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Most recent emails
Old email archives - 10/11/98 to 6/99
6/27/99 - VC
forms/jokes/link-o-mania
The new FHA VC forms and home owner forms were released by HUD on 6/24/99,
and are posted at http://www.hud.gov/reac/appraisal_form.html
The main page is at http://www.hud.gov/reac/reasfappr.html They are in PDF
format. When printing out the VC form don't forget to change the printer
setup in adobe (click on File, then Printer setup on the menu bar) to
printout the legal size VC form, then change it back after you have
finished! If you misplace this address, it is on the home page at
http://www.appraisaltoday.com
--------------------------
Ever feel like you're pulled in too many directions? Read Entrepreneur,
technician, and manager - the three conflicting roles of fee appraisers at
http://www.appraisaltoday.com/three.htm
------------------------
I'm finally getting a cable modem installed this week and will let you know
how it goes. I hope I don't get hooked on some fun sites that take too long
to download now!! Here's a couple of places to go for information -
www.cablemodems.com for good basic information (don't forget the "s" for
cablemodems, not cablemodem or you will go to a very techie site) and
www.catv.org/general/frame/sitemap.html for more technical stuff than most
anyone would ever want... I know, I know, DSL is hot also, but cable is
lots easier to me to set up at home.
---------------------
Do you get jokes emailed to you? I really think that the highest percentage
of email is for jokes that are forwarded all over cyberspace!
Unfortunately, many of them aren't funny (to me anyway). Leave it to the
cyberjocks to come up with a better way. Go to
http://shadow.ieor.berkeley.edu/humor/ for Jester 2.0, a program that
selects jokes it thinks you will like. Be warned - there are only 100 jokes
in the test database. They are mostly the jokes that get sent around by
email and the program waits for the ones you think are funny to suggest more.
I didn't read many jokes I thought were funny at at Jester 2.0, but did
check out the six humor sites listed at
http://www.anchordesk.com/a/adt0614js/3495 What's my favorite? The Onion,
of course!! Today's top Onion stories - Greenspan To Play 15 Unannounced
Small-Club Shows and Aliens Demand More Positive Portrayal in the Media. If
this is too much for you, there are always the "traditional" email jokes at
Top 5 and Cybercheeze.
-----------------------------------------------------------
Ever have problems with your measuring tape falling off the other end of
the building? (Who doesn't?) Check out the big hook on the Sokkia tapes at
http://www.sokkia.com/products/suppacc/tapemeasure/page2.htm They can be
purchased from stores selling surveying equipment. Thanks to Tom Jeffcoat
for posting this link!
-----------------------------------------------
Lists of links to assessor's offices plus info on assessment ratios (value
to assessment) is at
http://pubweb.acns.nwu.edu/~cap440/assess.html . This site is maintained by
Northwestern University.
-------------------------
The Mortgage Bankers Association of America (MBA) released its Weekly
Mortgage Application Survey results June 23, reporting that mortgage loan
applications for the week ending June 18 decreased 10.5 percent from last
week. Compared to the same week last year, loan applications were down 20.5
percent.
The MBA seasonally adjusted Refinancing Index decreased from 702.7 the
previous week to 616.2; the seasonally adjusted Purchase Index decreased
from 327.2 the previous week to 297.5. Other seasonally adjusted index
activity included the Conventional Index, which decreased from 463.0 the
previous week to 416.1 and the Government Index, which decreased from 247.7
the previous week to 224.3.
Refinancing activity represented 24.9 percent of total applications, down
from 25.4 percent the previous week. ARM activity increased from 14.9
percent the previous week to 16.3 percent.
----------------
Check out http://www.anchordesk.com/a/adt0621js/3527
for a list of six tech
help sites.
----------------------------
Some good tips on getting your computers ready for the Millenium at
http://www.nfibonline.com/workshop/archive/index6.10.99.html
6/21/99 Apps down/env reports/more FHA
Rates up/apps down
Week ending June 11 MBA stats (seasonally adjusted). Loan apps up 27.9%
from previous week, down 2.9% from a year ago. refis down 11.7% over the
previous week. Purchase apps up 7.1%.
With rates sometimes going over 7.5% (30 year FRMs), it's time to think
about non-refi work. Refis have dropped substantially in California and the
Northeast.
Purchases and home equity is still strong in many areas. Look for
lenders
active in those markets, or do some marketing to current clients active in
those markets. The home equity market is very active, for all types of
lenders from local to national.
To get some marketing ideas, go to http://www.appraisaltoday.com/mfa1.htm
(Marketing is not selling article) or
http://www.appraisaltoday.com/marketin2.htm
for 59 ways to market your
appraisal services (something for everyone!)
---------------------------------------
Another source for new FHA forms, when they are finally released:
www.hudclips.org/sub_nonhud/html/forms.htm
. Www.hudclips.org is a good
source of FHA Letters etc.
The entire text of the new HUD manual is at www.naifa.com
, so you don't
have to download individual sections.
-----------------------------
You can read the transcript of a very interesting recent online chat about
AVMs at www.e-appraiser.net . The guest was
Marianne Angarola, now with LSI,
previously with another AVM vendor. Next month's guest is John Ross,
executive VP of the Appraisal Institute. Being there is much better, but
you can get at least read what was said.
---------------------------------------
Environmental reports for $9.95? Check it out at
www.environmentalalert.com . Developed by
an appraiser, Atom Levi, MAI, SRA
and his partner. Being marketed to consumers. See environmental problems
near the White House (the demo address). Yes, that's the same Atom Levi
that developed an AVM, REASON (the AVM with 20-plus page reports), with two
other appraisers and sold out for big bucks (big bucks to appraisers anyway).
------------------
If you didn't get an email last Monday, let me know and I'll send it to
you. Apparently there were some problems with my ISP, particularly with
AOL. Who knows why??
--------------------------------
Check out www.nfibonline.com, the web site
for the National Federation of
Independent Business. Sign up for their daily e-mail newsletter, with links
to their useful micro-business "workshops" on topics such as avoiding
burnout and surge suppressors .
6/13/99- brokers/dinosaurs/fha/pmi
June 17 is the 5th Anniversary of this weekly email!! On June 17, 1994, I
sent out my first weekly email update to Tracy Taplin, Bruce Hahn, Tom
Cryer, and John Warr. Only Tracy Taplin is no longer a subscriber! (I
somehow lost her email address.) The topic was FIRREA/deminimus. I missed a
few weeks (computer problems, traveling) but subscribers became "hooked" on
their weekly news, jokes, rumors, and tidbits that were waiting for them on
Monday morning. Now I'm up to over 1,000 and growing at 30 to 40 a week
(from my Web site signups).
----------------------------
Dell Computer is searching for the oldest personal computer being
operated
by a small business owner. To celebrate the 25th anniversary of the PC,
Dell is offering to replace the computer with $15,000 in new Dell computer
equipment.
If you think you may be eligible, call 1-877-572-DELL or go to
http://www.dell.com/smallbiz/oldestpc/. Thanks to the E-news service from
www.nfibonline.com for this great tip!
-------------------------------
Rates up/apps down. With rates over 7.5% (30 year FRMs) per the MBA
(Mortgage Bankers Association), and the trend expected to continue with the
bond market expecting a Fed rate hike, it's time to think about non-refi
work. Purchases and home equity is still strong in many areas. Look for
lenders active in those markets, or do some marketing to current clients
active in those markets.
Per the MBA, for the week ending June 4, mortgage applications dropped
22.4% from the previous week. Compared to the same week last year, loan
apps were down 23.9%.
-----------------------------
According to a recent proprietary study by Wholesale Access, a market
research company in Columbia, MD, brokers originated 70% of the total $1.7
trillion (including subprime originations) in mortgage originations in
1998. In contrast, in 1987, only an estimated 20% of loans were originated
through brokers.
Currently, there are an estimated 36,000 mortgage brokerages in the
U.S.,
way up from an estimated 7,000 in 1987. In 1995 there were an estimated
23,000 brokerages.
------------------------------------
Thanks to those who sent their comments on reviewing. According to my
sources the ASB will have a proposed something out in a few weeks on
reviewing. I'll let you know.
--------------------------------
Woops!! According to my notes, Fannie may is NOT be using BPOs, only
appraisals ordered and paid for by the servicers, for PMI removal.
Here's a link to the top 25 servicers:
http://www.nmnews.faulknergray.com/nmn/q498serv.htm
The June issue of the Appraisal Today newsletter had a 4-page article on
PMI removal appraisals. If you subscribe to the newsletter ($99 per year)
I'll send you a copy of the June issue.
------------------------------------------------
This week I am starting a new email newsletter, sent twice a month,
distributed by Joan Trice, of www.e-appraiser.net
. Some of the information
may be the same as this newsletter. I am doing it to promote my web site at
www.appraisaltoday.com. It is oriented towards residential lending and will
have less breaking news, rumors, and computer info. The sender of this
email will remain Appraisal Today E-news. I don't know who the sender will
be on the Tips email yet. I hope there isn't mass confusion over the two
emails!!
---------------------------------
I finally finished my annual E&O insurance update. The big change this year
was St. Paul's exiting the market because of too many losses in California.
Info will be published in the July issue of Appraisal Today newsletter.
----------------------------
The new FHA list of 200 questions, plus a list of test centers has been
released. There is a copy of the new manual, but it is dated 4/99 so I'm
not uncertain if it is the "official" version. I'll let you know next week.
Go to http://www.hud.gov/reac/reasfappr.html
All FHA appraisers must pass
the exam by February 1, 2000. To read comments, or contribute your own, go
to the very active HUD chat room at http://www.naifa.com/chat/hud/index.cgi
-------------------------------
Seems like every week there is some new virus destroying computers (well...
Those running Microsoft products). At the same time there are virus hoaxes.
How do you tell them apart? Go to http://www.symantec.com/avcenter/
.
BOOKMARK THIS ADDRESS! If you can't remember it or can't find your
bookmark, just go to www.symantec.com (the Norton Utilities people) and
click on the link to their virus page. The latest ones: Prettypark.exe (a
French Happy99) and worm.explorezip (This one is bad, bad, bad!)
6/6/99 Fannie-PMI/reviewing/good
appraiser
Fannie, PMI, and BPOs - Both Fannie and Freddie have the same new
PMI policies - appraisals or BPOs must be ordered by the servicer. Fannie
requires that the servicer order and pay for the appraisal. Freddie's
policy takes place immediately. Fannie's takes place 7/29/99. Less work for
fee appraisers. Fannie's press release isn't clear, so I spoke with Robert
Englestad, a Fannie VP.
------------------------
Good resource at Journal of Real Estate Research, the official publication
of the American Real Estate Society is online at
http://business.fullerton.edu/journal/
Many of the articles are online in
PDF format. They are academic articles, mostly relating to commercial real
estate, similar to those in the Appraisal Journal.
