Appraisal Scoop

Real Estate Appraisers Optimistic About Future: Appraisal Institute Survey

CHICAGO (July 17, 2013) – More than three-fourths of U.S. real estate appraisers are very or somewhat positive about the demand for their services over the next one to two years, according to an Appraisal Institute survey released today.

Eighty percent of residential appraisers and 78 percent of commercial appraisers said they are upbeat about their future, according to the survey conducted in May-June by the nation’s largest professional association of real estate appraisers.

“Appraisers have faced a challenging real estate market in recent years, and it’s great to see that so many valuation professionals are feeling optimistic about the future,” said Appraisal Institute President Richard L. Borges II, MAI, SRA.

According to the survey, 95 percent of residential appraisers and 49 percent of commercial appraisers said there is currently more demand for their services than a year ago.

Additional survey results include:

• Eighty-four percent of residential appraisers said their local residential
  real estate market is strong, and 46 percent of commercial appraisers had the
  same opinion about their local commercial markets.
• Eighty-six percent of residential appraisers and 55 percent of commercial
  appraisers said demand for their services is strong.
• Thirty-two percent of residential appraisers and 45 percent of commercial
  appraisers anticipate more demand for their services during the ensuing one to
  two years.

“Real estate trends are typically local in nature, and it’s a positive sign for the nation’s economy that appraisers around the country reported increased demand for their services,” Borges said.

The online survey polled 591 real estate valuation professionals May 31-June 17. The survey had a margin of error of +/- 4 percent.

View the highlights of the survey results

 

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Solidifi successfully launches EXTRAordinary Appraiser Program to the mortgage industry

BUFFALO, N.Y., July 11, 2013 -- /PRNewswire/ -- Solidifi, the country's third largest independent provider of residential real estate appraisals and appraisal service provider of choice for 50% of the top 50 lenders in the U.S., turned the spotlight on top appraisers in the industry with the launch of its EXTRAordinary Appraiser Program.

"Our core strength is the elite network of Solidifi PerforMAX™ appraisers we have built up across the country," says Andrew Bough, Chief Valuations Officer at Solidifi. "But so often these top appraisers are the unsung heroes of the valuation process. We decided to change that by creating the EXTRAordinary Appraiser program to recognize their efforts and turn the spotlight on the great work they're doing on behalf of lenders, homeowners and the mortgage industry."

The EXTRAordinary Appraisers are local experts from across the country and have proven time and again to go above and beyond for Solidifi's lender clients and borrowers. In fact, each Solidifi PerforMAX™ appraiser is benchmarked against their peers using dozens of metrics to ensure strong performance, quality, expertise and customer service. "Our regional appraiser partner managers work one-on-one with and personally assess each appraiser in their market to ensure a high level of effectiveness on all levels," says Bough. "At any given time, we know exactly which appraiser is best suited for a given assignment and each of our appraisers competes for business based on their performance. It's a key differentiator for us and a key competitive advantage for our lender clients."

That's why Solidifi chose to recognize those all-important efforts and expertise on a grand scale by launching the EXTRAordinary Appraiser program and hosting the inaugural recognition event recently at the annual Valuation Expo in Las Vegas. 30 EXTRAordinary appraisers were celebrated at a private reception (see the complete list of honourees below). "It was an honor to be recognized for something I often take for granted," says Paul Lewis, Independent Appraiser, Orono, MN. "In a profession full of deadlines and stress, it's nice to know that my efforts are appreciated." 

Paul Lewis and each of the 30 EXTRAordinary appraisers recognized in Las Vegas as well as future EXTRAordinary Appraisers will be regularly featured at Solidifi.com. "We invite you to log on to solidifi.com to learn more about these unsung heroes," says Bough.  

These top performers are supported by Solidifi's industry leading technology and analytics platform, which identifies the right appraiser for each assignment up front. In effect, Solidifi is using technology to build efficiency throughout the appraisal process, increase quality, drive costs out and improve the client experience. It's a winning value proposition all around: the appraisers are top of their field and are highly compensated for their efforts at no additional cost to the lender. The lender receives the right information the first time with no additional costs because the system is streamlined and designed to drive performance. The lender also benefits from Solidifi's focus on being the best provider of real estate appraisals in the market.

