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Pepper: (February 14, 2010 10:18pm)

Valueboy is correct, the bank or the person that ordered it owns the appraisal. If you want a copy of the appraisal you have to get it from the person who ordered it, if you are buying a house the bank has to provide you with a copy but they still own the appraisal.

If their too big to fail they are too dangerous to succeed: (February 09, 2010 4:25pm)

I think this entire discussion is based on the premise that appraisers have a home valuation method that is even reasonable legitimate. Here in Las Vegas I have seen 2 appraisers submit appraisals on the same home with less than a 48 hour difference in the effective date and the appraisals had value discrepancy of 38%, the appraisal management company took almost 3 weeks to come back and say both appraisals were wrong and they would have a Staff Appraiser review and adjust value accordingly. Both appraisers were from the same appraisal management company. I just recently had an appraisal completed by an appraisal management company on a home purchase with a sales price of $295,000.00 and the value came in at $293,500.00, NO APPRAISER IS THAT GOOD!

valley girl appraiser: (January 27, 2010 1:24pm)

HELP!! One of the NAMB lobbyists would like for any of the appraisers receiving campaign donation solicitations from Cuomo's office to retain a copy of said solicitations....and I guess forward them to Frank or Brian. Frank/Brian, I need an email address for you so that I can send you the lobbyist's information.

GODLIKE: (January 26, 2010 10:59pm)

Client relationships are not as simple as who pays. Just ask the Realtors, they've been fighting that issue for years. The question becomes one of who do you owe the fiduciary responsibility to, not who pays.

5pence: (January 26, 2010 8:51pm)

Valueboy: In your example-I pay a DR. or ATTY. for you for their services. I am paying for the SERVICE for YOU. Due to client priviledge I cannot have YOUR records without YOUR permission. It's a value exhange. You could pay for intangible rights or something physical. It's what you & the seller decide on. It's supply & demand. You're wrong in saying that the appraisal doesn't belong to the borrower. If it didn't belong to the borrower why does it have to be delivered 3 days before closing? Why are copies of appraisals sent to the borrower? It's theirs. They paid for it. It can't happen without them and their collateral. Why is the appraisal cost covered in HUD-1? The borrower paid for it. Simple. If I'm paying a Dr. or Atty. for his services for you, I have no other rights in the transaction except to demand payment from YOU for the services I afforded YOU with my funds. Bearpaw is right. The bank doesn't own the appraisal, they are just an intended user of it. I hope you understand.

Go figure: (January 26, 2010 8:09pm)

Has anyone noticed all the Butt Licking being done on David Stevens ActiveRain blog? And 99% of them are realtors. Wait until they find out these changes just hurt more than helped the average person buy a house.

lendermen: (January 26, 2010 7:43pm)

I just spoke with 3 other wholesale lenders and they will not accept my loan package without GFE 2010, PSA, and title. This is not good for the borrowers looking to get pre approved. If I can figure out a way to prequal the manual underwrite files I will be able to set home shoppers out prepared while the banks are going to send them out blind to purchase a house they might or might not be able to afford.

GODLIKE: (January 26, 2010 6:22pm)

LENDERMEN if HUD declares out Cost worksheets illegal then the first time the buyers will actually be able to see their closing costs is at the closing table. Won't that be fun!

GODLIKE: (January 26, 2010 6:21pm)

So what have you guys decided is the way to be able to do a VA with the new GFE? Has anyone figured out a good way to do the GFE and show seller paid costs?

lendermen: (January 26, 2010 5:43pm)

GFE is a joke, confusing mess. It must be paired with the old REAL gfe for borrowers to understand what is happening. It is not a Good Faith Estimate any more it is a PBD Permanent Binding Document or GFE Government Fs Everybody or KTTG Kick To the Groin. Nobody is really complaining about it yet because they haven't needed to use it. But soon, very soon my friends you will see the absurdity of this new document.

Sick of Govt. : (January 26, 2010 5:15pm)

Time to get together to get this joke of a form (2010 GFE) scrapped. I can't believe how much it has paralyzed production; it doesn't clarify ANYTHING, and only confuses the consumer. Consumers don't want it! Who thought of this thing in the first place? Whoever did should be forced to originate loans for a living.

lendermen: (January 26, 2010 5:04pm)

I was just told by a bank that I cannot send in my loan package for a USDA prequal. USDA loans are run through GUS. Because the property is not identified they will not accept the package. They are afraid to take it because they will be forced to use the numbers on the GFE. So, how the hell am I going to tell these people exactly what they are approved for? No property address no GFE, no gfe no pre approval no underwriting, no exact amount for USDA loans. This doesn't serve the consumer well.

Valueboy: (January 26, 2010 4:47pm)

5pence- Are you referring to the basic law or are you referring to what Bearpaw said. Bearpaw made a statement that "payment equals ownership". In other words, if a homeowner pays for an appraisal they would be or should be the owner/client of that appraisal. That is absolutely not true based on our English Law System. I hate to be redundant but look at the legal and medical profession. They have attorney/client privelage and doctor/patient privacy. If you go to a doctor or lawyer and I pay for the services, I have no right to your records even though I paid for the service.

Valuequestor : (January 26, 2010 3:47pm)

5pence: Absolutely, market evidence is always great...I was just trying to illustrate that there are other ways. Use both to support the adjustment and charge more....you've earned it.

Socal Appraisal Gal: (January 26, 2010 3:46pm)

If the market pays more for it and it can be abstracted then of course the appraiser would adjust for it in the market....My problem is that they want the cost of it and not what the market is willing to pay...does anyone remember Solar Panels...it was the same argument...appraiser's don't just give value because it costs more....again it is what the market is willing to pay..

5pence: (January 26, 2010 3:43pm)

Wow, Trinidad Colorado $590,000: a custom built STRAW-BALE (?) home with rainwater harvesting and more. pretty cool Straw-bale? I wonder how they did that! Interesting stuff, but, back to work for me. Have a good day all, thanks again Frank and Brian for a good episode today. BTW Frank, you're a lucky guy heheeh. L8R

KILLHVCC: (January 26, 2010 3:40pm)

as an appraiser in the central midwest, i see all kinds of energy efficient techniques as well as traditional systems. one thing that has to be remeMbered is that existance or not does not always warrant an adjustment. alot of the time the market data will show if it really needs to be adjusted. with the new ''green const.'' it must be remebered that the installation cost is to be stretched out over the life expectancy of the building and the POSSIBLE operating use savings is a result reward on a case by case basis.

Bella RE: (January 26, 2010 3:37pm)

Love the link to the green listings website! I am also so happy to finally see some positive discussions regarding "green", one usually runs against the grain when discussing these types of attributes! Thanks for the lift!

