[Bugs]

I was pleasantly surprised that one of the guys didn’t drop the “only a chick would get hot about a house” comment. Kudos to the gentlemen.

[Bugs]

I was pleasantly surprised that one of the guys didn’t drop the “only a chick would get hot about a house” comment. Kudos to the gentlemen.

[Bugs]

I was pleasantly surprised that one of the guys didn’t drop the “only a chick would get hot about a house” comment. Kudos to the gentlemen.

[Bugs]

I was pleasantly surprised that one of the guys didn’t drop the “only a chick would get hot about a house” comment. Kudos to the gentlemen.

[Bugs]

I was pleasantly surprised that one of the guys didn’t drop the “only a chick would get hot about a house” comment. Kudos to the gentlemen.

[Bugs]

Unlike most house appraisals, land appraisals are performed by much more experienced appraisers and all of those appraisal reports are read for content, even when times are good. The assignments generally originate at the lending institution whose money is going out the door and they usually aren’t sold off to investors and they wouldn’t be bundled into securities instruments and sold off in tranches.

Since 2001, the number of fully licensed/certified residential appraisers has increased by 60%. Meanwhile, the number of commercial appraisers has actually declined slightly. That means that in the last few years the chances of a house appraisal being completed by someone with less than 5 years in the business was extremely high, whereas the chances of a commercial appraisal being completed by someone with less than 10 years of experience was extremely low. The qualifications criteria for commercial appraisers is much higher, and on average so is the educational level. Commercial appraisers have a much broader scope of practice, meaning they have to be conversant on far more property types than just the one; and they have to have strong analytical and writing skills.

That all speaks to technical competency. Our business also has ethical requirements that are separate from the skills set. Unfortunately there are plenty of appraisers on both sides of the business who are weak in this area. However, since those loans are almost all help in the originating lender’s portfolio there’s a lot more accountability on that end of the business.

The buyers and sellers in the land market are usually not laypersons, either. They usually have a better understanding of what their property is and isn’t. There was still a LOT of agressiveness in those markets, but the risks to a lender are tempered when a buyer is putting down 50% or more of the purchase price in cash.

This long-winded diatribe is my way of saying that the declines in the land market will be much more attributable to market conditions than to overencumbrance on the lending side. It’ll still be bad, though, because developers won’t buy unless/until it’s time to develop. Everyone else is a discretionary buyer and can afford to wait the market out.

[Bugs]

Unlike most house appraisals, land appraisals are performed by much more experienced appraisers and all of those appraisal reports are read for content, even when times are good. The assignments generally originate at the lending institution whose money is going out the door and they usually aren’t sold off to investors and they wouldn’t be bundled into securities instruments and sold off in tranches.

Since 2001, the number of fully licensed/certified residential appraisers has increased by 60%. Meanwhile, the number of commercial appraisers has actually declined slightly. That means that in the last few years the chances of a house appraisal being completed by someone with less than 5 years in the business was extremely high, whereas the chances of a commercial appraisal being completed by someone with less than 10 years of experience was extremely low. The qualifications criteria for commercial appraisers is much higher, and on average so is the educational level. Commercial appraisers have a much broader scope of practice, meaning they have to be conversant on far more property types than just the one; and they have to have strong analytical and writing skills.

That all speaks to technical competency. Our business also has ethical requirements that are separate from the skills set. Unfortunately there are plenty of appraisers on both sides of the business who are weak in this area. However, since those loans are almost all help in the originating lender’s portfolio there’s a lot more accountability on that end of the business.

The buyers and sellers in the land market are usually not laypersons, either. They usually have a better understanding of what their property is and isn’t. There was still a LOT of agressiveness in those markets, but the risks to a lender are tempered when a buyer is putting down 50% or more of the purchase price in cash.

This long-winded diatribe is my way of saying that the declines in the land market will be much more attributable to market conditions than to overencumbrance on the lending side. It’ll still be bad, though, because developers won’t buy unless/until it’s time to develop. Everyone else is a discretionary buyer and can afford to wait the market out.

[Bugs]

Unlike most house appraisals, land appraisals are performed by much more experienced appraisers and all of those appraisal reports are read for content, even when times are good. The assignments generally originate at the lending institution whose money is going out the door and they usually aren’t sold off to investors and they wouldn’t be bundled into securities instruments and sold off in tranches.

Since 2001, the number of fully licensed/certified residential appraisers has increased by 60%. Meanwhile, the number of commercial appraisers has actually declined slightly. That means that in the last few years the chances of a house appraisal being completed by someone with less than 5 years in the business was extremely high, whereas the chances of a commercial appraisal being completed by someone with less than 10 years of experience was extremely low. The qualifications criteria for commercial appraisers is much higher, and on average so is the educational level. Commercial appraisers have a much broader scope of practice, meaning they have to be conversant on far more property types than just the one; and they have to have strong analytical and writing skills.

That all speaks to technical competency. Our business also has ethical requirements that are separate from the skills set. Unfortunately there are plenty of appraisers on both sides of the business who are weak in this area. However, since those loans are almost all help in the originating lender’s portfolio there’s a lot more accountability on that end of the business.

The buyers and sellers in the land market are usually not laypersons, either. They usually have a better understanding of what their property is and isn’t. There was still a LOT of agressiveness in those markets, but the risks to a lender are tempered when a buyer is putting down 50% or more of the purchase price in cash.

This long-winded diatribe is my way of saying that the declines in the land market will be much more attributable to market conditions than to overencumbrance on the lending side. It’ll still be bad, though, because developers won’t buy unless/until it’s time to develop. Everyone else is a discretionary buyer and can afford to wait the market out.