------------------------------
Reviewing and Standard 3 - seems like USPAP now says that if you do a
review and concur with the value you have done an appraisal. I don't know
how I missed that. Thanks to Dick Sorenson, ace reviewer, for pointing it
out. Guess I'll have to write about it in next month's newsletter. Any
opinions? Just hit the reply button!
-------------------
Y2K and your limiting conditions
" Properties may have year 2000 problems whose cost to cure would affect
the market value of the building... Appraisers may not have the knowledge
or experience to test for Y2K compliance or determine the cost to bring the
property into compliance. Therefore, the appraiser should consider making a
standard disclaimer and statement of limiting conditions. The article
includes a sample limiting conditions. Go to
http://www.appraisalinstitute.org/news/5-19-99_ec.htm
-------------
More inverse condemnation business from Supreme Court supporting the use of ury in a
takings case (May 25, 1999 ruling). "The high court decision has
a number of implications for appraisers, including the potential for more
demand for litigation appraisal services. Until now, very few cases
involving inverse condemnation were litigated because the plaintiff had too
much risk and had to front-end the litigation costs. In these cases the
plaintiff has the burden of proof to show there has been a taking." Go to:
http://www.appraisalinstitute.org/news/5-27-99_gin.htm
The article does not
have a link to the case. If you have the link, let me know!
-----------------------------------
My web site
- I'm finally setting up an appraiser links page. Reciprocal would be nice,
but not necessary. I'll probably have reciprocal links and newsletter
subscriber links in bold. Send me your Web site address!!
- I have revamped the Business tips section at
http://www.appraisaltoday.com/biztips.htm . One of the new articles is:
What is a "good" appraiser? - You may be surprised at what I think! Go to
http://www.appraisaltoday.com/goodappr.htm
5/3099- ASB/history of
appraising/fotos/graphs
Naifa sent a letter to HUD about sleazy
appraisers. Go to www.naifa.com and click on the link on the home page. They also have a
very active HUD chat room.
-------------------------------------
The ASB has posted the two new exposure drafts at https://www.appraisalfoundation.org/exdraft.htm
There is a link on home page at www.appraisalfoundation.org to Exposure Drafts as
well as What's New, which has the link to the Issues Paper on Standards 4 and 5.
-------------------------------
I have posted an article at www.appraisaltoday.com/appraisi.htm
- Appraising - from the middle ages to now by G. Michael Yovino-Young, MAI, SRA,
ASA Originally printed in the July, 1997 issue of Appraisal Today. It is a fascinating
history of appraising, going back to 1086 A.D.
---------------------------------------
I've been working on my Web site all weekend and finally have some graphics, including an
Official Company Photo page at www.appraisaltoday.com/photosc.htm
, including photos of Barnaby Jones and Skipper Mailman-O'Rourke for those who wondered
who they were (they are listed on the newsletter masthead).
Also have a few tips on PMI at www.appraisaltoday.com/pmi.htm
.
Have added the many links in this month's newsletter on the subscriber page at www.appraisaltoday.com/subscrib.htm
.
After fighting with graphics for over a year as I have many different formats, accumulated
over the past 5-6 years, I finally downloaded Adobe's ImageReady Web photo manager and
love it! Took me only a few minutes to get up to speed as I use PhotoShop Lite once a
month for my newsletter, but I'm really a novice user.
I finally put the MBA loan origination trends graph up on www.appraisaltoday.com/mbastats.htm
.
I'm also putting government documents on my site for downloads, starting with the May GAO
report on FHA (PDF format) at www.appraisaltoday.com/fha.htm
. Whenever I send the links to the government sites, they seem to change the next day!
5/23/99 FHA/ASB/clipboard
Ever wish you could put more than one thing into
your Windows Clipboard.
Here's a link to a review of three shareware programs on ZDNet:
http://www.anchordesk.com/a/adt0503kd/3343
-------------------------------
In May, five appraisal organizations sent a letter to Leland
Brendsel,
CEO
of Freddie Mac cautioned that the use of Brokers Price Opinions may place
unnecessary risks on mortgage lenders and secondary market investors. "We
believe that a broker price opinion cannot be regarded, for public policy
purposes, as a reliable estimate of a property's market value because it is
not performed pursuant to uniform standards and those who perform it have not
been tested for their valuation competency," the organizations stated.
The five organizations are the American Society of Appraisers, the
American Society of Farm Managers and Rural Appraisers, the Appraisal
Institute, the National Society of Independent Fee Appraisers, and the
National Society of Real Estate Appraisers. Thanks to the AI Washington
office for this info!
----------------
New GAO report on FHA appraisals
April 16, the GAO issued their third study on problems with FHA
appraisals, "Single Family Housing – Weaknesses in HUD's Oversight of the
FHA Appraisal Process."
Here are a few juicy tidbits:
The Philadelphia and Denver homeownership centers' records for 126
field
reviews that rated the appraisals as poor showed that HUD approved mortgage
insurance for 96 of the homes covered by these reviews. In 37 of the 96
cases, the field reviews were performed after mortgage insurance had been
approved. In addition, HUD staff did not routinely visit appraised
properties to determine the accuracy of the field review contractors'
observations.
Contrary to HUD's policy, appraisers who received two or more poor
ratings
in field reviews were frequently not prohibited from conducting further FHA
appraisals. During the first three quarters of fiscal year 1998, 246 of the
5,768 field reviewed appraisers within the Philadelphia and Denver
homeownership centers' jurisdictions received two or more poor field review
scores, but only 11 of the appraisers were prohibited from doing subsequent
FHA appraisals.
HUD has not aggressively enforced its policy to hold lenders equally
accountable with the appraisers they select for the accuracy and
thoroughness of appraisals because of disagreement within HUD over its
authority to do so.
To obtain a copy of the 35-page report, go to www.gao.gov and look up
report RCED-99-72, entitled, "Single Family Housing – Weaknesses in HUD's
Oversight of the FHA Appraisal Process." To find it, go to
http://www.gao.gov/new.items/newtitle.htm, then scroll down to the title.
You can also get a copy of the report by calling 202-512-6000. The
first
copy of the report is free.
If are concerned about the problems with FHA appraisals, read this
report.
5/16/99 Commissions/confidentiality/chain emails
Most of us get emails warning about a computer virus or some
other
catastrophe. Unfortunately, many of them are hoaxes, and it is hard to tell
the legit ones from the hoaxes. If you're not sure, here's a few places to
check:
- www.urbanmyths.com for the Disney, kidney, and Coke can hoaxes.
- Norton's virus hoax page. A bit dry, but has all the facts...
Go to www.symantec.com/avcenter/hoax.html
for Bud frogs, Guts to say Jesus, $800 from Microsoft, and lots of others. All the
most recent ones will be
posted here. They also have real viruses. Go to the link to the Virus
Center on the left of the screen.
----------------------
A few web sites
- http://www.mobilehomeparkstore.com
a new site for info on mobile home
parks, including listings, sales, brokers, and appraisers
- Steve Williams, MAI, is giving away comps at http://www.redsales.com/
. A
great promotional idea for his appraisal firm at www.williamsappraisal.com
- www.reprofile.com - a new Web site from
Stewart title has comml and res
news from Reuters and Inman plus info on legislation relating the real
estate in all the states and federal govt. Worth a look.
------------------------
Do you pay a commission to appraisers who bring in new clients? I used to
have an appraiser working for me who shut down his business and brought all
his clients, which he serviced. I gave him an extra 10% on his fee split.
But what about appraisers who bring in a new client? A one time up front
fee, a commission on each appraisal?? Any ideas??
------------------------------------
The ASB has two new Proposed Advisory Opinions.
"Confidential information in Standardized Appraisal Report Forms" is very
controversial and says that the some of the items on the front page of the
URAR is confidential and cannot be disclosed without the client's
permission, such as interior description and condition. Makes res databases
useless!! They didn't address the very, very controversial issue of
commercial appraisal confidentiality.
"Unacceptable Assignment Conditions in Real Property Appraisal Assignments"
addresses "comp runs" and "value checks," including those with the
statement "Please call and notify if it is not possible to support a value
at or above ______, before you proceed!" Specific, mostly practical, advice
is offered.
--------------------------------
The Mortgage Bankers Association reports that mortgage loan applications
for the week ending May 7 decreased 2.6 percent from last week. Compared to
the same week last year, loan applications were down 6.0 percent.
The MBA seasonally adjusted Refinancing Index decreased from 1062.9 the
previous week to 1042.1; the seasonally adjusted Purchase Index decreased
from 298.7 the previous week to 289.0. Other seasonally adjusted index
activity included the Conventional Index, which decreased from 507.0 the
previous week to 486.0 and the Government Index, which increased from 250.3
the previous week to 255.1.
5/9/99 FHA news/Freddie BPOs/E&O
I'm working on my annual E&O insurance update this week. If there are any
companies you'd recommend, or don't like, please let me know!!
----------------------------------
Freddie Mac announced this week in a press release that they would allow a
brokers price opinion (BPO) for PMI removal. In a recent email, the
Appraisal Institute said they were drafting a "letter of protest stating
that, a brokers price opinion of value is a cavalier approach to a serious
issue … the value of a persons home." The letter suggests that the intent
of the law was to provide the consumer with the choice to seek a
professional appraiser when seeking to cancel mortgage insurance. The
letter is being circulated to other appraisal organizations and consumer
groups for signatures." Contact your appraisal association and make sure
they protest this change.
------------------------
NAIFA is moving quickly on their FHA classes. They recently completed mock
exams. The results were:
" Apprx: 150 students took the mock exam in Dallas & Chicago. Only 2%
passed the 50 question mock exam leaving a 98% failing ratio. Apprx: 200
students took the mock exam in the Jersey areas. 99% passed the 50 question
mock exam with only 1 or 2 failing it. The difference was that in New
Jersey a 4 hour 4150.2 HUD review was given 1st then they took the exam. In
Dallas & Chicago the exam was given right at the beginning with no review."
These results were posted on the very active NAIFA chat board at
www.naifa.com . Go to the "New HUD" section.
--------------------------
According to a recent Appraisal Institute email, "HUD is planning is
planning to finalize revisions to the single-family appraisal forms and VC
sheet within the next 45 days. The home inspection check-off box has
tentatively been removed from the summary disclosure form in exchange for
an industry education program aimed at informing omebuyers of the benefits
of getting a home inspection. Additionally, the AI's comments expressing
concern for increased appraiser liability and specific suggestions for
changes to the proposed VC sheet are still under consideration."
The AI, the Mortgage Bankers Association (MBA) and the National Society
of
Real Estate Appraisers are also working on an FHA training class.
----------
The Mortgage Bankers Association of America weekly stats for the week
ending April 30 increased 3.6 percent from last week. Compared to the same
week last year, loan applications were down 5.0 percent. The MBA seasonally
adjusted Refinancing Index decreased from 1093.4 the previous week to
1062.9; the seasonally adjusted Purchase Index increased from 278.9 the
previous week to 298.7.
