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MARCH 2012 |
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REVUPRO LEADS THE WAY IN
WEB-BASED APPRAISAL REVIEW
 ELLIOTT® is able to meet the
needs of its appraisal clients
who need a fast and economical
web-based appraisal-review
product that addresses the
mandates of recent mortgage
industry regulations. RevuPro is
not only compliant with the
Uniform Standards of
Professional Appraisal Practice,
but it also addresses the
requirements of both pre-funding
and post-funding
collateral-management mandates
for commercial, as well as
residential properties.
This multi-phase,
appraisal-review system is run
by experts in the appraisal
industry. By design, the system
cascades from the most basic to
the most comprehensive, a
feature that allows the lender
to reduce administrative costs.
“RevuPro offers a comprehensive
risk-management system that
complements the lenders’ efforts
to insure high-quality
appraisals from their appraisal
sources,” said George Williams,
director of client services at
ELLIOTT® & Company Appraisers.
For a preview of both passed and
failed appraisal review samples
using RevuPro, click on the
following hyperlinks:
PASSED
../../services/desk_review_pass_sample.pdf
FAILED
../../services/desk_review_fail_sample.pdf
For more information on RevuPro,
contact George Williams at (800)
854-5889 extension 3054, or
george@elliottco.com.
Qualified inquirers may receive a complementary RevuPro review of
their latest appraisal.
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APPRAISAL FOUNDATION RAISES
REQUIRMENTS FOR NEW APPRAISERS
 The Appraisal Qualifications Board,
which works under the authority of
the Appraisal Foundation, has
strengthened the requirements for
someone to become licensed in the
real estate appraisal profession.
Beginning January 1, 2015, an
applicant for a Certified
Residential or a Certified General
classification of appraiser will
have to have at least a Bachelor’s
degree from an accredited college or
university. An applicant for
Licensed Residential classification
will need an Associate’s degree or
at least 30 semester hours from an
accredited college, university,
junior college or community college
by that date. All applicants for
real estate appraisal certification
or licensure will be required to
undergo a background check.
Other more stringent rules involve
supervisory appraisers. In order to
employ and tutor trainee appraisers,
one must, by 2015, have been a state
certified appraiser for at least
three years, and not have had any
suspensions of his or her appraisal
license within those three years. |
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LOCATION IS KEY TO
CONVENIENCE STORE VALUATION
 Nowhere does the cliché, “location,
location, location,” applies more
than it does in the valuation of
convenience store real property.
After all, these businesses are
called what they are because of
their convenience to residents,
commuters and others who are
generally willing to pay higher
prices to shop in these stores
because of the time and gasoline it
saves them.
Obviously, size, condition,
equipment, including whether or not
gasoline tanks and dispensers are
involved,are other factors that go
into the pricing of convenience
store property. At ELLIOTT® &
Company Appraisers, we have a team
of Certified General Appraisers,
including those with the prestigious
MAI designation, who have a thorough
understanding of the nuances
involved in determining the value of
a convenience store location. |
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FORECLOSURES EXPECTED TO
SPIKE 25% IN 2012
RealtyTrac has predicted a 25%
increase in foreclosure activity in
2012 compared to what it was in
2011, as lenders clear their
backlogs of troubled loans. Recently
LPS Applied Analytics reported a 28%
hike in foreclosures in January over
the amount in December 2011.
Could another gush of foreclosures
entering the market cause more
home-price declines?
“More often than not, prices are
determined by demand rather than
supply,” stated Paul Dales, senior
U.S. economist at Capital Economics,
who, according to the Wall Street
Journal, predicted an increase in
demand for homes this year.
LPS Analytics reported earlier this
month that the Phoenix area of
Arizona had an “average foreclosure
discount” rate of 4.5%, compared to
6.1% in Las Vegas and 7.1% in Miami.
In some markets, the discount rate
was higher than 30%, although LPS
officials say the condition of the
property might also lead to the
discount.
