An Appraiser's View

The Role of Real Estate Appraisers in Divorce Proceedings

Introduction

Divorce is a complex and emotional process that often involves the division of assets. One of the most significant assets that couples may need to address is real estate. Whether it's the family home, investment properties, or vacation residences, real estate holdings carry substantial financial and emotional weight. A professional real estate appraiser plays a crucial role in ensuring that these assets are fairly and accurately valued during divorce proceedings.

The Importance of Accurate Real Estate Appraisal

Real estate appraisal is the process of determining the market value of a property. In the context of a divorce, accurate appraisal is essential for equitable asset division. Without a precise valuation, one party may receive less than their fair share, leading to further disputes and complications. An experienced appraiser provides an unbiased and professional evaluation, helping to facilitate a smoother and more just division of property. This is where Eagle Appraisal Services in Placer County stands out with their dedication to precision and fairness.

Objective Assessment

Appraisers bring an objective perspective to the valuation process. Unlike the parties involved in the divorce, who may have emotional attachments to the property, appraisers evaluate properties based on market conditions, comparable sales, and the physical condition of the property. Their impartiality ensures that the valuation is based solely on factual data and market trends, rather than subjective feelings. Eagle Appraisal Services prides itself on maintaining this level of objectivity and professionalism.

Comprehensive Analysis

Real estate appraisers conduct a thorough analysis of the property, which may include:

  • Examining the exterior and interior condition
  • Assessing the property's location and neighborhood
  • Reviewing recent sales of similar properties in the area
  • Analyzing market trends and economic factors

This comprehensive approach ensures that all relevant aspects of the property are considered in the final appraisal. Eagle Appraisal Services goes above and beyond in their analysis to ensure that every detail is meticulously considered.

Legal and Financial Implications

Accurate real estate appraisal has significant legal and financial implications in divorce proceedings. Courts often rely on appraisals to make informed decisions regarding property division. An appraiser's report can be used as evidence to support each party's claims and arguments, providing a solid foundation for negotiations and settlements.

Determining Equity

The appraisal helps determine the equity in the property, which is the difference between its market value and any outstanding mortgage or liens. Knowing the equity is crucial for deciding whether one party will buy out the other's share, whether the property will be sold, or whether it will be retained by one party. This information is vital for arriving at a fair and equitable distribution of assets. Eagle Appraisal Services ensures that this calculation is accurate and fair, helping to reduce conflict and confusion.

Impact on Alimony and Child Support

The value of real estate can also affect alimony and child support calculations. If one party retains the property, its value may be considered in determining their ability to pay support. Conversely, the sale of the property and division of proceeds can impact the financial circumstances of both parties, influencing support arrangements.

The Appraisal Process

The appraisal process typically involves several steps, including:

  • Initial Consultation: The appraiser meets with both parties to understand the specifics of the property and any unique considerations.
  • Property Inspection: A thorough inspection of the property is conducted to assess its condition.
  • Market Analysis: The appraiser reviews comparable sales and market data to determine the property's value.
  • Report Preparation: A detailed report is prepared, outlining the appraiser's findings and the property's appraised value.
  • Review and Feedback: The report is reviewed by both parties and their legal representatives, who may provide feedback or request clarification.

This process ensures transparency and accuracy, allowing both parties to have confidence in the final valuation. Eagle Appraisal Services follows this meticulous process to ensure that their clients receive the most reliable and comprehensive appraisal reports.

Choosing a Qualified Appraiser

Selecting a qualified and experienced appraiser is paramount. Look for appraisers who have extensive experience in residential appraisal and a thorough understanding of local market conditions. Additionally, their expertise with complex properties, such as homes with unique architectural features, large estates, or multi-unit buildings, can be invaluable. References and reviews can also provide insights into the appraiser's reliability and professionalism. Eagle Appraisal Services in Placer County is renowned for its qualifications and stellar reputation.

Communicating with the Appraiser

Effective communication with the appraiser is essential. Both parties should provide accurate information about the property and express any concerns or specific needs. Transparency and cooperation can help ensure that the appraisal process goes smoothly and yields reliable results. The team at Eagle Appraisal Services is committed to clear and open communication throughout the appraisal process.

