http://www.realestateappraisertips.info/ - Recommended Home Appraiser Reading: David Braun, MAI, SRA: Shake It Off and Step Up on Appraisal Scoop! This article, and the comments posted by appraisers, make one really think about what’s taking place in our industry!
David Braun was recently on Appraisal Scoop delivering advice to home appraisers facing 2010. After reading my For 2010, There’s Very Bad News For Home Appraisers: Why Your Marketing Is Of Critical Importance! yesterday, David suggest a direction for we appraisers based on the banks and lending industries willingness to take on more risk by using valuation products other than full real estate appraisals. In my opinion and based on recent past history, why should the banks worry about risk when the federal government rewards them with tens of billions of our tax payer dollars in the form of a rescue for their high risk tolerance. We gave the banks the TARP money and now they refuse to lend some or part of that money until mortgage rates rise (ref. HousingWire 1/12/2010 Yield Curve Can’t Drive Profits If Banks Won’t Lend).
NOTE: I’m not arguing that we should be refusing to meet market needs for valuation products just because the banks are willing to take on higher risk. If this were the case, then why were we performing FHA Appraisals when FHA has less than a 1% reserve rate? The market wants less in a valuation product and they want it cheaper and faster. As I’ve stated before, there’s a Realtor in my church performing BPO’s 6 days a week and has been for over 2 years now. This Realtor has a good template sofware, does bulk work and still drives the Lexus SUV. And, I know of a bank loan on an $80K lot where a Realtor was hired for the “appraisal” in the form of a BPO. I think David’s point is that either appraisers get in the game or game out for good. You read his article and judge for yourselves.
“The comments posted by other appraisers that follow his post are particularly interesting.”
His article is located on Appraisal Scoop at Shake It Off and Step Up! – New Year’s Resolutions for Appraisers.
Here’s a snippet from David’s article:
“I have a 2010 New Year’s Resolution for the appraisal profession: “Shake it off and step up!”. I have seen a lot in my 32 years as an appraiser. Take for example this tidbit from the last issue of the Tennessee Association of Realtor’s Newsletter: “A licensed real estate agent can by Tennessee law testify to the value of property for court purposes.” I watched for 10 years as lenders relied on millions of AVMs and Tax cards which did not meet the minimum federal lending regulations. I often feel like I have fallen down the same hole as Alice, and am now in Wonderland. I agree that things are more than a little skewed in the world of the appraiser. However, I continue to say that the little guy (or gal, just a figure of speech) should only worry about what they can change, and not worry about what they cannot change.”
About David Braun and http://www.automatedvaluationtools.com :
“David Braun has been performing appraisal, review and consulting in East Tennessee since 1976.
He is an Appraisal Institute and USPAP instructor. He has developed and taught several appraisal continuing education seminars, and made several presentations for the Federal Financial Institutions Examination Council (FFEIC) to examiners on appraisal subjects.
David has a Bachelor of Science degree in Business Administration, with a major in Corporate Finance, from the University of Tennessee in Knoxville. He has also completed twelve hours in Personal Management at the University of Tennessee Graduate School.
He is an MAI and an SRA. He served on the National Instructor Subcommittee from 2001-2003, and currently serves as the General Associate Guidance Counselor for the local Appraisal Institute chapter. He is a recipient of the Roscoe Jackson Award in 2000 and 2001 by the Greater Tennessee Chapter for “strong character and leadership,” and the William S. Latimore, Jr., Award in 2004 in recognition of “a significant or unique contribution to the Chapter through active participation in its activities, and … an outstanding contribution to the realization of goals of the Chapter.”
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