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Chief Appraiser Blog |
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Recent PostsArchivesCategories« Releases, Readdressing, and New Assignments | Home | Knowing What It’s Not » It Is What It Is!By Bill Waltenbaugh, SRA | February 22, 2010 There's a phrase I hear people using a lot these days; "it is what it is". So what does that mean? Of course things "are what they are". It's really hard to argue with that kind of logic. I think we use this phrase when we feel like there's nothing we can do about something; but this isn't always true! My weight "is what it is" but it doesn't mean I can't do anything about it. The burger, fries, and milkshake I had for lunch "is what it is" and so is my waistline. Believe me, there was a lot of "it is what it is" to get where I am today. Truth be told, it's easier for me to complain about my knees hurting and how I feel than to do something about it. So what does this have to do with appraisal? The appraiser is always perceived as the bad guy when things go south. What happened to our image as, per USPAP, the defenders of public trust? It seems like we're all paying for the actions of a few poorly trained and unethical appraisers. Our image has taken a beating but we don't have to surrender to "it is what it is". I totally believe the local, knowledgeable and ethical appraiser can't be beat when it comes to sound and supportable valuation. No other valuation method, AVM or BPO, can provide the thoroughness of a responsible, resourceful and skilled valuation professional. So, if we're going to change our reputation, commitment to detail is key! John Wooden, former coach of the UCLA Bruins, has more NCAA championships than any other basketball coach in history–10 national titles in 12 years. What did he teach his players to ensure top-level performance? He taught them how to put on their socks. Each season Coach Wooden showed his players how to prevent sock-wrinkles around the little toe and the heel, and how to lace up their shoes with a double-knot. This helped his players avoid blisters. In the closing minutes of a close game, the player without blisters on his feet will perform better. This simple, basic detail contributed to a series of National Championships. Attention to detail, Wooden says, creates success in basketball, in business and in life. It's frustrating when a client asks for more information or to provide additional support and comment for your conclusions. However, this is our niche in the valuation space. The ability to provide more understanding and support for our reasoning is what makes the appraiser unique. How does the client ask an AVM for more information? Our adeptness to understand and address the client's specific concerns is our strongest asset. We should embrace our ability to provide clarification and custom customer service. If appraisers are going to gain their respect back as the valuation expert, it's going to be done by meeting the client's desire for specifics and detail they can't get anywhere else. Believe me, the "trust me" days are over. It isn't going to be easy and it's going to take a lot of hard work but we don't need to capitulate to "it is what it is". Topics: AVM, For What it's Worth | 11 Comments » 11 Responses to “It Is What It Is!”Comments |
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February 23rd, 2010 at 11:02 am
Your point is well taken. However, with such short turnaround times expected, it is very difficult to create a thorough, skilled valuation anymore. Couple that with reduced fees and increased expenses, it's no wonder good appraisers are leaving the profession or choosing to eliminate lending work from their business plan.
February 23rd, 2010 at 11:05 am
Well said Bill! Love it!
February 23rd, 2010 at 11:21 am
I think appraiser's agree that sometimes we need to be a bit more descriptive. But it seems that alot of times the complete appraisal is not read. If it was, the answer is there. Also, because we now have to share our fee with AMC's, we find we are having to complete more appraisals just to feed our families. If AMC's would charge the lender their fee they may would hear less of "it is what it is". But, lets face it. We sell time and they are only so many hours in the day. Our time has gotten very cheap, since the AMC's. The AMC's were suppose to shield us from the lender, but alot primarily just send us what the lender sends them to stay in good graces with the lender. So instead of complaining when a appraiser says "it is what it is", wonder why so many are saying it? Could it be another problem? Thank you.
February 23rd, 2010 at 11:22 am
Bill, I whole heartedly agree with you. However, my past experience with appraiserloft does not indicate that the company is on the same page as you. If detailed, credible assignments and results are what appraiserloft is looking for, why aren't they willing to compensate the appraiser in a manner commensurate with the level of quality they require? I have only completed one assignment for appraiser loft and that was a while back, maybe things have changed over there and I hope they have. I have a nagging suspicion I have been removed from the list. I really enjoy your blog, I hope you are getting things under control at appraiser loft. All the best.
February 23rd, 2010 at 11:54 am
Couldn't agree more! Your analysis of the perception of the appraisal industry by homeowners couldn't be more accurate. AVM's and BPO's are inaccurate and full of fallicies, but a true and accurate appraisal completed by an educated appraisal professional is typically iron-clad. I hope we get more opportunity in the future to impress and meet your client's guidelines and performance standards.
