Top 5 Appraisal Blog Posts of 2018

Appraisal Blog Posts That Got Attention In 2018

Grey Oaks subdivision Pelham AlabamaSince 2018 is now behind us I thought I would take a look and see what appraisal blog posts that I wrote in 2018 were the most popular. No scientific study here just a look at the ones readers commented on the most.

Last year my appraisal blog surpassed 500 posts! I started back in 2010 and can tell a major difference in my writing. My posts were shorter in the beginning but I published several times per week.

I now only publish once per week unless there is something I can’t wait to write about. My posts are now much longer and thorough than in the beginning but I try to provide a lot of useful information that readers can use.

If there is some topic about real estate appraisal that I have not already covered and you would like me to write about it please let me know. I’m always looking for new content ideas and if you have a question I’m sure someone else does as well so leave a comment below and I’ll do my best to put together a post to cover it.

Appraisal Blog Posts That Readers Were Commenting On

Without further ado here are the 5 appraisal blog posts that readers found interesting in 2018. You can click on the title to go to the original post and if you would like to add anything feel free to leave a comment.

Why Appraisers?

It seems lately that the role of appraisers is being questioned more and more. It also seems that those who are leadingAre appraisers black sheep of mortgage family the charge to limit the role of appraisers are the ones that will benefit the most.

Is this right? Should the checks and balances of the real estate transaction be reduced or eliminated? The majority of those contributing comments emphasized the importance of transparency in the real estate transaction. What do you think?

What Would Happen if There Were No Appraisers?

As I noted above, appraisers provide transparency to the real estate transaction. Because they are theUnintended Consequences of no appraisers ONLY unbiased part to a home purchase they provide a voice of reason.

It’s no surprise that with the development of algorithms and the proliferation of big data that goal is to have Automated Valuation Models (AVM’s) provide value estimates for real estate transactions. This plan, however, does present problems as I noted. Do you agree?

Agent’s Source Of Square Footage May Affect Sale Price

The appraisal process, and the development of real estate value estimates, in general, requires accuratesquare foot source affect sale price data. Have you ever heard the phrase “garbage in, garbage out”?

If you base the list price of a home on inaccurate information the likelihood that it is priced correctly is diminished. I had a hunch that since most agents use county records for their square footage estimates that their list prices may be off.

My research uncovered some very interesting data. If you live in another part of the country do you find the same thing? I’d like to hear what you find for your area.

Can I Choose My Own Appraisal Value?

It seems like even with tons of information being posted online about appraisers and the appraisalcan owners suggest a value for their home process there is still some confusion about how and why appraisers do what they do. Some people think that appraisers set value and that they can be influenced to either come in high or low.

Appraisers measure and interpret market data so that they can develop an educated opinion of value for real estate. Because a minimum of three sales are used in an appraisal assignment a range of value is indicated by the data and the appraiser uses their education and experience to reconcile a value estimate from within the range.

We do not have the liberty of choosing a random value to place on property nor do we take suggestions from clients. It’s interesting to see how some clients want high values and some want low values depending on how it financially benefits them.

This is one of the main reasons that appraisers exist, to provide an unbiased market-based opinion of the value of real estate so that users of the report can make informed decisions. Do you have anything else to add on this interesting topic?

Are Investor Flips Good Appraisal Comps?

Appraisers are always on a quest to find the best and most accurate market data in order to provideDo Investor Flips Make Good Appraisal Comparables credible value opinions in their appraisal reports. We have to collect and sift through data to see if it provides a true indication of value.

Investor flips are interesting because they may or may not give an accurate indication of value. With the popularity of house flipping there has been an increase in this type of transaction so the appraiser has to be able to decide if these types of sales can be used in their appraisal reports.

As with all comparables, it’s not always a cut and dry issue so a party to the transaction must be interviewed in order to find out all the motivations involved in the sale. What are your thoughts?

Conclusion

I hope these previous posts from 2018 were educational to you. If you found another post from the past year that you found interesting please let me know or if you would like me to cover a topic for the new year I would be glad to look at that as well. As always, thanks for reading.

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Comments

  1. Congrats on your success in 2018, Tom. Here’s to a tremendous year ahead. Blessings to you and your family (and your business).

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