That's because the Solidifi PerforMAX™ appraiser network is comprised of the most competent appraisers in the business. They raise the bar in terms of service, quality and professionalism.  "And that's why we want to show our appreciation and share with the world the great work they are doing," says Bough.  "It's time to celebrate these EXTRAordinary Appraisers."

Solidifi's Inaugural EXTRAordinary Appraisers:

JoDean Brewer, Castle Rock, CO

Amber Brooks, Phoenix, AZ

Nikki Brown, San Diego, CA

Blake Childs, Costa Mesa, CA

Jason Doll, Wichita, KS

Anne Elmes, Poughkeepsie, NY

Pat Felvey, Genoa, IL

Mark Giannini, Steubenville, OH

Teresa Gillis, San Jose, CA

Pat Grengs, Little Canada, MN

Christopher Hickman, Las Vegas, NV

Stacy Hosmer, Cutler Bay, FL

Aaron Johnson, Las Vegas, NV

Mark Levering, Henderson, NV

Paul Lewis, Orono, MN

Anne Macier, San Marcos, CA

Michael Massa, Fairfield, CT

Jon Nishikawa, Meridian, ID

Antranik Papazian, Las Vegas, NV

Matt Rayburn, Warrenville, IL

Mark Reed, Goodyear, AZ

Priam Rosenberg, Miami, FL

Paul Rowe, Park Ridge, IL

Carmen Smith, Brookfield, IL

Steven Somerville, Tampa, FL

Vincent Tamburello, Smithtown, NY

Andrew Turley, Scottsdale, AZ

Steve Varon, San Francisco, CA

Jed Wiltchik, Irvine, CA

Mark Yarkin, San Ramon, CA

About Solidifi

Solidifi is the 3rd largest independent provider of residential real estate appraisals in the US. Today Solidifi is the appraisal service provider of choice for 50% of the top 50 lenders. The organization offers a flexible technology platform for procuring collateral valuations from an elite network of over 23,000 high quality appraisers who openly compete for business based on quality, speed and price. Solidifi's parent company Real Matters is ranked 21st on Deloitte's Technology Fast 500. Solidifi is located in Buffalo, NY. Additional information about Solidifi is available at www.solidifi.com.

SOURCE  Solidifi

Read more here: http://www.sacbee.com/2013/07/11/5559916/solidifi-successfully-launches.html#storylink=cpy

Agencies Issue Proposed Rule to Exempt Subset of Higher-Priced Mortgage Loans from Appraisal Requirements

WASHINGTON— Six federal financial regulatory agencies today issued a proposed rule that would create exemptions from certain appraisal requirements for a subset of higher-priced mortgage loans. The proposed exemptions are intended to save borrowers time and money and to promote the safety and soundness of creditors. The appraisal requirements for higher-priced mortgages were imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

Under the Dodd-Frank Act, mortgage loans are considered to be higher-priced if they are secured by a consumer's home and have interest rates above a certain threshold.

The proposed rule would provide that the following three types of higher-priced mortgage loans would be exempt from the Dodd-Frank Act appraisal requirements:

• loans of $25,000 or less; 
• certain "streamlined" refinancings; and 
• certain loans secured by manufactured housing.

In January 2013, a final rule implementing the new Dodd-Frank Act appraisal requirements was issued by the Federal Reserve Board, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration, and the Office of the Comptroller of the Currency. Compliance with the final rule will become mandatory on January 18, 2014. These same agencies are jointly issuing the proposed rule on additional exemptions in response to public comments previously received.

The Federal Register notice is attached. The agencies are seeking comments from the public on all aspects of the proposal. The public will have until September 9, 2013, to review and comment on most of the proposal. However, comments related to the proposed Paperwork Reduction Act analysis will be due 60 days after the rule is published in the Federal Register. Publication of the proposal in the Federal Register is expected shortly.