5/3/99 Graph
paper/logs/chat/directories
Ever need graph paper? I buy legal size graph paper in pads, but
my
supplier has gone out of business. I will be using a free program to print
more at:
http://perso.easynet.fr/~philimar/graphpapeng.htm
Thanks to Nicki McGee and Michael Cartwright for posting this info on
the
AI forum mailing list.
------------------------
Bill Sparks has an inexpensive appraisal log program ($59.95) for both Mac
and Windows in Filemaker Pro. To check it out or download a demo, go to
www.mwan.com. Here's a fun definition from his Web site:
Q: What is an appraiser?
A: 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 nebelous 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 feighns absolute ignorance
of the avericious machinations of Buyers, Sellers, Brokers and Lenders,
compensated only by that penurious stipend known as the professional fee.
-------------------------------
Want to communicate with other appraisers but don't want to hassle with the
80-100 messages of the AI forum mailing list. Try a chat board. The links
below plus comments and info on mailing lists, Yellow page directories,
netiquette, etc. are also at http://www.appraisaltoday.com/webfaqs.htm
http://www.naifa.com
http://www.atasmsc.com/forum/wwwboard/
http://rwm.net/wwwboard/index.htm
http://srv1.appraise.com/Forum/Forum.htm
-----------------------------------------
This week I got two assignments from Internet directories - one commercial
job(from an appraiser online directory) and one residential job(from a
Yellow Page directory). This month's "paper" newsletter, in the mail
Monday, will have a big article on this hot topic. Here are some of the
links to free appraiser directories I researched:
http://www.ora-net.com
http://www.findappraiser.com
http://www.appraisaljobs.com
http://rwm.net
http://www.e-appraiser.net
4/25/99 Jokes/gov stuff
I have some appraisal jokes on my web site. One of my favorites
is
Creative Appraisal Definitions. The link is on the home page at
http://www.appraisaltoday.com. When you go to the first joke page, the
links to the other joke pages are on the left side of the screen. Here are
a few:
- Band of Investments - A group of financial officers who hold jam sessions
in the back room of the NYSE.
- Fair Market Value - The value of items sold at a country fair.
------------------
The FDIC says the charge-off rate high LTV loans (124% to 150%) are
seven
times riskier than subprime loans.
To get a copy of the report, "Regional Outlook - National
Edition," go to
www.fdic.gov/prev-1999.html. The report also had a section on concerns
about commercial construction overbuilding.
-----------------------
The OCC recently issued a warning to banks on the risks of subprime
loans
(OCC Bulletin 99-15). Go to www.occ.treas.gov/ftp/bulletin/99-15.txt to
read the bulletin.
----------------------------
Notes from the October, November-December 1998, and January, 1999
meetings
of the ASC are at www.asc.gov. Click on FOIA (Freedom of Information Act),
then click on ASC meeting (top of page). Also check out any State Field
Review Correspondence about your state.
4/13/99 tax time/email /newbies
If you're on the AIForum and missed your emails when their server went down
(or you'd like to be on a list with fewer "chatty" messages), the appraisal
marketing forum is a good alternative. To join, go to
http://www.onelist.com/subscribe.cgi/appraisalmarketing The list has an
archive on the Web site, so if you lose a message, you can read it there.
Our AI chapter recently set up a list on www.egroups.com
. Our Web guru,
Dale Wyckoff, didn't like www.listbot.com
because of their file size
restrictions.
-------------------
Can't pay your taxes on April 15? In the April newsletter, I mentioned the
IRS now takes credit cards. Since then I read about people charging over
$1million on their AMEX credit cards to get frequent flyer miles (highest
reported so far is $9million). Paying by credit card can have some hefty
fees (1% to 3%) from your credit card company, so be sure to check first.
Plus the 12% to 18%+ in annual interest charges. To be honest, I haven't
paid my taxes on April 15 for the past three years (including this year) as
the IRS only assesses about 7.5% Annual interest on unpaid balances, much
cheaper than charging on a credit card. My CPA files for an extension to
August, when my cashflow is much better. If you owe under $10,000, the IRS
will let you set up an installment agreement. For the May newsletter, I'm
working on ways to save on taxes so maybe you'll owe less next year!!
-----------------------
The AI is offering a free copy of USPAP to their members. To order, call
312-335-4469.
---------------------
This week I attended the AI's Standards class, Part A (USPAP) and Part B
(AI supplemental standards). Although it seems like its an old topic to me,
since I have been writing about USPAP99 and took the ASB's two day class in
Seattle, as always I picked up a few ideas (which of course will be in next
month's newsletter). But what was really interesting to me was the "young
ones" in the class. Out of the 60 attendees, 5 or 6 were well under 30 and
were new appraiser trainees, most of them commercial researchers.
Maybe there's hope for the future after all!! Now, if we could just get
some of them involved in our local chapter...
----------------------------
Business has slowed down for most appraisers. Thinking about marketing.
Check out 59 ways to market your appraisal services at
http://www.appraisaltoday.com/marketin2.htm
4/4/99 Appraisers in the news/Oranet
Not much time for searching for stuff this week. Got too far behind on a
commercial appraisal that turned into a nightmare (part of the site on a
land lease, another part of the site in another city, highest and best use
issues, etc etc). And I even drove by it before I bid on it!! I shoulda
added a "0" at the end of my bid price...
For a pretty accurate description of what a res appraiser does, go to
http://www.newsday.com/mainnews/realcovr.htm
Its about a Long Island res
appraiser. The link was posted on the appraisal marketing forum by Ken
Rossman, also a Long Island appraiser. Thanks Ken! Look out Bob Bruss!!!!
www.ora-net.com has a new look (the Brenda
Dohring/Carlos Cardenas site).
Its got that "portal" site look on the home page, much more user friendly
than their old home page. You can download software for their getcomps
service there. Also has chat rooms and lots-a-links.
3/28/99 Melissa virus/tax tips/Freddie
Another email propagating virus - Melissa, Per MSNBC - "If you receive an
e-mail with the subject line "Important message from ... ," be suspicious.
If that message comes with a Word document attached called "list.doc,"
you've likely been sent the Word/Melissa macro virus. And if you open the
document, it will send 50 copies of itself to several e-mail addresses it
gleans from your personal e-mail. That gives it the ability to propagate
very quickly — much quicker than the happy99.exe worm, according to virus
experts." The virus was detected Friday, and is spreading rapidly. It
attacks computers with Word 97 or Word 2000 installed, but only sends out
annoying, embarrassing email (something about porno sites) and doesn't
damage your computer. Another reason for sticking with WordPerfect,
although we're a shrinking number.
Thanks to the AI forumites for posting this info!!
------------------------
Freddie Mac redid their Web site in early March, so good luck finding your
way around. No search feature, but the site map is of some use. To get
appraisal forms and instructions, go to Go to
www.freddiemac.com/sell/appraisal/
------------------------
Need a few tax tips? Should you take a home office deduction? Did you
review your tax preparer's work? You'd be surprised how many mistakes are
made! My 3/99 newsletter article is on
http://www.appraisaltoday.com/taxtips.htm
. The email archive at
http://www.appraisaltoday.com/email1.htm
has been updated and goes back to
10/11/98 so we can all find those missing links!! Warning - can take awhile
to download as it is 85K.
3/21/99 - Broker email,computer tips,comps ‘n comps
Having problems connecting with commercial real estate brokers? Try sending
email - it works!! Many are too busy to talk with appraisers during office
hours, but answer their emails before or after business hours.
------------
A few tips from this weekend's REAMUG meeting (appraisal computer users group)
- I want a color laserjet. The Tectronix, under $3,000, was demo'd. I love
my digital camera, but hate my inkjet printer. HP also has a sub-$3000
printer. Excellent output on plain paper! I will be getting demos on both
printers for the next newsletter.
- No faxes after 1/1/2000 as my clients' faxes can't figure out the new date.
- Rumors of an apartment AVM from Comps.com
- Major Win98 fix is coming but you'll have to pay for it.
- Hardware is cheaper, faster, and has more features (nothing new there...)
-------------------
In January, Comps Infosystems, Inc. changed their name to comps.com. On
February 25, they made filings for a $50 million IPO (initial public offering)
on the NASDAQ, with CDOT as their symbol. Is there a connection? Well, some hinks so. The
Internet is hot. Comparable sales are not. Comps has had
private funding in the past.
To get all the info, including financial information and future plans,
go
to http://www.hoovers.com for the links to the
SEC filing and news
stories. As of my deadline (March 20), the IPO initial pricing had not been
set.
Some tidbits:
- significant losses since inception, with $11.4 million of debt as of
12/21/98, with the losses expected to continue into the future
- on the Internet only since 1998
What does this sound like? An Internet company!
-------------
Check out http://realestate.yahoo.com/realestate/homevalues/
for free sales
prices of homes.
3/14/99 - Web ferret/dirt/passwords/USPAP
The AI has some interesting stuff on their News section - free USPAP, what
they think FHA is up to, new online seminars, etc. Most of the info is for
AI members but there is non-AI info also. Check it out at
http://www.appraisalinstitute.org/indnews.htm#new13
------------------
Can't remember your passwords? Way too many? Is your computer littered with passwords on
post-its. Go to http://www.anchordesk.com/a/adt0308kd/3158
for
some links to password software.
-----------------------
Check out www.webferret.com for some great
Web search software. Like
everybody else (including this email!), they give away a limited version.
The "full" version is $49.95 and includes searches for phone numbers, news,
email and other stuff. One good piece of appraisal info you really needed
and it will pay for itself. I downloaded it but haven't installed it yet,
but I have heard lots of good comments about it.
-------------
The 1999 USPAP is now online, all on one page, so it can be searched! You
can print it out but there is no pagination so it is somewhat difficult to
use. The ASB has their first monthly USPAP Q&A online. It appears to be a
revision of the version sent to Appraisal Foundation subscription service
subscribers. Question 1 regarding "assigns" has been removed. Go to
https://www.appraisalfoundation.org/asb.htm
----------------
I'm working on an article on appraiser directories for next month's
newsletter, everything from Yellow Pages to association directories. Let me
know which ones helped you get assignments, or which ones you're listed in.
----------------
The DIRT list - an Internet legal discussion group for real estate
professionals, with a daily summary plus other stuff posted on the Web
page. What kinds of topics? Appraiser liability, eminent domain, takings,
and electromagnetism. Managed by Patrick Randolph, a law professor at the
University of Missouri-Kansas City School of Law. Thanks to Michael
Cartwright for posting some of the more interesting stuff on the AI forum!
