identify potential comparables based on similarity scoring. Use them to save time — but always vet the comps yourself.……………

To read more, Click Here

My comments: Worth reading the entire article. What AI can do.

What Appraisers can do, with and without AI.

Read more!! →

Posted in: appraisal, appraisal forms, appraisal modernization, humor, liability
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Humor What is an appraiser?

By on August 15, 2025   /  Leave a comment

What is an Appraiser? Humor, Upzoning,
New UAD Quality Ratings

August 15, 2025

What’s in This Newsletter (In Order, Scroll Down

  • LIA AD: A Family feued and Intended Use
  • Upzoning: What It Is and What Appraisers Need to Know
  • Off-Grid ‘Stilt Home’ That Hovers Above a St. Augustine Beach Hits the Market for $1.35 Million
  • What Is An Appraiser? Humor
  • The New UAD Quality Equation: Interior + Exterior = Overall Rating
  • The Harbor Model: Where Appraisers Take the Helm
  • Mortgage applications increased 3.1 percent from one week earlier,

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Upzoning: What It Is and What Appraisers Need to Know

Excerpts: Upzoning is a powerful but often misunderstood tool in urban planning and real estate. In this post, we’ll break down what upzoning is, why it’s becoming more prevalent, and what appraisers need to know about its potential impact on property values.

What Is Upzoning?

Upzoning is the process of modifying zoning laws to allow for higher-density development in areas that previously had stricter land-use regulations. This might include permitting multi-family housing where only single-family homes were allowed, increasing building height limits, or reducing minimum lot sizes. The goal is often to promote more efficient land use and address housing shortages.

What to Be Aware of as an Appraiser

It’s important for real estate appraisers to stay informed about changes in local zoning laws, as these can significantly affect property valuations. Upzoning, in particular, can alter what is legally permissible on a parcel of land, shifting development potential and land use expectations.

When upzoning occurs, the highest and best use of a property may change—from a single-family home to a multi-family development, for example—requiring appraisers to reassess the property’s value accordingly.

How to Address Upzoning in Your Appraisal Report

If you find that a property has been upzoned, how do you tackle that in your actual appraisal report? “I think the place to start is building permitting,” says Dobbs. “A lot of cities have pretty decent permitting websites. You can go in there and look at what types of permits are being pulled in the area.”

More topics:

  • How to Address Upzoning in Your Appraisal Report
  • Opportunities for Real Estate Appraisers
  • How to Prepare for Future Upzoning

To read more, Click Here

My comments: Excellent, understandable article about this important topic. There are rental housing shortages in many areas in U.S. Today there is pressure to allow upzoning to make more rental housing available.

Residential appraisers did not receive much education on this topic. You don’t want to get into trouble with the state board by using the incorrect highest and best use on a property or not recognizing and reporting on upzoning.

I do commercial appraisals. HBU issues occur regularly in my city, so I keep up on zoning changes.

Don’t forget local regulations. In my city, regulations (not in zoning regs) restricts the number of rental units on a property (downzoning) after many Victorians were demolished and ugly modern apartment buildings constructed in the early 1960s. Appraisers only looking at zoning for HBU would make a very big mistake.

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Off-Grid ‘Stilt Home’ That Hovers Above a St. Augustine Beach Hits the Market for $1.35 Million

Excerpts 4 bedroom 3 baths,3,374 square feet, 0.41acre lot, built in 1980

Beachfront homes that offer instant access to white sand and a crystal-clear ocean are a rare find—but even rarer is a dwelling that sits directly atop that beachfront, mere feet away from the water.

Yet one such property has just washed ashore in St. Augustine, FL, listed for $1.35 million, 19 years after it last changed hands for less than a sixth of that price.

This unique dwelling is situated on large wooden stilts that have been hammered into the sand, providing the perfect perch overlooking the water, ensuring 24/7 beach access—a rare amenity that comes with its fair share of complications.

Unsurprisingly, given its location, the home is classified as being at “extreme” risk of flooding, according to the Realtor.com® Flood Factor rating, which notes that the dwelling has a “100% risk of flooding” over the next 30 years.

Additionally, the “stilt house” has an extreme wind factor rating, as well as an extreme risk of hotter-than-average temperatures.