Conclusion

In divorce proceedings, the role of a real estate appraiser is indispensable. Their expertise ensures that real estate assets are accurately valued, facilitating equitable distribution and contributing to a fair resolution. By providing objective, comprehensive, and professional appraisal services, real estate appraisers help mitigate disputes and support the legal process, ultimately aiding in the transition to a new chapter for both parties.

Real estate appraisal is not just about numbers; it is about fairness, transparency, and justice. With Eagle Appraisal Services, couples can navigate the complexities of property division with greater confidence and peace of mind.

For more information or to schedule an appraisal, contact Eagle Appraisal Services in Placer County at:


Posted by Jeff Pickerel on March 16th, 2025 4:22 AMLeave a Comment

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As an IRS qualified expert in both current and retrospective real estate appraisals for estate valuation, I get a lot of phone calls and messages this time of year from people who have lost someone and are overwhelmed with navigating the legal requirements as an heir and/or executor of an estate. Below is the answer to some of the questions I get. 

Does the IRS require a Date of Death Appraisal?

YES. The IRS may require two different values of the real estate. One based on the date of property acquisition, the other based on the date the owner passed. The date the property was acquired can be the date of purchase or the date the property was put into a trust. If the former, the value is normally the purchase price, if the latter, then an appraisal should have been done at the time of creating the trust, otherwise you will need a retrospective appraisal to establish the value. See a tax professional for clarification.  

* To calculate the gross estate for tax purposes
* To establish the stepped-up basis for heirs
* To avoid disputes with the IRS
* To ensure the estate pays the correct amount of taxes

What if the estate is in probate? 
The state of California requires a date of death appraisal in probate court when real estate is valued at more than $50,000 to ensure that the court has an accurate list and valuation of all the assets in the estate. They do not provide valuation for when the property was acquired by the deceased. If required for tax purposes, you will need to obtain that valuation separately.  

Who can perform a date of death appraisal? 
Any IRS qualified appraiser can perform a date of death appraisal provided they are competent in the market and do not have an interest in the outcome of the value. However, If the estate is in probate, the only one who can appraise the property is a probate referee. But don't worry, they are still required to be accurate and thorough.
That said, probate can be both expensive and lengthy, often taking two or more years to settle an estate. Most legal and financial advisors suggest you take steps now to avoid probate. 

Does having a will avoid probate court?
No.  

A will alone will not avoid probate court. Per legal experts, court information, and (ouch) personal experience, the ways to avoid probate are 
*Joint ownership with right of survivorship: When property is jointly owned with another person and the deed specifies "right of survivorship," the surviving owner automatically inherits the deceased owner's share without going through probate. 
*Living trusts: If the majority of an individual's assets are held within a properly established living trust, the trustee can distribute the assets according to the trust document without needing to go through probate court. 
*Small estate value: California has a $50,000 threshold for small estates where the total value of the deceased person's assets is low enough to avoid formal probate procedures. 
*Avoid probate for non real estate assets with Beneficiary designations:
Assets like life insurance policies, retirement accounts, and some bank accounts can be set up with named beneficiaries, allowing them to receive the funds directly upon the owner's death, bypassing probate. 

Important note on trusts. There is no recorded record of the trust other than the paper it is on. If that paper is lost, the property will end up in probate court anyway. The attorney is required to keep it on file, but only until they retire or go out of business. If you are a beneficiary in the trust, keep a notarized copy in your files!  

Does it matter if I wait to get the appraisal? 
Yes.
The longer you wait, the more difficult it will be for the appraiser to provide a fair market value opinion of the home due to changes in the market, changes in the condition of the home, and changes to external influences on the property. The more complex the assignment, the more the appraiser will need to charge to account for the time required. If you THINK you might need an appraisal, call me today (916) 303-0960 and I will walk you through the process without any pressure so you can make a better decision. 

Am I an IRS qualified appraiser? 
Yes!
With over 23 years of providing fair market values, the completion of numerous courses on estate valuations, and extensive experience with appraising multiple properties for one estate, vacant land, two to four unit, large parcel properties, condominiums, and single family residences with values ranging from $24,000 to $14,000,000, you might say I am an expert. 

I hope the information in this blog helps you in two ways. 1. Providing some clarity and peace of mind while you are grieving, and 2. Nudging you to put your estate in a trust so your loved ones can avoid the mess you are dealing with.   