Go to http://cctr.umkc.edu/dept/dirt/
----------------
Nothing new on www.appraisaltoday.com this week. Too busy getting caught up on
appraisals!! If you're like me and can't ever remember the addresses for
the appraiser chat boards, they're in the Internet Tips section at
http://www.appraisaltoday.com/webfaqs.htm
I'm getting 20-30 hits a day now,
and plan on listing with the major search engines this week using
www.submit-it.com. No time for individual submissions, except maybe to
www.yahoo.com. I've been taking it slow until I got my email responses set
up and ready to go. I've been warned about the "weird" emails appraiser
sites can get!! (like...where can I rent a house...) Got my first link, and
a brief write-up ...on www.internetappraiser.com
. Thanks to George McCanse
of www.findappraiser.com with 3,000
appraisers listed!!
3/7/99 - FHA exams/duh-2000/job/dogpile/review humor
FHA releases Feb. 8 meeting notes on proposed changes, including exams. Go
to http://www.hud.gov/reac/reasfappr.html
And I thought an exam for
everyone on the FHA list was a fake rumor!
---------------------------------------------------------------
Rates are approaching 7%, so work may or may not pick up for last minute
re-fis. Now is the time for all the procrastinators who didn't do any
marketing!
-------------------------------
I've finally got all the software and am ready for a comparative review of
stand alone appraisal management software for the April newsletter. I'll be
reviewing appraisers toolbox new program, Day one, and Appraisal Log. If
you've had any experience with any of these, let me know. By the way, all
three run on Access databases.
----------------------
A couple of good links
http://www.dogpile.com I've been hearing about
this metaseach site for some
time. Tried it out on a tough search after wasting 2 hours on other sites.
It worked!
http://www.ceoexpress.com a great portal
site for business owners.
-------------------------
The appraisal foundation is looking for a Director of Research and
Technical Issues..resumes to be postmarked by 3/19/99. Pay is $85,000 to
$95,000 per year. Go to https://www.appraisalfoundation.org/whatnew.htm
----------------------------------
Check out www.duh-2000.com for some Millenium
quotes! Here's one - Vice
President Al "Mr. Information Superhighway" Gore weighs in on Y2k: "Wefeel,
and the Defense Department feels, that problem is not going to be a
problem. Of course, it can't be a problem. We won't allow it to be a
problem. ... We're confident that it is going to be solved, but we're going
to be doubly, triply and quadrupally confident that it's going to be solved
before September of this year." Wow. And we'll bet you didn't even know
"quadrupally" was a real word! Quoted on San Jose Mercury News Gore says
U.S. will be ready for Y2K February 28, 1999.
------------------------------
Several people asked me about my last week's message about phone
directories on the Internet. I was referring to the many Web sites with
telephone directory information. To see a list, go to:
http://www.appraisaltoday.com/webfaqs.htm
Surprising to me, many appraisers are not in the Yellow Pages. In my small city of
75,000, there are 6 to 7 practicing fee appraisers. Only 3 are in the Yellow Pages. I was
at a
breakfast meeting with a small group of local commercial appraisers. Only
half of us were listed in the Yellow Pages. I spend about $150 per month on
Yellow page ads. I get over $2,000 per month in business (nonlender work,
my favorite type of work).
-----------------------------------------
Day One has a new appraiser forum (discussion board) at
http://www.day1.com/appforum/
--------------------------
Having problems accessing these links? Here are a few tips
- if the link is highlighted in blue, try clicking on it to see if your
browser automatically launches
- If your browser doesn't launch, you will have to start it yourself and
retype the link, or use Windows cut and paste (highlight the link in this
email, push the Control and C keys on your keyboard at the same time, go to
the space for links at the top of the browser window, erase what is there,
and push the Control and V keys at the same time to paste the link into
your browser. Or, just type www.appraisaltoday.com in your browser to go
directly to the home page. All the links are on the Web site.
-----------------
New on appraisaltoday.com
- Commercial appraiser links (Fortunately, the author, Lisa Ornelas,
emailed me the list, so I didn't have to retype it!) at
http://www.appraisaltoday.com/comml.htm
Some of the links got "lost in the
email" so I'll post them later this week. Send me your links!! I also
posted articles I wrote last year on getting apartment rents and commercial
listings.
- redesigned home page with more humor. It was way, way too boring!!
- New reviewer humor from Dick Sorenson, OFFICIAL MEGABUCKS BANK APPRIASAL REVIEW FORM at http://www.appraisaltoday.com/review.htm
2/28/99 - Rates up/Loan apps down in MBA weekly survey
The Mortgage Bankers Association of America (MBA) released its weekly
Mortgage Application Survey results today, reporting that mortgage loan
applications for the week ending February 19 decreased 11.1 percent from
last week. Compared to the same week last year, loan applications were down
13.3 percent.
The MBA seasonally adjusted Refinancing Index
decreased from a revised
1401.4 percent the previous week to 1324.2; the seasonally adjusted
Purchase Index decreased from a revised 232.9 the previous week to 231.7.
Other seasonally adjusted index activity included the Conventional Index,
which decreased from a revised 516.0 the previous week to 495.1 and the
Government Index, which increased from a revised 217.9 the previous week to
220.0.
Refinancing activity represented 47.1 percent of
total applications,
down from 50.1 percent the previous week. The average contract interest
rate for 30-year fixed rate mortgages was 6.89, increasing from the
previous week at 6.86, with points decreasing from 1.55 to 1.44 (including
the origination fee) for 80 percent loan-to-value ratio (LTV) loans
To see all the stats, back to 1990, go to
http://www.appraisaltoday.com/mbastats.htm
-----------------------------------------
Appraisal library online
The Appraisal Institute's excellent Lum Library is now on the Internet.
Go
to http://www.appraisalinstitute.org
. You don't have to have any special
software to use it. Searching for citations is free to all. Copies of
articles are free to AI members. It's well worth bookmarking. No more
thumbing though back issues of the Appraisal Journal looking for relevant
articles!
---------------------------
Internet orders
I've been getting more and more inquiries orders from the Internet. Not
from being on the AI and ERC Internet directories. Not from my Web site.
They're all from phone directories on the Internet! Anybody else having the
same experience? About 2/3 of the inquiries resulted in an assignment.
-------------------------------------
New at www.appraisaltoday.com
- Chapters from my consumer book (in process) at
http://www.appraisaltoday.com/nonappr.htm
Some topics - big trees, homes
needing work, what do buyers want. Appraiser "war stories" for consumers.
Feel free to link from your Web site.
- Links to forms software vendors web sites. Discussion boards and mailing
lists where forms software is discussed...one of appraisers' favorite
topics! http://www.appraisaltoday.com/forms.htm
- Lots of links from the March newsletter will be up by mid-week at
http://www.appraisaltoday.com/subscrib.htm
. The newsletter will go in the
mail Monday or Tuesday.
2/21/99 - Happy worm/appraiser clients/FHA letters
Watch out for the happy.exe worm
There's a new worm spreading like wildfire over the Internet as an
automatic email attachment. I recently received many copies of this program
via the Appraisal Institute's email forum.
When you download your email, be sure to watch for a happy.exe
attachment.
If you don't open happy.exe, you're okay. Just delete it. If you open
happy.exe, don't send any email until you remove it. It "worms" its way
onto your computer.
To remove it, you can download and run the most recent version of your
antivirus software (late January, 1999). To get instructions on how to do a
manual fix (plus more info on the worm), go to
http://www.symantec.com/avcenter/venc/data/happy99.worm.html
I wasn't able to find very many E&O insurance Web sites. Here's a few:
http://www.japrice.com , http://www.liability.com ,
http://www.frea.com,
http://www.hobbsgroup.com and click on
"inside Hobbs Group."
I'll have names and phone numbers in my March newsletter, but the
information is from last summer. If you're up for renewal now, let me know
and I'll send the list.
-------------------------------------------
Interesting stuff in the January Appraisal Journal (To be honest, I usually
just throw it in the pile, but this month I leafed through it.) The article
is titled A cross-cultural comparison of the appraisal profession a
contrast of American and United Kingdom appraisal practices. Here's a few
tidbits:
Percent of work for Client type (U.S. appraisers)
Commercial bank 30.7%
Mortgage company 24.7%
Savings and loan 13.0%
Appraisal Mgmt. Co. 4.1%
Insurance company 0.9%
Pension fund 0.4%
Government 6.2%
Attorneys 6.5%
Private parties 6.7%
Other types 3.2%
Without lenders, appraisers wouldn't have much business. The percent
for
AMCs was probably slightly low as samples were taken from the AI directory
as well as the ASC national appraiser registry, so more MAIs were probably
included in the sample
Full info in my March newsletter, or read the full article in the
Appraisal Journal!
-------------------------------------
ASA, NAIFA, and CAPPS sent a letter to FHA about the proposed changes. You
can read the full letter at www.naifa.com. Click on the link near the
bottom of the home page. I haven't been able to find a copy online of the
AI, NAR, MBA, and NAHB 20 plus page letter plus recommendations.
Good article in the 3/9/99 issue of PC Mag on upgrading your PC plus a
review of two tax programs (April 15 is approaching!) Go to
http://www.pcmag.com .
2/14/99 - Kodak
recall/Fiji/E&O/divorce/etc.
Not too much time for news this week. Spent the weekend grinding out a
commercial appraisal...still not done yet...Forgot that Monday was a
holiday and didn't realize until late Friday that everyone but me was off
and not returning phone calls... Also, spent too much time trying to get my
laserjet to work. It kept printing a one line cryptic message with w's and
?'s (secret computer code??). Finally called my computer guru who suggested
checking the printer cable...yep...it was partially pulled out! (I had been
moving stuff around) I didn't know it would print anything if partially
disconnected so I didn't check the cables.
Picked this up off the NAIFA discussion board this week (I get them via
email)at http://www.naifa.com
KODAK acadapter PRIVATE Mailing List
CPSC, Kodak Announce Recall of AC Adapters for Digital Cameras
Kodak is conducting a voluntary recall on the optional AC
adapters manufactured by ELPAC Electronics, Inc., that were
supplied as a digital camera accessory to KODAK DC25, DC40, DC50
and DC120 Digital Cameras. If these ELPAC AC adapters are not
fully plugged into the digital camera, it may cause the batteries
to overheat, leak acid and possibly explode. This condition could
result in thermal burns, chemical burns, or lacerations. Your
KODAK digital camera is not being recalled, and may continue to
be used without concern as long as you do not use the recalled AC
adapter while batteries are installed in the camera.
That's why we're conducting a voluntary recall in cooperation
with the U.S. Consumer Product Safety Commission (CPSC). This
precaution is part of our commitment to always providing you with
the highest quality products and service. These AC adapters are
being removed from distributors and retailers and are no longer
available for purchase from Kodak.
If you have one of these cameras and are using an
ELPAC AC adapter, model numbers 2457, 2534, M42008 or
MI2008, please contact us immediately. Go to
http://www.kodak.com/go/acadapter
right now to arrange for the return and free replacement
of your adapter. Or call 1-888-404-3711, 24 hours a day,
7 days a week. Or, you can return your adapter and save up to $200
when you upgrade to a Kodak Digital Camera DC210 Plus,
DC220 or DC260 (Kodak-approved AC adapter included).
