Appraiser Frustrations! Plus, Green Horizons

A DYING INDUSTRY?

So, it's come to the point now where the types of problems that are popping up in the appraisal industry force me to question my own sanity in being an appraiser. The bank account is almost drained, but I'm still spending countless hours on appraisals I am clearly not getting paid enough for (what with the myriad of changes/requests/alterations that come in after the appraisal is done).  I'm working hard but hardly paid. This is not a good sign for the industry. But there's more.

COMPUTERS VS. HUMAN CRITICAL THINKING

Today, I had an underwriter (from a certain bank that rhymes with pace) tell me that the statistic of a loss of $0.15 per square foot per day was not a rate. That a rate should only be expressed as a percentage in a report. Essentially, informing me that the nicely worked regression technique I employed to guide me in estimating declining values in this market was not valid.  This is a technique not only used by other appraisers, but at the core of the scientific world as well, and one that I used for years in graduate school and actually taught in genetics courses. Their lack of understanding of basic statistical analysis paints a very poor picture of what is going on in lending today. If the underwriter does not understand basic statistics, then how is she/he making the ultimate determination in funding a loan? Has the system become so automated that no one really understands what they are doing anymore?  Loans are then being funded by computers, not people? This points to a system that is so over-automated that humans are no longer in control of what is going on. I would much rather have a human, skilled in critical thinking and analysis, reading appraisal reports and following my own path of analysis.  A computer and a "screening" system does not respond to the nuances of an analysis and doesn't even register a comment with unmatched parameters. So be it. I believe the signs of the appraisal apocalypse are here!  It is time to move on.

NEW SAN FRANCISCO INTERNATIONAL TERMINAL

On a good note, the San Francisco Airport is forging ahead in the green movement, with a $383 million green overhaul of the International Terminal, featuring "building systems that exceed energy reductions demanded by California code by 15 percent; water-saving measures and fixtures that cut consumption by an average of 40 percent; a design that bathes the facility in natural light; decor that's more akin to the hospitality industry than commercial travel; and shops, restaurants and other diversions that can be found at an upscale mall."

Read more: http://www.greenbiz.com/blog/2011/04/07/sf-airport-reopens-iconic-terminal-383m-green-showcase#ixzz1Jv77Nptx

Message? The time right now is to move forward into areas of Progress, not areas of Regress. Unfortunately, appraising appears to be in a huge backward movement....and I'm determined not to get stuck in that rip tide! I'm heading ashore, onto greener pastures.

Long Time No Blog!

Readers of EBREU, I mournfully apologize for the lack of blog posts since February. I have certainly been remiss. However, it is not without reason. I regret to say, my house was broken into and I lost all my computers, including my blogs and blog material. As I slowly work my way back up from my losses, I figure it is time to reconnect and perhaps give some wisdom based on my recent experience.

1. Alarms are important, if you do not have one, get one!
2. No matter what time of day it is, do not leave the alarm off. Even if you are only going out for a few: Turn. On. The. Alarm.
3. Rental insurance is cheap and can really help recoup losses. We found ours through Geico for only $16 per month.
4. Always check your doors and windows before you leave or go to bed.
5. Stay in touch with neighbors. Let them know when you are leaving for extended time period and make a "neighborhood safety watch" agreement to look out for each other.
6. Label/engrave all important items so they can be easily recognized if stolen.
7. Keep a safe in the house for high-value small items. Keep the safe locked and the key hidden in another room.
8. In the horrible event that a burglary does occur, take note that burglaries are not important enough for police response in Oakland, so plan on filing a report online. Take note of everything that was lost, when/how it happened and timeline.
9. Look for lost items on Ebay and at pawn shops. Immediately spread word to friends to keep their eyes out. Announce via email and social networks to get as many people aware as possible.
10. File an immediate Alert on Experien, TransUnion and Equifax.  This will trigger them to notify you if anyone is trying to open accounts in your name.   You may also order a Freeze if you have your police report, which will freeze all credit under your name.  Be aware this may cause complications if you are trying to use credit.
11. Have a back-up plan for filing with the 3 credit bureaus in the event your computer was stolen. Keep their phone numbers filed nearby and/or be able to go to a friend's or family member's house to file online.
12. Maintain tabs on all credit and identity theft situations over the next year or so.Thieves often hold off on using personal information until you have "cooled off" and are unsuspecting.
13. Finally, remember that stuff is just stuff and sometimes it is better to move on than to dwell in pain over losses.

Any other helpful information is greated appreciated, please share! And with that, I shall endeavor to produce some more positive blog posts in the future and will try my darndest to avoid any more personal tragedy. Please stay tuned!