Attachment: Proposed Rule on Higher-Priced Mortgages - PDF (PDF Help)

 

Senate Bill to Abolish Fannie and Freddie Hits the Floor

A bill to abolish the two government sponsored enterprises (GSEs) Freddie Mac and Fannie Mae will finally be introduced today after months of preparation.  Although not widely believed to be passable in its current form, any iteration is likely to be significant for the housing market.  As it sits, the bill would replace the GSEs with a reinsurer of mortgage-backed securities (MBS) to act as a backstop to private capital in a crisis.    See Full Article at Mortgage News Daily

The legislation will be proposed by a bipartisan group of senators led by Bob Corker (R-TN) and Mark Warner (D-VA).  It would liquidate the two GSEs, which have been in government conservatorship since 2008, within five years., replacing them with a reinsurer, tentatively named the Federal Mortgage Insurance Corporation.  It is designed to insure a liquid mortgage market would exist even in times of crisis while protecting taxpayers from loses.  The reinsurance would kick in only after private creditors had absorbed a 10 percent loss of the principal balance of the affected mortgage-backed securities should the loans go bad.  

Reuters reports that analysts were calling the legislation a first step that faces an uphill battle in Congress, especially in the House where some members want the government completely out of the housing finance business. The news agency quotes Jaret Seiberg, a senior policy analyst at Guggenheim Securities, who said that there "is almost zero chance the bill introduced today will be adopted" as it is currently written.

The bill would require private entities to buy mortgages from lenders and issue them to investors as securities, according to the discussion draft. Private equity would be required to absorb a 10 percent loss of the principal underlying those new mortgage-backed securities if the loans went bad.

The Federal Mortgage Insurance Corp. would charge and collect fees to cover its operating costs and maintain a catastrophic fund - probably similar to FDIC depositor insurance.  It would also continue efforts recently initiated by the Federal Housing Finance Agency (FHFA), the GSE conservator, to build a common securitization platform for pooling mortgages, issuing and selling MBS.  

Since they were placed in conservatorship the GSEs have been shored up with an aggregate $187.5 billion in  money from the U.S. Treasury but each is now posting record profits.  A discussion draft of the proposed legislation proposes that any proceeds from the wind down of the GSEs would be paid first to Treasury which holds $188 billion in senior preferred stock in the two.  Any remaining moneys would be paid to preferred stockholders then to common shareholders of each. Several large stockholders recently filed suit against the government for losses they claim were caused by the government's seizure of the companies.  

  View Article: http://www.mortgagenewsdaily.com/06252013_gse_reform.asp

The appraisal profession - Looking ahead, the current system needs some enhancements

GUEST AUTHOR: William Pastuszek, MAI, SRA, MRA heads Shepherd Associates, Newton, Mass - See more at: New England Real Estate Journal Network.

Do you remember how you became an appraiser? Did you have a friend in the business? A mentor? A family member? Perhaps someone who brought you into the business? Think about how you would get into the business today if you were starting out.

We like our profession for different reasons. Part of our fondness comes from the fulfillment of carrying out the appraisal process, the mental challenge of solving the "puzzle," the fieldwork, the variety in assignments, the people we meet, the flexibility, and the satisfaction in providing a critical service.

We work for banks, mortgage companies, lenders, the government, corporation, individuals. We work within corporate structures, lending environments, in institutional and governmental settings, in small companies, for ourselves.

We are licensed individually. We have our responsibilities under USPAP as appraisers. We have our professional opinions which take precedence over our very personal opinions.

It's a challenging, mostly fulfilling profession. At best, we are looked at as impartial, responsible providers of independent and credible opinions. At worst, we are looked at with scorn and condescension, with a lack of understanding of what we do, as order takers/numbers makers. Recent regulation and oversight has created even more work of doubtful relevance.

We take our responsibility to maintain the public trust seriously. We complain about low, slow pay, abusive clients, and difficult working environments. Nonetheless, most of us probably would not rather be doing anything else.

Is an appraiser shortage upon us? My own experience bears this out: no doubt yours may too. Studies show that expected employment of appraisers (and assessors) will rise only 7% between 2010 and 2020: this is slower than the rate of all occupations. License numbers are down. Why has this happened, as the current need for appraisers is strong?