5pence: (January 26, 2010 3:33pm)

This is cool - "listedgreen". Green MLS exclusively for Green, Energy Efficient, Sustainable Homes and Real Estate Developments For Sale. http://www.listedgreen.com/ .... and http://www.usgbc.org/DisplayPage.aspx?CMSPageID=2135

Valuequestor: (January 26, 2010 3:30pm)

Thanks Bella RE, Wish I could take credit for being wicked smart....I just read and stand on the shoulders of the appraisers that went before me. (Hint Hint to my brothers and sisters. CE classes don't have much juice.)

5pence: (January 26, 2010 3:26pm)

Subtract out the site values from 2 nearly identical sales in location and quality (suburban/rural whatever) and you have the market value of the improvements. The biggest locational discrepency in sales price relates directly to site value with all other factors being similar. IMO. Anyway, it's worked for me many times.

Nuckin Futs Appraiser: (January 26, 2010 3:24pm)

The only way to get green homes accepted in the market is for the feds to hand out larger tax credits to do the upgrades. $1500 tax credit won't cut it. Also, if someone is buying a green house shouldn't the lending ratios be more liberal? That's an underwriting issue that has nothing to do with the appraisal.

Nuckin Futs Appraiser: (January 26, 2010 3:24pm)

The only way to get green homes accepted in the market is for the feds to hand out larger tax credits to do the upgrades. $1500 tax credit won't cut it. Also, if someone is buying a green house shouldn't the lending ratios be more liberal? That's an underwriting issue that has nothing to do with the appraisal.

5pence: (January 26, 2010 3:20pm)

Valuequestor, I've actually gone over 500 miles for comparables for a uniquely built home with panelized walls - excellent+ quality. It was the only other one in this state. I didn't drive there for the picture, just threw it into the appraisal and subtracted out site value there and compared it to the subject's site value to show the added value of the uniquely constructed improvements. I see no reason that can't be incorporated too. Just explain, explain, explain. As long as you make sense to the UW, in my experience, it'll go through. The way I look at it is, distance doesn't matter, it could be 3,000 miles away and as long as the data is good and verified by the owners and the construction company and others that have had the same custom home built as far as costs - no problem. For verification there's usually a lot of info on-line so proving your point to yourself first and then to the UW shouldn't be a problem. I'd welcome one of those to be honest.

Valuequestor: (January 26, 2010 3:11pm)

Trying to pair sales is usually a head banger unless you live in a town with numerous solar enhanced homes...even then, you have to take care since homes with solar enhancements tend to be of higher quality construction anyway. They are usually a custom home, not a spec house. When I have a solar home assignment, I tend to find that something is adding value, you can pretend it is an invisible superadequacy. I find thatn the newer low profile systems are a desirable feature even though still relatively rare. If your indicated value range after all adjustments is say $500,000 to $550,000....then come in on the higher side and explain why you are doing so in your reconciliation. __________________

Bella RE: (January 26, 2010 3:09pm)

Fabulous Valuequestor, that gives me some hope! A passive hot water heater is nothing compared to a zero-ed out electric bill or cutting down the top three tiers of a tiered electric bill while holding your electic bill charge at what it was when you placed your system online. Are utilities ever going down? No, I have never experienced that myself! I do net metering which means that I square up with the utility company at the end of the year. These scenarios should significantly increase the net the value. Great news however!

Valuequestor: (January 26, 2010 2:59pm)

Most energy systems have a 20+ year life with reasonably low maintenance. I appraised a home with a passive solar hot water heating system that has been in continuous use since 1986. The value to the property is its energy savings. If a solar panel saves $100 a month, then annually it is worth $1,200 in savings....Does $1,200 service the debt (net cost) and a GRM multipler multiplier imply a value that is equal to the cost? If it does then the house does not suffer a functional obsolescence (over-built condition.) The $1,200 is capitalized by the appropriate GRM, say 120 = $14,400 which is the net value to the property (your adjustment to comps without such energy savings). Just explain it. Standard Appraisal Practice gives more than one way to make an adjustment. One of them is Capitalization of Income Differences. Simply explain why you did it that way, and refer to the source. Give the underwriter some good information and a hug.

Mortgage Broker: (January 26, 2010 2:58pm)

Somebody posted the www.moveyourmoney.info site yesterday. We all need to pimp this hard!!! What happens if there is a run on the TARP funded banks? Many problems go away for brokers-dwindling market share, pressure on ysp, etc. One problem is added though...too much business.

Bella RE: (January 26, 2010 2:54pm)

Thanks for the vote 5pence! Believe me I understand the difficulties associated with green building,etc. It is still not the norm, but I am of the belief that it is heading that way. It's no longer just for the "tree-huggers". Most people we work with are cash customers and of the older than 50 set, they see the value. If we could get more people, Mortgage lenders and politicians on board, it would become the norm and not the unique!

5pence: (January 26, 2010 2:30pm)

Valueboy, where are you getting that??!! That doesn't relate at all to the homeowner being the client. If you pay my medical bills then I owe you, not the doctors. There's a big difference between fiduciary responsibility & contractual responsibility. Bella: I'm sooo looking forward to the time when green building is the norm!! It somehow has to establish a foothold in the market being unique and imo, highly desireable. It's just that when you have a green home and all you have are non green home comparables, you can't get away with a 50% adjustment for quality for things that aren't visible. In any market all you need is 2 green homes to reasonably establish the added value on paper. IMO, even if the sales are off-market, they can be introduced into the mortgage market to near their true value as long as all the terms of sale and improvements are transparent. It's not enough to just "know" it's desireable/worth, it has to be market proven reasonable that it's not an over-improvement.

5pence: (January 26, 2010 2:16pm)

mortgageblues: LOL!! That must that "proprietary lending" that we hear so much about. Why the banks don't want their books looked at and any transparency. They're all crooks. They can't help themselves so it's up to us to help them - that doesn't mean enable them. IndyMac investigations revealed a lot more than the article does, but thanks for that. Just makes more sense to me that the banks had to be criminals to get that big and have to keep stealing to stay that big. It's really a shame that they're being treated like saints. "For the love of money is the root of all evil" - A truth that needs to be understood by all when dealing with them.

brian tbws: (January 26, 2010 2:15pm)

valueboy give me a call. 707-330-1272

Valueboy: (January 26, 2010 2:12pm)

Frank & Brian, please listen to FHA-Steve regarding the lawyer willing to tackle HVCC. You don't have to do the fund raising for him, but you could post a link to one that gets developed for it? Or, simply mention a website developed for it. I'm an appraiser and would donate way more than $1 to this cause.

Bella RE: (January 26, 2010 2:09pm)

I have a green real estate brokerage and by green, I mean-solar powered, low VOC paint, solar heat, etc. and it's true that if no value is given to the value of green building, then they are partly to blame! Sorry, but when you work in the field and the only way to get these types of things financed is by refinancing-it creates the band of qualifying properties very small. The value is free utilities or minimal utlitites forever!!! There are big things coming down the pipeline in the near future in regards to power and properties, everyone could prosper and "save the earth" by utilizing these new products! Just an opinion!