“In places that might have a lot of
foreclosures, the property might be
fine,” said Jonathon Weiner, vice
president of research and
development at LPS Analytics. “It’s
just a matter of people walking away
from the property.” |
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LARGER BANKS PICK UP
COMMERCIAL REAL ESTATE LENDING
According to a report in The Wall
Street Journal, larger banks are
ahead of their counterparts in
disposing their troubled commercial
real-estate loans.
Trepp LLC, a loan research service,
reported that banks with assets of
$20 billion or more had a
delinquency rate on commercial
real-estate debt of 6.3% at the end
of 2011. In the first quarter of
2010 that debt percentage had been
10.3%. Banks with less than $20
billion in assets had a delinquency
rate on commercial real estate debt
of 5.8% at the end of last year,
compared to 8.1% in the first
quarter of 2010.
“The success by the larger banks at
cleaning up their balance sheets
signals a move toward stability in
the broader property market,” wrote
Eliot Brown in the Wall Street
Journal article. “Indeed, many
financial firms have picked up
lending.” |
INDEX REPORTS RECORD
BREAKING NUMBERS FOR HOUSING
AFFORDABILITY
 Earlier this month, the National
Association of Realtors (NAR)
reported that housing is more
affordable than it has been at any
time during the 42 years it has been
keeping records on the issue. Its
Housing Affordability Index rose in
January to 206.1, a record high.
“This is the first time the Housing
Affordability Index has broken the
200 mark, meaning that the typical
family has roughly double the income
needed to purchase a median-priced
home,” said NAR President Moe
Veissi. “For buyers who can qualify
for a mortgage, now is a very good
time to become a homeowner.”
The NAR sees little fluctuation in
home prices or mortgage rates in
2012, meaning the affordability rate
would remain in record-high
territory.
“If access to credit improves, we
could see a much more meaningful
increase in home sales and broader
stabilization in home prices with
modest gains in areas with stronger
job growth,” Veissi said. |
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NOTES OF VALUE
-
 According
to the Zillow Home Value Index,
foreclosure re-sales accounted for
19.1% of all home sales in December
2011.
- Lender Processing Services
reported that, as of January 31,
there were 6.082 million
mortgages either in foreclosure
or 30 or more days delinquent.
- Pop
singer Britney Spears is trying to
sell her Beverly Hills home, this
time for $2.9 million. She bought
the Mediterranean-style estate in
2007 for $6.75 million and first put
it on the market the following year for $7.9 million. She also tried to sell it in
2009 for $6.4 million and again the
following year for $4.8 million.
- The
Los Angeles house where pop singer
Michael Jackson died is back on the
market for $23.9 million. The 17,000
square foot house in the Holmby
Hills neighborhood was on the market
with a list price of $23.5 million in 2010.
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ASK MARTITIA
 Question: Does
USPAP allow an appraiser to reduce his fee to the client if the loan
the appraisal was conducted for fails to close?
Martitia: No. The
Ethics Rule of the Uniform Standards
of Professional Appraisal Practice
specifically states that “An
appraiser must not accept an
assignment, or have a compensation
arrangement for an assignment that
is contingent on the attainment of a
stipulated result or the occurrence
of a subsequent directly related to
the appraiser’s opinions and
specific to the assignment’s
purpose."
Martitia Mortimer, Elliott's
executive vice president, answers
appraisal questions on a regular
basis in Elliott Evaluation News. |
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QUOTES OF WIT &
WISDOM
“I arise in the morning torn
between a desire to save the
world and a desire to savor the
world. That makes it hard to
plan the day.” – E.B. White
“Retirement at 65 is ridiculous.
When I was 65 I still had
pimples.” – George Burns
“Every day do something that
will inch you closer to a better
tomorrow."
- Doug Firebaugh
“You can always tell a real
friend. When you’ve made a fool
of yourself, he doesn’t feel
you’ve done a permanent job.”
– Laurence Peter
“Give me golf clubs, fresh air
and a beautiful partner, and you
can have the clubs and the fresh
air.”
– Jack Benny
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ELLIOTT® & Company
Appraisers • 3316-A Battleground
Avenue • Greensboro, NC 27410 •
(800) 854-5889 |
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