Actual - Real Estate

When I first got started as an independent appraiser on my own, it was 1975 and it was a different world. I would arrive at my office and the phone would ring with someone calling in a request. Back then the standard "turnaround" time (the time between receiving a request and delivery of the completed report) was 9 calendar days, which means that Saturday and Sunday were included. In effect then, it meant 7 worki

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ng days. Today, If someone were to call and I told them it would take 9 calendar days to complete the report, the caller would probably either hang up or faint. In fact, most callers are hoping I will say I can have it done by the end of the day or tomorrow at the latest. How have things changed and why the rush?

When I began, owning a computer was impractical. The desktop PC hadn't been invented yet. It was sti

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

l a big deal to have a desktop calculator that had a LCD readout! Computers were the domain of universities and large companies. It was still the heyday of the IBM punch card computer. Likewise, when someone signed a contract to buy a home, they went in person to a lending office to apply for a mortgage. The time to complete the application process and issue a mortgage note was anywhere from several weeks to seve

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

al months. Much of the time was spent getting forms such as employment verifications and credit reports sent and received back by mail. Back then, as now, an appraisal was not ordered until the borrower was approved for the mortgage, however, it still took at least a couple of weeks after mortgage approval before closing could take place. There was therefore not such a rush for an appraisal as there is today.

Th

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

se days, a mortgage can often be approved in a matter of minutes. Most of the infor5mation that is needed to qualify and approve a borrower is online and many of the more "burdensome" information needs have been "streamlined" away. It is now routine for me to receive an appraisal request where the borrower signed the sale contract a few days ago and they are wanting to close within a week of signing. Most of the

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

peedup can be attributed to the proliferation of computers and the internet.

In the days before computers were in use for appraisal, we typed our reports on a typewriter. Computer forms processing software eliminated the typewriter. Various software evolved to make the processing of the forms appraisers use lightning fast. For many years though, the biggest remaining problems were in the use of photographs and d

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

elivery of the finished report. The advent of digital photography finally eliminated the need to take traditional paper photos and paste them onto "picture" pages. Then the widespread use of email and electronic signatures eliminated the need to hand deliver or mail reports. It is now literally possible to receive a request for an appraisal and have the completed report in someone's email box within a few hours.

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

For many people, the amazing transformation of the appraisal process has been a blessing. For others it has been a curse. It is a blessing for commissioned salespeople in brokerage and lending because it means they get their commissions faster. It is a blessing for the seller or buyer under pressure to complete a transaction in a hurry. It is a blessing for the appraiser who is willing and capable of doing apprai

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

als in high volume. But it is a curse in some ways for the lending industry and for the highly detail-oriented and conscientious appraiser simply because of the intense pressure to complete jobs as fast as possible.

Some types of residential appraisals are easier to complete than others. The appraisal of a small home in a "cookie cutter" neighborhood where plenty of market data is available is relatively easy. B

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

t anyone who believes that this is the normal scenario is mistaken. Every home is different and so is every neighborhood. Most of the work that I do is quite varied and requires enough time to be able to think about the situation and perform a decent analysis. This can be difficult when one has people constantly calling in a panic to get the completed report. So it's a mixed blessing in that I will make more mone

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

but deal with more pressure.

Every residential appraiser faces reviews of his or her work from time to time. For one reason or another, a percentage of my reports will be examined by others. I do a lot of this work myself for various clients as part of their quality control system. As time goes by I have gradually seen a deterioration of quality in residential appraisal reports. Not in presentation, for the var

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

ious brands of report software give beautiful presentations, but deterioration in analysis and detail. The nuts and bolts of the report. Having better than 30 years in the business it is plainly obvious to me that the routine rush nature of mortgage lending appraisals has had a negative effect on appraisal quality. Too much is being overlooked or sped through. Reports are often filled with small errors that shoul

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

have been caught by proof reading and analyses of problem situations are often shortchanged or omitted. Residential appraisers are simply under too much pressure to get these reports done too quickly in mortgage lending. Of course, there is the greed factor present in every job or profession, that motivates some people to do sloppy or dishonest work as well as the desire to compete, but I believe that time press

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

re is the primary culprit in deteriorating quality.

In the ever-increasing desire to complete real estate transactions in a flash, lenders have been attempting to make use of software appraisal solutions such as the AVM or Automated Valuation Model. These are basically computer programs that perform an analysis of public and private records to provide an "appraisal" of a home. These AVM products have come increa

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

ingly into use as a replacement for the traditional human appraiser, considered much too slow for today's market reality. Being a human appraiser I am naturally inclined to be biased against being replaced by a software program, but I am willing to put these programs to the test to see if they are as reliable and useful as claimed. In writing this article I used an AVM operated by a large corporation and offered

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

y a major banking institution to "appraise" a home for which I recently completed an appraisal. The idea was to see how the two compared.

The home in question is located in a suburban neighborhood that contains a reasonable amount of sales data in the local MLS. If anyone were to do an appraisal or a Competitive Market Analysis, there would be sufficient recent data to do an accurate analysis. I was able to find

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

3 recent sales of highly similar homes that provided a range of value from about $150,000 to $160,000. The home was under contract for $156,990. The above mentioned AVM provided a value range from $130,000 to $261,000. The "value range" provided by the AVM was so wide and so nebulous as to be of no use whatsoever. If a human appraiser issued a report with a range of value that wide, his or her report would be di

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

carded immediately, for it would be obvious that something was terribly wrong. Yet those same types of AVM ranges are being used to "justify" or "support" contract selling prices and thereby mortgage loans all over the nation.

What does this mean? It means that someone from out of town, not knowing any better, could possibly purchase that home and get as much as 95% (or more) financing on as much as a $261,000 s

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

le price. For a $156,990 home. Don't think it cannot happen out there because it happens far too often. It isn't hard to imagine what will happen later if that loan goes into default and the home is foreclosed. An AVM can have its uses, however, in my estimation it is generally a poor substitute for the human appraisal.

Much has been written about lender "pressure" for appraisers to appraise a home at or above

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

given price. But I believe that not nearly enough has been written about lenders and others pressuring appraisers to complete reports too quickly. People need time to think about what they are doing. I also believe that not nearly enough has been discussed about the merits of super fast sales and lending practices. Again, people including buyers and borrowers need a little time to think about what they are doing

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.actual.org.ua/article/131985/actual-Fast-Turnaround-and-the-Real-Estate-Appraisal.html">Fast Turnaround and the Real Estate Appraisal</a>

BB link (for phorums):
[url=http://www.actual.org.ua/article/131985/actual-Fast-Turnaround-and-the-Real-Estate-Appraisal.html]Fast Turnaround and the Real Estate Appraisal[/url]

Starting a business and becoming successful is often part of the American Dream. But there is a difference between starting a business and building a successful business. Many businesses fail within the first few years of existence due to the lack of planning for the long-term.

Private Label Rights are a veritable nirvana on the Internet. Learn the incredible ways you can use this resource to further your business.

Tags

Links

Actual - Fast Turnaround and the Real Estate Appraisal

Related Articles: