Baker, Louisiana Appraisers Study Shows A Home Price Increase of 20.5% Pre To Post Hurricane Katrina
William D. Cobb, a home appraiser with Accurate Valuations Group in the Greater Baton Rouge, LA market, is pleased to announce a gain in average home prices within Baker, Louisiana 70714, MLS Area 11. Based on data obtained from The Greater Baton Rouge Board of Realtors, the gain in average homes prices within Baker, Louisiana Pre to Post Hurricane Katrina has been $19,781 or 20.53%. The median price has increased $23,750 or 26.69%. The average price per square foot has increased $13.83/sf or 20.64%. The number of sold listings increased from 127 up to 240 or 89%.
Newer Home in Baker, Louisiana - Parc Chaleur S/D
This is the Market Summary within Baker from 1/1/2005 to 8/28/2005 PRE HURRICANE KATRINA: The average sale price was $96,333. The median sold price was $89,000. The average price per sq. ft. sold was $67.00/sf. The average number of days on the market was 78. The total # of listings were 127. The low sales price was $57,800. The high sales price was $210,000.
This is the Market Summary within Baker from 4/1/2006 to 4/19/2007 POST HURRICANE KATRINA: The average sale price was $116,114. The median sold price was $112,750. The average price per sq. ft. sold was $80.83/sf. The average number of days on the market was 58. The total # of listings were 240. The low sales price was $51,000. The high sales price was $352,500.
Data Used With The Permission Of The Greater Baton Rouge Board of Realtors. This data generally excludes REO/Bank Owned or Foreclosure Sales.
William D. Cobb with Accurate Valuations Group has operated as a home appraiser for 15 years now primarily in the Greater Baton Rouge, Louisiana market. For more information on William D. Cobb and Accurate Valuations Group, visit <a href=http://www.getfastvalue.com> This article was written with the assistance of R. C. Smith @http://www.1stsourceappraisals.com
Superhighway, supergrowth - Population soaring in parishes along Louisiana interstates at accelerated rate
Source: http://www.2theadvocate.com/news/7241401.html?index=1&c=y
By PENNY BROWNAdvocate staff writer Published: Apr 29, 2007 - Page: 1a
As it turns out, there’s a perfectly reasonable explanation for why it sometimes takes 90 minutes to get from downtown Baton Rouge to Walker, why the Friday night wait for a table at Carrabba’s is tummy-grumbling long and why the deodorant aisle at the Wal-Mart on College Drive rarely stays stocked for very long.
A soon-to-be-released 26-year population analysis indicates the 11 parishes along the Interstate 10/Interstate 12 corridor from the Texas to the Mississippi state lines are growing faster than the nation as a whole.
In fact, one-third of all Louisianians now live along that stretch. Just since 1980, 365,000 newcomers have come to call it the road home.
“That’s a huge change,” said Louisiana demographer and political analyst Elliott Stonecipher, who did the analysis based on U.S. Census counts and estimates. He will present his findings to the Realtors Land Institute Friday morning at LSU’s Burden Research Center.
“The percentage of the state’s population that lives along that corridor has gone from one-fourth in 1980 to one-third now,” Stonecipher said. “Those kinds of changes usually take much longer.”
For all the bumper-to-bumper traffic and classrooms in broom closets, the finding is considered a bright spot in the otherwise-bleak story of Louisiana’s waning population.
Earlier Census estimates indicate the state has lost a quarter-million residents since Hurricanes Katrina and Rita struck the Gulf Coast nearly two years ago. But even looking back to 1980, the state’s entire population has grown by less than 2 percent.
Stonecipher found that as a whole, parishes along Louisiana’s three interstates are faring better than that, but none come close to the I-10/I-12 corridor. The population along the I-49 corridor from Lafayette to Shreveport bumped up nearly 8 percent; those along I-20 to the north, just over 5 percent.
The analysis also appears to debunk the notion that the real growth was in the I-10/I-12 loop around Lake Pontchartrain. Census counts and estimates indicate the 10 parishes along that so-called doughnut now are down less than 1 percent, but even before Hurricane Katrina had grown by an all-time high of just 11 percent.
James Wilson Jr., assistant director of the Center for Louisiana Studies at the University of Louisiana at Lafayette, said it’s no surprise that Louisianians tend to flock to the fast lane. Early settlers moved near waterways; in the 19th century, railroads were the place to be. Today, automobiles let people work in bigger cities and live in smaller towns.
“Louisianians are no different from most people who want easy access to good transportation, commercial shopping opportunities and job availability, and there’s an expectation that heavily traveled roads are the best indicator of continued economic productivity and investment,” said T.F. Reilly, a professor of history and historical geographer at the University of Louisiana at Lafayette.
“Our interstates have become part of our main networks of commerce for entrepreneurs, both large and small, and those who seek residential convenience and even stability. Throughout the South, in particular, our interstate highways inspire the direction of population growth, for better or worse.”
Apart from LouisianaThe 1-10/I-12 growth phenomenon hasn’t gone unnoticed. Greater Baton Rouge Chamber of Commerce chief Stephen Moret said there’s already an emerging coalition of politicians, businesses professionals and nonprofit agencies from those communities working on a plan to pursue common interests and distinguish the region from the rest of Louisiana.
The group, which he said includes the likes of Lake Charles Mayor Randy Roach to the west and the North Shore Foundation to the east, has begun cooperative efforts on such issues as transportation, ethics reform and financing. But it’s also in the early stages of developing a marketing plan for the area.
“One of the challenges we’re faced (with) is that when you look at the national rankings, Baton Rouge and Lafayette consistently rate much higher in cities and metro areas than the state does in state rankings,” Moret said. “The issues at the state level are obstacles to the growth in Baton Rouge, St. Tammany and other areas. We want to take advantage of the positive things associated with the corridor and minimize the negatives associated with the state.”
Moret said one of the corridor’s biggest bragging points is that it boasts some of the top public school districts in the state and several colleges and universities. Another selling point is a more highly educated workforce with a greater percentage of college graduates than the rest of the state. It also has a lower cost of living, he said, than, say, Atlanta or Austin, Texas.
Those characteristics, Moret said, give the corridor “the potential to be the center of the new Louisiana economy.” READ PAGE 2, Click This Link
House Flippers Flop As Market Cools
By RYAN NAKASHIMA AP Business Writer AP Photo/Isaac Brekken LAS VEGAS (AP) -- In the rampant real estate speculation of the Las Vegas valley three years ago, people lined up outside Pulte Homes sales offices overnight as if they were waiting for the release of the latest video game console or hot new movie. Having seen his house in an upscale part of suburban Henderson, Nev. jump $200,000 in value in 18 months, Sam Schwartz felt he couldn't miss any part of the boom. He spent the night in the parking lot with TV, snacks and drinks, along with about a hundred other people. Schwartz intended to buy a new home and then quickly sell it within the year - for a huge profit. Most people waiting were flippers just like him, he said. "We had seen real evidence of what was possible in this crazy, inflated market, and we just wanted to get a piece of that investment equity," Schwartz said. But when home prices unexpectedly took a backward step, many investors seeking to cash in quickly were left "upside-down," or owing more on their mortgages than what their homes were worth. Read More
By RYAN NAKASHIMA AP Business Writer
LAS VEGAS (AP) -- In the rampant real estate speculation of the Las Vegas valley three years ago, people lined up outside Pulte Homes sales offices overnight as if they were waiting for the release of the latest video game console or hot new movie.
