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Hello to All

Its January 2024 Now and as previously predicted, the loan mortgage rates will continue to drop to lower levels as we get closer to the November 2024 election.

I continue the new year with new requests for appraisal assignments for Estates, Trusts, Divorce, Date of Death and Retroactive Reports. These type of Non Lender work Assignments are actually several pages longer as I include MLS Client Pages for each comparable sale in the report.

Do other appraisers do this to their reports?

No, Not many, as it is a lot more work, but I like for the reader to have a well written report for their use for a legal purposes. 

Additionally, I include in the appraisal report an MLS CMA with a radius of 1-2 miles and the actual search parameters used to create the report. Then I export an entire years of data surrounding the subject property to create a unique report to the subject property with 8-11 statistical charts and scatter graphs showing trendlines for a reader to made sense of the data in the report.

Side by side, clients have remarked "there is a huge difference" in comparing my reports with statistical data to another appraisal report without the added analysis.

I am always available by phone or email for your real estate needs.

Tom Melville California Certified Residential Appraiser / California Real Estate Broker Owner. Licensed Professional in California Real Estate since 1980 to the present. 
831-883-0406

Resume is also located under Staff Profiles on Home Page, I am the only person on Staff.

Lately for the last number of years, I have been valuing real estate properties in the past up to 20 years ago for legal purposes, estates, lawyers, divorce and family matters.

Since I have been a Licensed California Real Estate Professional circa 1980 to the present, my experience and recall of lived past economic events helps me to do this type of work.

Recently, I watched a newer version of The Time Machine, H.G.Wells on television classics and now with the aid of computers in real estate, I travel back in time to make sense of the data I put into my reports. 

It used to seem like work, but now seems like an adventure every time doing this type of Forensic Retrospective Appraisal assignments.

Its better than doing crossword puzzles, as there are a few Ph.D. appraisers have told me why they are in the Real Estate Appraisal Field.

I have a search methodology for data that I use for all my assignments which I can explain to the reader as to how I did it with provable search methods.

This type of work is different from mortgage lending as it requires even more data in the reports for a reader to follow as to the valuation process.

As usual, I back up the data in the report with 8 MLS statistical charts and scatter graphs which is part of my signature reports.

 No report is the same as each property is unique as to the data produced in the initial MLS CMA Data which is downloaded and exported into the Retro Reports.

If you have any real estate questions or concerns or are simply looking for Real Estate Professional to talk to then give me a call.

Regards,

Tom Melville 
Calif Certified Res Appraiser
Calif Real Estate Broker Owner
831-883-0406

The recent movement of mortgage interest rates is still a bargain compared to the 1980's during a recession.

In 1974 FHA Mortgage Rates went from 5% to 22.5% percent. I personally had a 22.5% FHA loan on my first house.

The recent increase in mortgage rates is a small upward bump compared to these prior rates. It is still a good time to buy a home at the current low rates because home appreciation is still projected to increase this year and next based on your location.

The objective is to get the house you can afford now and if you are financing a mortgage there are two ideas to consider to offset the current mortgage interest rates. The first is to pay the new home mortgage payment each month and then to write a separate check toward the mortgage as Principal Only. By adding a second Principal Only Payment to the mortgage will save interest off the back end of your mortgage and over time will save thousands of dollars off the overall cost of a mortgage and pay off the home quicker. 

The other idea is to a a future time say when the rates drop, to refinance your home mortgage to a lower rate. The third idea is to compare Fixed Rate Mortgages to Variable Rate Mortgages. For years I always took a Variable Rate Mortgage over a Fixed Rate any day since the loan would not readjust upward until say 5 or 7 years. So as long as there was equity in the home mortgage, it should not be a problem to refinance to a lower rate when the time came verses the cost of a Fixed Rate Mortgage.

Lately, more buyers are seeing the advantage of a variable mortgage rate now verses a higher fixed rate mortgage in the current market. Its just simple math to see the cost savings when comparing fixed to adjustable mortgage.

The phone, email and websites are now picking up pace with requests for real estate appraisals and valuations. There will be an increase in real estate market activity  directly after the 4, of July 2022. I expect both real estate agents and appraisers to be busy the last two quarters of 2022 as summer usually has the most activity with buyers looking to relocate. 

Find a Professional Lender to show different ways to finance a home. 

I will close for now with my mantra which is "Plan your Work and Work Your Plan or Someone Else Has a Plan for You. 

Good luck in finding the best rates because real estate values will continue to climb into the future.

Since there is no present over supply of bank foreclosed properties and an over supply of buyers to the market. Therefore, competition for homes will continue in the current market. 

20 years ago there were 20,000 appraisers in California. Today the figure is approximately 9,500. Of this number there is approximately 4,500 Certified Residential Appraisers left in California able to appraise properties over 1 millions dollars.

The other 5,000 appraisers are trainees, licensed appraisers( 17%) and Certified General Appraiser(32%) able to complete both Commercial and Residential Properties.

A real estate appraisal today for mortgage lending purposes is 50-70 pages in length and takes about 25 office hours to just produce 1 report. Its a college term paper in my mind and no two reports are the same with MLS CMA and Statistical Charts and Scatter graphs from CMA exported data into the reports. 

Since June of 2020 to the present June 2021 most appraisers are receiving 30-40 requests a day for quotes on fees for appraisal work. 

Last year in June of 2020 I decided to only do the rush assignments and that has been my business model for the last year to the present. Most appraisal firms I know of with several appraisers are backed up 1 or 2 months worth of work. I don't work that way as all I do is the rush, where I inspect a property at noon and deliver the report in 3-4 days or less. 

Presently my rush fees are $1,800 - $3,000 for one house appraisal as all I do is the rush or the complex properties. A lot of home sales in Silicon Valley use my services and just want the report ASAP. My reports are High Quality Reports with CMA and Statistical Charts and Scatter Graphs. Home sf sizes range from 1,500 sf to 6,500 sf.

Yes I turn down about 99% of the appraisal requests per day yet I am able to complete 10-15 reports each month.

 What are my regular fees?

 I don't have any as all I do is the rush and each property is a custom quote on complexity, location and short window of time to complete the report on time.

 If I take non rush assignments then the result is my rush work would become late. It is a simple business plan which is working due to the shortage of overall appraisers in Northern California.

 I am experienced to work on high end complex properties in Silicon Valley and the local rural mountain woods locations. My work vehicle is a well used Toyota 4 Runner, 4 Wheel Drive which can get me anywhere I need to go.

So I expect this market to continue to the end of this year and on to 2023 if mortgage interest rates continue to remain low as indicated by the Fed.

If you have any needs or questions for a Real Estate Broker or an appraiser with 41 years professional experience, let me Know. Tom Melville Brea 00774101 831-883-0406 Aptos Ca.