A 2017 Housing Bubble? Here’s What Appraisers Advise

Posted by: Joseph Dobrian Date: Jan 26, 2017 8:16:08 PM

Rumors of a 2017 housing bubble that is set to pop may be exaggerated. The housing market has been in a slow recovery since the mortgage-backed securities crisis of 2007 and the severe economic downturn of 2008.

Given the cyclical nature of real estate, it’s reasonable to expect a correction in the next year or two. But the bubble isn’t likely to burst, because there isn’t one.

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Topics: Trends, Residential Appraisal, accurate appraisals, appraisal trends

Where Do Appraisal-Related Adjustments Come From?

Posted by: Robert Grafe Date: Aug 18, 2016 9:00:00 AM

Appraisal-related adjustments are not just guesses by the appraiser or “rules of thumb.” Nor are they calculated numbers used to mathematically force a preconceived adjusted market value estimate in support of a value conclusion for the subject property. We tend to think of appraisal-related adjustments, as they pertain to residential appraisal assignments, as usually having to do with the sales comparison approach. However, it may become necessary to also provide cost approach adjustments and/or income approach rental adjustments that are not only necessary, but also appropriate, defensible, and reasonable.

Keep reading to learn about specific guidelines for adjustments, where appraisal adjustments actually come from, and a real-life example of adjustments in action. Plus, join McKissock and Josh Walitt for a Pro-Series webinar on Wednesday, August 24 at 1:00pm EST: How-to: Quality-Related Adjustment Methodologies.

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Topics: Residential Appraisal

The Realm of Relocation Appraisals

Posted by: Carole McCullough Date: Aug 4, 2016 9:00:00 AM

Up until the mid-1960s, the United States had, for the most part, a stationary workforce. The only people that seemed to move around with their jobs or careers were military personnel. That all changed with the dawn of the Age of Mobility. With the ease of transferring to a new location, and transitioning into a new career, evolved a new industry: relocation. As a result, corporations established a group to address moving household goods and real estate issues. This formed the basis for the creation of the Employee Relocation Council in 1975. Today this organization is known as Worldwide ERC, reflecting the mobility of a modern global workforce. This post will explore the realm of relocation appraisals and give advice on specializing in this particular area of residential appraisal.

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Topics: Residential Appraisal

Appraising Stigmatized Properties: The Challenges and Opportunities

Posted by: Carole McCullough Date: Jul 28, 2016 11:00:00 AM

As an appraiser, whether you're looking for a niche market or not, you may be given the chance to enter the field of stigmatized property appraising. The opportunity usually arises when a lender contacts you to value a property in a community in which you work. When the lender places the order, and then you accept the assignment, neither one of you may know that the marketplace views the property as stigmatized. Regardless of the circumstances, once revealed, the specifics of the case will call for a level of expertise, knowledge, and research beyond that of many appraisers.

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Topics: Residential Appraisal, Commercial Appraisal

Expectations for Location Adjustment Methodologies

Posted by: Josh Walitt Date: Jul 13, 2016 10:47:50 AM

In recent years, with the increased use of risk-based scoring and automated systems to compare your adjustments to peers’ adjustments, adjustment rates are being met with increased scrutiny.

Join us in a Pro-Series Webinar: How-to: Location Adjustment Methodologies on Wednesday, July 20 at 1:00 PM EST, where we’ll look at the sources of the data that we can use to support our location adjustments.

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Topics: Residential Appraisal

Are You Making the Grade with Your Appraisal Adjustments?

Posted by: Josh Walitt Date: Jun 20, 2016 9:00:00 AM

Supporting appraisal adjustments is nothing new. Appraisers have always been expected to conduct research in order to have a market-basis that supports the adjustments they made in the sales comparison approach. In recent years, though, with the increased use of risk-based scoring and automated systems to compare your adjustments to peers’ adjustments, adjustment rates are being met with increased scrutiny. Keep reading for helpful info on deriving and supporting appraisal adjustments, including GLA and basement adjustments. Plus, join me on Wednesday, June 22 at 1:00pm EST for the McKissock Pro-Series webinar: How-to: GLA and Basement Adjustment Methodologies.

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Topics: Residential Appraisal

Is There a Narrative Appraisal in Your Future?

Posted by: Carole McCullough Date: Jun 2, 2016 11:00:00 AM

The appraisal industry has sped along the fast track of technology, relying on software programs for gathering data, and empowering appraisers to turn around reports in record time. Software programs have saved appraisers countless hours gathering information for the average property appraisal. Various forms are available for completing the appraisal, and with a simple click you can add another form for comments and explanations. While many appraisals can be completed by using the standard forms, there exists a “niche” market for the more comprehensive narrative appraisal.

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Topics: Residential Appraisal

Retrospective Appraising: A Popular Niche Specialty

Posted by: Carole McCullough Date: May 26, 2016 11:00:00 AM

Interested in pursuing a niche specialty? Of all the “niche” appraisal markets, retrospective appraising is perhaps the most prevalent. In this specialty area, the criteria in defining Market Value is not bound by geography, but by a specific date, a situation of time past. The Effective Date of the appraisal is the date of a happening. As in other real estate appraisal specialties, the narrative format is recommended, because a narrative appraisal provides the client with both detailed salient facts and an analytical procedure used to reach the final value estimate. Keep reading to learn about different types of retrospective appraisal, including estate appraisal, and get advice on how to obtain business in this niche market.

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Topics: Residential Appraisal

Appraising Apartment Properties Vs. Residential Properties—There Are Differences!

Posted by: Robert Grafe Date: Apr 28, 2016 2:00:00 PM

Yes, there are differences between appraising apartment properties and appraising single-family, duplex, and triplex residential properties. Before you accept an apartment building appraisal assignment, make sure you have the knowlegde and experience needed to demonstrate full competency. Check out our new course, Appraising Small Apartment Properties, and keep reading to learn more about the valuation process, market data, approaches to value, and more.

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Topics: Residential Appraisal

Appraising Historic Properties

Posted by: Carole McCullough Date: Apr 21, 2016 11:00:00 AM

Historic property appraisal is a niche market that few appraisers explore. Why? Perhaps because this category of real estate appraising is not necessarily defined by geographic boundaries. Like other niche markets, appraising historic properties can be trying and demand the education, skill, and knowledge of an expert. The historic property appraisal tends to go “beyond the nine dots.” It typically requires the format of a narrative appraisal for comprehensive reporting, although basic assignments can be completed on standard forms. Keep reading to learn more about this interesting and challenging appraisal specialty.

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Topics: Residential Appraisal