Thursday, 7 July 2022 | The Latest Buzz for the Appraisal Industry

Random Thoughts of an Appraiser – Part Two

Matt Simmons, Partner of Maxwell, Hendry & Simmons

The first installment of “Random Thoughts of an Appraiser” by Matt Simmons covered such a wide variety of topics, we had to continue the series! There are plenty of times where appraisers have collectively had thoughts or concepts that can be communicated and/or questioned within a sentence and don’t need a dedicated article. We are pleased to have Matt Simmons, partner of Maxwell, Hendry & Simmons, offer a periodic collection of observations on what’s going on in the valuation world. Matt is a licensed appraiser and consults on both residential and commercial income-producing acquisitions. Matt’s random thoughts are strictly for your entertainment. Enjoy!

  • Most online value algorithms are fortune-telling as opposed to legit predictive analytics.
  • The appraisal is not the report. The appraisal is the opinion. The report is just a document that communicates the opinion. It’s not just semantics. It matters to understand the distinction.
  • The appraisal industry would be better served if we considered ourselves to be valuation professionals or real estate problem solvers. Appraisal is only one of the tools of the trade.
  • If I don’t want my E&O in the report, then a comment about not including it in the report, IN THE REPORT, kind of defeats the purpose.
  • The Valuation Process diagram from The Appraisal of Real Estate by the Appraisal Institute (Page 8 of this pdf – this document is publicly available) is one of the best resources to keep handy at your desk. You’d be amazed by how many appraisal problems are avoided through simply following the diagram in order.
  • Isn’t it interesting that clients who pay $75 as an inspection fee when a full appraisal is cancelled wanted to reduce the appraisal fee $150 for 1004 Desktops when COVID started? Wait, I thought the inspection was only contributing $75 worth of the work?
  • Why is it that every appraisal article written turns into a complaint-fest within five responses in the comments below? The bullet above this one might be responsible for the thread on this one…
  • Cost. Value. Understand the differences and how they can interrelate, but don’t analyze or communicate them as if they’re interchangeable.
  • Report writing is one of the most underrated skills in this profession. If you frequently are left having to explain what you meant, it’s a sign that the writing still needs work.
  • Why is it that the GSEs allow detached condos to be reported on a 1004 form? What does how the structure looks have to do with the legal form of ownership? By that logic, attached townhouses could go on a 1073. I think the legal form of ownership should dictate the form type.
  • With divorce appraisals, it’s always fun to listen to the description of the house by whichever spouse you’re meeting. You can tell within 30 seconds who’s keeping the house.

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