This special offer is available now through June 10, 1999.
We recognize that this may inconvenience you, and we'll do
everything possible to resolve the situation as quickly as
possible.
* The DC200, DC210, DC210 Plus, DC220 and the DC260 do not
use this adapter and are not affected.
Best Regards,
Accessories Team
Kodak Digital and Applied Imaging Division
Has any appraiser ever had an adapter blow up? I recall an email from an
appraise who blew up two!!
Ed Williams posted a couple of good Web sites to the AI forum:
National Trust for Hist. Pres.
http://www.nationaltrust.org/
National Register Information System (NRIS)- Searchable register of 80,000
historic places.
http://www.nr.nps.gov/nrishome.htm
Ken Rossman posted two inkjet sites:
Everything you ever wanted to know about refilling inkjet printers...
http://www.oddparts.com/ink/
http://www.oddparts.com/ink/help.htm
Posted in January to the appraisal marketing email forum:
From: "Brian J. Davis, SRA"
Divorce Source, Inc. has designed the Divorce Source Network to appeal to
all types of divorce related professionals including Appraisers.
Advertising opportunities. www.divorcesource.com
-----------------------------------
A fun tidbit from http://www.pikenet.com :
2/11/99 PIKENET
.1. SURFING THE NET CAN BE HAZARDOUS. ... Warning: Prepare to
eat your heart out. ... Matthew Myers
ltcrealtyconsultants@msn.com, an MAI from Charlotte, NC, writes
as follows: "As a real estate appraiser and consultant, I use
your site several times a week. ... Whilst doing some research
on PikeNet, I came across the American Real Estate Society
site. Just browsing, I looked at the Job section. I found an
interesting position: Lecturer in Real Estate Valuation at the
University of the South Pacific in Fiji. I applied, and will be
leaving for Fiji this coming Friday to start teaching.
Virtually all contact was made over the Internet, along with
substantial research on Fiji. Other than sending the originals
of my application, EVERYTHING has been via the Internet." ...
Hmm. Is this what they mean by balancing work and family life?
-----------
New this week on http://www.appraisaltoday.com
- revision of the MBA stats page so it doesn't take so long to download. I
kept the most recent 3 years, and put the full data on another linked page.
- E&O insurance links will be coming very soon...late this week. I'll put
the links in next week's email message also. St. Paul is pulling out of the
Calif market. The NAREA policies are not being renewed. The broker, J.A.
Price is offering Northland insurance. I don't know about the other
markets. Let me know if you've received a non-renewal letter.
I've actually made a few sales already from the web site. Plus lots of
inquiries and additions to this email list. I'm not promoting it much until
I get lots more stuff on it.
2/7/99 - FHA/Mort stats/Mavica
AI, NAR, MBA, and NAHB sent a joint letter plus 14-page comment statement,
dated 1/29/99, to HUD regarding the new FHA HCAR, particularly the many
condition questions that must be answered by the appraiser, making it
similar to a home inspection. The greatest objection by appraisers was to
Certification #11:
11. I understand and agree that the above appraisal is a substantial and
material element in the determination of the eligibility of an application
for FHA mortgage insurance and that HUD/FHA will rely upon the accuracy and
truthfulness of this appraisal in approving any insurance. I understand and
agree that by delivering this appraisal with knowledge of any materially
false, fictitious, or fraudulent statement set forth herein (including
without limitation the above certification), I may be subject to imposition
of sanctions, penalties or other regulatory actions, including but not
limited to: fines and imprisonment under 18 USC 287, 1001, 1010, 1012,
which provides for fines of a maximum of $25,000 for individual and
$500,000 for organizations or imprisonment for up to 5 years, or both; or
civil penalties and damages under 31 USC 3729, of not less than $5000 and
not more than $10,000, plus 3 times the amount of damages which the
Government sustains; or administrative sanctions pursuant to 24 CFR Parts
24, 28 and 30 which may include suspension or debarment.
Per the Statement:
As proposed, this VC sheet will lead to several consequences:
1. Many appraisers will refuse to do FHA appraisals.
2. Appraisers who this work will incur a great deal of added liability.
3. Appraisal fees will rise by $50-$250.
4. Appraisal turnaround times will increase.
5. Appraisers use of this VC sheet may constitute a home inspection in
states where home inspector licensure exists, thus putting them at odds
with licensing laws.
6. Many lenders will shun FHA lending due to the added problems associated
with the inspections that will arise from this form.
7. Homeowners will have a false sense of security due to the specificity of
the VC sheet. This may cause them to forego a home inspection.
Sony's Mavica has 41% digital camera market share per a 1/25/99 Wall St.
Journal article. Mossberg's 1/28/99 Personal Technology column featured the
Mavica. Why is it hot? One answer..standard floppy disk. After fighting
with direct serial port download, pc card reader,and finally a floppy disk
reader, I can see why its hot. I love my Olympus, but setting up
downloading was a hassle.
-------------------------------
New this week on http://www.appraisaltoday.com.
- Consumer FAQs you can link to from your web site at
http://www.appraisaltoday.com/nonappr.htm
- MBA loan origination stats back to 1990. Compare today with 1996 or 1991!
The MBA stats typically are ahead of appraisal requests by one to three
weeks. Seasonally adjusted stats for the week ending 1/29/99 are up 19%
from the previous week and down 6% from the same week last year. I have
been graphing the stats in my newsletter since 1992. To go to all the
unadjusted stats: http://www.appraisaltoday.com/mbastats.htm
In case you were wondering why you were swamped in October and slow in
January, here's the reason:
Week Total//Purch//Refis
ending
01/29/99 476.6 261.4
1741.7
01/22/99 399.20 224.6
1415
01/15/99 428 232.3
1634.4
01/08/99 391.9 202.4
1494.2
01/01/99 226.5 114
881.1
12/25/98 234 125.5
864.8
12/18/98 401.1 200.3
1569
12/11/98 455.3 210.6
1879.5
12/04/98 502.4 235.4
2056.1
11/27/98 358 168.5
1460.4
11/20/98 456.1 222.5
1814.8
11/13/98 431.5 239.1
1550.7
11/06/98 523.1 271.5
1987
10/30/98 569 237.7
2495.7
10/23/98 654.7 290.4
2774.3
10/16/98 522.9 260
2256.3
10/09/98 982.2 333.2
4389.1
10/02/98 727.6 293.4
3253.1
09/25/98 626.9 273.4
2682.7
Coming soon to http://www.appraisaltoday.com
- Where to get info on forms software - mailing lists, discussion boards,
links to vendor sites.
- E&O carrier links.
- Where to get appraisal info online, such as apartment rents and
commercial listings
1/31/99 - email
sucks/mortgage stats
http://www.comps.com has added instant PDF
delivery of comps. I used it
this week when I needed "one more comp" for an appraisal I was working on
(rushing a deadline of course!). Worked great. $16 each for comps under
$5,000,000. Credit card ordering. FYI, they changed their company name to
comps.com, inc. (formerly comps, inc.)
-------------------------------------------
Got this link by email. Pans email programs (including yours!) Written by
Jesse Berst
WHY EMAIL SUCKS (AND HOW TO FIX IT)
http://www.anchordesk.com/a/adt0128ba/3035
Does it boggle your mind as much as it does mine that
email -- the No. 1 application on the Internet --
is also the most bungled app around? Nobody is even
close to getting it right. Come to the site for my
prescription on how to fix it. Could be a fortune
in the making for the right person.
-----------------------------------------
This week's featured www.appraisaltoday.com article: How to get your
appraisal firm on the Internet, from the 2/99 newsletter. Go to
http://www.appraisaltoday.com/apprco.htm
I've been updating the site a couple of times a week...still have lots of
stuff to add! Just finished a subscriber links page at
www.appraisaltoday.com/subscrib.htm
with direct links to articles in the
February newsletter, to be mailed Monday (tomorrow).
---------------------------------
Bankrate monitor stats - http://www.bankrate.com
Mortgage rates fell this week, according to the bankrate.com
national survey of large institutions. The 30-year fixed rate fell 3 basis
points to 6.75 percent, while the 15-year fixed rate declined 4 basis
points to 6.40 percent.
MBA stats - http://www.mbaa.org
WASHINGTON -- Mortgage loan applications for the week ending January 22
decreased 8.9 percent from last week. Compared to the same week last year,
loan applications were down 28.3 percent.
Refinancing activity represented 52.0 percent of total applications, down
from 54.7 percent the previous week. ARM activity decreased from 10.1 the
previous week to 5.8.
The survey provided the following information on the state of the home
mortgage market:- the average contract interest rate for 30-year fixed rate
mortgages was 6.73, decreasing from the previous week at 6.81. The MBA
Mortgage Application Survey covers approximately 40 percent of all U.S.
retail residential mortgage originations and has been conducted weekly
since 1990. Respondents include mortgage bankers, commercial banks and
thrifts. Base period for all indexes, March 16, 1990=100.
See Page 12 on every Appraisal Today newsletter for a graph of stats -
showing the ups and downs of loan apps. Lets you know what is coming as
apps are taken before appraisals are ordered.
1/24/99 - www.appraisaltoday.com is finally up!
Yes, http://www.appraisaltoday.com is finally up! I will be adding more content in
the next several weeks, and will be updating it at least once a week. If you visit it, be
sure to let me know what you think! Use Contact Us, or the email link to me at the bottom
of each page. FYI, the site is over 70 pages, and growing. I did it myself in FrontPage,
which is why there are no graphics...to be added later after assistance by a designer. I
have tested the three forms and they seem to be working okay. Let me know if there is a
problem. Check out the email archive at http://www.appraisaltoday.com/email1.htm
. Or, click on Free email newsletter, then click on the link to the email archive. I have
lots more material to add, but have to get back to appraising for awhile!!
--------------------------------------------
The Appraisal Institute recently set up a password protected,
"members only", side of their Web site at www.appraisalinstitute.com . You can register
yourself, unless your name has an apostrophe, like O'Rourke. I finally had to call to get
it straightened out. Has message boards, but only a few postings in late January.
--------------------------------------------
Thanks to those who replied to my request last week for collection tips. I've got some
great ones, especially the ones from "anonymous insiders"! Got so many good
tips, I've expanded the article into Part 1 (February) and Part 2 (March).
1/17/99 - FHA/Fed takings/collections
Any advice on collections and accounts receivable management? I'm working
on an article for the February newsletter. I am particularly looking for
ideas on collecting from nonlocal clients, such as appraisal management
companies. You may see your name in print if you send a good one!
