Wednesday, February 24, 2010

Appraiser News

The latest NC Appraisal Board Appraiser Report is now out and can be viewed at

Some changes that is being made by the appraisal board are CE, trainee supervision, etc.

The current appraiser count in North Carolina is 4,147.

NC appraiser trainees 550
NC appraiser license 223
NC certified appraiser 2,200
NC certified general appraiser 1,174

Interesting note:
North Carolina certified general appraisers that took the exam: 0

Take Care and God Bless,

Your Charlotte North Carolina Appraiser

Tuesday, February 16, 2010

FHA Appraiser Guidelines


The success of the FHA insurance program and HUD's ability
to protect its financial interest begins with selecting
qualified and knowledgeable appraisers. This chapter
presents the minimum requirements that appraisers must meet
to be placed on the FHA Register.

The FHA Register lists appraisers who are eligible to
perform FHA single-family appraisals. To conduct an
appraisal for FHA insurance endorsement, the appraiser must
be on the FHA Register.

Appraiser Appraiser HUD Appraiser
achieves applies reviews placed on
necessary to HUD application FHA Register

To be eligible for placement on the FHA Register, all
appraisers must be state-licensed or state-certified and
must not be listed on any of these:

o GSA's Suspension and Debarment List (the government-
wide list of parties excluded from federal procurement
or non-procurement programs)
o HUD's Limited Denial of Participation List
o HUD's Credit Alert Interactive Voice Response System

To be eligible to perform appraisals for FHA, the appraiser
must also pass a HUD//FHA test on appraisal methods and
reporting, which focuses on applied knowledge of the new
Handbook 4150.2 .

A uniform national examination will be available June 1,
1999. The examination contains fifty questions in a
multiple-choice format. The test will be administered by a
national provider and the cost paid by the appraiser.
Appraisers currently on the FHA Register will be
grandfathered until January 30, 2000.

The application process is the first screening of the
appraiser's qualifications to perform HUD/FHA appraisals.
To apply, appraisers must submit the following to FHA:

o Updated form HUD-92563 "Register Appraiser Designation

o A copy of a current valid appraisal license and/or
certification verification that the appraiser has
passed the FHA Examination

HUD will review this information to determine the
appraiser's eligibility for the FHA Register.


To verify that the appraiser is eligible to perform HUD/FHA
appraisals, REAC performs a detailed review of the
appraiser's professional qualifications and checks for any
negative information. The review does the following:

o verifies that the appraiser is state-licensed or state-
certified under the Appraisal Qualifications Board
(AQB) criteria

o verifies that the appraiser has passed the FHA
Appraisals Methods and Procedures test

o pre-screens the appraiser's social security number in
the HUD/FHA Credit Alert Interactive Voice Response
System (CAIVRS)

o reviews HUD records to ensure that the appraiser has no
pending suspensions, disqualifications or debarments

o verifies with the appraiser's signature that there are
no actions or pending judgements against the appraiser
for waste, fraud, abuse or breach of professional
ethics or standards

o reviews the previous period's performance, if

When the review of the application is complete, the
appraiser is designated to the FHA Register. New appraisers
recently added to the FHA Register may be monitored and
reviewed more frequently to ensure that their performance is
consistent with HUD/ FHA guidelines and to monitor training

Because the initial application to the FHA Register will
occur after the appraiser has become state-licensed or
state-certified, the first term will coincide with the
remaining period of state licensing for the home state.
After this initial period, the FHA Register period will be
consistent with the home state license period.

Each period, every appraiser must re-apply to the FHA
Register, concurrent with the appraiser's application for
state licensing and/or re-certification. HUD reviews the
appraiser's performance and compliance with new testing
requirements and verifies that the appraiser is state-
certified or state-licensed.

For more information on the review process, see Chapter 6 of
this Handbook.