Valueboy: (January 26, 2010 2:09pm)

Bearpaw- you say you've been around a long time, but seem to lack a understanding of business law. You said "whoever pays for the appraisal should be the client". Payment does not equal ownership. Think about the medical and legal professions. If you get sick and have no money, and I pay all your medical bills because I'm a really nice guy, does that mean I get to have all your medical records?. "NO", it's called doctor/patient privacy and "payment" has no basis in who owns something.

Colorado Broker: (January 26, 2010 1:43pm)

Mortgage Blues, Thanks for the link it is very interesting. I didn't want to think the banks would be so corrupt, but obviously I was wrong. Being to optimistic.

Carlos Sutter: (January 26, 2010 1:28pm)

Frank/Brian, I would suggest to always add the phrase "other" to the multiple choices in your surveys in order for them to be much more meaningful. I find that many times the available choices you pick for ourselves are neither the choices I would choose, and so I end up not picking any one, or picking 2nd best. Either way, you are missing, skewing or masking the true answer or discovery of a survey. This last survey is a good example. The reason why I think mods don't get done is because banks want it like that. (Follow the money trail).

MortgageBlues: (January 26, 2010 12:42pm)

THE TRUE REASON WHY LENDERS ARE NOT MODIFYING MORTGAGES: SHARED-LOSS AGREEMENTS EXCITUTED WITH THE FDIC http://iamfacingforeclosure.com/blog/2009/12/01/anatomy-of-a-government-abetteded-fraud-why-indymaconewest-always-forecloses/

MortgageBlues: (January 26, 2010 12:35pm)

Frank and Brian---THE TRUE REASON WHY LENDERS ARE NOT MODIFYING MORTGAGES: SHARED-LOSS AGREEMENTS EXCITUTED WITH THE FDIC Lenders actually make money by simply allowing mortgages to go into foreclosure because the FDIC will make up the loss to banks or servicers. Remember last year when President Obama flew to Arizona to announce his administration’s plan to help struggling homeowners keep their homes with the help of new government mandated loan modifications? So why is it so difficult to get a loan modification? It is not because of all the paperwork or about servicers getting organized. The true reason most people can’t get loan modifications is simply because lenders make way more money by foreclosing. Check out the following article by foreclosure expert, Patrick Pulatie: http://iamfacingforeclosure.com/blog/2009/12/01/anatomy-of-a-government-abetteded-fraud-why-indymaconewest-always-forecloses/ Note Patrick’s conclusion where he states that over 50 lenders have Shared-Loss Agreements with the FDIC.

GODLIKE: (January 26, 2010 12:28pm)

NEED SOME MORTGAGE HELP. Semi recently I read there was some sort of legislation/regulations/rule/whatever that said that Medical collections could no longer be put on the credit report. I need to be able to find that rule. I've got a customer with 5 pages of $50-$100 medical collections and that's killing his scores.

CornerstoneKathy: (January 26, 2010 12:24pm)

aww thanks cluless!!

new york girl: (January 26, 2010 12:22pm)

My spelling was terrible on that last one.

new york girl: (January 26, 2010 12:22pm)

My spelling was terrible on that last one.

new york girl: (January 26, 2010 12:21pm)

My spelling was terrible on that last one.

new york girl: (January 26, 2010 12:20pm)

Hey real appraiser If you read the SPECIGIC LENDER REQUIREMENTS I have to deal with your head would spin.I get calls telling ME what to write in my report. Another appraiser about to bite the dust.

brain tbws: (January 26, 2010 12:17pm)

to answer your question though... probably not but I think there's honest consideration for change.

brian tbws: (January 26, 2010 12:14pm)

kc. give me a call 707-330-1272 ~ Brian

BrokeBroker: (January 26, 2010 12:07pm)

HVCC solution: borrower gets and pays for appraisal then takes it to lender of his choice. In underwriting the lender orders a review, AMC or their choice. With value confirmed, the loan is consumated. Borrower's appraiser can't push value because there will be a review. A low review appraisal value can be rebutted by borrower's appraiser. Result-accurate value, work for independent appraisers and work for AMC appraisers.

kc: (January 26, 2010 12:07pm)

5pence they are in the middle of this and we are all in desperation at this point - just asking what his thoughts are - this is what the blog is for right

5pence: (January 26, 2010 12:07pm)

Geez, am I killing the discussion??!! BTW, all entries of the babes, it was really hard to choose... We have a good looking crowd here and that's for sure! ;^)

5pence: (January 26, 2010 11:58am)

kc, you crack me up. Brian is not Mr Wizard (I actually met him at a gas station pumping his own gas one day lol). No one knows any more than you do. Check the progress of the bill. HR 4173. Hang in there, you're sounding of desperation. Whatever happens it won't be a life changing event at first, it will take a while to work out in the market. Justice turns ever so slowly but it does turn.

kc: (January 26, 2010 11:51am)

Brian Do you think sometheink might happen before the 15th of Feb with this hvcc - or if fha will delay again

5pence: (January 26, 2010 11:50am)

The problem with truly green homes is that they're so expensive at this point. When their costs come down & the costs can compete with the market or, they establish their own market then they can be recognized. Problem is getting a market going with no market evidence of added value. As far as the appraisals done for the investor, I disagree. The appraisal is paid for by the borrower & it's their realty. If the investor wants a piece of the realty they have to come to terms with the borrower. Unfortunately it's all screwed up as far as who the client is & what's being purchased. What is being bought by the bank is an option on the home to purchase it at a later date for up to 80% of the value of the home. The valuable commodity upon which all these loans are based is not the banks, they have paper is all, it's the homeowners/borrowers. I get where bearclaw is going tho, instead of having the realtor set the price by CMA, an appraisal could be done 1st. Same thing as happens with a refi

mert appraiser: (January 26, 2010 11:48am)

COME ON GUYS, WE ALL KNOW THE APPRAISAL MUST BE ORDERED BY THE USER. HELLO, WHOEVER THE BUYER IS FINANCING THROUGH. CANNOT GET AN APPRAISAL FIRST!!! Also keep in mind it is only "good" for the day it is completed! market changes, new closed sales etc, can change the value drastically or just a little.

real appraiser: (January 26, 2010 11:48am)

1.AMC's add boilerplate insructions to an order, watering down scope of work, this is wrong since the appraiser really does not get correct scope of work, result poor appraisal 2. AMC's hire reviewers who are not appraisers or not in the specific market, request changes that contribute to poor appraisal. 3.AMC will find cheapest fee, poor appraisal 4. AMC will punish more experienced appraiser who questions AMC reviewer (used loosely) as "dificult to work with" and give work to those that bend to AMC. 5.AMC looks out for client, essentially being bully for lender since their not regulated. 6. AMC owned by banks, conflict of interest. 7.AMC limits quantity of client to the appraiser, forcing appraisers to work under rules established by AMC's. 8. AMC's do not have to follow USPAP, forcing appraiser to follow suit or get no work. 9.AMC' want to hold liable appraiser even if appraiser is not at fault due to AMC negligence. 10. AMC fees based on price, violate USPAP.out of words, much more

MIMortgagedude: (January 26, 2010 11:45am)

To AngryLO. As I am reading your post I am on hold with CENLAR havign the exact same issue. What a cluster. Freddie has verified on their system that there is no delinquincy, but CENLAR will not do a master file change without supporting documentation from Freddie. Freddie will not provide this documentation. I am know checking to see if there is any sort of alternate documentation that the client can provide to CENLAR so that they will do the file change. The best part is that as of August when the loan was transfered it was current and CENLAR has told me that they are sure the payments have been made, but since Taylor, Bean and Whitaker haven't released them yet the account status stands.

Stan the Man: (January 26, 2010 11:43am)

10 years ago I did energy ratings for my state (IL.) as a home inspection and back then it was so poorly run that it failed. The guy in charge counldn't find his A** with both hands. Now they will goof around again they say that you can make big money doing ratings. That is BS just look at IL.'s program from 10 years ago. I could argue with them all year about this. As an Appraiser now we still don't count for the HERS rating system.

clulessdad: (January 26, 2010 11:42am)

Couldn't vote for any of the males, but Jersey Girl and Cornerstone Kathy got my vote!

tee: (January 26, 2010 11:37am)

THE RESTRICTIVE USE OF COMPS!!! YES 2 sales in 90 days. My best comps sold past 90 but they dont care, MUST INCLUDE 2 THAT SOLD IN THE PAST 90 DAYS. Then I have to write a full page commentary.

G-Appraiser: (January 26, 2010 11:33am)

P.S. Vote for me "Gabrielle" for the sexiest appraiser catagory. It appears that I ( a redhead) am up against a blond. Again!

G-appraiser: (January 26, 2010 11:13am)

Also, as far as management companies go there are really only 4 or 5 that are owned by the largest banks. Where is the independence in that? You can't ewven get on those bank approved lists anyway. They have all been closed for 5/6 years. So now I hear they are just ordering cheap drive bys as much as they can at very reduced fees. The banks are our employer. Simple as that. We need complete independence and a reasonable fee. Thats all.

BrokeBroker: (January 26, 2010 11:08am)

I've read alot of appraisals, the problems come from the restrictive use of comps, the form itself doesn't allow for more adjustments, and most of the form is a dated boilerplate plus a bunch of disclosures. An appraiser should be allowed to prove value with more than 3 homes within 1 mile because 99% of homebuyers, who by the way determine values, look at more than 3 house in a much larger area. The appraiser should be allowed to break out adjustments in more detail than just interior:average, it should be pergo wood floors:+3500. The appraiser should be allowed to show the value of a solar system that save $200 a month is worth a certain return over the next ten years. It is time to redo the URAR forms, maybe Cuomo could help?

BoKnowsClosings: (January 26, 2010 11:08am)

Okay the sexyfest photos cracked me up! I don't know if I laughed more at the obvious joke photos versus some of the 'glamour shots' included! As for Mods, the lenders have no clue or capacity to sort this out. What would be a smart business decision (e.g. lose a bit of the payment stream vs. lose your shirt on the foreclosure) seems to be beyond them. No way to get to someone with authority to make a deal happen. "C" is the true answer; the lenders have no clue.... (And I tire of the Lenox Financial ads here in ATL too. Wondering how he'd survive w/o YSP?

G-Appraiser: (January 26, 2010 11:07am)

We should be able to give more value to energy efficient item, we CAN give a little with alot of explaining, only to be asked to find another comp with similar amenities and more explaining. Depends but you won't recoup the value spent, that is for sure. Also, I think everyone is in a holding pattern with HVCC, but if the current legal actions don't pan out, ie hr4173, FHA announcement regarding HVCC, I am on board for an attorney liked discussed below or some sort of union plan. I am sure there are bigger heads on this with a plan. Bottom line is government needs to find a way to keep us appraisers happy because they do need us. At least for now.

DAG: (January 26, 2010 11:03am)

HVCC needs to go. Even if appraiser get their full pay,and they should, we still should not be burdened with inept round robin appointed appraisers. Loan mods don't work because. . . its the economy, stupid. People need income to make a house payment. And let the consumer modify before they are late. Not so sure green homes need to appraise for more. Owner saves $$ on energy = savings = motivation to buy that home. Lastly, what would make the biggest impact on consumers, lenders NOT reporting to the credit bureau until the borrower who always paid on time are 60 or 90 days late. Ruined credit for those who are experiencing a bump in the road is not going to help the situation. And, yes I mean credit cards too, especially. Cut us a break, you big fat cat bankers.

Hillside Appraisal: (January 26, 2010 11:02am)

Regarding credits for solar electric, tankless water heaters and dual pane windows, appraisers will look for like kind matches in the MLS for comparison. In the event there is no like kind match, a flat dollar figure can and should be used as an adjustment against the comparables to give the amenity value. It is common to give a tankless water heater say $1000, dual pane windows $5000, and between $10k to $20k for full solar electric. We realize that the installation costs are higher to upgrade a home with these energy efficient amenities, but the appraisal report dollar figure relates to "How much would a buyer pay Extra for having this feature over a home that doesnt have it?"

Malia the appraiser: (January 26, 2010 10:56am)

I would be more than glad to donate to the attorney, if he is willing to take on HVCC. I think every person in the real estate field would too.

Bearpaw: (January 26, 2010 10:52am)

Joecolorado - No need to educate me on the matter, believe me I am well versed. I have been around the game a long time (MAI, State Certified Appraiser, Real Estate Broker, Former Bank Officer, Homebuilder). Just raising some points. Such as a Buyer offers to buy something that he may not knoe the real value of except by what is told to him by everyone who only make $$ if the deal "closes". You are right the money man usually requires the appraisal, but do they really care? Obviously in the past it has been sometimes yes and sometimes no. Would an appraisal be ordered at all unless the Lender required it? Doubt it. I still believe that AMCs violate USPAP. On another note, if someone is legal by the state... then why do they have to be approved a lender? Just a thought. Also if Conv., VA & FHA all use the same form and you have to be legal to do it, why does it matter?

joecolorado: (January 26, 2010 10:41am)

when the contract is signed sealed and delivered the deed is pretty much done.If the buyer hasnt protected him/herself with clauses regarding the appraised value,or loan they may be hit with an action to force the purchase or suffer the consequences.The appraisal at that point is pretty much useless for the buyer,but the investor has the "real" risk and perhaps needs a scapegoat if the sales price is not market, and for someone who has insurance if there is a default.fickle finger of fate gets pointed directly at the appraiser in that case.

