bartow 10 15 2009

Francois K. Gregoire, IFA, RAAFrancois K. Gregoire, IFA, RAAState Certified Residential Appraiser #142State Certified Residential Appraiser #142

Myth and RealityMyth and Reality

Bartow - © 2009 Frank Gregoire 2

PREPARED FOR:PREPARED FOR:

Bartow Board Bartow Board of of

REALTORSREALTORS©©


about Frank………...about Frank………...

• Licensed since 1976Licensed since 1976• Realtor® since 1977Realtor® since 1977• Appraising since 1977Appraising since 1977• State-Certified Residential State-Certified Residential

Appraiser since 1989Appraiser since 1989


about Frank………...about Frank………...

• Real Estate License Law and Appraisal Real Estate License Law and Appraisal Instructor since 1977Instructor since 1977

• Member Florida Real Estate Appraisal Member Florida Real Estate Appraisal Board February, 2000 – February, 2008Board February, 2000 – February, 2008

• Qualified Expert Witness - Pinellas Qualified Expert Witness - Pinellas County Circuit Court, United States County Circuit Court, United States Bankruptcy Court, Division of Bankruptcy Court, Division of Administrative HearingsAdministrative Hearings


TODAYTODAY• AppraisersAppraisers

• License CategoriesLicense Categories• Applicable LawApplicable Law• Applicable StandardsApplicable Standards• Applicable GuidelinesApplicable Guidelines

• Appraisals Appraisals • Myth and RealityMyth and Reality


TODAYTODAY• New DevelopmentsNew Developments

• Fannie Mae 1004MCFannie Mae 1004MC• Home Valuation Code of Home Valuation Code of

Conduct (HVCC)Conduct (HVCC)


Appraiser - Licenses and Appraiser - Licenses and QualificationsQualifications

• Registered TraineeRegistered Trainee• Licensed AppraiserLicensed Appraiser• State-Certified Residential AppraiserState-Certified Residential Appraiser• State-Certified General AppraiserState-Certified General Appraiser


Appraiser – Applicable Law - Appraiser – Applicable Law - RulesRules

• Chapter 475, Part II, Chapter 475, Part II, Florida StatutesFlorida Statutes

• Chapter 61J1, Chapter 61J1, Florida Florida Administrative CodeAdministrative Code


Appraiser – Applicable Appraiser – Applicable StandardsStandards

• Uniform Standards Uniform Standards of Professional of Professional Appraisal Practice, Appraisal Practice, January 2008 January 2008 Edition (USPAP)Edition (USPAP)

• Incorporated into Incorporated into Chapter 475, Part IIChapter 475, Part II

• Incorporated into Incorporated into Chapter 61J1, FACChapter 61J1, FAC


Appraiser – Applicable Appraiser – Applicable GuidelinesGuidelines

• Freddie Mac Freddie Mac Seller/Servicer Seller/Servicer GuideGuide

• Fannie Mae Selling Fannie Mae Selling GuideGuide


Appraiser – Applicable Appraiser – Applicable GuidelinesGuidelines

• HUD 4150.2 HUD 4150.2 Valuation Analysis Valuation Analysis for Single Family for Single Family One – Four Unit One – Four Unit DwellingsDwellings

• M26-2 Construction M26-2 Construction and Valuation and Valuation Policies, Policies, Procedures, and Procedures, and Methods Methods


MYTH OR REALITY?MYTH OR REALITY?

• Since the Borrower paid for the Since the Borrower paid for the Appraisal, the Borrower Owns ItAppraisal, the Borrower Owns It

• Appraisers are Prohibited from Appraisers are Prohibited from Discussing the Appraisal with the AgentDiscussing the Appraisal with the Agent

• Appraiser is required to use Short Sales Appraiser is required to use Short Sales and Foreclosures as Comparable Salesand Foreclosures as Comparable Sales

• Sales Price/SF is a Good or Reliable Sales Price/SF is a Good or Reliable Indicator of ValueIndicator of Value


MYTH OR REALITY?MYTH OR REALITY?