We remember the financial meltdown. There were several years where there wasn't much demand for anything, including appraisal services. Things have changed in a very short time in real estate markets, and the need for appraisal services for lending purposes has revived significantly.

Entry level classes are once again filling up. Appraisal firms are looking for associates. Clients are looking for appraisers that can do quality work in a reasonable time frame.

There are barriers to entry to the profession. Many lenders won't accept trainees signing reports. This shuts out many potential appraisers from acquiring necessary experience. The Appraisal Qualifications Board (AQB) has created high barriers to entry into the profession with requirements to increase going forward.

Appraisal organizations provide education which is often expensive and difficult to access and which requires travel. On line primary education, as it matures and becomes accepted, will likely solve that problem, but it may not be a total solution.

As the vast majority of appraisers do residential work for lending transactions, is the system set up to serve the requirements of this system? Clearly, the real estate crash did nothing to enhance confidence in the lending system but do high entry requirements raise the quality of the applicant? Maybe so. Does requiring a college degree really advance the needs of the profession? Do we need a more realistic two-tiered system? Is the higher education system set up to train appraisers? It's not. Other professions have college training. Appraisal has been working at this for many years and has had little success in making training part of a college education, just like engineering or accounting.

Jobs are still hard to come by. Is entry into the profession being encouraged? Many young people view residential appraisal as a vocational track. Then they see the daunting requirements and the relatively poor initial prospects. Many newer entrants are job changers, second careers. Are appropriate opportunities available in the largely balkanized employment environment of mostly small, independent shops?

How do we make appraising accessible to newcomers? The current system needs some enhancements.

Assuming that appraisal demand stays steady or increases, there won't be enough appraisers coming in to replace those going out. With a shortage of bodies, users may well look to other solutions. In these scenarios, appraisers will once again not be in control of their profession and will be scrambling to react.

Click HERE for the complete article.

GUEST AUTHOR: William Pastuszek, MAI, SRA, MRA heads Shepherd Associates, Newton, Mass. - See more at: http://nerej.com/63699 

10 Tips for Brokers to Help the Appraisal Process - Appraisal Insight Blog

REPRINTED FROM APPRAISAL INSIGHT BLOG - AUTHOR: Vic Knight has been a licensed real estate broker in North Carolina since 1984. He's also a Certified General Appraiser in the state and is past president of the North Carolina Association of REALTORS®. He has chaired NAR's Appraisal Committee and currently is a member of the Board of Trustees of The Appraisal Foundation. 

10 Tips for Brokers to Help the Appraisal Process

 

1. Don’t restrict the appraiser from making an appointment to inspect the property (if your MLS uses an appointment system, use it. You will be notified of the appraiser’s site inspection).
2. If an appraiser calls, be responsive and provide as much information as needed. Return the call promptly even if your listing has closed. (Brokers are the expert source of information on your listing.)
3. Be as descriptive in MLS as possible about your listing and include as many photos as your MLS system will allow (include photos of: Front, Rear, Street, and ALL major rooms & property features).
4. Don’t use or reference tax records as your source of information. Do the proper legwork on your listing; it builds significant long-term credibility among your peers and local appraisers.
5. Distinguish “above-grade” living area from “below-grade” living area in your MLS, particularly the quality of finish in below-grade living area, attics, bonus rooms, decks, porches, and so on.
6. Provide an “Appraisers Package” in advance, and have it available at the property when the appraiser is inspecting the property, or meet the appraiser at the property so that you can answer any questions or inform the appraiser of the unique features of the property or neighborhood. Make sure you allow the appraiser the space and time to complete their inspection (Appraisers Package could include plats, surveys, deeds, covenants, HOA documents, floor plans, specifications, inspection reports, neighborhood details, recent similar-quality comparables, detailed list and dates of upgrades and remodels, and energy-efficient green features).
7. Provide a fully executed copy of the purchase contract, with all addenda.
8. Explain, to the seller or buyer that the roll of the appraiser is not to confirm the sales price but to provide the lender an independent, objective and impartial opinion of the value of the underlying collateral which the loan would be based on. Provide the seller or the Buyer a copy of the brochure developed by The Appraisal Foundation entitled “A Guide to Understanding a Residential Appraisal,” available from NAR to view or download at  http://www.realtor.org/appraisal/a-guide-to-understanding-a-residential-appraisal
9. Real estate salespeople and consumers can be present during the appraisal inspection. Make sure all parties allow the appraiser the space and time to complete their appraisal inspection, uninterrupted.
10. Make sure the property condition (inside and outside) is the best possible for the appraisal inspection, and inform the seller that interior and exterior photos (and measurements) must be taken by the appraiser.