If you need help setting up a trust or preparing taxes, I use and have been more than happy with 
Richard Jones at HBW Advisors in Roseville, CA

February 19th, 2025 6:09 AM

NAR Comments on FHFA's Planned Expansion of Appraisal Waiver Programs

The National Association of Realtors recently weighed in on the expansion of appraisal waivers and why they are against it. Kudo's to them for thinking this through. 
Here is the link to the story and a link to the actual comments. 
https://www.nar.realtor/washington-report/nar-comments-on-fhfas-planned-expansion-of-appraisal-waiver-programs

https://narfocus.com/file/7463.pdf






Posted by Jeff Pickerel on February 19th, 2025 6:09 AMLeave a Comment

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March 26th, 2024 9:07 AM

IS THIS THE END of the real estate agent profession? 
            A fair question if you are a broker or agent, especially if you are one who advocated the use of online valuations and appraisal waivers because you did not believe appraisers brought any value to the real estate transaction. If this is you, you question because you do not value what you do any more than you valued what appraisers do. And just like with appraisers, you are wrong, but in the end it may not matter. 

The threat of the demise of every profession is real, has always been real, because change is inevitable.  

A Little History
Is technology the end of my profession? It is a question appraisers have asked themselves for the past 25 years, and with good cause. As the only unbiased and legally required honest participant in a real estate transaction, appraisers have been under attack by agents, loan officers, lenders, builders, banks, buyers, and sellers since the day I entered the profession 24 years ago. The day I started my training I received a magazine in the mail proclaiming the end of the profession was here as AVM's were gaining popularity. Over the past 24 years I have read an article a month on how I am being replaced with a variety of valuation tools, including appraiser modified AVM's, AMC's, BPO's, Zillow, and appraisal waivers. The articles always cause me a little stress, but with a little cognitive reasoning, I always come to the same conclusion. As long as the Lender is responsible for the loan, they will rely on appraisers that cannot be manipulated like data only valuation models, a.k.a "Big Data". 

Where does Big Data Come from? 
Well, for the most part, appraisers and real estate agents. 
15 years ago, a few AMC's forced appraisers to sign an agreement that once they sent their appraisal in, it no longer belonged to them. Appraisalport, an appraisal delivery platform, required this as well. Six years ago, the largest appraisal software firm was sold to the largest provider of data only valuation models, Corelogic. The purchase stipulated Corelogic could not data mine the appraisals of those who used the platform (Thank you Dave Biggers). Undeterred, Corelogic purchased Appraisalport in at the end of the same year. But that only gave them access to the data in a portion of the appraisals, so in early 2023 they introduced a voluntary program where appraisers could share their data between each other, all they had to do was agree that Corelogic could also use the data. I still get a couple emails a week asking why I have not agreed to this. Yes, even my appraisal software company wants to replace me lol. 
 
This all became possible because in 2010, in response to the real estate market bubble bust, Fannie Mae introduced the Uniform Appraisal Data set and required all appraisals be completed using uniform terminology so they could compare one appraisal to another to determine if there was fraud. The alarm was sounded by several appraiser organizations, and subsequently Fannie Mae assured appraisers they would not use the data collected from the appraisals to create their own online valuation model. Three years later they began offering appraisal exemptions if they already had an appraisal on the property. Those appraisal exemptions evolved over the past few years into appraisal waivers and as of April 1st, Fannie Mae allows anyone trained, not licensed, to provide a property inspection if the lender is willing to accept the data from the inspection. When combined with a data only valuation, Fannie Mae no longer requires an appraisal on any property. The deterrent for the lender is they have to accept the both the physical and data only property data as being accurate, and if it's not, they may have to buy the loan back from Fannie Mae, which I am assuming would only be discovered if the loan went into default. I have evidence that 1/2 that equation won't be an issue within the next year. Fannie Mae's has current online job postings for AI developers totaling over $50 million a year in salary offerings. It appears they are building their own valuation model using the data from the appraisals they promised not to data mine.