FHA Tara: (January 26, 2010 10:40am)

FHA Steve - I was happy to see your post this morning about the attorney willing to take the HVCC case, after receiving a retainer. I am sure that EVERY appraiser will be willing to contribute toward the retainer, I certainly am! Please let us all know where to send the money.

joecolorado: (January 26, 2010 10:34am)

Bearpaw-appraisals on purchases are not done for the borrower they are done for the investor.They are your client,even though the borrower pays the fee, the man with the money is yor main interest as its your job as an appraiser to try and estimate the value and give them a confort zone in that their investment is safe.

kc: (January 26, 2010 10:33am)

Brian Do you think sometheink might happen before the 15th of Feb with this hvcc - or if fha will delay again

GODLIKE: (January 26, 2010 10:31am)

BEARPAW the reason appraisals aren't done prior to putting a home on the market has a lot to do with Sellers being cheap and not wanting to spend the money if they decide not to sell and the fact that buyers find a Seller's appraisal suspect. There's also the fact that in the past not all appraisals and appraisers would be accepted by every lender. Then there's the issue of what kind of appraisal to get? Conv? FHA? VA?

GODLIKE: (January 26, 2010 10:29am)

As has been proven by this last election people are like sheep. So if the govt. says Green building is worth the cost to build it and requires an appraiser to give that value then the people/sheep will believe it & voila, instant value. Value is perception, all you have to do is change the perception.

brian tbws: (January 26, 2010 10:23am)

Hey FHA Steve, it sounds good but I'm not in a position to give or ask from money from our viewers at this point. He's more than welcome to contact us and let us know his full opinion though.

brian tbws: (January 26, 2010 10:21am)

Hi JP. On Feb 5th we are going to be discussing the HVCC alternatives that you provided to us last month. From those we intend to take your suggestions to Cuomo's office.

put the lid back on: (January 26, 2010 10:17am)

according to pew press research center global warming rates dead last of american's 2010 priorities.

Toby: (January 26, 2010 10:16am)

HUD has had energy efficency programs for over 30 years. They are usually on affordable housing, but they do consider the monthly energy savings costs in the payment calculations. The extra savings though are usually only marginal when compared to the extra construction costs for energy efficiency.

St Pauly Girl: (January 26, 2010 10:13am)

NAHB- ARE YOU KIDDING ME! Boy are they out of touch. I'm not an appraiser, but I think it's commonly known that upgrades are a risky 'investment' proposition if you expect dollar for dollar returns! A $200 toilet serves the same purpose as a $2000 toilet. If NAHB wants more business, they should put the pressure on the manufacturers to make a product affordable to the masses of buyers & homeowners. Now that would be energy well spent! No pun intended.

FHA Steve: (January 26, 2010 10:13am)

Frank and Brian: I posted the request for you guys to contact me yesterday and already, before you guys get on board commitments for $103.00. Thanks, please contact me, you will be impressed for sure when you talk with the attorney. Thanks stevetimper@gmail.com

FHA Steve: (January 26, 2010 10:10am)

Frank and Brian: Regarding HVCC: I have contacted and met an Attorney who is approved in Federal Court, the California BAR, and is also a member of the New York BAR. This guy is an excellent fair and ethical attorney. During the meeting, he reviewed the law suit that was filed by NAMB, and said it was very poorly done. He is a Yale graduate who speaks many languages, and he has won a case for me personally in the past. (The city Settled with me Out of Court) After filling him on on the facts, he as agreed to work for us, not in court, but through lobbying firms, political connections, research into just how much money the Title Companies and the Banks have funneled to Cuomo. (If our attorney does need to do any court filings, again, he is a member of the New York state BAR, and is approved for any Federal Court as well.) He has agreed to a 60 day period to crack this HVCC nut at $300/hour, and he would need an initial retainer of $6,000.

JP: (January 26, 2010 10:09am)

BRIAN AND FRANK WHAT HAPPENS ON THE 5TH OF FEB???/

FHA Steve: (January 26, 2010 10:09am)

Frank and Brian, Please read above for the 1st half: I do not have that money, but if Frank and Brian can just get each one of us to send $1 in, we could have the retainer in a couple of weeks. Please contact me, and I will put you in contact with him, and let us see if we can raise the retainer. $1 each from the119,000 people who signed the petition would be $119,000 – I will send mine first, or the attorney can set up a Google Donate Button to keep it all on the up and up. and let a legal bulldog tear Cuomo a new one. He believes in his heart that HVCC is a miscarriage of justice and after reading it, could not believe how poorly it was written. (we all new that already) Please contact me ASAP to at least talk to the attorney who is ready to go. stevetimper@gmail.com

Bearpaw: (January 26, 2010 10:04am)

Why aren't appraisal done before a contract is signed? In sales transactions most appraisals are done after the contract has been agreed to confirm that a property is worth at least enough to cover the loan requirements. When an appraisal is done to confirm a situation what is really the outcome in most cases? 1st case - Say a house sales for $200,000 and it appraises for $210,000. It is something that they already knew (why would someone pay more for a house than it is worth). Say a house sales for $200,000 and it appraises for $190,000. It is something that they do not want to hear (dismayed because they probably will not be able to get their loan and the deal will not go through, which also makes the seller and lender will be PO). Things done as a confirmation really only have a limited amount of value to the parties involoved. If you really think about it, maybe a confirmation appraisal (as I call them) really does not much real value especially to the ones paying for them.

brian tbws: (January 26, 2010 9:55am)

were also trying to get a video from Marc with regards to his meeting with Cuomo. We just spoke with him yesterday.

brian tbws: (January 26, 2010 9:53am)

hey kc. we didnt go for a couple of reasons. first we were informed at a time when we had scheduling conflicts. Secondly, the message being delivered was not within the parameter that we believe the ag would find acceptable; based on our first meeting. currently we are actively trying to set a separate appointment with the ag's office and want to present your ideas. ideas that we'll work through on feb 5th.

AngryLO: (January 26, 2010 9:53am)

Guys why dont you do a piece on Cenlar, the bank that took over the taylor bean whitaker loans and how cenlar has not reported ANY mortgage history to freddie mac for over 6 months. This idiotic and unorganized company is prohibiting 1000's of people to refinance under the government "open access" program that was initiated back on october 1 of 2009. Because they are not reporting, we are getting an error code "64" on LP. The banks, ex. US Bank, 5/3, etc. will not close the loans until this code goes away. Yes they see that the loan is owned by freddie but the open access eligible is not coming through. I have been working with a client for nearly a year, was exicted to give them the news back in october that they would be able to lower their rate, and have been dealing with this nightmare ever since. Cenlar said that they would report on the first of the year. Now my client was told that they would not report until february 11! Atrocious. Oh I cant get my refi done for the same reason

GODLIKE: (January 26, 2010 9:51am)

I'm just wondering how it's the lenders fault for not recognizing GREEN value when it's the regulators that tell us what types of loans we can do and the standards we must follow. Heck I'm wondering how any of the articles in the news are the lenders fault and not the regulators?