Having seen his house in an upscale part of suburban Henderson, Nev. jump $200,000 in value in 18 months, Sam Schwartz felt he couldn't miss any part of the boom.
He spent the night in the parking lot with TV, snacks and drinks, along with about a hundred other people.
Schwartz intended to buy a new home and then quickly sell it within the year - for a huge profit. Most people waiting were flippers just like him, he said.
"We had seen real evidence of what was possible in this crazy, inflated market, and we just wanted to get a piece of that investment equity," Schwartz said.
But when home prices unexpectedly took a backward step, many investors seeking to cash in quickly were left "upside-down," or owing more on their mortgages than what their homes were worth. Read More
Source: http://www.homecheck.com/Reference/April_07/07Vol3Art3/index.htm
Your bathroom is where you prep to start your day and where wind down at the end of the day. From a nice hot shower to at home spa, the bathroom is an important room in every home and to our daily lives. However, it can be the room most overlooked when it comes to decoration and/or remodeling. It shouldn't be. According to Contractors.com remodeling your bathroom can give back 80-90% return in your home value. Adding a new bathroom can also easily add 90% return to your home's value. Improving this room can therefore be a savvy investment in your property. But it can be more than just a wise investment. Updating your bathroom can make this at home retreat more inviting and invigorating. Take the time to make a bright, friendly room to jump start your busy work day and a calm, peaceful room to help you wind down in your own do-it-yourself spa retreat. Below, we provide some hints and tips for your bathroom makeover. Whether just changing a few decorations or completing a major remodel, we hope you will find something beneficial for this next remodeling project.
Part II: Major Remodel - This makeover includes major structural changes and updates. You may be more likely to need professional help. Also, this type of remodel may include obtaining specific building permits from your city or county. Make a Plan - The fist step to any major remodel is to plan out the project. Determine your budget and time. Planning ahead will prevent unforeseen expenses and help you obtain better estimates from professionals you may need to hire for the project. You may need to get a building permit for some of your changes, especially if you are making major structural changes to the room. Consider what the bathroom is lacking such as do you have enough functional space, storage space, lighting, etc. Does the room have any items that need updating? This can anything from the plumbing to the sink fixtures. What do you envision for the space? Do you want a Zen retreat or a homey B&B feel to the room. Consider what you want the completed room to look like. Do you have anything in there that fits this idea now? Or will it be better to start from scratch? How much experience do you have with remodeling. Are there some aspects of this remodel that you are confident you can complete on your own? Perhaps you don't want to install the sink but have no problem putting in the tile backsplash. Mixing contracted work with do-it-yourself work can be a great way to save money if you have the time. You may want to consult with an interior designer for a major remodel project. They could bring up considerations for the space you may not have thought about. What kind of professional help will you need? Will you need a general contractor, electrician or plumber? Often times even a general contractor may hire out certain tasks (i.e. electrical work) under their supervision. If you know what tasks will need to be done then you will have a better idea of who will need to be hired on to help. Hire a Contractor - With a major remodel you will very likely need professional help. Interview several contractors and get estimates from each. Ask questions and be bold enough to ask why estimate are different - i.e. if they are using different materials, this is good to know in advance! Many contractors will help obtain the necessary permits for your project. Check and see if any you are interviewing will help with this process. Avoid any contractors who say this or that permit, "isn't really needed." Check to see if the contractor will be sub-contracting certain aspects of your project such as plumbing, electrical, tiling, etc. Find out what they expect from you in getting sub-contractors access to work site, etc. For even more information, please see our article How to Hire a Contractor: Working as a Team on Your Next Home Project. Permits - Many overhaul projects that effect the structure of your home will need permit from the city or county. If you are removing or adding any walls this may be affected by local or state building codes. You may not be aware of all the aspects in your project that may need a permit. Check with your contractor or if you are doing it alone, check with your local government for guidance. Cabinets and Storage - You may want to replace or add to your existing bathroom cabinets. Adding cabinets can help you store essentials for the bathroom from towels to extra soaps and supplies. With a major remodel you may have the opportunity to include built-in wall cabinets/closets in your new bathroom. Otherwise, there are many styles of cabinets available. You can get stand alone cabinets or wall cabinets that fit above a sink or toilet that provide quite a bit of extra space. You can also consider changing your sink cabinet. A new design can offer a updated look and add more storage space to your bathroom. Walls - Do you have room to expand your space? Taking down a wall to add space can do wonders for a small bathroom. Think outside the box. Replace a dividing wall with glass blocks to allow more light throughout the bathroom. Insert small alcoves within the walls to add little retreats for mirrors, candles and other decorative items to make the space more inviting. Some redesigns are using tiles on the walls as a protective "wainscoting" design. Other designs include half walls to offer definition of space without enclosing it. The possibilities can be endless. Lighting - Again, how bright is the space? Is it too dark or too bright and harsh? Replacing the light fixtures can help you add more soft light in your bathroom. Try to avoid glaring harsh lights as these can be very unappealing. Consider getting an electrician to add light switches. Add one for soft, every day light and another for brighter, utilitarian light for applying makeup, etc. With the help of an electrician you can add recessed lighting, track lighting, or other design lighting updates. Windows - If your bathroom has a window, consider if there are any updates needed to the window when planning your redesign. If an older window, you might consider replacing the window with a newer one. You can add a special feature like stained or frosted glass. Or consider built in blinds for a combo of extra privacy and easy cleaning. You may also consider making the window larger or adding an additional window to the room. Consider adding a solar tube or skylight for more natural lighting in the room. Fan - If you have any problems with mildew or don't already have a fan, you may want to consider adding one in the room. Many fans now include overhead lights and can add a more welcoming feature to the room than the loud eye-sores of past models. Consider working with an electrician to get a more powerful fan with more options and better ability to clear moisture from the room. Shower Door - You can brighten your bathroom by changing to a shower door. Installing a bath/shower door can help lighten the space of the room. This can also help make cleaning easier and cut down on mildew or damp spots if this has been a problem. Many times shower curtains will let condensed water sit or runoff the corners of your tub or shower. A well sealed bath/shower door can help. Another alternative to a shower door is using glass blocks or a tiled wall to separate the shower from the larger room. This adds a decorative feature and more light for the room overall. Faucet - Updating your sink faucets can help give the bathroom a facelift. Sink faucets can be relatively easy to change out. Changing the faucets in your bathtub and the showerhead can help complete a new look for you bathroom. If remodeling an older home, a major remodel may be a good time to consider reviewing the pipes and improving water pressure and usage. There are many water saving devices available now that can still offer a good amount of water pressure. Sink & Countertop - You may want to replace or refinish your sink. If you are already replacing your sink cabinet you may replace the sink at the same time if you get an all-inclusive unit. Consider adding another sink if you have the space. Many new vanities include a two sink option. You may also consider changing the countertop if the sink itself is fine. There are many styles of laminate to choose from or you may change the template completely with a new cabinet. Refinishing & Liners - Refinishing or lining your tub can be a great way to make it look new once again. Refinishing your tub is an alternative to replacing or lining it. This process will need at least a 24 hour set time. This should be considered if working with more than one professional as work will have to be suspended as the acrylic is applied and sets. Another option is inserting a bathtub or shower liner. Many companies offer the liner and installation for a reasonable cost. Tiling - Finish your spa retreat with professional tiling. A major remodel is a great time to get the bathtub, shower, floor and even walls all done at once. If you want to keep the old tiling, consider this a time to get damaged tiles replaced and grout redone. New Big Items - A major remodel may also include getting a new bathtub, toilet, sink or custom made shower. If you are doing a different style design you may want to consider changing some or all of your big items. If you are updating an older home, this would be a great time to get a more efficient toilet or better fixtures to aid with water pressure. This is your own spa, maybe it is time to replace that old bathtub with a jetted one! A custom built shower can offer a neat new design and multiple shower spray option for a more spa-like experience. Final Thoughts Whether you are considering a small or large remodel, the short list above makes it obvious the possibilities are endless. In both cases, make certain to plan ahead and really consider how you want your new bathroom to function and feel. Have fun, get carried away and then look at what you can make into a reality. Get help from the professionals weather it be an interior designer or a general contractor. Or get in your hours at the home improvement store's classes and put your patience and creativity to the test. Either way, the best part of a bathroom remodel is that once it is done you can reap your rewards by enjoying your mini spa retreat everyday!