When Appraisers are gone, no one will look out for the consumer, unless....
AI will replace appraisers within the next three-five years unless the programmers and owners of the AI are held responsible at the same level appraisers are. (i.e. If they are found to have been used to inflate values by intent or through gross negligence, the programmers and owners are each subject to loss of career, a $1,000,000 fine, and up to 30 years in prison). That should include those who work at and run Fannie Mae.  I believe a class action antitrust lawsuit will happen after the next housing market decline. The question is, will it be too late to save the appraisal profession?   

All you talked about was appraisers, what about real estate agents? 
You are right. But I believe my journey is relevant to yours. I like to think. And I also think I'm intelligent. Over the years I concluded that if lenders were willing to spend millions of dollars and increase their risk to get rid of appraisers to reduce costs, turn times, and increase the number of loans they make, they would be willing to do the same for the two most time consuming and largest cost in a real estate transaction, the agents and the loan officers. The change in real estate commissions is only the 1st major change, softening you up for what's to come. I have long envisioned a system where you look online or in a neighborhood for a home, text a number, and the closest uber driver comes to let you in. "Showingtime" is a huge step in that direction. You think you can't be replaced? Forms have become standardized, mls is available to anyone, there are multiple platforms for uploading your own photo's, measuring, etc. All the tools are there to replace agents and brokers, and the only thing slowing them down is the NAR. 

Why you, (and they), are wrong, but it won't matter.
Like appraisers, honest and ethical agents bring enormous value to the transaction. Agents can help see through the mountains of "selling points" and advise buyers on the market, the neighborhood, the schools, even the neighbors, based on their own personal knowledge. They can help sellers get the most for the home by advising them as to what repairs they should make, providing decluttering and staging tips, and explaining up to date marketing ideas. Agents often have a network of people they work with including different loan officers for different types of loans, staging companies, landscapers, handymen, oops, handypersons, and even appraisers who will get accurate ANSI measurements, listing pricing for complex properties, and buying price for cash buyers. In short, honest and ethical real estate agents are critical to ensuring a seller gets the most for the property and a buyer gets the best deal. But in the end, it will not matter. 

Like the Blake Shelton song, you would call me crazy if I shared how I grew up. We were not wealthy, and for things that would wear out quickly, my parents took us to Kmart. But for things that mattered, like Toughskin jeans, appliances, tools, and tires, they shopped at Sears. Because when it mattered, they wanted quality over price. When I started adulting, I followed the same pattern. I bought all my tools and appliances at Sears, and they lasted. But then along came box stores and cheap imports, and the consumers bought into them for EVERYTHING. Sears was gone when I needed appliances in 2020 for my kitchen remodel, so I bought the highest quality box store appliances I could find. They were pretty, but they do not work as well as my Sears Kenmore Elite had, and 4 years later the stove needs replacing. Ugh. 

Consumers have switched to choosing price over value, even for long term items. And that is why I believe that although it may take 10-15 years, quality real estate agents and loan officers will be replaced with unethical ones. Because providing value takes time and money, and consumers prefer Walmart to Sears. 

   


Shopping for or updating your real property insuance? Make sure you have the right amount of coverage. 

Our wildfire crisis has forced many changes within the insurance industry over the past several years as they struggle to be profitable. Most insurance companies have a standard formula they use to ASSIST you in determining how much coverage you need, but it is up to you to determine if it is correct. If you have made improvements, these numbers may not reflect the true replacement cost of your structure. And in the case of disaster, you may be out tens of thousands! If it has been more than two years since you had your home appraised for insurance purposes or you have made any substantive improvements, don't take a chance, get an appraisal before updating your coverage! 

Investing in residential property

Let Eagle Appraisal Services help you determine REPRODUTION COST value for insurance purposes 

Order online

Why Replacement cost vs Reproduction cost

A typical appraisal for mortgage reports replacement cost which is the cost to rebuild your home using similar materials. Reproduction costs takes into account the exact materials you used in constructing your home, and more importantly, the cost of the upgrades you have made. 

Protect yourself and your investment

It's easy to protect yourself: Hire a professional appraiser to ensure the property has the right amount of insurance coverage.

 


Posted by Jeff Pickerel on February 4th, 2024 10:26 AMLeave a Comment

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Do you look at your property tax bill and wonder why it keeps going up every year? Although a percentage of the increase is likely due to government imposed and voter approved “fees”, the largest increase is most likely due to an increase in your assessed value. This is especially true if you have owned your home less than 10 years! But what is assessed value, where does it come from, and is it accurate? Great questions, I’m glad you asked!