Lender Lender Lender Appraiser Lender
selects assigns transmits performs reviews
appraiser appraiser case #, if appraisal appraisal

When the lender selects an appraiser from the FHA Register,
the FHA Connection processes a case number for the lender.
The lender may assign the appraiser before receiving the
case number, but the case may not be submitted for
endorsement without the case number. The case number must
be placed on all copies of the URAR as well as the VC form
and summary. The mortgagee will give the appraiser:

o the property address
o type of construction
o number of units
o other information necessary for the assignment

If the property is a condominium or a Planned Unit
Development (PUD), the lender will verify that it is HUD-
approved before ordering a case number or having an
appraisal performed. The lender will give the appraiser the
project name and ID number and all available property
information. If it is proposed construction for a PUD or
Condominium, it must be FHA-approved before ordering a case
number. The name of the Condominium or PUD must be given.

The Department's regulations on choosing appraisers
state that there shall be no discrimination on the
basis of race, color, religion, national origin, sex,
age or disability.

HUD expects lenders to comply with anti-discrimination
requirements and affirmatively select female and
minority appraisers for a fair share of appraisals
commensurate with their representation on the FHA
Register. HUD will monitor lenders' choice of
appraisers by their sex and race.

The appraiser is hired by the lender, and therefore has
a contractual responsibility to the lender. However,
the appraiser provides services for HUD programs, and
therefore, has an obligation to perform these services
commensurate with the standards and requirements of
HUD. This dual responsibility of the appraiser is
recognized in the review and reporting requirements of
HUD. The lender and the appraiser must meet their
respective obligations as prescribed by HUD/FHA.
Therefore, the intended user of the appraisal report is
also HUD. These contractual obligations to the lender
and HUD/FHA are in addition to the appraiser's legal
obligations to his or her credentialing state.


(1-2) HUD/FHA mortgage insurance is initiated when a lender
selects an appraiser from the FHA Register. Once the
appraiser agrees to perform the appraisal, the
appraiser is in a contractual relationship with the
lender. The appraiser will send the completed
appraisal directly to the lender. HUD advises the
appraiser to discuss the appraisal only with the
underwriter. No other individual should contact the
appraiser before the appraisal has been completed.
Real estate brokers and agents should consider the
lender their sole source of information on the
appraisal and all matters related to the appraisal.

The appraiser and the lender will negotiate the price
and due date. HUD does not establish fees or due
dates. The fee is paid for market value estimate based
on guidelines consistent with HUD policy and procedure
established in this Handbook. The fee is not based on
a requested minimum valuation, a specific valuation or
the approval of a loan. Lenders may charge the
borrower only what is customary and reasonable in the
area to obtain an appraisal.

Appraisal management firms may charge the mortgagor a
fee for the appraisal that may encompass fees for
services performed by the firm as well as fees for the
appraisal itself. However, the total of these fees is
limited to the customary and reasonable fee for an
appraisal in the market area where the appraisal is
performed. Such arrangements must comply with all
aspects of the Real Estate Settlement Procedures Act
(RESPA) and its implementing regulations, including
restrictions against:

o kickbacks and referral fees
o charges for settlement services that were not
actually performed
o payments in affiliated business arrangements

Valuation Experts is your local Charlotte North Carolina Appraiser

Saturday, February 13, 2010

FHA Guidelines

Many home owners and property buyers are now using FHA to get financing. Here are some of HUD/FHA guidelines.

2-10. BASIC VALUATION PROCESS. The purpose of valuation, definition of
value, valuation principles, and the practical limitations of
appraisal data dictate the basic valuation process. The process

A. A study of the future use of the property and of the motives
of possible prospective owners;

B. A forecast representing the most probable series of expected
future returns to be derived from continuous ownership of the
property; and

C. An analysis which converts the expected returns into a
present price, that is, an estimate of value.
Charlotte NC Appraiser

refers to rights which are possessed through acquisition of title,
that is of ownership. The concept of ownership embraces the rights
of possession, control, enjoyment, and disposition. It is these
rights in relation to a specific property that must be valued. The
rights must be known before they can be valued. The extent of the
rights depends upon the nature of the title that will be held by the
party whose rights are being valued.