To read more Click Here

To read the listing with 59 photos and a video tour, Click Here

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What Is An Appraiser? Humor

An appraiser is one who compiles and analyzes voluminous data of problematical accuracy from sources of dubious veracity and derives therefrom a numerical quantification of unquestionable necessity,

analogous to a nebulous and euphemistic concept representational of value commensurate with ambient configurations of the open market

and promulgates thereby a precise written declamation which delineates his observation, deliberations and conclusions all done while he feigns absolute ignorance of the avaricious machinations of Buyers, Sellers, Brokers and Lenders, compensated only by that penurious stipend known as the professional fee.

This joke is from Bill Sparks. Bill doesn’t know where this joke originated, but Thanks for sending it to us!

My comments: We all need a little appraiser humor!

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12 APPRAISAL MYTHS

By on August 8, 2025   /  Leave a comment

Newz: 12 Appraisal Myths, Appraisal Bias Lawsuit

August 8, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Legal Request for Old Appraisal
  • 12 Common Appraisal Myths/Misconceptions by Tom Horn
  • $750K Hobbit-Style Bunker in Tennessee Puts a Unique Spin on Underground Living
  • The Appraiser’s Market Compass: Navigating the Summer 2025 Housing Landscape By Kevin Hecht, Appraiser and Economist
  • Appraiser questions answered: Interview with Craig Capilla, Attorney
  • No, Appraisers Didn’t Cause America’s Racial Wealth Gap by Jeremy Bagott
  • Mortgage applications increased 3.1 percent from one week earlier
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10 Appraisal Myths

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12 Common Appraisal Myths/Misconceptions

By Tom Horn

Excerpts:

1. Appraisers Rely Primarily on Price Per Square Foot

This is probably the most common misunderstanding I run into.

Yes, price per square foot is one of many tools we use to analyze value—but it’s not the whole story.

2. Appraisals Are Just a Quick Comparison of Recent Sales

Some folks think appraisers pull the three most recent sales and call it a day.

In reality, it’s much more involved. We look at a wide range of comparable sales, analyze market trends, make adjustments for differences between properties, and apply professional judgment.

3. Appraisals and Home Inspections Are the Same

This is a big one for homeowners and buyers.

Home inspections focus on the condition and function of the property—things like the roof, HVAC, plumbing, and safety issues. The inspector is looking for problems.

Appraisals, on the other hand, are focused on value. We observe the overall condition, yes, but we don’t test systems or check for code compliance.

4. Automated Valuation Models (AVMs) Like Zillow Zestimates Are Equivalent to Appraisals

Zillow can be helpful for a ballpark estimate, but it’s not an appraisal.

AVMs use algorithms, public data, and sometimes outdated or incorrect info. They don’t know if your kitchen was remodeled last year or if the neighbor’s home was a distressed sale.

5. The Purpose of the Appraisal Changes the Value

This one trips people up sometimes.

They’ll ask, “What’s the value for a refinance?” or “How much is it worth for a divorce?” as if the answer changes depending on why we’re appraising it.

To read the details and all 12 reasons, Click Here

My comments: Read this blog post. It can help you keep out of hassles and problems when appraising. When you get asked these questions you will know how to respond.  Written for real estate agents, buyers, sellers and many other people but excellent tips for appraisers.

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$750K Hobbit-Style Bunker in Tennessee Puts a Unique Spin on Underground Living

Excerpts: 3 bedrooms, 3 baths, 3,024 sq.ft., built in 2010, 38.84 acre lot

When you think of a bunker, you probably don’t imagine a three-bedroom abode that’s brimming with modernity—which is just one of the reasons that a newly listed dwelling in Tennessee comes as a surprise.

Tucked into the hillside like a doomsday bunker, this Bethel Springs residence was originally built in 2010, yet it boasts a historic Hobbit-style feel akin to the quaint homes depicted in J.R.R. Tolkien’s picturesque Shire.

But much like Tolkien’s books, this home should not be judged by its cover.

Despite its bunker-esque setting and Hobbit-inspired exterior, inside the dwelling is a modern marvel, having been thoughtfully remodeled by its current owners to include an open floor plan and design-forward finishes like granite countertops and luxury vinyl plank flooring.