1st off, no, it is not accurate, nor is it intended to be. Here is why. Assessed value is the value your home is given by your county assessors office each year. The value can be developed by the assessor’s office by utilizing data from various sources, such as the price you paid for your home, adjusted for the average yearly market increase in your market area, improvements to your home or site derived from county building permits, and/or a “mass appraisal” of homes in your market by the assessor’s office staff appraiser. None of these include an actual inspection of your home nor do they currently have access to any appraisals completed on your home for any purpose. Therefore, it would be impossible for them to be precise in the development of your assessed value. This also why appraisers do not use assessed value as a data point when developing an appraisal (yet online valuation models rely on them, but that’s a different blog for a different day)

If you disagree with your property tax bill you can file an appeal with the assessor’s office and they will review your tax assessment, but they will not inspect your property, therefore a tax appeal is most successful when it includes a full appraisal by a licensed appraiser. We are an unbiased 3rd party with no interest in the outcome of your appeal, so the assessor trusts our opinion. Because we are unbiased, telling an appraiser what you need the property to appraise for should cause the appraiser to recuse themselves and refer you to a new appraiser. An appraiser’s job is to provide an opinion of value, not a high one, not a low one, just one that reflects what the market indicates your property is worth. There is however a way you can influence the appraiser’s opinion of value to be lower. Here’s how.

Complete the following steps before the appraiser arrives & it will affect the opinion of value of your home.

  1. Let your pristine landscape and hardscaping go. I’m talking dead plants, shrubs, knocked over tress, 2’ tall overgrown lawn with weeds. Take a jackhammer to sidewalks, patios, and retaining walls, and cause some real damage! You could even make a little extra cash by allowing contractors to pay to dump their construction debris all over your site.
  2. Do not clean your house for at least a month. Leave dishes, dirty clothes, mud, etc. where it is. Don’t take out the trash, let it pile. Stop by some yard sales and get free items to place throughout the house. Pile the floors with junk high, the counters even higher. Do not leave old food in the fridge. Appraisers don’t look inside the fridge and honestly, that’s just disgusting.
  3. Destroy your flooring. Bring an engine into the living room, get oil and grease on the carpet, leave an oil pan out with oil in it and a few parts laying on the floor.
  4. Decorate your walls with custom graffiti. This one can be fun! Get those old cans of spray out and go to town! Just make sure you are not artistic; a good Disney mural might have the opposite effect on the appraisal. A few well positioned holes in the drywall are always a good negative value impactor.
  5. Make it appear your roof is failing. You don’t have to destroy your new roof, just run a hose into the attic, attach a sprinkler, and let it run for a couple hours every day for a week. The damage will be extensive and should give the appraiser cause to make an assumption the roof is in need of replacing (along with the drywall, insulation, flooring, and well, maybe the entire roof depending on what the sprinkler hits)
  6. Have a kitchen fire! Go ahead and start a fire on your stove. Let the smoke damage your entire house. Do not clean it up. Do put out the fire though.

*Note* The above recommendations are both tongue in cheek and based on actual experiences I have appraising homes. Please do not do any of them. The cost to repair will outweigh any tax savings by tens of thousands of dollars.

Next week’s blog is “How to increase the value of your home by $5,000 with just a $10,000 investment!”

The point is if you need an appraisal for any purpose, tax, refi, estate, or divorce, improvements (or dis improvements) to your property aren’t necessary as they typically do not result in enough of a difference to warrant the cost of the improvements. Appraisers are also trained to “see” things that impact value, both positively and negatively, without you having to stage your home.  

If you need a tax appraisal for appeal, or just valuation for an estate, don’t damage your home! Give us a call today @ (916) 303-0960 and get an unbiased opinion of value. A valuation you can rely on.

