Nationwide Appraisers Blog Has Moved!

This Nationwide Appraisers blog has moved to WCCI’s own www.realestateappraisalalert.com.

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Interview with Washington State Appraiser of the Month Michelle Geddes

Q: How long have you been in the appraisal business?

A: I started appraising in 1999.

Q: Favorites about being an appraiser?

A: I get to meet a lot of really nice homeowners, see many nice homes with such a wide varity of decorating tastes. Also I really enjoy traveling to places that I would not normally see.

Q: Worst appraisal experience?

Time Saver Tech Review

This month we would like to recognize ShortKeys as our feature tech tool. Shortkeys is a text replacement tool that pastes large blocks of text into applications with the entry of a few simple keystrokes. At WCCI we love this tool because it allows us to include client specifications in our appraisal orders without having to take the time and energy and repeatedly type out each client’s requirements. This automated feature makes it so that we can insert paragraphs of text by simply hitting a few keys.

ShortKeys is easy to use, and the website even includes video tutorials to aid the setup process. You can learn more at http://www.shortkeys.com/.

Top Housing Trend for 2010: Going Green

Going Green with your real estate housing is more popular than ever.  There are many ways a home can go green, and in 2010 the green home finally became more definable. Contrary to common belief, going green can mean a lot more that installing solar panels. The following are a few ways to determine and improve your home’s green rating.

1. Walkability. It doesn’t do a lot of good to build an energy efficient home in an extremely rural area, as you will still be adding to your carbon footprint via all that gas you’re going to have to use to get anywhere. If you want to check your walkability score you can download Walk Score for your iphone or simply visit their website walkscore.com.

2. Rehabiliting an Old Structure. Fixing up an old home will cost less than building a new one and will use less materials. In addition, those of us in the market appreciate the fact that it helps to reduce the ridiculous overflow of surplus housing.

Affordable Holiday Home Decorating Ideas

In the spirit of the holidays this year we decided to try some fun craft ideas and share our favorites. They are extremely affordable and add great holiday touches.

Paper Tea Light Lantern House
Print and cut out the pattern (found here at Craftideas.info) onto your choice of cardstock. Make creases where the folds are supposed to be and use an exacto knife to cut out the windows. Cut out 5 x 5 cm squares and use the tape to stick them to the inside. Fold the house together until it has four sides (transparent paper should be on the inside). Apply thin st rips of tape under the gray areas so they will stick to the inside of the house (olive green). Tape the side flap to the inside of the house and place the tea light inside.

Online Automated Appraisal Websites Inaccurate, Best Bet: Get a Real Appraisal

Working for an appraisal firm and also being very interested in technology I can’t help but notice all the web and mobile applications currently available that offer valuation services. While great in theory, the inaccuracy of these sites makes them problematic for the industry.

Zillow.com, which launched in February of 2006, is one of the most common valuation websites. Zillow offers both mobile and web application services providing free home valuations at the click of the mouse or touch of a finger. Competing sites like Cyberhomes.com and Eppraisal.com also offer free valuation services requiring only a property address to make their valuations.

While these sites may seem like they’re aiding in consumer convenience by omitting the cost and hassle of a real appraisal, they are unfortunately highly inaccurate. Our support staff members have periodically received calls from flustered homeowners who don’t understand why the value they received was so different (typically 20-35% lower) than that provided by automated systems. We often hear “but on Zillow…” you can fill in the blank. The large margin of error on these automated valuation sites can create stress for real estate agents, loan officers, and appraisers, and often leads to disappointed homeowners.

The reason automated valuation sites differ so much from real appraisals is because they only take a few factors into account (such as the immediate surrounding area and square footage). Live appraisals are more accurate because they require much more than automated fields can consider such as market conditions, home upgrades, etc. Automated sites are typically slightly inaccurate in typical neighborhoods (housing developments with multiple sales in the previous six months) and grossly inaccurate in unique areas (such as the nicest street in an average neighborhood, bordered by a declining neighborhood).

I wanted to do a trial run on the valuation sites to see just how innacurate they could be, so I pulled up a property in Camano Island, WA that was appraised here at WCCI last week. The appraiser’s value came in at $420,000. Typically the appraised value comes in lower than the automated valuation, but this time that was not the case. Zillow said the property was only worth $336,000, Eppraisal said $341,932 and Cyberhomes said $340,899. That’s about an $80,000 difference!

Chief economist at Zillow, Stan Humphries, claims that Zillow’s computer models “train themselves daily as new information, such as home sales or user-contributed facts become available.” Nonetheless, it is rare to find an online valuation that comes even within $10,000 of a real live appraisal. These sites may help you get an idea about a market area, but they should be relied on for actual valuations.

This blog is a post by The William Craig Company Appraisal Services. View more info about our services at www.wcci.biz or contact me at danielle.gatsos@wcci.biz.

Our Favorite Mobile Applications for the Real Estate Industry

Smart phones are becoming somewhat of an essential in the real estate industry. From appraisers to borrowers the newest smart phone applications have something everyone can utilize to make their day easier. Here are our top 5 favorite real estate smart phone applications:

1. Name: Realtor.com

Purpose: Instantly access over 4 million homes in the palm of your hand. This is the official site of the National Association of REALTORS.