 

SOURCE: APPRAISAL INSIGHT

 

Vic Knight

Vic Knight has been a licensed real estate broker in North Carolina since 1984. He's also a Certified General Appraiser in the state and is past president of the North Carolina Association of REALTORS®. He has chaired NAR's Appraisal Committee and currently is a member of the Board of Trustees of The Appraisal Foundation. Vic’s nearly 30 years in the real estate business includes owning and managing a Century 21 residential brokerage firm, extensive residential and commercial development, and residential property management. Vic is currently the owner of Appraizr.com, a real estate consulting and full-service residential and commercial appraisal firm. Vic is a graduate of the Instructor Training Institute and has authored and taught numerous real estate brokerage CE courses since 1998. He holds a BS in Civil Engineering from North Carolina State University and was a practicing professional engineer with the Bechtel Corp., an international construction company headquartered in San Francisco, Calif. Vic is chair of the North Carolina Real Estate Commission, a position appointed by the governor.

 

 

 

Market Challenges - Adopting an Offensive Playbook

GUEST POST:  Sally Carothers, SRA, FRICS, Chief Appraiser, CU Appraisal Services, LLC. Founding board member of the Ohio Coalition of Appraisal Professionals (OCAP)

As we move towards the middle of 2013, there are there are several key economic indicators to demonstrate appraisers must once again face the challenge of changing markets.  Home prices are on the rise. But are appraisers ready to embrace the challenge and recognize that real estate markets have finally turned? Of more consequence, can appraisers be certain that this housing market is sustainable?

Last week, CU Appraisal Services LLC (CUAS) hosted two roundtable meetings attended by 70 appraisers from 6 states to discuss changing markets.  The discussion focused around the Realtors Confidence Index for April 2013. [1] Today, Realtors are reporting rising prices and shorter days on market.  

Data released by S & P Dow Jones Indices for its S & P/ Case-Shiller Home Prices Indices showed home prices had strong gains in the first quarter of 2013. [2]  The 20-city S & P Case Schiller House price index for March 2013 climbed 10.87% on the year. This is the fasted pace increase since April 2006.  On the month home prices were up 1.12%, above expectations for a 1 % rise.

Below is look at the 10 and 20-city home price index since 1988:

Despite obvious data to the contrary, appraisers are still wary of recognizing increasing price, under supply and shortened marketing times. In fact, 90% of the last 300 appraisals delivered to CUAS included the market overview below:

As appraisers, we are faced with making choices that are uncomfortable. We should refrain from generic form-filling and begin to ask the tough questions. Is property value increasing in our market and if so, is this increase sustainable? What are the current inventory levels and how is that likely to impact marketing times. For each assignment we must begin afresh to examine markets, as of the effective date of the appraisal. In short, appraisers must refrain from defensive appraising. Starting now, we must look through the windshield and limit watching the rear view mirror. Analysis and reconciliation must become the cornerstones of a credible market value opinion.

Now is the time to begin a dialogue of value sustainability. Is this merely a spring/ summer price bubble? As appraisers it is important that we research and communicate. We should be interviewing market participant and building relationships with Realtors, builders and other real estate professionals. Appraiser independence regulations protect us from pressure and give us the freedom to build these networks for better business and more accurate analysis. We must collaborate with other appraisers, join organizations, state coalitions and physically attend seminars and education events.