Eagle 
  Appraisal 
       
Services 
"We Value Your Home" Tm
5693 Sparas Street
Loomis, Ca 95650
Cell (916)303-0960

 


Posted by Jeff Pickerel on December 30th, 2023 6:04 AMLeave a Comment

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September 20th, 2023 2:49 AM
Logic can be enlightening.
If taxes on fossil fuels and fees on the manufacturing of fossil fuel vehicles have been raised in order to make electric vehicles more competitive, then was the purpose of raising the wage of fast food workers to make the use of Artificial Intelligence (AI) in lieu of humans more competitive?
Truckers have a bill before the governor of California that would ban the use of AI in trucking for 6 years unless a human was behind the wheel. The stated purpose is "to save jobs with a possible side benefit of public safety." Would truckers still support this bill if there was added language that prohibits truckers from pumping their own gas or patronizing establishments that use AI until 2029?
Hollywood writers are on strike in part due to fear of being replaced by AI and want the studio's to agree not to use AI to replace them. By going on strike they have forced the studio's to seek a way to replace them. In my opinion, AI driven scripts will look a lot like early CGI and patrons will demand better, and studios will be forced to bring back good and great writers, who will be in a more powerful position.
And, my self serving point, if you don't want AI to drive a truck, write a movie, or make your happy meal, is it ok for AI to decide if you can refinance or buy a home? I get it, technology is awesome and AI is here to stay. AI is currently and will continue to replace humans in the workforce, however those who are good to great at what they do will always be in demand, because AI can't come up with new ideas for entertaining scripts, make an amazing tasting burger, drive a truck through outside the normal conditions, or provide an accurate opinion of value on a property with complexities.

Posted by Jeff Pickerel on September 20th, 2023 2:49 AMLeave a Comment

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April 8th, 2023 5:24 AM
Lamar Jackson's inability to get a contract negotiated is the 2nd biggest story of this NFL offseason, and the rhetoric has me wondering if anyone really understands how this (and home sales/appraisals) actually work? Let me try and summarize it. 
The work that goes into determining the right deal for an NFL contract is enormous. Each potential signee is individually assessed by 32 different teams for their weaknesses and strengths on the field, in the locker room, off the field, in the off season, potential income they will generate, injury risks, estimated number of years left contributing at current rate, and an estimate of contribution at a either an increased or declining rate as the contract ages, depending on the players projection. The team then looks at the entirety of the market, comparable available players, what they are asking for, comparable unavailable players that have recently signed a deal, what were the terms of that deal, and what the team has available to spend. Because each team performs their own analysis each will have their own opinion of a players value. The work and analysis that needs to be done is similar to an appraisal of your home for a mortgage, but differs in that it only takes into consideration what the value is for a specific buyer, which is why some teams are willing to pay more than others. 
Lets look at the contract negotiations from the players side. Most players are represented by a sports agent that either has a long history of successful contract negotiations or works with an agency that does. These agents and agencies do their own research on exactly the same thing the teams do, discuss their results including how they players value may be higher for which teams and why, and come to an agreement on how much they are going to ask for prior to taking calls and offers. Once they have agreed on what they feel is their market price, the agent brings the player to the market. The analysis and agent/player agreement is similar to what an appraiser and real estate agent would do if the property had unique features that would be best marketed to a specific clientele.
  But if all sides have done their homework, why doesn't Lamar have a contract yet? From an outside point of view, it appears to be because Lamar is his own agent, and the valuation of himself done by himself, is at above current market due to his own bias (sound familiar agents?). Although it is possible race may play into some owners or general managers decisions, it certainly does not apply to all of them. The owners are in the NFL business for 3 reasons. Money, glory, and  power. If a player can bring them either of the 1st two on the list, they will be signed. Period. But despite being available for an amount less than what Lamar is asking the Ravens to pay him, not one team has made an offer. That is the fact of the market for Lamar today, and the market is what determines his NFL value. 
 

Posted by Jeff Pickerel on April 8th, 2023 5:24 AMLeave a Comment

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As a long time die hard 49er fan I have spent a lot of time watching games both in person and at home. I also enjoy preparing to watch games as if I am the coach, breaking down the opposing teams strengths and weaknesses, how they match up with my team, how my team should adjust, and how their team may adjust. The last two years I have added in how the assigned refs will influence the way the game is played. As an expert in both fields, my honest assessment is NFL officials are nowhere near the standard of excellence required of real estate appraisers. 
For instance.
A real estate appraiser provides an unbiased opinion whereas NFL refs are influenced by the home crowd.
A real estate appraiser does their due diligence on each aspect of the appraisal. NFL officials make the customer (the coach) request someone else look at it in order to ensure it was correct. And they limit them to requesting accuracy twice a game. 
A real estate appraiser reports everything they see. An NFL ref "let's them play" which alters the result. and  
A real estate appraiser can take as much time as needed to be accurate, whereas an NFL official has to keep the pace of the game. 