Part II: Major Remodel - This makeover includes major structural changes and updates. You may be more likely to need professional help. Also, this type of remodel may include obtaining specific building permits from your city or county.
Walls - Do you have room to expand your space?
Taking down a wall to add space can do wonders for a small bathroom.
Think outside the box. Replace a dividing wall with glass blocks to allow more light throughout the bathroom. Insert small alcoves within the walls to add little retreats for mirrors, candles and other decorative items to make the space more inviting. Some redesigns are using tiles on the walls as a protective "wainscoting" design. Other designs include half walls to offer definition of space without enclosing it. The possibilities can be endless.
Final Thoughts
Whether you are considering a small or large remodel, the short list above makes it obvious the possibilities are endless. In both cases, make certain to plan ahead and really consider how you want your new bathroom to function and feel. Have fun, get carried away and then look at what you can make into a reality. Get help from the professionals weather it be an interior designer or a general contractor. Or get in your hours at the home improvement store's classes and put your patience and creativity to the test. Either way, the best part of a bathroom remodel is that once it is done you can reap your rewards by enjoying your mini spa retreat everyday!
Part I: Decoration Makeover & Small Remodel - This decoration makeover includes simple, do-it-yourself solutions for a quick update. Many of these changes could be done in one to two days. Some of these remodel items may take longer. Make a Plan - The fist step to any decoration makeover or remodel is to plan out the project. Determine your budget and time. Both will help determine what you can do. You may need to consider doing the project in stages or altering your original ideas. Planning ahead will help make certain you do not end up with an unusable bathroom for weeks or even months! Consider what the bathroom is lacking such as do you have enough functional space, storage space, lighting, etc. Does the room have any items that need updating? This can anything from the toilet to the outdated wallpaper on the walls. What do you envision for the space? Do you want a Zen retreat or a homey B&B feel to the room. Consider what you want the completed room to look like. Do you have anything in there that fits this idea now? Or will it be better to start from scratch? How much experience do you have with remodeling. Are you limited to painting the walls and changing hardware? If some of your ideas seem over your head, you may want to consider hiring a contractor, plumber or electrician. For more information about a major remodel projects, see below. Finally, if you want a change but are drawing a blank with ideas, consider hiring an interior designer. Some people are hesitant about hiring an interior designer because they think they have to use them all the way through. But indeed you can work with them to make a project plan and project manage the remodel yourself. Or you can also hire them to follow the entire project from start to finish. Cabinets and Storage - You may want to replace or add to your existing bathroom cabinets. Changing a mirror to a medicine cabinet can help add space above your sink. Adding cabinets can help you store essentials for the bathroom from towels to extra soaps and supplies. There are many styles of cabinets available. You can get stand alone cabinets or wall cabinets that fit above a sink or toilet that provide quite a bit of extra space. You can also consider changing your sink cabinet. A new design can offer an updated look and add more storage space to your bathroom. **You may wan to consider hiring a contractor for this type of work! Walls - Is the paint or old wallpaper making the room too dark, out of date, or showing damage or spots by mildew? Determine your new color scheme or theme for the room before painting or wallpaper goes up. Give a fresh coat of paint on the walls! Wash the walls down first and check for mildew. Any light mildew will need sanding and bleaching. Then clean the entire surface to be painted with TSP solution. Although a bit shiner, you may want to consider a satin or even semi-gloss paint as these will make your walls easier to clean and more resistant to constant cleaning. Just keep in mind, the more glossy paint will show imperfections in the wall itself. If you decide to wallpaper a bathroom, keep in mind the moisture content of the room. Also consider how often you may be cleaning certain walls near a sink or bathtub. Consider combining a new coat of paint with a wallpapered trim! Lighting - Again, how bright is the space? Is it too dark or too bright and harsh? Replacing the light fixtures can help you add more soft light in your bathroom. Try to avoid glaring harsh lights as these can be very unappealing. Consider two light switch options for the room: one to soft light for general use and the other to brighter light for applying makeup, etc. Consider adding a solar tube or skylight for more natural lighting in the room. **You may want to consider hiring a contractor for this type of work! Windows - If your bathroom has a window, consider if there are any updates needed to the window when planning out your redesign. If an older window, you might consider replacing the window with a newer one. Or you may want to add additional windows or change the style to bring in more natural light. **You may want to consider hiring a contractor for this type of work! Does the window give enough privacy? You may want to consider updating blinds, curtains or frosting the window to provide more privacy to your bathroom. Fan - If you have any problems with mildew or don't already have a fan, you may want to consider adding one to the room. Many fans now include overhead lights and can add a more welcoming feature to the room than the loud eye-sores of past models. Shower Curtain or Door - You can brighten your bathroom by changing your shower curtain or door. Replacing an older shower curtain is a cheap way to help update the decor of your bathroom. Installing a bath/shower door can help lighten the space of the room. This can also help make cleaning easier and cut down on mildew or damp spots if this has been a problem. Many times shower curtains will let condensed water sit or runoff the corners of your tub or shower. A well sealed bath/shower door can help. Hardware - Changing out your old hardware can be one of the easiest updates to the bathroom. Add a new towel rack or completely change the set to start a new color scheme with a brushed nickel, bronze etc. You can add a spa feel to your bathroom by adding little upgrades like heated towel racks! Faucet - Updating your sink faucets can help give the bathroom a facelift. Sink faucets can be relatively easy to change out. If uncertain, take a class at a hardware store or hire a professional. Changing the faucets in your bathtub can be a littler trickier. However, again a class or professional can help with this change. If you have a showerhead, this can also be changed out to complete your new look and perhaps add a more spa like feel to the room. Sink & Countertop - You may want to replace or refinish your sink. If you are already replacing your sink cabinet you may replace the sink at the same time if you get an all-inclusive unit. Consider adding another sink if you have the space. Many new vanities include a two sink option. You may also consider changing the countertop if the sink itself is fine. There are many styles of laminate to choose from or you may change the template completely with a new cabinet. Mirrors - A mirror is an essential item to every bathroom. Consider updating your mirror if crackled or out of style. How do you use your mirror? You may want to consider mirrors that hinge out to provide angles or depth when needed or one that offers different strengths of magnification. Mirrors can also be decorative items! Mirrored sconces or tiles on the wall can help to give a dark corner light or a narrow space depth. Refinishing & Liners - Refinishing or lining your tub can be a great way to make it look new once again. You can refinish your own tub, but you will need a respirator, spray gun, sander, chemical cleaners and purchase an acrylic top coat. The actual refinishing product can be purchased as a kit. Keep in mind that there will be a 30-60 minute wait between about three coats of acrylic and a 24 hour set time. Needless to say, this will be a time consuming project that will take patience, clear ventilation, patience, time, and patience. **You may want to consider hiring a contractor for this type of work! Another option is inserting a bathtub or shower liner. This is a task you can do by yourself with some careful planning and a few extra helping hands. There are also many dealers offering liners and installation for reasonable rates. **You may want to consider hiring a contractor for this type of work! Tiling - Does your tiling need replacing? If you have the time and skill, this can be a great update to any bathroom. Again, consider your timeline, budget and skill before taking on a task of this magnitude. Consider a deep clean. Giving your tile a good clean can help breathe new life into them. Some also find it beneficial to selectively replace specific tiles and re-grout lines rather than replacing the whole wall. Consider this option if you are on a tight budget. Make arrangements to be without your bathtub for a while if you plan to retile this area. Although the tiles and grout may set at specific times, you may need longer to work it out if taking it on as a do-it-yourself project. If tiling/retiling a floor, consider how you are going to move the toilet and sink/sink cabinet or if you are going to tile around them. Be patient with any tiling project, take it slow as this is something that should last a long time. Vinyl Flooring - If tile flooring is not for you, you may consider replacing your vinyl flooring. As with tile flooring, consider your timeline, budget and skill before taking on this task. Consider how you are going to move the toilet, and sink/sink cabinet or if you are going to tile around them. Again, consider taking a class at a local hardware store or hiring a professional if uncomfortable with this kind of work.