GODLIKE: (January 26, 2010 9:48am)

How are Loan Mods supposed to be reported to the credit bureaus? I've done exactly one loan for a guy who had a Loan Mod and it was reported as a redeemed foreclosure. I've seen his paperwork and he never got close to foreclosure. They did require him to be 60 days behind in his payment tho.

kc: (January 26, 2010 9:43am)

frank and brian last week the follow up meeting was held at Coumo's office on hvcc. what is the update on this - 2-15 is coming! why didnt you guys go to the meeting

Bearpaw: (January 26, 2010 9:38am)

In an early post, I mentioned the word "client" regarding appraisals. With regard to that, who really is the "client". Is it the lender, the AMC company, the homebuyer? In most businesses the client is the guy paying for the work completed and generally has some say so regarding the work that is being done. Why are the Lenders really the Client? Now days, appraisals are being ordered by AMCs for Lenders, but are being paid for by a borrower who has no involvement in the matter. USPAP says that the client is the one that engages (which can be defined as hires, involves, etc.) the Appraiser. So if an AMC engages an appraisal and they are not the "client" has USPAP been violated? Is there ever a document that says that the appraisal is being ordered on behalf of the client? I have not seen one. Besides, the real client should be the one paying the tab. They shoud know who is doing the work and what the outcome of the work may be, not just that their loan got approved.

MichaelG: (January 26, 2010 9:37am)

I found out yesterday BofA is less likely to do a Loan Mod for a client with a fixed rate. Per BofA Rep. they want to work with Adjustable Rate Loans to help stabilize the payment. For those of you with inverted property values and 6.50% rates or higher, you will have to go to thirdpartyadvo@bankofamerica.com to restructure your loans.

joecolorado: (January 26, 2010 9:36am)

domthe mortgageman-There are several ways to effectively calculate the benefit of green items, present value of a dollar is one,but again this is a market driven isseue.I appraised a zero effect house.....zero.....the U/W had a field day and rejected the appraisal as it did not have a recognized heating system.The borrower went ballistic and blamed me for the problem,but when I explained the facts to him,he was even more adamant that I was at fault.Builders need to realize that having an unusual house doesnt fit the "typical" mold that U/W's want to see.Its the unusual and individual that causes problems, unfortunately that is how builders market their homes.The appraiser is generally the last one to bitch at as they understand the issues,know the area,know the effects of a zero effect home on the neighborhood and the marketability of that home.As fro NAHB blaming appraisers....get real,we promote green building.

CV Broker: (January 26, 2010 9:32am)

Smellicat - another dirty (not so) secret. The second the word 'modification' is spoken, every payment goes into a suspension account - even if they are on time, creating a delinquent status. Why, I can't answer, unless it's an internal thing that states if they're not late, they don't qualify for the modification. Then the incompetence kicks in, losing documents, unbelievable disorganization and hiring of minimum wage csr's and the circus begins. And, once again, no accountability. It's shameful.

DGlaze1: (January 26, 2010 9:30am)

The reason 450,000 mods didn't go through is because the banks are making money on the foreclosures. Someone put a link on one of your ealier shows explaining this. I think it was something like Anatomy of a Government-Abetted Fraud: Why Indymac/One West Always forecloses.

Englash teacher: (January 26, 2010 9:27am)

LUG: Ignorance aint go bo thing to do with spellen.

Bill DeForest: (January 26, 2010 9:26am)

Looks like your sexy fest domain in parked at Go daddy

SCRREA: (January 26, 2010 9:24am)

Looks like appraisers have different opinions on the Green Thing! It is market driven folks. In my area the first "Green Development" went belly up before any units were completed. Seems the market didn't care or want to pay extra for the so called "Green Savings".

SMELLICAT: (January 26, 2010 9:18am)

I HAVE A FRIEND WHO HAS NEVER BEEN LATE ON A MTG PYMNT. AND WAS DOING A LOAN MOD. W/ HER LOAN SERVICER.. SHE SENT THEM THE SAME PAPERS 3 DIFFERENT TIMES, CERTIFIED MAIL... AND EVERYTIME THE CAME BACK WITH NEVER GETTING THEM, BLAH BLAH BLAH.. IN THE END EVEN THOUGH SHE NEVER MISSED A PAYMENT, ETC. THEY ARE STILL FORECLOSING ON HER HOUSE DUE TO THE FACT THAT THEY LOST HER PAPERWORK 3 TIMES AND SAID SHE WAS SENDING WRONG AMOUNT... IT'S RIDICULOUS NOW THAT PEOPLE W/ GOOD CREDIT ARE BEING RUINED BY THEIR MTG COMPANIES... IT'S A SAD WORLD THESE DAYS

Bearpaw: (January 26, 2010 9:18am)

Enjoy listening to you guys. You bring a lot of interesting items to the table. With that said, let's get real about adjusting for green items. From a "correct" appraisal methodology standpoint I doubt it can even be attempted to be done in +95% of the markets. There just is not enough data. Besides I doubt anyone really does paired sales analysis now anyway espcially since HVCC has gutted the fees "received" by Appraisers. SFR appraisals should cost $600+ (fee paid to the Appraiser), but you if really think someone is going to do a really good job for $250 to $300, your dreaming. I have been involved in this industry for 20+ years, net fees were better 15 years ago. This is one of the only professions that has gone backwards on fees. The amount of new rules and regulations, many of which have nothing really to do with actually completing a fair and accurate property valuation and doing a good job for your "client", have increased beyond imagination.