[Bugs]

Unlike most house appraisals, land appraisals are performed by much more experienced appraisers and all of those appraisal reports are read for content, even when times are good. The assignments generally originate at the lending institution whose money is going out the door and they usually aren’t sold off to investors and they wouldn’t be bundled into securities instruments and sold off in tranches.

Since 2001, the number of fully licensed/certified residential appraisers has increased by 60%. Meanwhile, the number of commercial appraisers has actually declined slightly. That means that in the last few years the chances of a house appraisal being completed by someone with less than 5 years in the business was extremely high, whereas the chances of a commercial appraisal being completed by someone with less than 10 years of experience was extremely low. The qualifications criteria for commercial appraisers is much higher, and on average so is the educational level. Commercial appraisers have a much broader scope of practice, meaning they have to be conversant on far more property types than just the one; and they have to have strong analytical and writing skills.

That all speaks to technical competency. Our business also has ethical requirements that are separate from the skills set. Unfortunately there are plenty of appraisers on both sides of the business who are weak in this area. However, since those loans are almost all help in the originating lender’s portfolio there’s a lot more accountability on that end of the business.

The buyers and sellers in the land market are usually not laypersons, either. They usually have a better understanding of what their property is and isn’t. There was still a LOT of agressiveness in those markets, but the risks to a lender are tempered when a buyer is putting down 50% or more of the purchase price in cash.

This long-winded diatribe is my way of saying that the declines in the land market will be much more attributable to market conditions than to overencumbrance on the lending side. It’ll still be bad, though, because developers won’t buy unless/until it’s time to develop. Everyone else is a discretionary buyer and can afford to wait the market out.

[Bugs]

Unlike most house appraisals, land appraisals are performed by much more experienced appraisers and all of those appraisal reports are read for content, even when times are good. The assignments generally originate at the lending institution whose money is going out the door and they usually aren’t sold off to investors and they wouldn’t be bundled into securities instruments and sold off in tranches.

Since 2001, the number of fully licensed/certified residential appraisers has increased by 60%. Meanwhile, the number of commercial appraisers has actually declined slightly. That means that in the last few years the chances of a house appraisal being completed by someone with less than 5 years in the business was extremely high, whereas the chances of a commercial appraisal being completed by someone with less than 10 years of experience was extremely low. The qualifications criteria for commercial appraisers is much higher, and on average so is the educational level. Commercial appraisers have a much broader scope of practice, meaning they have to be conversant on far more property types than just the one; and they have to have strong analytical and writing skills.

That all speaks to technical competency. Our business also has ethical requirements that are separate from the skills set. Unfortunately there are plenty of appraisers on both sides of the business who are weak in this area. However, since those loans are almost all help in the originating lender’s portfolio there’s a lot more accountability on that end of the business.

The buyers and sellers in the land market are usually not laypersons, either. They usually have a better understanding of what their property is and isn’t. There was still a LOT of agressiveness in those markets, but the risks to a lender are tempered when a buyer is putting down 50% or more of the purchase price in cash.

This long-winded diatribe is my way of saying that the declines in the land market will be much more attributable to market conditions than to overencumbrance on the lending side. It’ll still be bad, though, because developers won’t buy unless/until it’s time to develop. Everyone else is a discretionary buyer and can afford to wait the market out.

[Bugs]

It was my understanding that San Diego had a much larger than average share of these types of ARMs.

Coming after the results of the current wave, which is only now peaking, I think the results of the second wave will really grind the market psychology down. It’s the knockout blow of the one-two combination.

On the flip side, after a bad spell that lasts this long, the rebound could be stronger than the conventional wisdom would otherwise indicate. That wisdom consisting of “everybody learned their lesson and won’t make that mistake again”. Beware of that one – I thought that way after the bust of the 1990s and I was exponentially wrong.

[Bugs]

It was my understanding that San Diego had a much larger than average share of these types of ARMs.

Coming after the results of the current wave, which is only now peaking, I think the results of the second wave will really grind the market psychology down. It’s the knockout blow of the one-two combination.

On the flip side, after a bad spell that lasts this long, the rebound could be stronger than the conventional wisdom would otherwise indicate. That wisdom consisting of “everybody learned their lesson and won’t make that mistake again”. Beware of that one – I thought that way after the bust of the 1990s and I was exponentially wrong.

[Bugs]

It was my understanding that San Diego had a much larger than average share of these types of ARMs.

Coming after the results of the current wave, which is only now peaking, I think the results of the second wave will really grind the market psychology down. It’s the knockout blow of the one-two combination.

On the flip side, after a bad spell that lasts this long, the rebound could be stronger than the conventional wisdom would otherwise indicate. That wisdom consisting of “everybody learned their lesson and won’t make that mistake again”. Beware of that one – I thought that way after the bust of the 1990s and I was exponentially wrong.

[Bugs]

It was my understanding that San Diego had a much larger than average share of these types of ARMs.

Coming after the results of the current wave, which is only now peaking, I think the results of the second wave will really grind the market psychology down. It’s the knockout blow of the one-two combination.

On the flip side, after a bad spell that lasts this long, the rebound could be stronger than the conventional wisdom would otherwise indicate. That wisdom consisting of “everybody learned their lesson and won’t make that mistake again”. Beware of that one – I thought that way after the bust of the 1990s and I was exponentially wrong.

[Bugs]

It was my understanding that San Diego had a much larger than average share of these types of ARMs.

Coming after the results of the current wave, which is only now peaking, I think the results of the second wave will really grind the market psychology down. It’s the knockout blow of the one-two combination.

On the flip side, after a bad spell that lasts this long, the rebound could be stronger than the conventional wisdom would otherwise indicate. That wisdom consisting of “everybody learned their lesson and won’t make that mistake again”. Beware of that one – I thought that way after the bust of the 1990s and I was exponentially wrong.

[Author]

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