- Jon Filson , SRA
Certified General # 265455
February 23rd, 2010 at 12:04 pm
I agree with your sentiment and have always practiced the education route when it comes to UWs & others associated with the Lending business that are not appraisers.
The problem that has now arisen (and AppraiserLoft is NOT one of the problem AMCs in my experience to date) is that these AMCs that arose in the past year are staffed with inexperienced workers who take offense to any kind of knowledge you try to impart to them in order to help them understand what they are asking. I feel this is, in part, due to the frustration of these workers who are improperly trained, don't understand lending or appraising and probably have not even been through the mortgage process themselves.
And the problem is exacerbated by the companies training them to go to the least expensive Appraiser – said Appraiser not being the type to take the time to educate anyone else, much less themselves, or they wouldn't be taking assignments for 1990s or earlier wages.
These factors make it tough to keep fighting the good fight to restore the Lending industry image and make a living as a competent, well-trained Appraiser.
Thank you for this forum and taking time to address issues, hopefully, the Appraisers that care will be around in another 2 years to keep fighting the good fight.
February 23rd, 2010 at 12:13 pm
I agree with your premise that we as appraisers must pay attention to details. Good, sound judgment and being able to articulate that in the written form is vital. One thing that flustrates appraisers is mortgage underwriters, a lot of the time, will believe an AVM over the apprasier that put his eye ball on the property. I receive question from underwriters saying that they pull an AVM of the property in the area and it states that it is worth so and so. If lenders utilized AVMs in my area (rural and partial rural America), they would be in for a rude awakening. Everything is not what is seems in paper models.
Again I agree whole heartedly with you about our need for us to provide concise, sound, written reasons that explain our value position on every appraisal. Thank you for the reminder.
February 23rd, 2010 at 1:40 pm
I have always tried to keep the lines of communication open between myself and underwriting. I try to respond to their questions quickly even if it is only to direct them to the comments or section of the appraisal report that answers their question. I wish more underwriters would make direct phone contact with appraisers. I found that trust and understanding increased dramatically after a few conversations. Unfortunately that is becoming far less common in today's environment.
And now for something completely different……..The name and location of the company. "AppraiserLoft" in San Diego. There are lots of "Sail Lofts" in San Diego….are the founders / owners big into Sailing ?? Just curious!
February 23rd, 2010 at 4:00 pm
If you truly desire your company "niche" to be good quality appraisals, then why is your system set up to assign the order to the appraiser who accepts it the fastest and for the lowest possible fee? I suggest you identify appraisers who are capable of good quality work, limit your rotating list to only those appraisers, and build long-term relationships with them by treating them with the respect they deserve and offering higher fees. It is a disservice to the lender/client, the borrower, and the appraiser to waste time negotiating a rock-bottom fee. Our company has been in business almost 30 years and throughout this time our fees have been decreasing, while the cost of living has sky-rocketed. Granted the advances in technology have made our job easier, but on the other hand, as you suggest, we are asked to provide a lot more detail and support for our value conclusion. The lower fees being forced upon appraisers by AMCs are driving a lot of good appraisers out of the "appraisal for loan purpose" business. No matter how much they love their profession, with their level of expertise, they can make a lot more money doing other things. As the saying goes – you get what you pay for.
February 24th, 2010 at 7:02 am
I have to take exception to the idea that we are paying for a few bad appraisers. A few bad appraisers coupled with a financial system that shields the banks and brokers and puts the blame for their actions and decisions solely on the appraiser. To say that a national bank didn't see the bubble in a market because the appraiser didn't detail it is asinine. Banks, credit unions, Fannie Mae, etc all have economists, people trained to tell their employers what is going on in the local and national picture.
February 24th, 2010 at 8:28 am
Committment to detail is key, i agree but try and understand the appraiser's point of view: appraiser loft asks for clarification on an appraisal: they want the appraiser to defend the appraised value in regards to a BPO completed by the borrower's daughter…. anyone in this industry would chuckle at this request, as i did:) appraiser loft, it seems, needs to get more people in the "know" about USPAP and about the appraiser's responsiblity to supply the management company with simple knowledge of the industry and not have to school the associates of what is expected or required in an appraisal.:) AVM is a computer model. Good luck with those:) It isn't the appraiser's job to defend or even make a statement about an AVM.