"As appraisers, our jobs are not merely to inspect and report but analyze and reconcile. Only then will we gain respect as professionals"

As appraisers, our jobs are not merely to inspect and report but analyze and reconcile. Only then will we gain respect as professionals. If inventory levels are low, good comparable sales are limited. We must therefore discover how to use the ones we have well. This means we make supported adjustments for key elements of comparison using recognized methods and techniques. We cannot rely on “experience and intuition”. It is time for us to revisit our tool box and begin using the skills we learnt in the classroom: matched pairs; regression analysis; market extraction; modified age life; highest and best use analysis among others. Our clients, intended users and consumers will respect the due diligence and realize the worth of our product.

Appraisers must now break out of the box our clients, the secondary market and traditional AMCs have put us in. We have fought and won many battles over the last few years: appraiser independence; customary and reasonable fees and AMC registration. Now, we must prove we are the leaders and experts in real estate value.

I challenge all appraisers to re-examine their appraisal practice. How will you be seen forensically in years to come? What will be your legacy? Now is the time to shake the cobwebs of the offensive playbook and look forward with courage, knowledge, integrity and expertise.

Sally Carothers, SRA, FRICS

Chief Appraiser

CU Appraisal Services, LLC

Phone 866-787-5111

Fax - 866-787-5112

Email - Sally@cuappraisalservices.net

 

 

[1] Realtors Confidence Index. Report and Market Outlook. April 2013 Edition. Based on Data Collected April 29 through May 6, 2013. National Association of Realtors.

[2] S &P / Case-Shiller Home Prices Indices-May 28, 2013

Stiffed Appraisers Go After Chase - Working RE Magazine

Guest Author Isaac Peck is the Associate Editor of Working RE Magazine and Marketing Coordinator at OREP.org, a leading provider of E&O insurance for appraisers, inspectors, and other real estate professionals in 49 states. He received his Bachelors in Business Management at San Diego State University. He can be contacted at isaac@orep.org or (888) 347-5273.

Stiffed Appraisers Go After Chase by Isaac Peck, Associate Editor  

In January, Evaluation Solutions/ES Appraisal Services (ESA) declared bankruptcy, leaving thousands of real estate appraisers, agents, and brokers with unpaid invoices for work performed. With close to nine million dollars in unpaid invoices for appraisals and broker price opinions (BPOs), it is the worst of a growing number of appraisal management company (AMC) failures that have left appraisers stiffed and steaming.

The fallout has been extensive. According to the bankruptcy documents filed by Stutsman, Thames and Markey P.A., the law firm handling the bankruptcy proceedings, over 10,000 individuals and firms are listed as debtors, making it the most devastating and farthest reaching AMC bankruptcy in recent history.

Since Working RE first reported on this in early 2013, the appraisers and agents affected have been pressuring Chase, the lender who hired ESA for most of work, to make good on the AMC’s unpaid debts. Many appraisers have filed complaints with the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB). So far, regulators have been indifferent to the problem.

Chase Tries to Settle Chase is directing inquiries to Brian Reese, a Regional Manager of the WAMU-Chase branch in Florida. Nicholas Conteduca, an appraiser owed over $30,000 and founder of Esappraisalscam.com, designed to help appraisers collect unpaid fees, reports that Reese told him that Chase will not make any decisions about paying unpaid fees to appraisers until the bankruptcy proceedings are over. The lawyers handling the case told Conteduca that the bankruptcy case could take 12-18 months to complete. Reese did not respond to numerous phone calls from Working RE.

But time may be running out for appraisers thanks to a legal maneuver that is part of the bankruptcy proceedings. Chase is seeking to settle its debts with the now defunct ESA to the tune of $2,316,000. However, that money will not go to pay fee appraisers and agents. All but about $100,000 is earmarked for a secured debtor of the AMC, Summit Financial Resources, L.P., a hard money lender. So, there will be only about $100,000 remaining to cover the estimated $9 million in unpaid fees to appraisers, agents and brokers. This is the equivalent of paying a little over one penny on the dollar for the work that appraisers and agents completed on behalf of Chase.