To read more plus photos, Click Here

To read the listing with 50 photos, Click Here

Read more!! →

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AI and Appraisals – the Future

By on August 1, 2025   /  1 Comment

Newz: Future of AI in Appraisals,
Comps in Today’s Market

August 1, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: Code violations and expertise
  • The Future of AI in Real Estate Valuations: Understanding Tomorrow’s Appraisal Standards By Leland Trice
  • New York City’s Famous ‘Bubble House’ Hits the Market for the First Time in 50 Years With an Asking Price of $5.8 Million
  • The problem with comps in today’s housing market By Ryan Lundquist
  • Divorce Appraisal: A Guide for Real Estate Appraisers By Kevin Hecht
  • For sale signs multiply: Inventory hits 5-year high, price cuts surge What’s happening with markets all over the country?
  • Mortgage applications increased 0.8 percent from one week earlier

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The Future of AI in Real Estate Valuations: Understanding Tomorrow’s Appraisal Standards

By Leland Trice

Excerpts: The real estate valuation industry stands at a pivotal moment. After decades of relying on manual processes that are inefficient, error-prone, and costly, we’re witnessing a fundamental shift toward AI and technology enabled solutions that don’t replace human expertise but amplify them.

The future of real estate valuations will likely involve increasing integration of human expertise with artificial intelligence capabilities. This evolution isn’t about replacing professional judgment with automated systems it’s about creating hybrid approaches that leverage the strengths of both human analysis and machine processing.

Opteon’s new AI-powered quality control tool, built in collaboration with technology partner Jaro, illustrates this broader evolution across our industry.

It’s important to clarify a common misconception: AI-powered tools like Intara, don’t replace appraisers or QC functions. Instead, they enable Appraisers to focus on what they do best, expert analysis and decision-making, while automating repetitive, administrative and time-consuming tasks that add little analytical value.

The “magic” of AI is its ability to look holistically at a file. We have moved past the days of checklist data review and can now examine unstructured data and images simultaneously and in conjunction with discrete data points.

A critical factor in successful AI implementation is the flexibility to meet varying requirements. Intara demonstrates this principle by embedding lender-specific criteria into quality control processes, automatically identifying discrepancies, and ensuring consistency before reports reach final review.

To read more, Click Here

My comments: This article sometimes reads as a “marketing promotion”. But, worth reading to see how one company uses AI for appraisals and how it is used.

This article goes way beyond Chat GPT. It shows how custom AI applications can work for appraisals. The author, Leland Trice, is Managing Director at Opteon USA.

New York City’s Famous ‘Bubble House’ Hits the Market for the First Time in 50 Years With an Asking Price of $5.8 Million

Excerpts: 4 bedrooms, 5 baths, 4,763 sq.t. Townhouse

The distinctive bubbly residence has become a somewhat divisive hot spot in its Lenox Hill neighborhood, where it was built in 1969, with architect Maurice Medcalfe transforming a traditional brownstone into the eye-popping modernist masterpiece.

Medcalfe’s unique window design was intended to be “a sculptural interpretation of the classic bay window,” according to reports.

There is plenty to play with in the four-story interior, which boasts 4,736 square feet of space and includes four bedrooms, an office, and five bathrooms that are “all in need of renovation,” according to the listing.

To read the listing with 13 photos Click Here

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Top 3 Appraiser Mistakes

By on July 25, 2025   /  Leave a comment

Newz: Top 3 Appraiser Mistakes, Bias Lawsuit Dismissed, ADUs

July 25, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: Why Do Claims Get Settled?
  • Top 3 Mistakes Appraisers Make in Their Appraisal Reports By Bryan Reynolds
  • Founding Father John Hancock’s Boston Home Is on the Market for First Time in Half a Century — More Than 250 Years After It Was Built
  • Appraiser Vindicated: Lanham Discrimination Lawsuit Dismissed in Maryland
  • A Complete Guide to Geocodes
  • Bipartisan legislation would make it easier to finance accessory dwelling units
  • Mortgage applications increased 0.8 percent from one week earlier

Appraiser Mistakes

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Top 3 Mistakes Appraisers Make in Their Appraisal Reports

By Bryan Reynolds

Excerpts: After doing more than 2,000 appraisal reviews over the years, Bryan and his team have seen these same errors crop up again and again. Know them and avoid them.