Summary: View houses for sale around your current location (uses GPS) or by address finder. This includes photos, property details, pricing, open house times and dates. Home sales are updated throughout the day so price reductions and new market additions can be seen here first. In addition, users can rank their favorites and return to them at a later date.

2. Name: Google Maps Navigation

Purpose: To replace standard GPS systems and maps.

Summary: Are you sick of having to update your GPS system or still haven’t purchased one because they’re just too darn expensive? This application solves all your problems. Not only is it free, it also facilitates easy updates if you’re worried about traveling to a new area. In addition, Google Maps Navigation allows you to search via text as well as voice activation. It also shows traffic density, has photos of satellite and street views, and provides voice turn by turn navigation so it’s like having a live navigator right there with you.

3. Name: Mortgulator

Purpose: An on-the-go mortgage calculator

Summary: While this app does cost $.99, I believe it’s worth it for everyone interested in buying or selling a home. This easy to use application allows users to input a home price as well as adjustments, insurance, taxes, monthly fees, etc. to get an estimate on their monthly mortgage payments as well as amortization anywhere, anytime.

4. Name: SmarterAgent

Purpose: Search real estate listings from any smartphone.

Summary: This app is great because it’s available for all smartphones. There are two versions of this app. The Consumer version allows for anyone to search home listings while driving or walking around a neighborhood. The Agent version allows for viewing of all MLS listings anytime, anywhere. In addition, the Agent version can be branded with your name and logo and marketed as your very own listing app that clients can downloaded directly from your website. The Agent version is not free, but it still seems like it would be a worthwile investment for agents on the go. Properties can be searched for based on GPS, address, city, or zip and users are provided with property details including everything from estimated mortgage and taxes to property photos.

5. Name: Walk Score

Purpose: Find out how “walkable” an area is with walk score.

Summary: This free app allows users to use GPS to find the Walk Score of their current location or they can enter a specific address. It also lists all local amenities with walking directions, contact information and user reviews included. Great for people who want to find a home surrounded by certain amenities or just for those looking to take a stroll in a new neighborhood!

This blog is a post by The William Craig Company Appraisal Services. View more info about our services at www.wcci.biz or contact me at danielle.gatsos@wcci.biz.

Top 10 Real Estate Markets of the Future (2011 and Beyond)

As professionals in the real estate industry, we have all been anxiously waiting to see when we can expect improvement in the market. I actually saw a shade of optimism a couple weeks ago when I read a posting by MSN Real Estate naming the top 10 housing markets of the future.

The data for this ranking was taken from a review at Moody’s Economy.com which based the growth on various factors including income increases, demographic trends, unemployment rates, foreclosure rates, and construction costs. The forecast covered the next four years. In total, 38 places were surveyed to contribute to this review.

Washington State held the top ranking for real estate growth specifically within its Bremerton-Silverdale area. Home prices in those areas are expected to increase about 44.7 % from 2010 to 2014. A Northwest neighbor, Bend, Oregon, took second place as prices there are expected to jump 33.6%.

The third spot was taken by Michigan with Detroit predicted to make a comeback with a forecast of a 33.1% jump. California was next with home prices in the Napa area expected to increase in conjunction with a decrease in unemployment. In 2010 alone the unemployment rate in the area has already dropped from 11.1% in January to 9.3% in June.

The areas with the fifth, sixth, and seventh highest increases were the Carson City Metro area in Nevada, the Panama City-Lynn Haven-Panama City Beach metro in Florida, and the Flagstaff metro of Arizona. The three rounding out the list were the Santa Fe metro area of New Mexico, the Cheyenne metro area of Wyoming, and the Anchorage metro area in Alaska.

The weakest markets are predicted to be Miami and Naples Florida as well as Atlantic City, N.J. where prices are actually projected to fall further in the next four years.

This blog is a post by The William Craig Company Appraisal Services. View more info about our services at www.wcci.biz or contact me at danielle.gatsos@wcci.biz.

Spring Shows Increase in Pending Home Sales

For the past three months home sales have risen according to the National Association of Realtors.

The Pending Home Sales Index rose 6 percent to 110.9 based on contracts signed in April. This was an increase from 104.6 in March and is 22.4 percent higher than the pending sales reported at the same time last year.

The increase in pending home sales is attributed to the first-time homebuyer’s tax credit as well as low mortgage interest rates. Pending sales are currently at the highest they have been since last October when the credit was initiated. Of course this data reflects pending contracts, not closings.

Overall it seems as though the tax stimulus is working. It was originally anticipated that there weren’t enough candidates left to make the extension worthwhile, but this second surge in pending home sales shows otherwise.

The National Association of Realtor’s chief economist, Lawrence Yun, stated that he believes that the housing market is finally putting itself in a good position to return to sustainable levels – even without government stimulus, as long as our economy continues to grow the job market.

The National Association of Realtors expects a net of about one million additional jobs in the second half of 2010 and about two million in 2011.

Appraisal Management Company Goes Green.

The William Craig Company Inc. has just announced a commitment to eco-friendly operations in the spirit of “going green.” With the true character of a Pacific Northwest based organization, WCCI is now committed to utilizing the most eco-friendly means to execute daily operations. The following are some of the measures we have taken (and you can too) to be more energy-conscious.