Tag Archives: Real estate

Appraisal Institute Strategic Initiatives – Connecticut

The Appraisal Institute, the nation’s largest professional association of real estate appraisers, announced three major strategic initiatives that have the potential to fundamentally reshape the global valuation profession. In the organization’s latest video, AI President Richard L. Borges II, MAI, SRA, discusses this announcement, which includes proposed standards of valuation practice that could serve as an alternative where national or other standards are not required; expand delivery of Appraisal Institute education; and create a new certification organization to establish a future generation of cross-disciplinary valuation professionals. These standards could be used when USPAP, IVS or other standards are not required, and when the use of the proposed standards would be appropriate. They would serve as an alternative set of standards that could be used independently, and not as an additional set of required standards. AI’s new standards would not supplant USPAP or other national standards. The Appraisal Institute also will issue a proposed comprehensive revision of its Code of Professional Ethics.

Understanding the Home Appraisal Process – Connecticut

Consumers are often baffled by the home appraisal process. They may feel their home is worth a certain dollar amount, and therefore, the appraised value doesn’t make sense to them. It is important to know that appraisal guidelines are dictated by the lenders and the law. In many states, the lenders must disclose the purpose of the appraisal, as each situation carries its own set of rules.

Appraisal Issues in Commercial Real Estate – Connecticut

Bill Hardin, Director of the Real Estate Institute at FIU, joins the show via Skype to discuss tips for dealing with a low appraisal situation as well as other issues faced during the appraisal process of a property.

How to Help Appraisers Fairly Value Home Energy Efficiency Improvements – Elevate Energy

How to Help Appraisers Fairly Value Home Energy Efficiency Improvements March 6, 2014 11:46 am In 2013, we published a blueprint with the National Home Performance Council that outlines a seven-step process to make energy efficiency visible and properly valued in the real estate market. Appraisals are a key part of the process because the appraiser serves as a neutral third party who assesses a high performance home and indicates whether energy efficiency improvements contribute to the value.

We’ve witnessed real progress in the appraisal process, including enhancements to the appraiser’s toolkit to better address high performance home valuations. And in locations that have pioneered the green building and remodeling movement, we’re even seeing a growing demand for qualified “green” appraisers. However, we still have a way to go. Consistently Document Energy Efficiency Features Nothing works in the appraisal process unless high performance homes are consistently documented (see Step 1 of the blueprint).

Right now, the majority of home appraisers use Fannie Mae’s Uniform Residential Appraisal Report (also referred to as Form 1004) to provide opinions on the market value of a given property. But, this form lacks an adequate section in which to document energy efficiency features. In response to this, the Appraisal Institute created the Residential Green and Energy Efficiency Addendum to collect the additional information an appraiser needs when forming an Opinion of Value on a high performance home. The addendum has been well received, including a recent announcement that the Residential Energy Services Network will auto-populate the addendum, enabling direct transfer of a home’s potential energy performance data from builder or home owner to the appraiser.

While all appraisers have access to the addendum online, the problem is, less than 15 percent of appraisers are members of the Appraisal Institute. We’d love to see the Residential Green and Energy Efficiency Addendum used as the model for a standard, approved approach to record the details needed to value high performance homes. The approach could be defined in the approved underwriting guidelines used by larger federal or lending organizations, or government sponsored entities like Fannie Mae or Freddie Mac.

While limited in reach, we’ve seen firsthand that the industry has embraced the template and the related process. Clarifications from the government sponsored entities would formalize this model. We’d also like to see more multiple listing services follow the lead of Midwest Real Estate Data Corporation and make energy costs accessible on listings. This provides appraisers with important data to help establish a credible value opinion. Appraisers are also better equipped to do sales comparison and income approach methods when this data is available. Assign the Right Appraisers to the Right Properties Next, and logically, the right appraisers need to be assigned to the right properties.

Finding a competent appraiser who has experience in valuing energy efficiency features can be difficult. Various training initiatives are happening with some success, but lenders and appraisal management companies continue to struggle in finding qualified appraisers – or even knowing they need to assign them in the first place. An important first step would be to ensure that the existing requirements for assigning appraisers based on competency are enforced for high performance home assignments. Definitions of this competency are starting to be drafted by the Appraisal Foundation. But we see progress here, too. The Appraisal Institute is in the process of opening its Appraiser Registry to include all students who successfully complete the required sustainability courses (and consent to have their name listed on the registry), allowing for greater exposure and marketability of their qualifications and services. Before this change, the directory only listed Appraisal Institute members who had first graduated a designation course and then went on to complete sustainability courses and exams.

Education provides a great opportunity to better connect these qualified appraisers to appraisal management companies and lenders. Appraiser Sandra Adomatis suggests that appraisers, lenders, underwriters, and builders take courses together. “When all the different players in the high performance home transaction come together for training and discussion, they better understand how they can work well together toward overlapping processes and common goals,” Adomatis said. Up next, we’re honored to attend a Green Mortgage Appraisal Roundtable on March 11 in Washington D.C. Members of our team will join appraisers, lenders, Realtors, federal agencies, and other stakeholders to discuss the challenges of assigning a value to energy savings. We will continue to work toward progress on these issues through our Value for High Performance Homes campaign.

Source: How to Help Appraisers Fairly Value Home Energy Efficiency Improvements – Elevate Energy

How to Appraise the Real Estate of REO or Bank Owned Properties – Connecticut

How to Appraise the Real Estate of REO or Bank Owned Properties A real estate owned (REO) or bank owned property is one that is foreclosed on by the mortgage company and the title reverts back to them. Finding the value of a foreclosed property is important, so the mortgage company has an idea of a listing price when marketing the property. 1. Visit the REO or bank owned property. View the property for damage, missing components and any other changes that may be pertinent information for the mortgage company to consider. 2. Take pictures of the property. Generally, the mortgage company requires at least 10 pictures of the homes interior, eight pictures of the homes exterior. 3. Use access to the multiple listing service, or MLS, to obtain comparable homes for your CMA. Search for homes that are similar in square footage, exterior construction. 4. Provide homes, along with their pictures in the MLS, for your CMA that shows the current market value of property in the area. 5. Complete the form provided by the REO company or bank for appraising the property…… By Amanda Maddox