I was an investigator for the state of Tennessee for many years. These days, I primarily help appraisers who find themselves in trouble. Sometimes we’re successful in resolving the issue entirely, or at least reducing the impact. Other times, it becomes a learning moment — we recognize mistakes, take responsibility, and strive to do better.

Mistake #1: Omitting a key statement about an extraordinary assumption or hypothetical condition

Appraisers can gain some leeway with the right scope of work, and by properly using extraordinary assumptions and hypothetical conditions. But you must meet minimum reporting requirements.

Mistake #2: Not summarizing the results of your analysis of the subject property’s prior sales

Saying “the subject sold last year for $150,000” is not analysis. That’s just a statement of fact. What USPAP requires is a summary of your analysis. You’ve got to explain what that sale means in the context of your current appraisal, not just list the data point.

Mistake #3: Including comps that aren’t really comparable

The 1004 form, or the Uniform Residential Appraisal Report form, is what most appraisers use. This is a form many of you are very familiar with. At the top of page two, it says:

“There are ___ comparable properties currently offered for sale in the subject’s neighborhood, ranging from ___ to ___.”

“There are ___ comparable sales in the subject’s neighborhood within the past 12 months, ranging from ___ to ___.”

Now, if you truly are in an area where all the listings and sales in a neighborhood are in a competitive state for the same properties, then I guess you’d fill that in accordingly. But how often does that happen? I mean, are the two-bedroom homes competing for the same buyers as the four-bedroom homes?

To read more, Click Here

My comments: Definitely worth reading! I would have never thought these 3 were the most common mistakes.

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Founding Father John Hancock’s Boston Home Is on the Market for First Time in Half a Century — More Than 250 Years After It Was Built

Excerpts: Used as offices now, 7,622 sq.ft., 2,178 sq.ft. lot, Originally built in 1660s

The iconic dwelling, which is known as the Ebenezer Hancock House in honor of John’s younger brother who used it while serving as the deputy paymaster of the Continental Army, is thought to have been built in 1767.

According to the listing, which is held by Dave Killen of LandVest, the building is the “last extant property associated with the founding father in Boston” and stands as a living time capsule, having been meticulously maintained by its current owners over the last five decades.

An asking price for the property has not been released, but the structure was most recently valued at $1.65 million by city officials. Given its historical significance, the building could well sell for much more.

The original structure dates to the 1660’s, when the site was owned and occupied by William Courser, Boston’s first Town Crier. In 1737, the property was owned by James Davenport, the brother-in-law of Benjamin Franklin.

To read more and see many interesting photos, Click Here

My comments: Our country’s 250th anniversary is coming. This is a look into when we started.

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Exposure Time vs. Marketing Time for Appraisals

By on July 18, 2025   /  Leave a comment

Newz: HUD and OMB PAVE Rollback, Appraiser Appraisal Capacity, Fraud Alert

July 18, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: Can’t Certify the Work
  • Exposure Time vs. Marketing Time: Why the Clock Matters in Appraisals By Jamie Owen
  • Historic Beachfront Water Tower That Has Been Transformed Into a Sky-High Home in California for $5.5 Million
  • Freddie Mac. Appraiser Capacity
  • HUD and OMB Begin Rollback of PAVE Task Force
  • Fraud Alert: Some Non-QM Lenders Excluding Loans Involving Certain Appraisers, Borrowers
  • Mortgage applications decreased 10.0 percent from one week earlier

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Exposure Time vs. Marketing Time: Why the Clock Matters in Appraisals

By Jamie Owen

Excerpts: Exposure Time: The Clock That Ticks Backward

Imagine standing in the kitchen of a colonial in Gordon Square that just sold last week. The buyers are thrilled, the sellers are relieved, and the agent is probably already on to the following listing. But in that moment, the appraiser has to ask: how long would this house have needed to be on the market to attract a willing buyer and sell at that exact price?

That’s exposure time—the hypothetical time the property was exposed to the open market before the sale, assuming it sold for fair market value.

