Appraisal Matters

Breaking News

Transactions-Based Index (TBI):
2008 Q2 Update
August 5, 2008

Results for the 2nd quarter of 2008 show a 2.7% decline in the capital return for the properties sold in the NCREIF database. The demand-side index continued to fall, by 2.7 percent and the supply side of the market also decreased its reservation prices by 2.8 percent in [...]

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The Fed’s Beige Book has some dismal information.  In our back yard (VA,DC,MD) things were stable, but we are starting to see a slip again since no one is loaning on new projects.  This is stagnating the commercial real estate market.
An excerpt on our home region:
5th District: Maryland, Virginia, North Carolina, South Carolina, southern West [...]

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In my continuing obsession with appraisal/lending issues given the bank shakeouts that will occur over the next 12-18 months, here’s an email conversation with IndyMac on an appraisal assignment occurred in late May with my appraisal firm Miller Samuel.
The report was ordered with a specific inspection date needed. Up until then, our turn time was [...]

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You’ve got to read this article.  http://www.financialweek.com/apps/pbcs.dll/article?AID=/20080714/REG/436047405
Eileen Simpson
True??? For appraisers it would be great for business but I hope this does not happen for the Country.  Should we be surprised?  Appraisers saw this coming at least 18 months ago, if not longer

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The ability to verify data is becoming harder and harder.  As appraisers, we must verify sale, capitalization rates and comparable rentals with one of the market participants.  This is becoming harder every day for many reasons:

Since many transactions are represented by Realtors, we rely upon them for data.  Many who were in the business have [...]

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The effect of the recession has highlighted how much retail owners and purchasers have relied upon steady or annually improving rents, cash flows and projections. Perhaps it’s not possible to completely prepare for a change in future market conditions, but not adapting to them when making financial decisions can crush cash flow. This two-part blog [...]

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This post makes me wonder about the whole “Dummies” Series that I have used to learn new things all the time.  I can’t believe they put this in writing!  Below is the post from a wonderful blog called the Soapbox.  The direct link is: http://soapbox.millersamuel.com/?p=398
Eileen
Commercial Grade is a post by John Cicero, MAI who provides [...]

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I have to admit that the whole mess on the residential side has been interesting to me, but has not impacted our firm because we no longer do residential appraisals.  The problem with appraiser independence is still a problem on our side too.
Our best mortgage clients are ones where we have NO contact with the [...]

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I’m a consumer so I understand that commercial appraisals are expensive for many people. We are generally the most expensive item for a loan and certainly expensive for many estates.  It is a great leap of faith for someone to order an appraisal and not know if a "value will be made."
Again, like the last [...]

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This is not scientific, but I do all the bids for our company.  In March, April and May commercial appraisal orders for lenders were WAY down.  Some weeks we got none, which was unusual given the last few years.  We are always very high in search engines so we get a lot of Broker requests.  [...]

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Right now, lenders want proper ties that have no problems at all. If there is a slight functional problem or any creative backend financing. Calls from reviewers are up too because the criteria for lending is tight for not just for the person.
There are lots of special financing deals. Cash back [...]

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http://www.msnbc.msn.com/id/23676448/
Where exactly IS the bottom?
Eileen

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Oh, there are so many things I could say about this. It actually is a smart business move, but goodbye to independence in the residential field! Consolidation has come to most industries, has it finally come to ours? We do commercial and I believe it will be years before something like this hits us, [...]

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As always, Mr.Mac Crate is right on the mark about our industry. This article is one of the best out there and we are now having a terrible time with being honest and actually saying a market is declining. Why is that? It’s because the lender’s still want to make loans. [...]

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