SMELLICAT: (January 26, 2010 9:18am)

I HAVE A FRIEND WHO HAS NEVER BEEN LATE ON A MTG PYMNT. AND WAS DOING A LOAN MOD. W/ HER LOAN SERVICER.. SHE SENT THEM THE SAME PAPERS 3 DIFFERENT TIMES, CERTIFIED MAIL... AND EVERYTIME THE CAME BACK WITH NEVER GETTING THEM, BLAH BLAH BLAH.. IN THE END EVEN THOUGH SHE NEVER MISSED A PAYMENT, ETC. THEY ARE STILL FORECLOSING ON HER HOUSE DUE TO THE FACT THAT THEY LOST HER PAPERWORK 3 TIMES AND SAID SHE WAS SENDING WRONG AMOUNT... IT'S RIDICULOUS NOW THAT PEOPLE W/ GOOD CREDIT ARE BEING RUINED BY THEIR MTG COMPANIES... IT'S A SAD WORLD THESE DAYS

real appraiser: (January 26, 2010 9:12am)

James the Appraiser: you mean to tell me that you have never done an appraisal where your comps without(pick any of the following-spa, granite, steam shower, incredibly irregular non useable lot, carlift, bomb shelter (yes, bomb shelter),etc should have received value even if market clearly showed no difference between sales having and not having same or not having same unique feature in any other comp anywhere? My first question on review is, Show me how you determined market value? just saying

Rob in AZ: (January 26, 2010 9:10am)

OK everybody--this is a funny Economics video I thought you might enjoy. http://cafehayek.com/2010/01/keynes-vs-hayek-rap-video.html

Slim Shady: (January 26, 2010 9:06am)

Quality of construction has always been taken into account in valuing a home. Whether it's superior with 13" solid concrete constuction or inferior with Chinese drywall. Cost in both of these cases are a major factor and are directly related to the market; however, both most likely have functional obsolescence as well. There have been numerous renovations completed on homes with Chinese drywall, so an average market cost can be extracted for an adjustment and it's cost is significant! If you don't know if the home has Chinese drywall always insert a negative in your report stating the information was not available to you from any known source. Obviously this was unsolicited advice so place it wherever you wish. On another note, there should be plenty of work coming up in Haiti real soon for everyone! Have a happy day.

kc: (January 26, 2010 9:04am)

frank and brian last week the follow up meeting was held at Coumo's office on hvcc. what is the update on this - 2-15 is coming! why didnt you guys go to the meeting

James the Appraiser: (January 26, 2010 9:03am)

bschilz - your Solar System is a great thing, but the appraiser can only give it value for what he feels the average buyers will willing to pay for your house with that in place. ZERO is not a real number (well ok don't pull out a math book to prove me wrong) but it must have some value even in snow country. Depending on where you live and how the local market reacts to them I would think an adjustment between $10K and $30K (as it was new) would have been fair.

Atlanta LO: (January 26, 2010 9:01am)

To khutch: The company is most likely Lenox Financial, based in Atlanta. The spokesperson is Jon Shibley, majority owner. Their business model for many years was “no closing cost loans” – covered by YSP. Business is driven in-bound by radio ads highlighting different issues (refi before your ARM expires, mortgage management, etc) https://www.lenoxfinancial.com/

Rondon: (January 26, 2010 9:01am)

I go to GoDaddy too - I'm sure the fellas are working on it...

valley girl appraiser: (January 26, 2010 9:01am)

on the Chinese Drywall... this isn't a voluntary issue...this is a lender driven quality issue...I am to make a statement on ALL new construction and HAVE to verify that the drywall isn't corrosive, etc. I said that I wasn't going to make a comment certifying that the drywall is or is not from China... at which point I was informed that the lender would consider me non-compliant.

real appraiser: (January 26, 2010 8:58am)

domthe mortgageman: ITS A RULE NOT A CHOICE. If the market is willing to pay for it, then it has value. If no one will pay extra for green, it has no value. If I complete a report and someone can prove I gave a value for something the market does not care for(like granite counter tops in a 1969 singlewide) or vice-versa, then when they ask me how I came up with the market value, and can not show how, I should lose my CERT/LIC. It should show up in the cost approach, if required. Opposite is also true, If the market shows value in green or anything else, the value should be given. This is a rule no a choice. Thats why some people in a 2 bed 1 bath with a $10,000 steam shower do not understand that most likely, it is worth 0 in the market, but may drive up the cost value. NOT AN OPINION, IT IS A RULE that if not properly followed, proves you do not know how to appraise.

bschilz: (January 26, 2010 8:56am)

As for green values, I added a $50k solar system to my home which saved me $450+ per month in electricity costs. Late last year I refinanced and got $zero for the upgrade on my appraisal. Wassup with that! Luckily I didn't need it for the loan.

SCRREA: (January 26, 2010 8:54am)

To Valley Girl. Don't make any adjustments for Chinese Drywall. The market only cares about the bottom line. Ask any Wal-Mart shopper. Thats the real market reaction.

khutch: (January 26, 2010 8:50am)

I was listening to Fox News this A.M. and a commercial for Lennox Financial spouted that loan originators were crooks and the main source for identitiy theft. He went on to indicate that he would provide idntity theft insurance with an application. Has any one else heard this and can somebody stop him! Thanks

Nuke 'em 'til they Glow: (January 26, 2010 8:48am)

All of the above

James: (January 26, 2010 8:47am)

I too get send to GO DADDY when I try to go the Sexy Fest, what is the deal guys?

James: (January 26, 2010 8:43am)

Ha HA, we have a low-flow, and we often have to flosh 2 or more times, so I am sure we use much more water than we did before.

Common Sense: (January 26, 2010 8:41am)

This is a joke, right? Do I need to explain the meaning of "market value" to all of you real estate professionals (I use the term loosely)? No wonder the market is in so much trouble. If no one is willing to pay more for a house with energy efficient amenities, then the energy efficient amenities did not add any value!

valley girl appraiser: (January 26, 2010 8:38am)

I don't know how to detract value for Chinese Drywall. I don't even have a clue how I am supposed to verify it AFTER the home is built & painted & completed. And...EXACTLY... how many builders are actually going to admit to using this POC material? Just one more thing to tag the appraisers for.

GMS Funding: (January 26, 2010 8:35am)

The sexyfest link takes me to GoDaddy.com, hope your getting paid (or at least a semi-nude photo of Danica Patrick) Let me know when you have it back up.

Frank@TBWS: (January 26, 2010 8:26am)

If the sexy fest link goes to go daddy it simply hasn't updated the routers in your area. it's a new site and sometimes it takes a while for it to get converted over in all areas. try it again later or tomorrow and you should be good to go.

JohnTheHeckler: (January 26, 2010 8:25am)

Why do you think 450,000 loan mod's didn't go through ? It's a combination of A and C. Loan Mod's are a Joke.

tee: (January 26, 2010 8:24am)

If the builder admitted that I would be surprised. How do you detract value for that?

TD Hawk: (January 26, 2010 8:21am)

Let me be as polite and delicate as I can be with this, the NAR's chief economist is an imbecile, a joke among serious economists and nothing but a cheer leader for the Realtor organization. He barely recognized the housing meltdown even as it was starting and always takes a delusionally rosy view, practically ignorant of the DATA.

Dawn: (January 26, 2010 8:20am)

Time for some new shirts! :)

RobH: (January 26, 2010 8:13am)

Link to TBWS Sexy Fest isn't working

valley girl appraiser: (January 26, 2010 8:11am)

Green homes??? I was just informed that on all new construction, I have to verify whether or not the builder used Chinese Drywall. And then make the appropriate adj'mnt etc..........