A. Fee Simple Title. Fee simple absolute may be defined as "the
largest possible estate in real property." There are other forms
of holding title to real property, such as fee determinable and
conditional. There are also various ways of holding title such
as life estates and remainders, joint tenancy, and tenancy by the
entirety. Regardless of the nature of title, the rights of an
owner even though exclusive, are never absolute for they are
always subject to the rights of the sovereign authority, such as
the right to tax, to regulate and control as by zoning ordinances
or other legislative enactments, and the right of eminent domain.

4150.1 REV-1
(2-11) B. Easements and Other Restrictions to Rights. If a title is
encumbered the rights are correspondingly restricted and may be
less valuable, depending upon the nature of the encumbrances.
Examples are encumbrances in the nature of easements,
reservations, restrictions, and rights-of-way.

C. Lessee, Lessor Rights. The term "property" may refer only to
the rights established by a lease. A lease is an agreement
under which the tenant (Lessee) acquires certain rights in a
real property for a designated period of time from the Landlord
(Lessor). The Lessor is usually, but not always, the owner of a
property. The terms and conditions of a lease must be
ascertained before the lessee's or lessor's "property" can be

D. Delineation of Rights as a Prerequisite to the Value Estimate.
Property rights generally include the right to use and occupy,
the right to lease to others, and the right to encumber or sell.
The exercise of these various rights results in the realization
of benefits. The extent and nature of the rights determine the
extent and nature of the benefits which, when compared to other
properties that contain the same rights and benefits, indicate
the value to be ascribed to the property or rights to the
property. The benefits cannot be valued except in consideration
of certain assumed characteristics and motives for ownership,
such as the right to occupy, or to lease, or to mortgage or sell
that vests in any owner holding title in fee simple
unencumbered. An owner might occupy the property and value it
because of its desirability as a place of residence for his/her
family, or an owner might value the property because of the net
rental he/she can realize from it. After delineating the
property, or rights to be appraised, appraisers are required to
value them from the point of view of typical buyers to whom the
property exerts its strongest appeal.

Real estate appraisers Charlotte North Carolina

2-12. ESTIMATION OF RETURNS FROM PROPERTY. Returns from property relate
to either future direct services or the amenities which will be
enjoyed by an owner-occupant, or to dollar incomes which are the
source of value to an investor. The forecast must embrace the
entire future. It is incomplete if it includes only a forecast of
services or returns which are expected to accrue during the next
year, a typical early year, or "on the average" in early years.
Future services of properties are best conceived if they are
visualized as being in the form of a flow of returns. The returns
will be periodic services which include shelter, enjoyment and pride
of ownership, or net dollar income. All forms of returns should be
considered as a flow of benefits, whether they take the form of
direct satisfactions or dollars.

A. Trend and Flow of Returns. In urban residential real estate,
the flow of returns is present only when the site is occupied by
useful buildings or other programs of use. Undeveloped vacant
land is presumed to become productive shortly after the
completion of
4150.1 REV-1


(2-12) construction. Typically, the flow of returns will rise rapidly
to a maximum rate in the early life of the improvements and
gradually decline during midlife and late life until the
improvements have finally lost profitable usefulness and the flow
of returns is only large enough to justify purchase of the
property as vacant land. (However, see Gentrification, page 4-6.)

B. Net Return. The difference between the value of total services
or total revenues of a property, and the expenses and taxes, is
the net return. As the value of a property arises from its
capacity to produce net returns, the characteristics of the
future net income stream must be forecast in valuation.

1) The future net income stream has three characteristics:

a. Quantity, or the size of the income stream at the time
of appraisal and thereafter;

b. Quality, or the possible fluctuation in size of the
income stream; and

c. Duration, or the period of time during which the income
stream in any size will endure.