Appraisers include this estimate to show that the sale wasn’t rushed, distressed, or out of step with the broader market. It’s a way of saying: “This was a typical deal in a typical market, and the sale price reflects that.”

Marketing Time: The Clock That Ticks Forward

Let’s shift the scene. You’re standing in the living room of a Cleveland Heights Tudor, preparing an appraisal for a homeowner who’s thinking about listing soon. They want to know not just what it’s worth today, but how long it might take to se

My comments: Worth reading. Excellent understandable article and graphic above. Good Case Study (A Hypothetical Example). Written for home owners, real estate agents, etc. but a good review for appraisers. This topic can be confusing for appraisers.

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Historic Beachfront Water Tower That Has Been Transformed Into a Sky-High Home in California for $5.5 Million

Excerpts: The historic Seal Beach Water Tower dates to 1892, when it was built to hold water for passing steam engines, a role that it held for nearly 100 years.

In 1985, it was converted into a 2,828-square-foot, single-family residence that quickly became one of the most talked-about dwellings in Seal Beach. The interest appears to be alive and well 40 years later, with the home quickly shooting to the top of the week’s most popular homes list.

History buffs will love the four-bedroom home’s period details, including a vintage tool display “unearthed during the 1940s tribute” and a bedroom “themed after the only known pirate to haunt these shores.”

Other eye-catching updates include a foyer water feature; an elevator and circular staircase for easy access; a compass rose design found in the hardwood floors; a third-floor modern kitchen; a model train “weaving through the rafters”; a fifth-level, open-air rotunda; and a stained-glass cupola.

To read the listing and see 74 photos, Click Here

My comments: Very interesting! Check out the photos. I love the elevator: a long way to the top…

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Highest and Best Use For Appraisers

By on July 11, 2025   /  Leave a comment

Newz: Hidden AMC fees, Appraisal Subcommitee Cutbacks, Highest and Best Use

July 11, 2025

What’s in This Newsletter (In Order, Scroll Down)

    • LIA AD: Borrower Wants Answers Appraiser Can’t Give
    • What is Highest and Best Use in Appraisal? Appraisal
    • By Kevin Hecht
    • Purple Rain! Vibrant Violet Villa That Would Make Prince Proud for $3,499,000
    • Could a Class Action Lawsuit Finally Unbundle Hidden AMC Fees? by Isaac Peck, Publisher WorkingRe
    • The AMC Industry Won’t Be Toppled by Code
    • Appraisal Oversight (ASC) Subcommittee Faces Cuts Amid Leadership Turmoil
    • Mortgage applications increased 9.4 percent from one week earlier

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What is Highest and Best Use in Appraisal?

By Kevin Hecht

Excerpts: When determining property value, one of the most critical concepts in real estate appraisal is highest and best use (HBU). Professional standards require appraisers to develop an opinion of HBU when necessary for credible assignment results. HBU refers to how a property should be used to generate maximum value under specific constraints, not necessarily how it’s currently being used.

Definition of Highest and Best Use

In professional appraisal practice, Highest and Best Use is defined as “the reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value” (Appraisal Institute, The Dictionary of Real Estate Appraisal, 2022). This definition emphasizes that HBU must be reasonably probable, not merely possible or speculative.

Appraisers must analyze the property as vacant land, and as improved, considering what is legally permissible, physically possible, financially feasible, and maximally productive in the current market.

Why Highest and Best Use in Appraisal Matters

Highest and Best Use gives stakeholders insight into a property’s worth at its full potential. It guides market value determinations that reflect the property’s full potential and informs development and investment decisions based on feasibility and profitability. Additionally, HBU supports lending and underwriting decisions, especially for construction loans or redevelopment projects, guiding land use planning and zoning analysis in transitioning neighborhoods.

To read more, Click Here

My comments: Well written and understandable. I was trained at an assessor’s office to first determine highest and best use for each property I appraised. For homes, issues I have had were a small house on a large lot where nearby lots were being converted to apartments. More common for homes is a possible lot split. HBU is a regular factor for appraising commercial properties in my city. The main part of the city was almost fully developed by the early 1940s. Often the HBU was not the current use.

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