Rl8rGal: (January 26, 2010 8:06am)

As a matter of fact, I just posted a video on my blog about the whole "do loan mods work" question: http://hereinphoenix.com/2010/01/25/hey-bank-wake-up-loan-mods-arent-working/...the post includes links to some MSNBC snippets that illustrate both sides of the story... You guys remain the cream in my coffee :)

lug: (January 26, 2010 8:01am)

I love it when people accusing others of being ignorant fill their posts with spelling errors. Just sayin'

REORealtor1: (January 26, 2010 7:59am)

FHA is so great at issuing letters. Instead of pointing fingers why don't they issue a green letter and make it MANDATORY to include value for green items. Then the underwriters would have a letter and they would not have to make a decision. Now that was rocket science.

Frank@TBWS: (January 26, 2010 7:59am)

If the sexy fest link goes to go daddy it simply hasn't updated the routers in your area. it's a new site and sometimes it takes a while for it to get converted over in all areas. try it again later or tomorrow and you should be good to go.

CornerstoneKathy: (January 26, 2010 7:56am)

PJTMC..am I to assume that you think I made the ignorant comment? I said that we had a highly efficient house and looked for comps with similar features for a matched pairs analysis but it was very difficult to find..also because MLS rarley lists these energy efficient features. I said nothing about the cost of the features in making an adjustment. and if a buyer thinks a house with solar panels is ugly well thats their choice..need I remind anyone of the enormous satellite dishes of the 80's free cable baby!!

Katrina: (January 26, 2010 7:56am)

Looks like your sexy fest domain in parked at Go daddy

brian tbws: (January 26, 2010 7:51am)

make sure you vote and help out your favorite sexyfest contestants

brian tbws: (January 26, 2010 7:51am)

I think green upgrades are still viewed as a trend more than a value. Since the market (should) dictate the propertys value, until "green" is viewed differently, it wont changs.

Joe: (January 26, 2010 7:47am)

go daddy girl has my vote!!

domthe mortgageman: (January 26, 2010 7:44am)

I know all of you appraisers want to talk about market value, but how do you put a value on future savings? I built my home using ICF which is a 13 inch concrete wall. My business is located in the basement where I have 6 employees, copiers, 8 computers etc etc and my electric bill is rarely above $350. Also my home can withstand a category 5 hurricane. There should be some adjustment that could be made for these types of things. My partner and I were going to start building these for clients but the costs up front would not allow us to sell them at current "market" value even though in the long run they are saving a ton of money in utilities. Also my electric bill is the only utility bill I have since my heat and AC are geothermal which uses electric. That is how efficient my home is.

neappraiser: (January 26, 2010 7:33am)

HVCC.. Over the years i have discovered the perfect 3 gifts that no one returns. One is Money.. The HVCC problem can be solved with money. ... Simple solution, make it so that appraisers get paid the going full rate for their area. If a AMC will pay the going rate im sure 95% of appraisers will have no problem working with AMCs(despite their problems). You will have better appraisers and better appraisals. Ive discovered that the homeowners are now telling me that the "mortgage company said to tell you, I need 250K to clear the loan" Guess the Hvcc doesn't cover the homeowner telling me what the value is does it? hmmmm.. You cant get away from appraiser Independence, the borrower will have to belly up the tab for the AMC, Leave it up to the lender to decide if they will allow the mortgage company to order the appraisal or all appraisals go through a AMC, the market will decide the fate of the lender with higher fees. No perfect world. But in my opinion , simple solution.

neappraiser: (January 26, 2010 7:16am)

the go daddy girl wins sexyfest!

IL APPRAISER: (January 26, 2010 7:14am)

The main reason there are only a limited number of green adjustments is appraisal guidelines require that adjustments be based upon “market” rather than “cost” differences. Realtors rarely list energy saving appliances in listing sheets so appraisers seldom know whether the comparable sales have such features. Further, the highest sales price available among the limited number of recent sales available in this declining market that include many foreclosure and short sales, have a greater impact on the final estimated value than “green” feature differences.

tee: (January 26, 2010 7:06am)

Solor panels are a beautifull thing. Some people are just ignorate, not excluding underwriters. When people wake up and realize there is a need to get energy efficent solor panels may become the norm. Not in my life time, but hopefully someday. A fireplace adds value but solor panels dont. Just doesnt make any sense. The underwriters needed something to complain about.

PJTMC: (January 26, 2010 7:03am)

Value is market driven not cost driven. There is no magic bullet. The ideal appraisal would include other like/kind "green" properties that would reflect consideration for the "green" consideration in their sale prices. If none are available paired sales need to be used to determine value contribution, if any. People really need to educate themselves of how appraisal methodology works before making ignorant statements.

CornerstoneKathy: (January 26, 2010 6:49am)

I added comments about the solar panels and energy efficient appliances to a house and then did an extremely conservative adjustment of $5k on the grid and had another comp with solar panels but underwriting broke my chops about it..but its true ..its very difficult to extract an adjustment based on market reaction. I have had buyers complain that the perfect house had solar panels on it and they thought it looked "ugly".

KYD3s: (January 26, 2010 6:19am)

Sexy Fest Link isn't working http://tbwssexyfest.com/?0f41fdd8c9af62a4027fda82d597062a=1623525913&f3d2c476fea84edf20b0675616a92efb=2344573&f67ff3454420ebb255fe4f673cf8cf0b=AwZ0ZQNjAmx4Amp1BQxjAmN5-1

Frank Garay: (January 26, 2010 5:50am)

If the sexy fest link isn't working for you try later today. It's a new URL and sometimes they take a few days to convert fully over, especially through godaddy. Sorry! Hang in there.. it will work soon!

Francois: (January 26, 2010 5:43am)

Lenders and appraisers do not recognize he "value" of green features because the market does not recognize these as adding value. The NAHB has been singing this same song for years through their Green Building Council. YAWN

NJDLMKR: (January 26, 2010 5:35am)

The main reasons loan modifications are not working are: 1.) a reduced income. Borrowers need real help. Instead, lenders are getting bucks from the Feds when they lower the payment $100/month. The “need” is a much lower payment. The “result”, however, is too small of a monthly reduction. It's only a matter of time when the too small of a reduction becomes a foreclosure; 2.) Qualifying for the modification needs to be relaxed. In many cases the borrower is a tipped employee. Waitresses, bartenders, etc. are stated income, and there’s nothing out there mortgage-wise that will allow them to qualify. Many people feel these types of programs are the problem. They are not. The problem is people not paying their loans regardless of the type of qualifying that was originally used. If your income is reduced you can’t pay your bills. Maybe if we stop throwing our federal money at jobs for digging ditches and painting bridges we might actually help the economy … but that’s for anoth

Ezradams: (January 26, 2010 5:24am)

Heading up to the monthly Appraisal State Board meeting. Will find out how many appraisers did not renew their New Jersey licenses and report back. (I suspect it will be around 20%)