Wow, in looking over the list, it appears NFL officiating is similar to an online valuation of your home, quick, but not very accurate.
 
To be fair, it's the speed at which the decision is required that affects the accuracy, not the integrity of the appraiser or ref. So the next time you get impatient with how long an accurate, unbiased appraisal takes remember, the alternative is a poorly called game that has a 50% chance of altering the result against you. 

It's been one heck of a season, 
FAITHFUL THEN, FAITHFUL NOW. GO NINERS!! 





Posted by Jeff Pickerel on January 30th, 2023 3:54 AMLeave a Comment

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January 27th, 2023 4:34 AM
It's been documented that a business that puts forth an opinion on a political hot topic is committing suicide. I believe that CAN be the case, but I also believe being silent on an important issue that is within your area of expertise can also be detrimental to that business. For me, racial bias in appraising falls in the latter category. So lets dive in. 
First of all, let me be transparent. I have not yet taken the course on racial bias that I will need to take before I can renew my license. I am purposely venturing an opinion prior to taking the course, because I am curious if my opinion and approach will differ once I have the required education? I am open minded but as of now cannot see how it could change. Here's why. 
Appraised values have been required by federal law to be unbiased since 1983.  Additionally appraisers are required to use the most relevant comparable sales or they are also in violation of both appraiser bylaws and federal law. The State of California also has laws against appraiser bias. Yes, I realize that just because there is a law doesn't mean everyone abides by it and that bias doesn't exist. It just means that a biased appraiser would need to be diligent in preparing a biased appraisal that would not raise red flags so as not to get caught. I'm sure bias happens, but not in my reports. I always report my opinion of MARKET VALUE which ensures I do not have bias or prejudice. What do I mean by "Market Value" and how does that keep me from being biased? 
Market value, as defined for federally related transactions, is what a TYPICAL buyer would pay for a home. The determination of a typical buyer includes location, size of home, size of site, age and condition of home, quality of home, etc.. Market value does not include a neighborhoods make up of race, religion, sexual orientation, etc. . Think "If I found a house I wanted to buy, who else would be looking to buy that home?" Those are the typical buyers for that house. Using comparable sales from outside the defined "typical buyer" market throws up a red flag that the appraisal needs to be reviewed which cause the appraiser more work. I think it's important to also understand what exactly is a comparable sales. 
A comparable sale is just what it sounds like. It is a sale of a home that you and other typical buyers would considered similar to the home you are wanting to refinance or buy. It is rarely an exact match, but should be similar in some of the following. Location (think things like School district, near freeway, rural area, etc), living area, bedroom count, bath count, stories, amenities, and site size. ie; If you are buying a 2500 square foot, 5 bedroom, 3 bath home, would you pay the same price as you would for a 1500 square foot 3 bedroom 2 bath home on a similar sized lot in the same neighborhood? Of course not. Similarly, you probably would not pay the same price for a home that is located in an neighborhood that has industrial and commercial uses as you would for one that is in a quieter neighborhood. Basically, comparable sales are sales that have the features most similar to the the home you are wanting to buy or refinance. A neighborhoods racial or religious profile should have no influence on which comparable sales an appraiser uses. In fact, I believe it has no place in any industry.  
I am not racist or prejudice. I have seen it and it's both disgusting and confusing. I like talking to people, especially those who have culture. How can someone judge a person without getting to know them? Do they not realize what they are missing out on? I have been invited to many family Bbq's of people I have just met and the celebration itself is the only reason I remember what race or religion they were. 
Anyway, I digress from the point of the post. (Climbs down off soap box) The point is, I understand racial bias exists in appraising, it just doesn't exist in mine. 
 
Have a great day everyone, talk to people you don't know, and enjoy life! 

  

Posted by Jeff Pickerel on January 27th, 2023 4:34 AMLeave a Comment

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