2) Physical deterioration and obsolescence will decrease the
average amount of net returns in the future, thereby
decreasing the margin between amounts of net returns and the
periodic amounts which represent a fair return on the value
of the land. The services of buildings are limited to
duration owing to the fact that buildings will eventually
become useless due to the action of forces which cause
deterioration, disintegration, and obsolescence. Therefore,
the portion of the net income attributable to the building,
whether measured in services or dollars, is not only of
limited duration but subject to decline during the period of
its continuance. Gradually, the value of improved property
may decline until eventually only land value remains. At
that time, the building has reached the end of its economic

Charlotte FHA Appraiser NC

Saturday, February 6, 2010

FHA Guidelines

Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.

Update the combination of FICO scores and down payments for new borrowers.
New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

Reduce allowable seller concessions from 6% to 3%
The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

Increase enforcement on FHA lenders
Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches

This FHA update was bought to you by Valuation Experts, a real estate appraisal company in Charlotte, North Carolina. Your Local Charlotte NC Appraiser

Sunday, December 13, 2009

Union County NC Appraiser

Valuation Experts is your local home appraiser. Union County is one of the most desirable areas in North Carolina. And even further down the spectrum you see areas that are splendid where NC house values are strong. The best way to find out the accurate truth is to order an real estate home appraisal from Valuation Experts.

How can you determine Union County, North Carolina Property Values? By hiring a local Union County, NC appraiser who has extensive experience appraising Waxhaw, North Carolina Properties. Because of this, the appraiser's job holds great importance to anyone who seeks to buy or sell a home in Union County, as they are the ones who through extensive research determine Indian Trail property values.

Home value is very important in Monroe,NC, Indian Trail, NC, Weddington, NC, Waxhaw, NC, Stallings, NC as homes values could be depreciating. There is nothing more encouraging than knowing the actual property value of your Union, NC. Get your Home Value form a home appraiser who knows Marvin, NC well. Home value is determined by critically examining all of the available data related to a particular home. Many Weddington Realtors now have the ability to post all of the listings in the Carolina MLS on their own public websites. Most Multiple Listing Services also upload their inventory to national sites. These numbers can be misleading in a declining market.

A property coupled with an appraisal equates to Union County, home value. This is accomplished by taking recently sold sales, and active and pending listings of the Mecklenburg, County home and comparing it to an average set of standards, which are dictated by the Waxhaw, NC home values in the area. In its simplest form the home is compared to House A and to House B and from there an estimated home value is determined. Although this is a brief summary at best, it does help to illustrate the principles of home evaluation. Union County NC appraisers are ready to assist you!!

Get a real estate appraisal today by clicking on the “order appraisal tab”. In the world of Iredell County, North Carolina real estate there is nothing more important than a Cabarrus, County NC real estate FHA appraisal. Since this is the case, understanding some of the aspects that a real estate appraisal looks at should be a top priority for anyone wishing to buy or sell property because an educated consumer is most often a happy one. Determine your home value by ordering a real estate appraisal from Valuation Experts, in Matthews, Charlotte, Union County, North Carolina. If you need a Charlotte, NC appraiser, give Us a call, we can help.

Sunday, November 29, 2009

Charlotte Appraiser Explains the Market

Real estate appraisers Charlotte NC use recent sold comparable properties and make adjustments to those homes to make them similar to the subject property.

Here is a preferred list of residential appraisers

1. Valuation Experts, Inc. 704-989-7283

1. Real Estate Appraisal - Introduction

The first step that the appraiser takes is to determine and discuss the scope of work with the potential client. The scope of work may include the appraiser measuring the property, or may not include measuring of the property. Other issues concerning the scope of work are: how much investigated work will the appraiser do, and to what extent? A appraisal can be done on any property type, whether it's a 1900's victorian, to a new home in a cookie cutter subdivision.