--------------------------
FHA has released the latest draft versions of HCAR (Hud Conditions and
Appraisal Report), dated 1/11/99. Part 1 is the 7 page, letter sized, VC
(Valuation condition) Segment. Part 2 is HUD's appraisal form report, a
modification of the URAR with no Cost Approach and other changes. A draft
version of the HUD/FHA Valuation Analysis for one- to four- single family
dwellings, Handbook 4150.2, dated 2/11/99. Both documents were posted on
the HUD web site 1/14/99 http://www.hud.gov/reac/reasfappr.html
. DEADLINE
FOR INPUT IS JANUARY 28, 1999! To print out the URAR-like part of the
report, be sure to change your Adobe Acrobat printer settings to legal
sized paper...and don't forget to change it back to letter size (I
forgot!). More info in the "paper" newsletter, of course!
You can get a copy of the 4150.1 manual plus other manuals and guidelines
at http://www.hud.gov/hoc/sna/snatapra.html
. The Santa Ana HUD office which
has some good appraiser info. An excellent bookmark for FHA appraisers,
particularly if they are on the West Coast as the site has info for the
Santa Ana district.
-------------------------------------------------
If you do appraisals for federal takings, be sure to check out the
Congressional Budget Office's December report, "Regulatory takings and
proposals for change." You can download or printout a copy at
http://www.cbo.gov . The link is on the home page. It is
a 75-page document.
The Appraisal Institute's Washington office has been following this issue
and providing input.
--------------------------------------------
Need a copy of UASFLA = Uniform Appraisal Standards for Federal Land
Acquisitions? Go to http://www.usdoj.gov/enrd/land-ack/
. It is dated 1992,
and was posted in 1996. Downloadable in WordPerfect 5.1 format or just
print it out. Got this link off the AI forum.
-----------------------------
One of my favorite email newsletters is Jesse Berst's Anchordesk(Ziff
Davis) on computer stuff. Links to stuff on on the ZDNet site. To check it
out, go to http://www.zdnet.com/anchordesk/
Check out the Killer Downloads
at http://www.zdnet.com/anchordesk/killerdownloads/index.html
January 10, 1999 - dig cameras/web stuf/UPS
The January 19 issue of PC Magazine has a good article on digital cameras.
Plus info on the best free software sites. Go to http://www.pcmag.com
----------------------------------
Two new appraiser chat boards:
Check them out at:
http://www.atasmsc.com/forum/wwwboard/
- about 15 messages 1/8/99. Check
out http://www.atasmsc.com for links to some
interesting appraisal FAQs and
other stuff.
http://rwm.net/wwwboard - about 10 messages
1/8/99. Plus free web site
hosting and some other stuff. Will email you any new postings.
-----------------------
Finally got my UPS software set up and running this week. Now I know when
my clients actually receive their appraisals and can check where their
package is when in transit! I have had numerous problems over the past
several years with a bank client about 20 miles away. When possible, I
deliver, but sometimes I had to UPS the reports. Somehow they took 2-3 days
to get to the appraisal department after delivery to the bank. Now at least
I will know when UPS dropped it off and who signed for it. Plus of course,
all the other clients that "don't have" an overnight mail that was sent by
me two days ago. Plus, prints out the address info and bar codes for the
package. Info at http://www.ups.com
-------------------------
So what are appraisers using the Internet for? How about
http://www.ebay.com , the hot online auction site. At a
recent chapter
dinner meeting, two of the eight appraisers at my table were regular ebay
users. So what did they buy? Salt and pepper shakers, a 1953 hand painted
Christmas card, and a quilt. How did they know it was "legit" for an over
$300 quilt? The appraiser watched the quilt auctions for several weeks to
see who the regulars were. Of course, I was trying not to think about all
the appraisers making big bucks off their stock buys, like ebay!
I have been thinking awhile about what sells best on the Internet. Besides
books and computer stuff, items that have very limited markets seem to do
well. For example, the small book store market is being devastated by the
chain stores and the Internet, but the antiquarian book market is really
helped by several Web sites where they can buy and sell books. I will never
forget a conversation I had about a year ago with a guy who owned a classic
Jeep. Broke down and couldn't find parts anywhere for months. Went on the
Internet. A half hour later he found a company that will remanufacture any
part you need. Ebay is about the biggest place selling stuff that not that
many people want!
--------------------------------
FYI my new web site will be at www.appraisaltoday.com **not** appraiz.com!
Should have it up pretty quick. Am giving an Internet presentation January
21 and I had them put in the writeup for the workshop that I will have my
site done by then! Its ugly but with lots and lots of content and
link-o-mania. After going to too many web pages where there are no links to
anywhere, I have mega-links on each page! Over 60 pages and growing every
day...
1/3/99 - Consumers/Y2K tidbits
Not too much news this week. Lots of people (non-appraisers!) on vacation
I guess.
My Web site is starting to shape up. Hope to be done by the end of January, or sooner.
I've got the jokes section done, of course. If you've got any good ones, like last week's
Top 10 reasons why it is great to be an appraiser, send them to me and get your name on
the Internet! Plus an email archive. The news section is almost done. I find it very
tedious...sort of like taking a 200 page narrative and putting it into 1-2 page segments,
having to link them all together and not getting it too messed up!
Here is the list of questions for my consumer section. I figure I'll get some home owners
stumbling onto the site... These are questions I get asked. I get all of these questions
at one time or another. Any you think I should add? I didn't include my answers as the
email would be too long. The focus is on appraising homes but I throw in a little on
commercial appraising. You'll have to read them on the Web site and see what you think!
-----------------------------------
What is an appraisal?
What is an appraiser?
What about appraising paintings, jewelry, machinery, etc.?
What about appraising businesses?
What's the difference between an appraiser and a real estate agent?
Who can do appraisals?
What do appraisers really do?
What about appraiser licensing?
What are appraisers' professional standards?
What state laws are appraisers subject to?
Who regulates appraisers?
When do you need your own appraiser?
What should you look for when hiring an appraiser?
How can you find a qualified appraiser?
What about fees?
What are "MAI appraisers"?
What do the letters after appraisers' names mean?
How can you become an appraiser?
What if you don't agree with an appraisal? (A typical Bob Bruss question!!)
Why you should hire me to do your appraisals (Just kidding!!)
----------------------------
Picked up an interesting Y2K tidbit from today's local newspaper.
Seems like some new computers aren't y2k compliant. And, guess what... even Windows 98
isn't either. Did get a link to free upgrades at http://www.microsoft.com/technet/topics/year2k
actually a pretty good site. Nice to know I'll have few problems with my DOS 6.22
and Windows 3...except years have to be four digits and there was some problem on February
29. Of course, Macs are compliant way past 2000...
12/27/98 - humor/hours/domain
Top Ten Reasons why it is great to be an appraiser
10. Dazzle your friends with your knowledge of external obsolescence.
9. The wonderful world of rats, bats, and spiders.
8. Be a part of the profession blamed for the collapse of the savings and loan industry.
7. See places in people's houses that usually require a search warrant to access.
6. Arouse the suspicion of an entire neighborhood when inspecting comparable sales.
5. Chance to really irritate annoying real estate salespeople.
4. Walk around holding a clipboard just like "Skip" down at the Jiffy Lube.
3. Spend hours writing volumes of supporting documentation to justify the market value of
a property you already decided on when you pulled into the driveway.
2. See that some people really do hang those black velveteen pictures of Elvis on their
living room walls.
1. Be one of a handful of people who know that USPAP is not a medical term.
Many thanks to reader Joe Ibach, MAI for this great list! He doesn't
know the source...seems like it is one of those fax/refax/refax appraiser jokes...now
floating around in cyberspace!
Got any good appraisers jokes? Fax, email, or snail mail them to me.
You may see your name in print and on the Internet!
------------------------------------------
Thanks to those who responded to my request for borrowers asking for appointments on
weekends and evenings. Of course, during the appraisal recession, I wasn't so picky on
scheduling appointments! Here's a summary of the responses.
I have always thought that offering evening and weekend appointments
would be a way to differentiate your company from your competitors. I did work Saturdays
the first few years of my business, but then quit as I didn't "have a life." I
do work evenings when days are longer as I am not a "morning" person.
Almost all the appraisers said they work during normal business hours
and don't work Saturdays except a few times a year in "emergencies."
Several owners of large appraisal firms said some of their appraisers
worked evenings and Saturdays.
A few appraisers said they regularly worked evenings and Saturdays. The
best reason was from an appraiser who does mostly work for private individuals, to make
the appointments more convenient for them. He also, very occasionally schedules a Sunday
appointment. One appraiser worked on Saturday mornings as there is less traffic and it is
much easier to schedule appointments.
Here are some suggestions I received:
- In special circumstances (i.e., single moms) go to the property during normal business
hours to take photos and measure and then go back at 6PM to do the interior.
- Say that only an "adult" must be present - a friend, neighbor, relative, etc.
- Schedule the appointment during their lunch hour and offer to call a half hour ahead to
remind them.
- Include your business hours with your sample package to new clients and license renewal
copy to existing clients.
- One appraiser suggested charging a premium for working outside of normal business hours.
- Offer to schedule between 6AM and 6PM, saying "that's a 12-hour time period for
your convenience." Those who do say they seldom get a request for prior to 7AM!
- One appraiser has a friend in the business that was getting pressure from a client that
would require him to work Saturdays and Sundays. He said, "Fine, are you going to be
in your office at 2:00 PM Sunday afternoon so I can deliver your appraisal" The loan
officer said, "Of course not I don't work on Saturday and Sunday." The appraiser
said, "That is OK. What is your home address. I will deliver the appraisal to your
house and we can review it together." The loan officer got the picture.
- Try using "I'm setting up my appointments for the next few weeks and was wondering
if you're available Thursday @9:00AM...??
- Some appraisers don't like to work Saturdays because taking comp photos is a hassle with
everyone at home.
Many thanks to the appraisers who responded to my email request for ideas and input - Ken
Rossman, Rick Solis, Tom Cornelius, Tom Cryer, Dave Loving, George Alexa, Ronald James,
Ted Dixon, Matt Cook, Curt Drahn, Kevin Bokotske, Robin Gabriel, Randy Beigh, Richard
Kern, Dennis Tompkins, Seth Weiss, Frank Lucco, B.J. Crowley, Barbara Decker-Spence,
Jonathon Miller, Kris and Bill Kohn, Mary Green, Don Rousseau, and Mike Young. Thanks to
reader John Courtney for suggesting this great topic!
-----------------------------------
Ever been to a Web site and wondered who owned it, especially if there
was no phone number and address on the site? Or, ever wondered if someone already had your
domain name, smithappraisal.com? You can check it out at rs.internic.net.
-------------------------------
My web site at www.appraisaltoday.com should be finished within the next two weeks, and
available in January. I'll let you know. Nothing fancy, but lots and lots of stuff on the
site - web links, news, jokes, etc. etc.! Maybe I'll become the appraisal portal site!!
Lost out on a couple of commercial appraisal year-end bids so I've got a (almost) a whole
week to work on it...