Make a Plan - The fist step to any decoration makeover or remodel is to plan out the project.
Walls - Is the paint or old wallpaper making the room too dark, out of date, or showing damage or spots by mildew?
Fan - If you have any problems with mildew or don't already have a fan, you may want to consider adding one to the room.
Listing Your Home?: Peace-Of-Mind Means Having Your Home Physically Measured
Whether selling your home yourself (FSBO) or listing your home with an agent, the key ingredient to a smooth transaction is an accurate representation of your home’s physical characteristics in writing. According to William D. Cobb, IFA (Bill Cobb), with Accurate Valuations Group in Baton Rouge, a critical step in the process of obtaining an accurate representation of your home is acquiring an accurate living area. This crucial step is often skipped. As one of the first steps in determining a home’s listing price, an agent will provide a Comparative Market Analysis (CMA) which lists selected sales in the surrounding area. This is vital if you are going to maximize your profit and minimize the home’s time on the market. However, without an accurate calculation of the living area, the agent’s CMA will not be very helpful.
Even if you are working with the most experienced real estate agent, it would be in your best interest to have an "objective" third-party's measurement of your home’s living area and value prior to signing a Listing Agreement. A seasoned residential appraiser would be the solution for an objective evaluation.
The Benefits to Obtaining A Listing Appraisal or Pre-Listing Appraisal Prior To Listing FSBO or With An Agent Are:
1.) A professional, color appraisal report placed on the kitchen counter shows the potential buyer that you have done your homework and that your price is well supported. This report acts as a negotiating tool once you have a potential buyer.
2.) A Listing Appraisal Will Include: An Accurate Sketch, Accurate Lot Dimensions, Photos (Interior & Exterior), Flood Map, Location Map, Physical Details Of Your Home, Outline Of Your Neighborhood, Three (3) to Four (4) Comparable Sales and A Current Listing Of Those Comparable Homes Offered For Sale In MLS. Some appraisers provide more in a report, some provide less. When choosing an appraiser, be sure to request what is provided in his/her appraisal report.
3.) Repair or Enhancement Recommendations. Seasoned Appraisers are generally in 25 - 75 homes a month. That’s 300 - 900 homes a year. On a daily basis, they see what buyers prefer (what causes homes to sell faster) and what buyers do not prefer (what causes homes to sell slower). Prior to listing, a listing appraisal can recommend: items needing repair (peeling paint, rotten wood, curling roof edges), solutions for decreasing the chances of unknown problems (causing the sale to fall through), and ideas for adding value to your home.
4.) Once you have a buyer, if the buyer’s lender will use the same appraiser, the listing appraisal can be easily updated. This could get your buyer to the closing table faster and their appraisal fee lowered. Often, if the appraisal is an update of the original listing appraisal, the fee could be about 50% less for the buyer. This could help you move sooner!
5.) #5 The Most Important Benefit - Obtaining An Accurate Living Area Size Provides Peace-of-Mind. In the United States, the majority of real estate professionals base the price per square foot of a home on living area size. Living area being defined as the area of a home which is heated and cooled, directly accessed from the interior of the home, and having the quality of construction matching the original home. Living Area is measured from the exterior walls, not from the interior walls room-by-room. 2 helpful articles are found @ http://www.ncrec.state.nc.us/bulletin/vol29-4bulletin/squarefootage.htm and http://www.ourappraisal.com/xsites/Appraisers/centralilappraisal/content/uploadedFiles/Sq%20Footage%20GUIDE.pdf. All real estate professionals are to follow the ANSI Standards For Single-Family Residential Buildings (American National Standards Institute) when calculating area home sizes, which recommends physical measurement. In 12/2006, Bill attended 2 days of the combined Apex Appraiser Home Sketching Software and National ANSI Standards seminars in Houston, TX. At that seminar, the ANSI instructor, who is also on the Appraiser Standards Board in South Carolina and delivers disciplinary measures to appraisers, stated that one of the most common lawsuits in Real Estate today is “misrepresentation of living area size”.
Here is a scenario: A 2,000sf home is offered for sale @ 12345 Fox Run Drive. The home is priced at $120/sf x 2,000sf = $240,000. Instead of actually measuring the home to obtain an accurate living area, the living area was obtained relying upon an old MLS listing in the MLS system, County Records, a set of old plans or an estimate of what the typical home size is in that development. The home is listed with a living area of 2,000sf. The home receives a purchase agreement for $240,000 and is accepted. The buyers are pre-qualified, so the appraisal is ordered by the lender. In the meantime, the sellers, needing every dollar of the sales proceeds based on the $240,000 sales price to qualify, submit an offer on a $350,000 home in a neighboring development. The offer is accepted. However, the appraiser for the 12345 Fox Run Dr home turns in her appraisal showing 1,840sf and an appraised value of $220,800, some $19,200 less than the purchase price. The sellers are told that they will have to renegotiate the purchase price because the living area is actually 1,840sf, not the 2,000sf stated in the advertising and on the flyer in the Flyer Box at the curb. The sellers cry foul and sue for misrepresentation of living area and for the fact that they now can’t buy the $350,000 home they have now obligated themselves to buy.