Worse for appraisers and agents/brokers is that the settlement agreement by Chase allows the bank to avoid any future claims. Included is a Notice of Bar Order which bars all related claims and lawsuits once the secured debtor is paid. This order prevents appraisers, agents and brokers from taking any action against Chase as a means of collection, including taking the bank to small claims court, filing liens on properties where they performed work or filing any other claims for their unpaid fees. For this reason, many appraisers and agents are working together to block the Bar Order.

The deadline to object to the motion to approve the Settlement Agreement and Bar Order is May 24, 2013 at 5:00 p.m. (EST). Additionally, on June 4, 2013, an evidentiary hearing on the motion to approve the settlement agreement will be held in a Florida court. The notice specifically states that “any party opposing the relief sought at the hearing must appear at the hearing or any objections or defenses may be deemed waived.” (Read the Full Text of Settlement Agreement here) == Here’s how some appraisers are fighting back.

 (Story continues)

Appraisal Institute: How Landscaping Can Impact Home Values

Source: Posted By susanne On May 19, 2013 @ 1:06 PM In Business Outlook,Real Estate Information,Real Estate News,Real Estate Trends,Today's Top Story

 

The Appraisal Institute recently advised homeowners to properly maintain their landscaping, which can significantly affect property values.

“If a landscaping change is positive, it can often enhance price and reduce a home’s time on the market,” says Appraisal Institute President Richard L. Borges II, MAI, SRA. “But if the change is negative, it can lower the price and lengthen the time a home remains for sale.”

Curb appeal is essential when selling a home, Borges says, noting it’s the homeowner’s opportunity to make a great first impression. A home with lackluster landscaping or an exterior in desperate need of a fresh coat of paint will likely be unappealing to prospective buyers and ultimately could affect the home’s potential resale value, he said.

Landscaping is typically associated with lawns, trees, bushes and flowers. But other items also can be considered part of landscaping, such as fire pits, decks, patios, waterfalls, swimming pools and outdoor lighting … all of which could add to the value of the home.

Borges says homeowners should ask themselves the following questions when it comes to the quality of their home’s green space:

• Is the landscaping attractive enough to make the prospective buyer walk through the front door? Keep the design contemporary and in line with comparable properties in the area.

• Could the landscaping provide cost savings? Landscaping that requires little or no water to maintain could be desirable depending on the geographic area.

• Is the landscaping energy-efficient for the home overall? For example, it’s a good idea to plant trees in a place where they block the sun in locations with year-round hot climates.

• are the trees planted at a safe distance from the home and are they healthy and well maintained? Weak, old or damaged trees planted too close to a home or building could pose dangers to the home’s structure and will need to be removed. Consumers should also be sure that mulching or beds don’t get too close to wood around foundations to avoid wood-destroying organisms.

For more information, visit www.appraisalinstitute.org

Click here for the COMPLETE ARTICLE - How Landscaping Can Impact Home Values

U.S. Senate Candidate FINALLY Pays 2005 Residential Appraisal Fee

Mass. GOP Senate candidate pays 2005 appraisal fee by Steve LeBlanc Associated Press / May 16, 2013

BOSTON (AP) — Republican U.S. Senate candidate Gabriel Gomez said he has paid an eight-year-old, $1,000 bill for an appraisal on his Cohasset home, even as he again called on Democratic challenger Edward Markey to release his tax returns.

Gomez paid the fee Thursday, after The Boston Globe reported that the appraiser had filed a claim against Gomez in small claims court.

‘‘I'm surprised to hear this $1,000 bill after eight years,’’ Gomez told reporters during a campaign stop in Quincy on Thursday. ‘‘Quite frankly, I don’t even recall the bill.’’

The appraiser said Gomez hired him in 2005 to help determine how much he could deduct from his federal tax return in exchange for agreeing not to make alterations on the facade of the historic home.

Gomez reportedly declined to pay the fee after receiving a more generous evaluation from another appraiser. Democrats have criticized the $281,000 tax break, saying local bylaws already prevented Gomez from changing the facade of the house. 

Read the complete story - click here