As a professional in the real estate industry, I've often been asked about the pricing and cost structure for residential real estate appraisals. It's a topic that can be quite complex, with several factors influencing the fee for the service. My aim is to provide a comprehensive overview of the various elements that go into pricing an appraisal, as well as offer a reasonable fee range for non-complex assignments based on the VA appraisal panel fee schedule in the Southwest Florida area. Firstly, it's important to understand that the cost of an appraisal service can vary significantly dependi ..read more

The latest data from the Mortgage Bankers Association (MBA) reflects that mortgage application volume actually squeaked out a slight 0.1% increase on a seasonally adjusted basis last week, despite conforming 30-year fixed mortgage rates topping the 7% threshold. The driving factor behind this modest gain was thanks to a whopping 10% spike in refinance activity, which now accounts for 33.3% of total mortgage applications. This was up from 30.3% the prior week. The bad news is that purchase mortgage applications declined 5% on a seasonally adjusted basis and are down 23% compared to the same pe ..read more

A notable shift is rocking the housing market landscape. Homebuilders are seizing a competitive edge while everyday homeowners trying to sell are getting utterly left behind. The latest data laid out by Wolf Richter makes one thing crystal clear; builders are adapting to market realities with swift, savvy moves while delusional homeowners aren’t budging on those unrealistic pricing fantasies. Let's talk numbers for a second. That median new single-family home price? Tumbling like a drunken wishful-thinker, down a staggering 19.4% from October 2022’s peak to a cool $400,500 as of February 2024 ..read more

The debate over admitting Google Earth satellite imagery as evidence in legal proceedings has amplified due to skepticism surrounding the technology's authenticity. A recent viewpoint article titled "Evidentiary Issues with Google Earth Images in Property Claims" published in Claims Journal (https://www.claimsjournal.com/news/national/2023/05/30/317210.htm) explores the challenges this creates for residential real estate appraisers relying on these images. The issue stems from concerns about the accuracy of automatically generated date/time stamps and labels within Google Earth. While providi ..read more

One veteran Denver appraiser, who requested anonymity, couldn't be happier about the sharp drop in appraisal waivers being granted by Fannie Mae and Freddie Mac highlighted in new data from the American Enterprise Institute's Housing Center. "It's music to my ears," the appraiser said. "Waivers may have been efficient for lenders, but they were undercutting the integrity of the home valuation process." For years, the two mortgage giants allowed certain loans to originate without a traditional in-person appraisal, instead using data-driven models to estimate property values. At their peak in e ..read more

Comparative Market Analyses (CMAs) are frequently utilized in real estate valuations to estimate the value of properties. Some real estate agents (and appraisers) depend heavily on standardized “CMA Adjustment Guides” that provide predetermined dollar adjustments for differences between properties to aid in this process. However, as one anonymous appraiser passionately argues, "Appraisers distributing adjustment lists should be subjected to a reality TV intervention titled 'Extreme Appraiser Makeover!’” While this punishment is undoubtedly a wild response, the practice of overly relying on adj ..read more

A pivotal rule change has modified how real estate appraisers conduct property inspections as part of their professional assignments. As of 2024, appraisers can no longer claim to have "personally inspected" a property unless they perform an in-person observation specifically within the agreed-upon scope of work for that particular appraisal assignment. This represents a major shift away from past questionable practices surrounding “recycled” or previous inspections across different client orders. Previously, some appraisers offered discounted fees if they had recently visited and appraised a ..read more

When home appraisals conclude values below the contract price for a sale - a recurring outcome affecting 7-15% of deals yearly - unforeseen headaches ensue for securing the purchase. Why do these valuation-below-contract gaps happen? Essentially, appraisers depend on lagging comparable sales figures that fail to reflect an evolved and current landscape where the housing value trajectory has materially changed course. Here's why "time adjustments" matter - and remain underutilized - in making stale data relevant. Comparable Selection Causes Lagging Values Appraisers source valuation benchmarks ..read more

When The Bank Orders The Appraisal Homeowners often wonder why they cannot get a copy of a home appraisal when they paid for it. The answer depends on who ordered the appraisal in the first place. There are two common scenarios - when the bank orders an appraisal for a mortgage loan or when the homeowner directly orders their appraisal. In the first case, the bank hires and pays an approved appraiser to determine an opinion of the home’s value. Although the homeowner funds this payment through their loan application, the bank is technically the appraiser’s client. Appraisers must uphold confi ..read more

Confirming details of comparable sales with a party to the transaction is critical, yet it is an often overlooked part of the appraisal process. While MLS and public records provide useful baseline data, the full context surrounding a sale requires additional investigation. As licensed appraisers, we have an ethical responsibility to pursue answers beyond surface-level data. This blog shares tips to professionalize the verification process and build collaborative relationships with real estate agents over time. Guidelines for Confirming Sales For complex or important comparable sales, lever ..read more