12/20/98 - Work hours/data/xmas for appraisers
First American has just purchased Market Data Center (MDC), the largest
appraisal co-op in the U.S. It started as the SREA Market Data Center,
which became the AI Market Data Center, and terminated its licensing
agreement with the Appraisal Institute in 1996. First American purchased
Experian (formerly TRW Redi) last fall. MDC provides both appraisal and
public records data. MDC has never sold its appraisal data to AVMs or data
resellers. More info in the newsletter. Go to
www.marketdatacenter.com for information on
MDC. For the Dec. 17
press release, go to www.yahoo.com, then to Yahoo News,
and search
for "Market Data Center."
---------------------------------------
What hours do you allocate for appraisal appointments? I used to do them on
the weekends but quit as I felt like I didn't "have a life" otherwise. When
daylight is longer, I am willing to schedule appointments between 5PM and
7PM as I am not a "morning person" and the morning commute hours are really
bad here in the San Francisco Bay Area. Now that days are short, I can't
schedule them after 4PM. I have not had any problems with commercial and
apartment appraisals as they understand that normal working hours are from
9AM to 5PM here.
A customer of my largest lender client was very upset that I wouldn't
schedule an appointment for prior to 7AM or on the weekends...and
complained to them, of course. During morning commute hours, it takes me 1
to 1.5 hours to get there. Non-commute is 20 minutes. I am now thinking of
setting aside 2 Saturdays a month for appointments.
Any advice? Am I too restrictive...or too lenient?
--------------------------------------------------
2/13/98 - NAR-AI/lender scams
Got a fax from the AI this week..."fax flash". Sent to all AI members (that
they have a fax number for). Update from the AI meetings in Chicago. The
Board of Directors unanimously decided that affiliation with NAR under the
"affiliate" model of NAR is out, and the AI will discontinue talks with NAR
about affiliation. An "alliance" is still a possibility.
The fax also said the AI approved "in concept" to move forward with a
Commercial Database. DST Realty and First Realty Advisors are the
contenders for the contract.
More info in the newsletter, of course.
--------------------------------------------------------
Have you ever called a "borrower" to set up an appraisal appointment and
the person said he or she never agreed to the loan..or never heard of the
lender? I have..once. I seldom accept work from new out of the area
clients, but the name of the company was very similar to a relocation
company I work for, so I said "yes". I called the "borrower" who was
unclear on who the lender was. I called the lender who said "go ahead." I
finally completed the appraisal but told the lender never to call me again.
Called me every day, at least once a day plus complaining that the
appraised value was "too low." They even had the nerve to call me for
another assignment. I told them they were not on my approved client list.
Kenneth Harney's column today was a good story on telemarketing mortgage
scams, including ordering appraisals when the borrower hadn't agreed to the
loan and excessive fees and a high interest rate. Beware.
12/7/98 - USPAP 'R Us/VC $$
After 4 days of conferences/classes (Inman on Thurs and Fri in San
Francisco) and the Appraisal Foundation's USPAP class on Sat and Sun) I'm
pretty burned out. Got in too late last nite to send out a coherent email
message... Too many late nights...1 AM in the bar, etc.
As usual Inman's Technology Summit Digital Bash was outstanding. The most
creative real estate parties I have ever been to. Saw a few other
appraisers there: Bill King and Randy Beigh from Washington (state) and
Joan Trice. More info in the newsletter on the sessions.
Finally met Mike Mattox from Premier Appraisals (Atlanta) who is buying
appraisal firms around the country after getting VC (venture capital for
you non-Silicon Valley people!) funding in the spring. Premier was a
charter subscriber to my newsletter in 1992. Mike's got some great ideas on
managing and growing an appraisal firm. Premier's purchase of Purdue, Heid
and Church, a 50 person appraisal firm in Florida, closed last week. (Sorry
if I get some names wrong on this...am writing it up at home). More info in
the January issue.
------------------------------------------
The Seattle USPAP training/instructor sessions were worthwhile for me.
Although the first day was pretty dry (the instructor was Ken Kaiser of the
ASB), I definitely understand better the changes for 1999 (and got a couple
of good illustrations for my newsletter article).
Lots of regulators were there, both employees and members of Appraisal
Boards. Since we don't have an appraisal board in California it was very
interesting hearing about what the members do. Opened my eyes to how
different enforcement and interpretation of USPAP is in different parts of
the country. The networking was great!
Looked like it was over 60 attendees at the class I took. The second day
for Instructors was a bit basic in the morning but I got some good ideas.
The instructor, Tony Trodella, has decades of teaching experience. I got a
lot out of watching an experienced presenter. I had heard through the
grapevine that there were "clueless" attendees with really basic questions
at the other sessions but didn't see much at the Seattle session. Had to
suffer through the usual appraiser whining about lenders though. I would
have liked more time for asking questions on USPAP (a real problem for
instructors as it is really, really hard to get help answering student's
questions) and more sharing of instructional techniques. If you teach
USPAP, attending both both sessions is worth the time. If you don't teach
USPAP but give any type of presentations to appraisers, the second day is
very useful. If you're a regulator, it is definitely worthwhile, if only
for the networking.
Lots of attendees left early Sunday and missed one of the best parts...a
case study on comp checks/comp runs/etc. That's where you do a desktop
appraisal, then do an oral appraisal report to a lender over the phone to
see if it looks like the value (more than, less than, range, point, etc.)
is high enough to make a deal. Very, very common here in California and
spreading. Seems like lots of appraisers don't think they are appraisals.
Anyone who has attended my USPAP seminars know better as I have been
covering it for over three years. Yes, they are appraisals. Yes, they can
be done in compliance with USPAP. I found it quite amusing when the
commercial appraisers in attendance said it was just a "residential" issue.
"I only work for attorneys" was a good one. Let me see...how many fee
appraisers don't ever do phased assignments with a preliminary value
estimates (or another issue) then if it doesn't help the client, they stop
working on the appraisal. Hmmm...I don't know any. I call this the "dirty
little secret of appraising." Seems like I'm the only one who thinks it is
ethically marginal. Can't accept an assignment with a predetermined value
per USPAP. Whether or not you are paid a fee isn't an issue. I never got to
make my comments in class... Maybe the title of the article in the January
newsletter will be..."Preliminary values...the dirty little secret in
appraising." By the way, Ken Kaiser said the value check/comp runs/etc.
were appraisals but didn't get into exactly how to do them ethically (a
tricky subject). I advise my students to make a workfile, send a conforming
restricted report if providing a value in writing, etc. Terms of the
engagement can be a problem.
There is another 2 day class in Chicago next week or next week I think. I
didn't get the info and couldn't find anything on their web site, so call
the Appraisal Foundation at 202-347-7722 for more info. More details on
1999 USPAP in the newsletter, of course.
11/29/98 - comm bids/AI-HUD fair lend/etc.
Found an interesting appraisal site yesterday www.oranet.net,
a
joint effort of DataComp (Brenda Dohring) and Carlos Cardenas, tech guru,
(who has shut down his www.redynamics.com site). It looks like it is a site
for e-commerce: online communication and bidding for commercial appraisal
mostly. Looks like its just outta beta. More info in the newsletter.
Several sites are now doing this.
-------------------------------------------------
If you're interested in the controversy over the Appraisal Institute/HUD
proposed fair lending agreement, check out Greg Opelka's site at
www.after1.com/aihud. He's a long time AI
member.
------------------------------------------------------------
Not much news this week. Too busy trying to get caught up. I hate/love it
when those commercial jobs come off of "hold" and are now a big rush!!
---------------------------------------------------------------
Finally got my two new computers networked, using peer to peer with no hub
and 3Com cards. How hard was it? My brother Gene manages a 100 PC network
running several geothermal power plants in Northern California. He was
visiting here and said he could set it up for me...no problem..take about
an hour. Started at 10AM and finished at 4PM. Had to take both computers to
my local computer guru, Robert Cullmann at Eon Technologies (the most
knowledgeable computer geek I have ever met). Robert, two of his employees,
and my brother Gene spent 4 hours getting the two computers networked. What
was Gene's background for his job? He started at the plant 15 years ago as
a maintenance electrician and is now their only computer geek. He converted
them from a mainframe to client/server running Unix, then to Windows NT,
plus wiring miles of cabling. Still has one computer running some weird
legacy version of Unix...I forget the name. Fortunately, he's a "bulldog"
who doesn't give up easily! What was the problem? You guessed it...Windows
95 drivers.
----------------------------------------------------------
I will be at the Inman Summit in San Francisco for the Thursday night
Digital Bash and all day Friday. If you're there come up and say "hello".
I'll be wearing a red or red checked jacket and a long black skirt. I will
miss the Friday PM and Saturday stuff as I will be in Seattle attending the
Appraisal Foundation USPAP update seminar. Fortunately, I'm not speaking at
either event, so I can have some fun!
11/22/98 - ASB/auctions/chat
A few weeks ago I was appraising a home where 4 teenagers were clustered
around a computer. One said, "Larry won!" A friend of hers was the winning
bid on a computer component. With the recent IPO of Ebay ($18 opening, now
over $80), www.ebay.com, I couldn't resist a brief plug
on online
auctions. Others are www.onsale.com, www.surplusauction.com,
and www.ubid.com
-------------------------------------
Larry Ofner, MAI, was recently appointed to the Appraisal Standards
Board.
He is a fee appraiser in Portland, Oregon, and is a principal in Moscato,
Ofner & Henningsen, Inc. He has an MAI designation and 24 years of
appraisal experience.
He has taught USPAP, developed several appraisal courses, given
speeches
to various groups, served on the Oregon state review/advisory committee and
the Appraisal Institute's Ethics Panel. Orfner's B.A. in English is a plus
as the ASB can use members with writing skills.
--------------------------------
Looks like HUD is really trying to get information to appraisers. Two
good
Web sites:
To find out about the approval status of a condo project, go to
https://entp.hud.gov/cgi-bin/websql/idapp/html/condlook.hts?in_fha=No.
The Santa Ana (California) office of HUD has an appraisers' chat room
plus
some good links to other relevant HUD information. Go to
www.hud.gov/hoc/sna/snatapch.html.
The chat room is password
protected and it takes 24 hours to get your password. There aren't very
many messages posted yet, but its a great way to get information on HUD
appraisal policies.
-------------------------------
If you had problems printing the new proposed FHA URAR in Adobe Acrobat
format, here's the solution. In Adobe Acrobat click on file, printer setup,
and change to legal size. It took me a while to figure this out after
cursing both my printers for a while! For unknown reasons, Adobe Acrobat
could not automatically send legal sized pages to my legal size paper tray
for paper.
