My New Blog

The remaining days of December 2024 are wrapping up and I look forward to the new year 2025 in all things real estate.

The higher mortgage loan interest rates over 2024 have in my mind reached a peak for now. There is no where to go now but down as long as the USA is not involved in a War. 

Many mortgage lenders are now staffing their firms with new hires getting ready for new purchase loans and for refinance loans. Real Estate Appraisers for the last 75 years have been utilized to value properties for banks and lending institutions.

 Since 1990 to the present new lending laws and real estate forms were required as well as licensing real estate appraisers and continuing to modernize the appraisal process Lenders and Borrowers have always wanted the appraisal process to be faster and have higher quality reports. 

Over the years the reports have changed from photos made with digital photos rather than a camera using film and the wait for the film to be developed to use in the reports.

Lenders and borrowers still want even faster reports now in the digital age and many lenders now just want to use an AVM or Auto Matic Valuation Method or AI and not use a live appraiser to actually view a property and independently value a property with a written appraisal report. 

Politicians who don't even have a background in real estate or a real estate licensenow are being swayed by lenders to just have a buyer and seller agreed to a value and then there is no need for an appraisal or a Licensed Real Estate Appraiser. 

The lenders are now allowing Non Licensed Persons drive around now in a car and go into a home for sale to inspect properties now as a way to save the buyer money on a Full Inspection Appraisal. These Non Licensed Persons entering homes have no insurance, no back ground checks and many are claiming that they are an Appraiser when they meet home owners. They are paid $50-$75 dollars to just use a camera phone to take interior and exterior pictures and then forward the information to an offsite evaluator who may or may not be licensed. 

Yet you will still see a fee for an appraisal on the loan statement costs that is still the same as a full inspection or larger. 

Why, because the Appraisal Industry is a 5 Billion Dollar per year Industry and others in banking, lending and politics seem to feel that AI can evaluate home sales and refinance properties cheaper, faster and just as good so there is no need for an Independent Appraiser to confirm the values for lending purposes.

Every down turn, recession or economic depression in the real estate market since the 1950's the Lenders blamed the appraisers for the down fall when markets changed. 

Approximately, 80-90 % of loans today are attempting to just use a computer and for the buyer and seller to just sign a waiver to agree to a valuation figure.

As a Licensed Real Estate Professional in California Real Estate since 1980 to the present, I will continue to be of service to value homes for Estate Purposes, Divorce and Legal Purposes as a Real Estate Broker Owner or as a Certified Residential Appraiser for my clients. 

Hopefully the Politicians, the Lenders and Homeowners will be ok with just signing Appraisal Waivers, but the next Economic Melt Down or Downturn with have no one to blame but to point at a Computer and some AVM websites for the foreclosures in the market place.

Then the American Public will then again be told they have to pay for the failing banks and lenders because that's just the way it works.

Tom Melville  MRA, MNAA

831-883-0406

Certified Res Appraiser
Calif Real Estate Broker Owner