Does this actually happen in home sale transactions? According to Bill Cobb, it can and does happen. This is why it is so crucial to have your home measured by the person listing your home, whether by owner or by agent, or preferably, by an appraiser. Bill states, “I’ve been to homes under contract where the home’s contents are boxed up and the seller is ready to move only to find out that their home’s living area was not accurately represented. The purchase agreement then has to be renegotiated or is completely broken with no resolution for the buyer to continue the purchase. The seller’s home sale is then thousands of dollars less and much further from a completed sales transaction.” Bill also recommends that one should not allow the listing person to state your living area based an old or previous MLS listing in the MLS system, County Records, an old set of plans (which can and are altered sometimes during construction), or an estimate of what the average home size in your development. Bill urges that “when interviewing the person listing your home, confirm that they are familiar with and follow ANSI, that they will actually measure your home, and provide you a calculated sketch (using sketch calculating software). Upon doing so, you will have written verification of your true living area.
6.) Upon receiving a professional listing appraisal, many people are surprised to learn that the market value of their home is much higher than they realized. In turn, they received a greater profit in the sale of their home. While for others, who have had an inflated opinion of their home's value, the appraisal helped them to realistically price their home in order for it to sell in a more reasonable amount of time. An overpriced home will not attract buyers. This means no offers, no closing, and wasted time, money, and efforts.
A Seasoned Appraiser can step in and help make the necessary decisions on pricing and any potential repairs needed to list with an agent or by owner (FSBO). Unlike a real estate agent, an appraiser has no vested interest in what amount for which the home sells. Appraisal fees are based on efforts to complete the report and not a percentage of the sales price. Therefore, a professional appraisal can often help homeowners make the best decisions regarding investing in their homes and setting a fair sales price. Whether you’re considering listing FSBO or through an agent, Bill strongly recommends getting a Listing Appraisal prior to listing your home.
More than a quarter-million (253,803) pre-foreclosures and notices of pending foreclosure auctions were filed nationwide in the first quarter of the year. In other words, 2.4 out of every 1,000 homeowners faced losing their property to foreclosure in the first three months of 2007, according to new and expanded foreclosure filing numbers now available from ForeclosureS.com, a California-based real estate investment advisory firm and publisher of foreclosure and property information.
Those numbers are up 22.5 percent from the 207,128 filings in the fourth quarter 2006. They also don’t include tens of thousands more now-vacant properties that were lost to foreclosure during that same period. Those REO or bank-owned real estate filings totaled 110,791 in the first quarter alone, reported ForeclosureS.com, which has been analyzing housing markets since 1992.
“The numbers cast a dark cloud over the American Dream of homeownership,” said Alexis McGee, president of ForeclosureS.com. “Unfortunately for those overextended homeowners it’s a cloud that isn’t likely to lift any time soon either, especially in light of the recent troubles in the subprime lending market.”
With some of the nation’s biggest subprime lenders cutting back or shutting down their operations, financially strapped homeowners now have even fewer bailout options.
According to ForeclosureS.com’s database of more than 2 million listings:
California led the nation in pre-foreclosure filings (49,016 year to date) and auctions (25,023 year to date); both numbers are up substantially from the same time last year, 139 percent and 277 percent respectively.
Texas had the most REO or bank-owned real estate filings with 14,101 year to date, up from 11,226 a year ago.
On a per capita basis: Ohio led in REO filings with 2.5 per 1,000 households (11,027 filings year to date), with Tennessee a close second at 2.2 per 1,000 (5,022 filings).
Colorado led in pre-foreclosure filings with 5.9 per 1,000 households (9,711 filings) with Florida a very close second with 5.8 foreclosures per 1,000 households (36,598 filings).
The top five counties in terms of numbers of pre-foreclosures included:
The top five counties in numbers of auction filings included:
The top five counties in numbers of REOs/bank-owned properties:
Source: www.foreclosures.com
For more information on William D. Cobb and Accurate Valuations Group, visit http://www.batonrougehomepappraisals.com>
Denham Springs Real Estate Appraisers Appraisal Group Study Shows An Increase of 14% Pre To Post Hurricane Katrina In Otts Cove Subdivision, Denham Springs, Louisiana.
OTTS COVE ENTRANCE
Home appraiser, William D. Cobb with Accurate Valuations Group in the Greater Baton Rouge, LA market, is pleased to announce a gain in average home prices within Otts Cove Subdivision. Based on data obtained from The Greater Baton Rouge Board of Realtors, the gain in average homes prices within Otts Cove Subdivision Pre to Post Hurricane Katrina has been $17,259 or 13.80%. The median price has increased $16,588 or 13.27%. The average price per square foot has increased $13.46/sf or 15.76%.
ATTRACTIVE HOME DESIGNS
This is the Market Summary from 1/1/2005 to 8/28/2005 PRE HURRICANE KATRINA: The average sale price was $125,094. The median sold price was $125,000. The average price per sq. ft. sold was $85.40/sf. The average number of days on the market was 64. The total # of listings were 7. The low sales price was $118,100. The high sales price was $130,000.
This is the Market Summary from 4/1/2006 to 4/25/2007 POST HURRICANE KATRINA: The average sale price was $142,353. The median sold price was $141,588. The average price per sq. ft. sold was $98.86/sf. The average number of days on the market was 54. The total # of listings were 14. The low sales price was $136,000. The high sales price was $153,000.
For more information on William D. Cobb and Accurate Valuations Group, visit <a href=http://www.denhamspringshomeappraisals.com>
Four Renovations That Won't Get You a Higher Selling Price - WSJ.com
Source: Brian Davis, SRA http://www.ourappraisal.com/Four+Renovations+That+Won't+Get+You+a+Higher+Selling+Price+-+WSJ.com
But be discerning about your choices -- certain renovations can actually decrease the value of your
1. A swimming pool. If you don't know this already, a swimming pool is a liability, not an asset. (Unless you live in a hot climate; in the Southwest, a pool can increase a home's value by 11%.) But if your home is in Oregon or Illinois, the cost of insurance and pool maintenance is a buyer turn-off. Families with small children especially avoid homes with pools. 2. Home addition. Sure, an addition to your home will add inside space. But how will it look from the outside? Many home additions can look boxy or unnatural with the rest of the house. If you do go for an addition, make sure it is well designed. 3. Trendy finishes. Don't fall for the latest style or trend when it comes to renovating. As soon as it's out of style, it will stick out -- and look bad. One trend that will probably last for a while is custom paneling in maple or mahogany for home appliances. Otherwise, stick to timeless, classic renovations. 4. A Jacuzzi. Nothing beats a good soak after a long day. But not everyone loves a giant tub with multiple jets. Instead, try a rain showerhead if you want to add some luxury to a bathroom
The Priciest Homes on the Market
The word "slowdown” largely doesn't apply in the luxury real estate market.Ultimate Homes magazine posted its annual list of the priciest homes on the market in the United States. New York, California, and Florida dominate the list with more than $12 billion in luxury listings coming from these three states alone. The average price of a home on the list is $18 million.Who are the owners of these mansions? A survey shows that 73 percent of home owners who own at least one home valued at $2.5 million or above are younger than 55 and are self-made millionaires.Here are the top 12 properties on the list:
— REALTOR® Magazine Online
The four biggest trade groups representing appraisers say inflated property valuations have been one of the main driving factors behind the surge in foreclosures by financially strapped borrowers. Led by the Appraisal Institute, the organizations also argue that inflated appraisals are at the center of many mortgage fraud schemes, and they’ve called on federal regulators to come down harder on lenders that pressure appraisers to boost valuations in order to permit overpriced deals to proceed. In many instances, such lenders failed to require "firewalls" separating loan officers working on commission from appraisers tasked with assigning a value to the property being financed. In a 2006 poll conducted by October Research Corp., 90 percent of the appraisers reported having been the victims of such forms of coercion as nonpayment of fees and outright threats and many reported having lost business when they opted not to go along with the plan.Source: Baltimore Sun (04/20/07)
Top 10 Towns Where People Want to Live
Relocate-America.com, which provides resources to people who are relocating to a new community, has compiled a list of cities and towns that its customers believe are the best places to live. In order to make the list, a community must first be nominated by someone familiar with the area's benefits. Relocate-America's editorial team reviews the nominations for compelling reasons that make the community a top place to live. Such descriptions often include references to a community's people and neighborhoods, beauty of the area, quality of the schools, things to do, economic vibrancy and environmental health.The top 10 towns are:
The complete Top 100 List, compiled annually since 1998, can be viewed at Top100.Relocate-America.com.