11/15/98 - GIS/Bad advice
Appraisal humor is hard to find. One of my favorite joke books is
"The Appraisers Guide to Really Bad Business Advice - A collection of
irreverent - off the wall ideas for marketing your appraisal services,
impressing clients, and writing reports," by Bill Pittenger, a former
director of corporate appraisal at Barnett Bank, now a consultant. Bill
passes out copies at his seminars. Here's a few gems:
- Cartoon, 2 guys in front of an elevator: "What I really want to do is
move to Key West and become an artist. I can't do any of those things, but
since I'm an appraiser, I'll assume I quit my job, assume I sold my house,
assume I can paint, assume I moved to Key West and assume I became an artist."
- Put the statement, "Offices in London, Brisbane, and Hong Kong" on your
business cards and stationery. That way no one will know you work at home
off your kitchen table."
- Use astrology to forecast absorption.
- In your promotional literature, tell prospective clients you specialize
in residential, commercial, special purpose, multifamily...Be sure not to
leave any property type out."
- Sign your reports with a smiley face.
To get more info on Pittenger, his company (Valcor Advisory), and his
"serious" books on bank appraisal management, go to, go to
http://www.valcoradvisory.com. More tips and
info in the paper newsletter,
of course!
--------------------------------------------------
I just finished reviewing a good new book, "GIS in Real Estate:
Integrating, Analyzing, and Presenting Locational Information", published
by the Appraisal Institute and Adams Business Media/GIS World.
Most of the books and articles I have seen on GIS were very technical
or
too "pie in the sky" for appraisers. As I was reading this book I realized
that many appraisers use geocoded mapping programs for their location maps
now, such as DeLorme's Street Atlas. My appraisal forms software integrates
with a mapping program that produces a map and puts distances on the sales
comparison grid.
For fee appraisers GIS has tremendous opportunities in litigation
support
(residential and commercial) and commercial appraisal, particularly new
construction.
If you want to keep up on technology, or want to try using GIS, buy
this
book. Some interesting stuff on AVMs and use of GIS by bank lending and
appraisal departments.
Each chapter has a different author, so you can probably find one who
you
can understand. Some chapters I found very useful, and some were too
technical or dry, so I just skimmed them.
In contrast with other books published by the Appraisal Institute,
which
include lists of paper references and sometimes a few web sites, this book
only lists Web sites as references in the back of the book.
To purchase the book, call 847-640-5270. The price is $35 (nonmembers),
$31.40 (members), with a members-only special of $25.20 through December
31, 1998. A cheap price!
There's some info at http://www.appraisalinstitute.org.
I'll have a longer
review in the next newsletter.
11/18/98 - tech/nar
I am always surprised at how few appraisers attend real estate industry
events (non appraisal). One of my favorite conferences is Brad Inman's Real
Estate Connect 98 conference, Dec. 3-5 in San Francisco. I attended both
the previous conferences and found it very worthwhile. No, you won't find
out where to get free comps on the Internet, but everyone who is anyone is
there, plus all the latest real estate technology stuff. The conference is
a bit pricey at $695 for just under two full days of sessions, but worth it
if you're interested in technology and meeting those who are at the
forefront. This year focuses on real estate transactions online, but there
are other tech session such as public data availability. Check it out at
http://www.inman.com. I'll be there. If you're coming,
let me know and
we'll meet at the bar!!
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I got back Sunday afternoon from the NAR national convention. Got some
interesting info on realtor.com and listings online. Didn't know that some
MLSs have their own Web sites just for their own listings. Spoke with a guy
who works for a California MLS vendor who is getting lots of hits on their
public Web site...lots more than realtor.com. I always seem to ask those
pesky appraisal questions at the sessions I attend. At a session on
realtor.com I couldn't keep myself from asking how the appraisal section of
the site will be changed/enhanced. The answer was "nothing will be done"
from a VP at RealSelect, the vendor. Oh well... And, of course I had to ask
the president of RealSelect why so many homes didn't have addresses. (He
said it was up to the local board.). Nothing new on the NAR/AI affiliation.
Still negotiating. I had expected some fireworks, but everyone was polite!
If you're a member of NAR, register at http://www.realtor.com (you use the
code from the address label on your copy of the NAR monthly magazine.). It
takes about 5 minutes for your username and password to be approved. Search
for appraisers, then go to the appraiser section and check out the bulletin
board..very interesting!! More details in the newsletter...haven't had time
to sort thru all my notes from the conference yet.
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NAR just launched http://www.commercialsource.com
for commercial real
estate...mostly just lists of links with some comments for now but you may
find a useful link. Not password protected.
11/1/98 - Ind contr/2000
Using independent contractors (ICs)
A couple of times a month I get a call from an appraiser who is worried
about using ICs or, worse, is being audited. If you are ever asked to fill
out any forms, reply to any verbal questions, or asked to inspect your
business, just say no and get on the phone ASAP to a labor law attorney
specializing in IC problems. Don't use an accountant. You need an attorney.
Why do appraisal companies have problems? The most common reason is an IC
appraiser files for unemployment. Guess it's time to write another article
in the newsletter!
If you want info on using IC appraisers, let me know. I have written about
5 articles and there is one good book. There are lots of myths about using
IC appraiser, such as "everybody else does it so it must be okay."
--------------------------------------------------
I am predicting (you read it here first!) that the lackluster stock
performance of computer manufacturer's will dramatically change in 1999, as
more and more computer users (including many appraisers) finally get rid of
those old 486s, 386s, and a few Xts, and upgrade to new computers. Of
course, you may be able to do a BIOS fix.
Everyone who uses appraisal forms software will have to get new
software
(or an update). They all automatically print out 19__ for the date and they
will be useless. Older versions of spreadsheet programs such as Quattro Pro
and Excel may not be Y2K compliant. You'll also need the latest Y2K
compliant version of your accounting software. I use Quickbooks, but I
haven't upgraded to the Y2K complaint Version 6.0. If you use custom
software, now is the time to start checking it.
So, why is this such a big deal? A few years ago, the clock battery on
one
of my computers quit. I just had all the dates on the files as 1/1/80, as I
recall. It was annoying, but I could live with it.
This week I received a notice from Metroscan, my public records data
provider, that their DOS program is not Y2K compliant and can't be run
after 12/31/99. Why? They use dates to keep track of their updates and
other program features, as well as your subscription status.
Programs (and files) that I use regularly requiring dates are my
digital
camera photo management, spreadsheet and database software (dates entered
as xx/xx/xx), ACT contact manager and probably a lot of other programs I
haven't thought about. I'm trying not to think about all the files I use
occasionally, such as my income tax spreadsheet!
In my office, I have finally upgraded to Pentiums recently (except for
my
one 386 which I love and use to run MLS). However, my home computer is a
two-year old Pentium 75.
10/25/98 - New mailing lists/phones
Two new appraiser mailing lists
Both lists don't allow any off topic stuff, chit-chat, or flaming. The
commercial appraiser mailing list is moderated - the list manager reads all
email before allowing it to be posted.
I have been subscribing to the marketing list for about a week. It is
definitely worthwhile with many good ideas. In mid-October there were about
100 members. The list manager is Dennis Tompkins, SRA. This chat group is
designed for the marketing of real estate appraisal only. Per Dennis, "Any
appraiser can join this chat group to discuss the marketing of real estate
appraisals. This is the only topic allowed on this chat group."
You can join the appraisal marketing list by going to the following Web
page:
http://www.onelist.com/subscribe.cgi/appraisalmarketing
The other list is managed by Joe Milkes, MAI, and is for data exchange
and
discussion of commercial appraisal theory and issues. As of mid-October
there were about 50 to 60 participants. Per Milkes, "The list is "for
serious commercial real estate appraisers only: jokes, politics, chit-chat,
flames, ranting, personal agenda NOT allowed NOR tolerated."
To join the commercial appraisal mailing list go to:
http://www.onelist.com/subscribe.cgi/comrevalxchange
I don't know how long these lists will remain active, so join soon.
Sometimes lists are very active and then fade.
If you want to start your own mailing list or join one, check out
www.onelist.com.
-----------------------------
Here's three reverse phone directory sites submitted by Robert Lettmann on
the aiforum:
http://in-105.infospace.com/_1_98661177__mage/revphone.htm
http://www.anywho.com/telq.html
http://www.411Locate.com/
---------------------------------
The Oct. 7 meeting notes and the latest October revision of the URAR and VC
sheets are at http://www.hud.gov/reac/reasfappr.html
10/18/98 - B/C alerts//new FHA URAR/VC sheets
Last week I forgot to mention the crashing and burning in the res
market
dependent on Wall Street securitization, such as B/C, home equity
(non-bank), and 125% LTV. Most of these lenders securitize their loans and
sell them to Wall Street. Tens of millions of dollars were in the pipeline,
funded by the lenders but not yet sold on Wall Street. The same situation
as the CMBS market. Weaker players without deep pockets are likely to go
under.
If you have any outstanding billings with any of these companies, start
calling them tomorrow and call every day. With collections, the squeaky
wheel gets the grease. When the res mortgage market collapsed in April,
1994, I had 100% collections. I started as soon as I realized the market
had crashed. Non institutional clients such as mortgage brokers were called
every day until they paid. One employee spent part of his day making phone
calls to them.
If any of your mortgage broker clients is in the B/C market, call them
every day until you are paid, if you didn't get paid in advance. They may
not be able to fund the loans and be tempted to dip into their trust funds.
------------------------------------------
The proposed FHA URAR and VC sheets have been released by HUD, as well
as
notes from the July, August, and September meetings with appraisers. Go to
http://www.hud.gov/reac/reasfappr.html
NAIFA at www.naifa.com has the line
by line details of the changes (protocols). So far the October meeting
notes have not been released. Details in the (paper) newsletter.
10/11/98 - Appraiser Alert!
CMBS market crashing and burning!!
In mid-August, I started noticing articles about widening CMBS
(commercial
mortgage backed securities) spreads. No big deal, I figured. Next I read
that Criimi Mae, a big conduit is in Chapter 11. Then Friday at our
chapter's big fall conference, all the speakers at the CMBS were saying
there is big, big trouble with $23 billion in unsold conduit loans per one
of the speakers.
So what does this mean for you? If you've got a client dependent on the
CMBS market, its time to look for a new client. The slow down in business
has already started, but many are not aware of it. Take all the jobs you
can handle. People say CMBS is "only" 14% of the commercial mortgage
market, but taking that away can also take away a lot of appraisal business.
What am I doing? I spent all weekend cranking out a commercial
narrative
appraisal for a lender that doesn't sell its loans on the CMBS market, so I
can take another appraisal from them.
Residential mortgage rates jump up!!
At the same conference, I was a moderator for the Future of Residential
Appraisal panel. Most all the res appraisers there were upbeat and talking
about buying computers and/or paying off their credit cards. The next
morning, on Saturday, I pick up the local newspaper and read that mortgage
rates have gone up one point in some areas.
Many people are saying rates will drop back down quickly. To keep your
eye
on rates, go to http://www.bankrate.co |