Next the Charlotte Appraiser will determine who the client is, and the intended use of the appraisal, and the intended user of the appraisal. The appraiser will have a contract for the client, and therefore will and can only discuss the appraisal results only to the client. If at the beginning of the appraisal process, the client instructed the appraiser to include other intended users, then and only then the appraiser can discuss with other individuals the appraisals results.

2. Why get a Real Estate Appraisal and What are the Benefits?

When real estate is appreciating, not much concern to the value of the property is taken into consideration. In these markets, buyers usually buy using more emotions, and wants, and they are not really concerned about the value of the property. Now that the markets are soft, and prices are declining in some areas, a real estate appraisal may help you from making a big financial mistake. A big misconception is that a home appraisal for a lending client, is for the benefit of the home buyer. This is simply untrue. The lender orders the appraisal for their sole benefit, not the buyer. The lender wants to know what the home is worth, so they can know how much to lend on, and determine the appropriate LTV.

What are Some of the Items that Add Value?

A Charlotte real estate appraiser will look at the entire structure, and property improvements to see if any contributory value is noted. For example, in some new subdivisions, there will be a 3,000 square foot home for $400,000, and another 3,000 square foot home for $300,000, and some home buyers and real estate agents do not understand why this can be. Real estate agents and buyers both like using the cost per square foot theory to compare and determine if the property that they are considering buying is within "ball park" range. The first home was sold for $133.00 a square foot, and the second home sold for $100.00 a square foot. By this example, one can easily see why one should not use the square foot method for determining property values. It is certainly OK to use this method as a starting point, and nothing more.

So why the huge difference in values for homes with the same square footage?

Homes in Charlotte vary in design, appeal, and quality of construction. These are the main culprits that make homes differ in price. In new construction subdivisions, prices will vary mainly do the cost to construction of the home, and the amount of upgrades of the home. The cost of construction includes the pitch of the roof; the amount of corners and out sets of the home; brick veneer front, part or whole; exterior detail, and trim work; height of ceilings, number of rooms, and bathrooms. Next, is the amount of interior upgrades. A home buyer must be careful when choosing interior upgrades. Interior upgrades can add value to your home or detract value from the home. It is also important to realize the price point of other homes in the neighborhood, and determine if the upgrades will support and make sense at the price point of the property that you are considering buying.

For example, if the median price range for the neighborhood is $200,000, it would probably not be benificail to add travertine tile in the kitchen, and all baths, and exotic imported Italian marble to the counter tops. Although it may be benifiacil to upgrade granite counters in the kitchen, and to add hardwood floors to the lower living area. The homeowner should take into consideration the price point of the neighborhood, consider the desirability of the area, and lastly make good upgrade selections

1. A appraiser Charlotte NC will consider the intended user and use.
2. A real estate appraiser Charlotte NC will discuss the scope of work with the potential clients.
3. Appraisers Charlotte NC will make a condition rating of the property that is being appraised.
4. An appraiser Charlotte NC will choose comparable sales that are substitute properties for the home being appraised.
5. Appraisers Charlotte North Carolina will take into consideration the quality of construction, condition, location, and size of both the property that is being appraised, and the selected sales.

Saturday, November 28, 2009

Charlotte NC Housing Market

The Charlotte market has greatly improved within the past couple of months. Housing inventory has decreased, and sales have risen. Also, the continuation of the Home Buyers Tax Credit should further to stabilize the market. Experienced Charlotte appraisers should be studying the supply/demand of homes in the market area. Also, Charlotte NC appraisers should be looking at the amount of REO properties on the market. Normally, these types of sales should not be used as comparable properties. These types of sales are stigmatized by the market and the "condition of sale" has been affected. Real estate appraisers in Charlotte, NC, should only use REO sales if these types of sales are driving the market, and there is no distinct price difference between normal market sales and REO sales.