(Much of the information presented is directly from the handbook provided at the seminar and the notes taken by William during the seminar.)
The purpose of the seminar was to help residential (home) appraisers become a less attractive legal target and thereby avoid being the subject of litigation.
The seminar handbook explains that there are several ways to deal with appraiser liability:
1) Avoid it. Make yourself a less attractive target.
2) Transfer it. Shift the liability to another entity, such as the client or the other intended users.
3) Manage it. Understand and use the legal system to your advantage; create a relationship with a competent Lawyer who will assist you in your business affairs to pre-avoid liability. Have Errors & Omissions Insurance from a reputable company that will defend you with local contract attorneys.
4) Accept it. Acknowledge the fact that it exists and insure against it, such as with E & O insurance.
5) Ignore it. Pretend it doesn’t exist and hope it goes away.
6) Leave it. Change your career to one that is less adversarial.
According to the instructor, these are the Common Reasons for Home Appraiser Lawsuits and Litigation and Some Possible Remedies:
1) Failure to discover and report improvement and site defects. On purchase appraisals, it’s a very good idea to obtain the signed Seller’s Disclosure forms when requesting a copy of the purchase agreement. Add a statement to the appraisal that indicates that the appraiser has reviewed the Seller’s Disclosure Statement. Keep a copy of it in the work file. At the time of inspection, ask the seller if they are aware of any mold issues. The appraiser could even present the seller with the appraiser’s own form with questions for the seller to review, answer, and sign.
2) Incorrect calculation of gross living area. When performing an assignment, the appraiser should never rely upon what’s in the MLS system for living area, the previous appraiser’s sketch, an old survey, and the county records stating living area or the architect’s set of plans. If the appraiser receives a set of plans for proposed construction, those plans should be verified with sketching software to verify the living area size. If the appraiser waits for the final inspection to verify – it’s too late. If the subject has an addition to living area, such as an enclosed porch or enclosed carport/garage, this area should always be separated in the sketch and in the report - even if the area is given equal contributory value.
3) Failure to report roof leakage, settlement or foundation cracks, wet basements, termite infestation and mechanical defects.
4) Overvaluation or Undervaluation of a property. Fraud is most commonly a competency issue and E&O Insurance does not cover the appraiser when fraud is found. It was stated that approx. 15% of all fraud cases deal with inexperienced appraisers.
5) Appraisal of wrong property.
6) Failure to verify, period. Includes items throughout the FNMA 1004 form such as utility hookups, zoning, lot dimensions, County taxes/assessments, correct owner of record, subject’s history (both listing and sales), etc… Appraisals should be loaded with verification.
7) Defamation. The review appraiser degrading the appraiser instead of the report itself, thus the appraiser defamed sues the review appraiser.
Why I would highly recommend this 7 Hour Appraisal Institute Seminar? In the 15 years of my appraisal experience, I have attended many seminars. Very few have been practical. Most have only been theory. The main reason I highly recommend the seminar is that it presents case studies which really address every day issues that appraisers experience. Several other reasons why I highly recommend the class are as follows:
1) The instructor is an SRA residential FHA/VA appraiser from New Mexico, who has practiced his trade/skill in several locations around the U.S. He was very direct regarding issues in which appraisers are currently being sued. He is informative about other appraisers who have been sued, their experiences, and how they handled their situation.
2) The book has multiple “Sample Disclosure Statements” which can add to residential appraisal software templates for the FNMA 1004 form. This is the first seminar I’ve ever attended in which the instructor and book took the guess work out of providing disclosure statements to help protect the appraiser. The disclosures are samples which can and should be adjusted and tailored to each appraiser’s own specific template and for each individual appraisal assignment.
3) The Instructor does not advocate that appraisers follow “conventional wisdom”. See “Boiler Plate Comments” paragraphs below.
4) The instructor tells the appraiser to limit your liability and to use the Appraisal Institute’s new Restricted Appraisal Form when appraising non-lender related appraisal assignments. Also, he instructs appraisers to use words such as “appears”, “apparent”, “according to the owner”, “estimate or +/-“. Another bit of advice was that the appraiser should use lots of photos in his/her reports and keep a photo folder for each report completed in case of future litigation.
5) There are many “Appraiser Dilemmas” class discussion questions like the one below from the book. These Dilemma scenarios really make an appraiser think much more carefully about each step in their practice and encourage them to be much more careful in their appraisal reporting.
Appraiser Dilemma from the workbook – PS083SH—B:
Phil Phorm, a real estate appraiser, made a disclosure in his appraisal report that he is not an expert on mold issues and suggested that the client, if concerned, should employ the services of an expert or experts. After the sale of the subject property, such an expert found mold inside the structural walls of the bathroom. The buyer is now suing Phorm, the seller, and the real estate sales agent. Because of Limiting Condition 5 on the URAR, Phorm believes he has a good case and tells his lawyer he wants to fight the lawsuit. The attorney reminds Phorm that he isn’t charismatic or articulate, dresses poorly, doesn’t smile much, and just won’t play well to a jury. The plaintiff is a young couple with twin girls who are cute as a button and were delivered shortly after moving into the property.
Phorm tells his attorney that he’ll take his chances with the jury. The attorney informs Phorm that the plaintiff is asking for $18,000 to cover the cost of mold removal and treatment as well as minor structural repairs. Attorneys for the seller and sales agent have indicated that their clients will each pay $6,000 if Phorm will match the funds. Phorm’s attorney estimates defense costs at approximately $12,000 to $15,000.
How do you think Phorm should proceed? How do you think this lawsuit will end?
According to the instructor, “there really is no right answer for this dilemma. Obviously there are several scenarios that could make a difference if we had more information, but the point of the example was to point out that in the adversarial arena of litigation, things are not always “fair”.
My answer was that Phorm should have contacted his E & O Insurance Company first upon notification. That way, if Phorm only has a $1,000 deductible, he’s only out $1,000 and the E & O Insurance Company’s attorney sends their bill to the E & O Insurance Company. From the Quality Assurance in Residential Appraising Appraisal Institute Seminar I took in 1/2007, instructor Mark Rattermann, MAI, SRA, emphasized that appraiser statements that they aren’t home inspectors don’t hold up in court. Mr. Rattermann told the story about the appraiser who used such a long paragraph that he wasn’t a home inspector, but failed to point out that the home had an obvious cracked slab with cracks running up the brick (not just through the mortar) and the home needed a new roof. The appraiser stood by his report’s statement that he wasn’t a home inspector. The attorney fried him on the stand by questioning him with, “Are you telling the jury that a home with a cracked slab is worth just as much as a home without a cracked slab? Are you telling the jury that a home with a bad roof is worth just as much as a home with a newer roof? Mr. Appraiser, would you purchase this home in its’ present condition with these obvious defects, which will cost at least $20,000 to repair for the market value/price that you appraised it for?” By the way, a cracked slab is a lender risk-management decision, not an appraiser decision. The appraiser should report the problem; request a structural engineer’s instruction with cost to cure, and state the right to amend the report if the cost to cure exceeds $100.00.