• Comparable Sales must be within One Comparable Sales must be within One Mile of the Subject PropertyMile of the Subject Property

• Comparable Sales must have sold Comparable Sales must have sold within the Past Six Monthswithin the Past Six Months

• Appraisers Require Repairs to the Appraisers Require Repairs to the PropertyProperty

• Comparable Sales must be ComparableComparable Sales must be Comparable


NEW DEVELOPMENTSNEW DEVELOPMENTS• Fannie Mae 1004MC – Fannie Mae 1004MC –

Market Condition FormMarket Condition Form• Documents Reasoning Documents Reasoning

for Date of Sale/Time for Date of Sale/Time AdjustmentsAdjustments

• Increases Cost of Increases Cost of AppraisalAppraisal


NEW DEVELOPMENTSNEW DEVELOPMENTS

• HVCCHVCC• Restricts Selection and Restricts Selection and

Retention of AppraisersRetention of Appraisers• Establishes Standards for Establishes Standards for

Appraiser IndependenceAppraiser Independence• Applies to Fannie Mae – Applies to Fannie Mae –

Freddie MacFreddie Mac


HVCC - EffectsHVCC - Effects

• Higher Appraisal FeesHigher Appraisal Fees• 64% of Realtors report increased 64% of Realtors report increased

appraisal feesappraisal fees• Fewer Loan OptionsFewer Loan Options• Increased Time to Receive AppraisalIncreased Time to Receive Appraisal

• Over 75% of Realtors report longer Over 75% of Realtors report longer wait for appraisal – most say increase wait for appraisal – most say increase of 8 days or moreof 8 days or more


HVCC - EffectsHVCC - Effects

• Delayed Interest Rate LocksDelayed Interest Rate Locks• Increased Use of Out of Area Increased Use of Out of Area

AppraisersAppraisers• 70% of Realtors report higher 70% of Realtors report higher

instancesinstances• Lengthened Loan Approval ProcessLengthened Loan Approval Process• Possibility of Multiple Appraisals and Possibility of Multiple Appraisals and

Fees Fees


COMPETENCECOMPETENCE• what license do you hold, what is the what license do you hold, what is the

number? number? • when did you first obtain your license? when did you first obtain your license? • are you a licensed or certified appraiser, are you a licensed or certified appraiser,

or are you a trainee appraiser? or are you a trainee appraiser? • where are you from? where are you from? • when was the last time you appraised a when was the last time you appraised a

property in my neighborhood? property in my neighborhood?


COMPETENCECOMPETENCE

• do you know any of the local Realtors or do you know any of the local Realtors or Agents in this area? Agents in this area?

• do you have access to the local Multiple do you have access to the local Multiple Listing Service? Listing Service?

• please give me a general physical please give me a general physical description to enable me to recognize description to enable me to recognize you at the appointment you at the appointment


NAR EFFORT - NAR EFFORT - RESOURCESRESOURCES

• H.R. 3044 – 18 Month MoratoriumH.R. 3044 – 18 Month Moratorium• REALTOR.ORG/HVCCREALTOR.ORG/HVCC• NAR HVCC Myths and Facts FlyerNAR HVCC Myths and Facts Flyer• Appraiser Active BlogAppraiser Active Blog


Francois K. Gregoire, IFA RAAFrancois K. Gregoire, IFA RAA

State Certified Residential State Certified Residential Appraiser #0000142Appraiser #0000142

Gregoire & Gregoire, IncGregoire & Gregoire, Inc

Realtor - AppraiserRealtor - Appraiser

727-344-3393727-344-3393

[email protected]@tampabay.rr.com

bartow 10 15 2009

Documents

certified appraiser

realtor appraiser

trainee appraiser

appraiser independence

appraiser licenses

agent appraiser

reality appraisal

appraisal instructor