Posts Categorized: Blog

Commercial & Residential Desk Reviews

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Valuation Management Group has been made aware of a trend recently whereby some financial institutions have been cited for not having the appropriate level of review commiserate with the loan amount or credit risk. We strive to be proactive on the behalf of our clients and want to address the trend. We urge each of… Read more »

Valuation Management Group Discusses Ordering FHA Finals

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On September 14, 2015, new FHA Guidelines were released and include clarification regarding the form type that is to be used for final inspections. In the past, Valuation Management Group’s clients would order the final using just the 1004D final form, but now there are 2 different forms. The other form is the FHA Compliance… Read more »

Real Estate Appraisal Reviewer Experience and Knowledge

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Interagency Appraisal and Evaluation Guidelines clearly state that appraisals must be reviewed to ensure they comply with appraisal regulations. The review process should assess the reasonableness of the appraisal including valuation methods, assumptions, data sources users, and that the entire report is well supported. The reviewer should be independent and have the appropriate education and… Read more »

Value Scenarios: As Complete vs. Upon Completion

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Valuation Management Group’s Real Estate Appraisal Reviewers often encounter what appears to be a common misunderstanding about which value scenario should be used in handling proposed construction in an appraisal report, the hypothetical “As Complete” value scenario or the prospective “Upon Completion” value scenario. The former is based upon a hypothetical condition that the construction… Read more »

Why Appraisers Should Take That Extra Step When Doing Research

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Valuation Management Group has seen a rise in the number of revisions being made to the comparable sales after the original submission of an appraisal report. Here are a couple of recent examples: Comp Example 1: The photos provided by the appraiser show a home that has a new roof, updated kitchen, updated bathrooms and… Read more »

Common Real Estate Appraisal Omissions/Errors

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Valuation Management Group, working as an appraisal management services partner for banks, credit unions and mortgage brokers, completes appraisal reviews nationwide.  We see many common omissions and/or errors in appraisal reports. We thought it would be helpful for us to share some of the more common errors or omissions that VMG encounters to assist our… Read more »

Home Renovation Cost vs. Value

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Valuation Management Group believes it is important to keep our clients and real estate appraisers informed about real estate trends. As you consult with your customers, this information could be helpful. Which home upgrades result in the cost of the project equaling or exceeding the increase in the market value of the home? REALTORS® in… Read more »

The Necessity of a Commercial Engagement Letter

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A commercial engagement letter is a written agreement to perform services in exchange for compensation. Engagement letters are traditionally used by certain professional service firms, particularly in the fields of finance, accounting, law, real estate appraisal and consulting in order to define the specifics of the business relationship, or in the case of an appraisal… Read more »

The Importance of a Qualified Review Appraiser

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An appraisal review can be a technical review, desk review, or field review of an appraisal by an experienced, competent, qualified review appraiser. Since an appraisal review is a key quality control element in the credit or risk decision process, the importance of having an experienced, qualified, and knowledgeable appraiser performing reviews cannot be overemphasized…. Read more »

Fee Simple Estate vs. Leased Fee Estate

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Valuation Management Group’s Real Estate Appraisal Reviewers often encounter what appears to be a common misunderstanding about which portion of an estate should be valued when a client and/or intended user request an appraisal report: the Fee Simple Estate or the Leased Fee Estate. Based upon the definitions from the Dictionary of Real Estate Appraisal… Read more »