Boiler Plate Report Comments.
For all of these years, appraisers have been told not to load reports with canned, boiler plate language. Underwriters have also expressed their attitude against boiler plate language. Well, as we have witnessed with the introduction of the new FNMA 1004 appraisal form and some of the controversial Appraiser’s Certifications within, such as #2.), which states that I have completed a “complete” visual inspection, we know that neither Fannie Mae or Mortgage Underwriters are on our side in terms of shielding our liability. Fannie Mae has increased our liability with this newer 1004 form. The instructor showed us his 6 legal size pages of Boiler Plate language which he calls “Appraiser Notes”. According to the instructor’s study of appraiser lawsuits and litigation, “Appraiser Notes” are original, written content made by the appraiser and the courts give much more weight to “Appraiser Notes” than they do the extra 3-4 pages of Appraiser’s Certification verbiage from within the actual FNMA 1004 form. In other words, the courts haven’t had a tendency to rely upon the “fine-print” on the appraisal form.
Conclusion. In conclusion, the instructor provided me with 7 pages of notes, a very valuable workbook with dozens of Sample Disclosure Statements to help protect me, gave me multiple real life appraiser litigation scenarios to keep me functioning at my best in my profession and provided a thrill filled day of thought provoking habits we as residential appraisers need to form. These days, in our litigious United States, it’s not if you’re going to get sued, it’s when. Be Prepared!
Heyn, Richard, and Dawn Molitor-Gennrich. "1." Liability Management for Residential Appraisers:
Dodging the Litigation Bullet. Baroda, Michigan: Heyn, Molitor-Gennrich, LLC, 2006. 1, 5, 7.
For more information on William D. Cobb and Accurate Valuations Group, please visit http://www.getfastvalue.com . William D. Cobb with Accurate Valuations Group has operated as a home appraiser for 15 years primarily in the Greater Baton Rouge, Louisiana market (Baton Rouge, LA; Baker, LA; Zachary, LA; Greenwell Springs, LA; Denham Springs, LA; Walker, LA; Watson, LA; Livingston, LA; Prairieville, LA; Gonzales, LA; Geismar, LA; Sorrento, LA; Port Allen, LA; Brusly, LA; and Addis, LA). This article was written with the assistance of R. Chandler Smith @ http://www.1stsourceappraisals.com
Thursday, April 19, 2007Source: Inman News
U.S. mortgage buyer Freddie Mac on Wednesday said it will purchase $20 billion in fixed-rate and hybrid adjustable-rate mortgage products to provide more stable financing alternatives for borrowers of high-risk subprime loans.
The subprime lending segment has been in turmoil after rising defaults caused Wall Street investors to pull back on purchasing these loans, which in turn caused several subprime lenders to go out of business.
A congressional committee held a hearing on Tuesday where the heads of Freddie Mac and Fannie Mae each said that the companies are developing new loan types to help distressed borrowers with high-risk mortgages to keep their homes.
A key federal regulator during Tuesday's hearing also urged lenders to extend flexible terms to struggling borrowers.
Freddie Mac's announced products, currently under development by the company and slated to be introduced by mid-summer, will limit payment shock by offering reduced adjustable-rate margins, longer fixed-rate terms and longer reset periods, the company said.
"The problems facing borrowers in this segment of the market are of deep concern to Freddie Mac. Two months ago, we announced several pro-borrowers steps, including the enhanced underwriting standards and more consumer-friendly mortgage products for borrowers with impaired credit," Richard F. Syron, chairman and CEO of Freddie Mac said in a statement Wednesday.
"Today, we're again ramping up our commitment through this $20 billion pledge to assist families caught up in the subprime crisis and to make the market more stable and transparent for all borrowers," he said.
The commitment follows Freddie Mac's recent announcement that it will cease buying subprime mortgages that have a high likelihood of excessive payment shock and possible foreclosure. Among other things, the company will require that subprime ARMs -- and mortgage-related securities backed by these subprime loans -- qualify borrowers at the fully indexed and fully amortizing rate.
The company also said it will limit the use of low-documentation products in combination with these loans; require that loans be underwritten to include taxes and insurance; and strongly recommend that the subprime industry collect escrows for taxes and insurance, as is the norm in the prime sector.
For more information on William D. Cobb and Accurate Valuations Group, please visit http://www.getfastvalue.com and http://www.batonrougehomeappraisals.com William D. Cobb with Accurate Valuations Group has been as a home appraiser for 15 years now primarily in the Greater Baton Rouge, Louisiana market (Baton Rouge, LA; Baker, LA; Zachary, LA; Greenwell Springs, LA; Denham Springs, LA; Walker, LA; Watson, LA; Livingston, LA; Prairieville, LA; Gonzales, LA; Geismar, LA; Sorrento, LA; Port Allen, LA; Brusly, LA; and Addis, LA). This article was written with the assistance of R. Chandler Smith @ http://www.1stsourceappraisals.com
Moore jokes that there aren't any significant changes to Trends this year -- the event is being held at the same spot, with the same people talking about the same topics. "It worked well last year, so we're doing it again," he says. To register for Trends, click here and check out the schedule here. The Trends seminar has been held every year since 1988 as a joint operation between the Greater Baton Rouge Association of Realtors and the LSU Real Estate Research Institute.
(Timothy Boone)
A new subdivision will be built near the corner of Hoo Shoo Too Road and Jefferson Highway. Willowbrook Partners, represented by Art Lancaster of Peek Howe Real Estate, purchased a 15.54-acre tract wrapping around the corner of Hoo Shoo Too and Jefferson. The deal was brokered by Lancaster and David Treppendahl with RE/MAX First Commercial Properties. The property was sold for $2.60 per square foot and will be developed with a 100-lot subdivision, with a 3-acre lake and walking trails. Lots will measure about 40 feet by 120 feet and sell for between $49,000 to $55,000.
According to Lancaster, Willowbrook is still determining whether or not they will build the lots themselves or will enter into an agreement with a design/build company. The property is currently being cleared, and lot development should begin sometime in the next three months. The company also has an additional 5 acres at the corner of Hoo Shoo Too and Jefferson under contract. Plans are to build a mixed-use office and retail development on that site.
(Appraiser Tom Cook owns Cook Moore and Associates. Reach him at 293-7006 or TCook@cookmoore.com.)
Date 1/17/2007, Instructor: Mark R. Rattermann, MAI, SRA
The major fraud in the residential appraisal industry (instructor said approx. 70% to 80%) is where the flipper is buying for $20K, doing no repairs, selling for $90K on the same day in a back-to-back closing and the appraiser fraudulently supporting the $90K when the home is really worth $50K. It’s the corrupt relationship between Real Estate Investors and Appraisers who fraudulently support values in appraisals when ethically the value just isn’t there.
