1. Take a reading on the marketcalc

2. Run “first cut” comparable reports to find the averages

3. Decide where the value falls compared to average

4. Run “second cut” comp reports and select and adjust comps

5

. Value by weighted average

These steps are typical of the research that I will do as an independent residential real estate appraiser.  I caution that if you do not first verify what you are valuing the results will not be accurate. It is very common for Assessor records and previous MLS listings to contain major inaccuracies. You have to verify which is why appraisers physically measure every property and look at the master deed and the stamped architect’s plans on every condo.

It is not uncommon to think you are valuing a 1,750sf Split Level only to find that it is really a 25’x40’ Raised Ranch with a 75% finished basement. The basement has no fireplace and only a combination laundry room lavatory with asbestos tiles. Yellowed acoustical ceiling tiles, old pseudo-wood paneling, the original gray carpeting and is on a level lot so it has small windows and no true walk-out. In other words it was really only a 1,000sf home with an extremely dated finished basement. Big difference.

Why are the records wrong?  That is the wrong question. The question is; what can I do because they are unreliable? There are 351 cities and towns in Massachusetts and I focus on eastern MA. You get to know your towns after a while.

Instead of waiting to find out your home’s market value you can have the extra edge as the consumer. By obtaining your own independent appraisal you now know how much equity there is for a refinance before you apply. This does your loan officer a favor as they now have access on day one to all the information necessary to get you the most favorable loan on the day you apply. You will also pay for the second independent appraisal as part of the actual loan closing costs. Also know that it is common for two appraisers to vary by 2-3% due to the subjective nature of parts of the appraisal process.

I am happy to do an appraisal of your home’s market value if it is in my service area which falls mostly inside the 128 belt. The cost for a typical single family or condo unit is $350 and the turn time is about a week after I complete the appraisal inspection.

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Here are a few things you can do to make sure your website is going to work.

1. Define what you want your website to do. Be conscious of your goals while developing the structure of your website.
2. Make and keep contact by collecting customers email addresses. Allow them to sign up for email updates/newsletters via your website.
3. Integrate social media into your website. This means if you are using twitter, use your website to let people know you tweet. See how to put your twitter feed into your website here: http://twitter.com/goodies/widgets
4. Get repeat visitors by making your website more than a sales platform. Show your customers you are passionate about what you do by providing additional information as it relates to your industry. Restaurants can share a recipe, realtors can offer checklists for finding the perfect home, and pediatricians can provide references to child services in their community. The important thing is your website is of value to your customers.
5. If you have a lot of information on your site, make sure it is accessible to your visitors. 100 .pdf’s listed out on a site is not accessible. 100 searchable documents allow your visitors to find exactly what they want.

He or she has presented you with some relevant market information including current competitive pricing for use in setting a list price; however, I tell everyone in my family that it is a smart idea to get your own an independent appraisal. You do this to be sure that your price isn’t too high or too low for the current market conditions.  The market is imperfect and anyone can make a mistake.

Your appraiser has no bias or interest in how much your place sells for because appraisal fees are fixed and not contingent on the value.

An appraisal report is only a summary of the appraisal process. You only see the tip of the iceberg when you read an appraisal because the process includes accessing and analyzing reams of general and specific market data.

You get only one chance to price your home right. If you price it too high when you come down you never get full value, too low and you have left money on the table.

It is worth hiring an independent appraiser and getting a full appraisal as a form of insurance. It may also turn out to be useful for you to know what to do when you are in a negotiation with the right buyer.

How do I report a report licensed MA real estate brokers who has exhibited a pattern of misleading and innacurate property information in their listings?  And what sanctions if any do you have available to influence them to be honest and ethical or be more careful and accurate in the future.

Typically what I see innacurate living areas and bedroom counts without a proper disclosure. MLS provides a convenient new button now to “Report a Violation” but is disinterested as accuracy is not their purview. It is not apparently not an MLS a violation to be misleading.

The main concern is obvious, lack of public trust. As an appraiser I have lived through when that happens and have seen the number of appraisers in MA drop from ~4600 in 2008 to ~2100 today which was, in part, attributable to the resulting regulatory fallout. We have been “new and improved” to death

So you know, I am sometimes contacted and asked why my appraisal has a smaller living area and bedroom count. In my case I personally measure every single or 2-4 family utilizing the ANSI Z765  method of calculating square footage. I cite that as the method and will provide a copy  if they want

I am aware that Real estate agents in other states have to measure and personally certify the living area of their listings. What would have to happen to make that a statewide requirement in MA. It would best serve the public trust if we were all on the same page when it comes to physical characteristics, wouldn’t you agree?

Thank you

Adam

While I don’t track Core Logic’s  “accuracy ” (I use quotes as I use the term loosely) I have been tracking the Zestimate on every property I have appraised (exept sales) since January. Zillow’s accuracy (within 5% which is generous)  as of today 5/15/2011 is 24%.  The notable inaccuracies boggle my mind as as they are as high as 42% too high for a Cambridge condo and 30% too low for a Newton Single Family.

Here is the FDIC trying to go after Core Logic. I won’t shed a tear.

FDIC News: FDIC Sues CoreLogic and Lender Processing Services over…

After I read the article in this link I thought well once again, you get what you pay for.  In Massachusetts we have 57% the number of appraisers that we had 2 years ago (+/-). Perhaps had lenders ordered actual appraisals there would have been enough work to keep the good ones. Good riddance to the bad ones and thanks for leaving!

We do not see these as requirements, we see them only a starting point and add whatever is necessary to arrive at a credible and supportable valuation, double checking everything before any reports ever go out the door.

Our clients tell us that our narrative and explanatory reporting style place us in a category of superior quality that is not readily measurable by the industry but is most important, especially with portfolio loans.  When an underwriter asks for further support the information is readily available in the work file and we quickly provide an answer to the question.

What I want potential new clients to know is that we have high internal standards for research, verification and analysis.  And only then do we begin the process of dovetailing market facts into the appraisal report.

Adam Wiener