THE #1 RECOMMENDATION BY THE INSTRUCTOR WAS “DO NOT CLONE APPRASIAL REPORTS” This is the number #1 reason for errors in appraisal reports.
See www.appraisalfoundation.org for 2008 appraiser qualifications
Check out www.appraisalmatrix.net for increased security of your appraisal pdfs
Lenders/underwriters are watching appraiser’s use of comps via computer models, www.realtor.com and fsbo sites in the local market of the appraisal they’re reviewing
Lenders are becoming stricter in their appraisal requirements because regulatory authorities are scrutinizing them more heavily now with all of the national fraud. Local mortgage brokers are the most risky for an appraiser to work for
***Add at least 2 listings to your appraisals for additional support to show the underwriter that you’ve gone above and beyond the call of duty in providing a thorough, well supported appraisal. It’s easy to create a custom skeleton with much of this data already typed in to save time.
For Appraisers affected by Hur. Katrina, add a thorough Hur. Katrina market commentary
***STATE NEEDED HOME REPAIRS NO MATTER WHAT OR NO MATTER WHICH LENDER YOU’RE APPRAISING FOR
***As much as you don’t want to do this, you need to develop an appraiser’s inspection checklist. Is there any settlement of the foundation?. What about adverse neighborhood conditions and/or market factors that you need to report on? In this underwriting environment and the huge national problem of mortgage-appraiser fraud (mortgage loan officers and appraisers sleeping in the same bed so to speak), don’t overlook or not report something that should be reported just because you might upset the lender and negatively impact the lender’s deal. Lenders are getting more field reviews and when you fail to point out the obvious, this is coming back to bite appraisers in terms of E&O claims and lawsuits.
On home appraisal inspections, take at least 20 minutes to do them. Don’t do the 5 minute inspection, even on a small, simple home. Instructor told the story about a borrower that complained about the quality of her appraisal based on the fact that the appraiser was only at her house for less than 5 minutes and got several things wrong on the appraisal.
***Appraiser statements that they aren’t home inspectors don’t hold up in court. Instructor told the story about the appraiser who used such a long paragraph that he wasn’t a home inspector, but failed to point out that the home had an obvious cracked slab with cracks running up the brick (not just through the mortar) and the home needed a new roof. Appraiser stood by his report’s statement that he wasn’t a home inspector. The attorney fried him on the stand by questioning him with, “Are you telling the jury that a home with a cracked slab is worth just as much as a home without a cracked slab? Are you telling the jury that a home with a bad roof is worth just as much as a home with a newer roof? Mr. Appraiser, would you purchase this home in its’ present condition with these obvious defects, which will cost at least $20,000 to repair for the market value/price that you appraised it for?”
SELLER CONCESSIONS. Be very careful here. Deduct 100% of seller concessions paid in your comps, but also realize that if the comp transaction is FHA or VA, there are typical seller mandated fees involved, which the appraiser may not need to deduct because these are required by FHA and VA. Mark Rat. and Kathy Coon, SRA, both agree with this statement:
Kathy Coon, SRA, says" some appraisers are misinterpreting the typical as it is used in the definition of market value, thinking that if a lot of sellers are paying concessions- especially from new home builders in the same neighborhood-then these are typical and therefore should not be deducted. That's incorrect. Fannie Mae and FHA have both attempted to clarify the instructions to the appraisers. Any concession that has been built into and increases the price should be deducted when these sales are used as comps."
See: www.allregs.com for an explanation of FNMA seller concession guidelines.
See Welcome To Fannie Maes Single Family Guides:
COMP PHOTOS. Using MLS photos is an automatic red flag for underwriters because in the new FNMA 1004, you’re signing your name that you did personally drive by each comp in the report. Be sure to drive by each comp and use the correct photos in your appraisals.
Google Earth. On a drive-by appraisal, you can measure a home on Google Earth.
Purchase Agreements. You must have 2 signatures (buyers and sellers) to have an executed purchase agreement for your verification. Make sure the staff setting up your files knows about this and gets you a fully executed purchase agreement and that PA’s are READABLE.
See http://www.mortgagefraudblog.com/ for appraisers who have been convicted of committing appraiser fraud by state
Course Objectives From The Seminar Flyer:
"This unique new seminar was designed to show the residential appraisal community the consistent problems found by underwriters, appraisal reviewers, quality control divisions, and fraud investigators. Although this seminar was developed around the Uniform Residential Appraisal Report form (URAR) it is not intended to review the entire form. This is a "real-world" educational experience - all class discussion exercises and examples of appraisals are from real cases, with appropriate identification information changed for the purpose of confidentiality. The seminar will review areas of the appraisal that reveal red flags that the value is unsupported. Upon completion of this seminar participants will be able to:
For more information on William D. Cobb and Accurate Valuations Group, please visit http://www.accuratevaluationsgroup.com William D. Cobb, with Accurate Valuations Group has been as a home appraiser for 15 years now primarily in the Greater Baton Rouge, Louisiana market (Baton Rouge, LA; Baker, LA; Zachary, LA; Greenwell Springs, LA; Denham Springs, LA; Walker, LA; Watson, LA; Livingston, LA; Prairieville, LA; Gonzales, LA; Geismar, LA; Sorrento, LA; Port Allen, LA; Brusly, LA; and Addis, LA). This article was written with the assistance of R. Chandler Smith @ http://www.1stsourceappraisals.com
Gonzales, Louisiana Real Estate News – Accurate Valuations Group Gonzales Appraiser Study Shows Villa Gardens Subdivision Pre To Post Hurricane Katrina Increases 21%
Development Entrance Sign Attractive Garden Style Homes
William D. Cobb, a home appraiser with Accurate Valuations Group in the Greater Baton Rouge, LA market, is pleased to announce a gain in average home prices within Villa Gardens Subdivision. Based on data obtained from The Greater Baton Rouge Board of Realtors, the gain in average homes prices within within Villa Gardens Subdivision Pre to Post Hurricane Katrina has been 21%. The median price has increased 22%. The average price per sq. ft. has increased 21%.
Why Study Villa Gardens Subdivision? Villa Gardens Subdivision is just one of the many “Garden Home” developments being built in the Greater Baton Rouge Market to house the baby-boomer population, single parent homes and young families. In 2005 in Villa Gardens, the low sales price was $125,000 and the high sales price was $135,900. In 4/2006 to 4/2007 in Villa Gardens, the low sales price was $147,500 and the high sales price was $182,000. According to Legal News, Villa Gardens Subdivision was developed by Chris Ingram with Ascension Properties, Inc.
Living Room with Custom Cabinets Kitchen:Cabinets/Good Use of Space
Market Summary 1/1/2005 to 8/28/2005 PRE HURRICANE KATRINA:Avg Sold: $130,777Median Sold: $129,900Avg $/SF: $92.56/sfAvg Days on the Market: 78Total# Listings: 11
Market Summary 4/2006 to 4/15/2007 POST KATRINA:Avg Sold: $158,333Median Sold: $158,000Avg $/SF: $111.85/sfAvg Days on the Market: 35Total# Listings: 9The gain in average homes prices/values within Villa Gardens Subdivision Pre to Post Hurricane Katrina was from $130,777 to $158,333 or 21.07% increase. The median price/value has increased 21.63%. The average