A Loos Blog

(click to see full size image)

The teacher in me comes out once in a while.  I provide commercial architecture photography for a variety of clients including realtors.  Often I am asked how I take interior pictures that look so nice.  I ask the person what they like about the photo, and often they can’t describe why they like the image.  When I ask it is because there are no really dark or really bright areas there eyes get really big and they answer YES!

The advent of HDR software and selective adjustment technology such as Nik Viveza has made the job of balancing light much easier, as long as you are willing to learn and apply the entire process correctly.  These were shot on a tripod, with careful attention to the light and dark areas to estimate the required exposure bracket; in this case it was 0, -1.0, -2.0 to get the light in the hallway and windows to balance.  Shot RAW, and the last fame had a grey card for white balance in Photoshop. 

I load all images into Photoshop RAW converter, recover any blown out pixels and the save as TIF to Photoshop and use the grey card image to set white balance for all images.  I used Photomatrix for this image, but every so often I go back to layers and mask for best results.  I finish up local brightness and contrast with Nik Viveza. 

That’s it!  Take a peek at other interior photos in my Portfolio.

looking for someone to network with?

~ click to see larger image

Social Networking.  Heard of it?  Do it?

I created a Facebook page to chat with family and freinds, and then a Twitter page to twit (twit, really?)

a Linkedin and ActiveRain page to network with colleagues

a flickr and aminus3 page to share and sell my photos

a yelp page to advertise my business

My virtural self also lives on Google, Yahoo, AOL, Geocache, Appraiserforum, Photoshop, Appraisalport, , , and many others I have likely forgotton about. 

Love it or hate it, socian networking is here to stay

GTG, AFK, CYA!

(click to see full size - no information is being gathered)

Freedom of speech 

The financial meltdown, bailouts and health care debate have had a great affect on this country; the number of people getting involved in the debate grows by thousands every day!   But, with freedom of speech we have to take the good with the bad.

We see and hear it every day. Racism, prejudice, an American flag on the ground burning, hateful angry rhetoric on both sides of the political spectrum.  What should we do? 

We should strongly denounce hate, passionately debate policy opinions, and quickly vote a person out office regardless of party if they do not represent us.  But, at no time should the right of a person to hold or express an opinion be oppressed.  That is not a slippery slope - that is falling off a cliff.   (I have been asked "what about yelling fire in a crowded theater?" That is against the law for public safety reasons and is not the same as debating an issue.)

Freedom of speech is the strongest cornerstone upon which this country was founded.  In every oppressed society the first right that is lost is the freedom of speech.  

How about this: hate and angry rhetoric exists best when it is given a forum.  Instead of keeping the haters in the sunshine, perhaps we should ignore and reject them into darkness.

(click to view image; no information is collected by clicking)

I have had great constructive conversations with folks regarding the broken health care system.  Of course there are disagreements on the policy needed to bring about change, but the cool thing is that I usually walk away knowing that most folks have more in common than not. 

The town hall meetings of last year and the tea party rallies of this year were attended by many people who enjoy sharing good, even if different ideas. I believe that most folks want to fix the problem, not live in the debate.  But, it surprises no one that the only video of these events that make the news are the fringe points of view, or the folks that did a melt down in front of the camera.  We can spend the next decade debating the controversial sound bites meant only to sell copy or get applause, or we can work to move the ongoing constructive dialog that is ignored by the media into the sunshine. 

I don’t agree with everything in the health care bill, nor do I approve of the actions of the politicos on both sides of the aisle during this entire process; no surprise here that congress has historically low approval ratings.  But, I am very glad health care is finally getting the much needed attention it deserves.

How’s that for hopey changey! 

(click to view larger picture - its a nice picture and no information is being collected if you click to view.)

I have been told that the Home Valuation Code of Conduct (HVCC) does not allow loan or real estate agents to speak with the appraiser.  Every time I hear this I try and set the record straight.  Well I heard it again today so here we go, again.

For the record:  the appraiser can talk to the lender, processor, broker, realtor, agent, owner, inspector, contractor, landscaper, trash collector, hair dresser or anyone else who can provide relevant information about the property. 

Simply put, the HVCC states that the real estate and loan agents can not order the appraisal.  You see, these folks earn a commission and therefore have a vested interest in getting the deal closed.  The appraiser on the other hand is supposed to be a neutral third party that is paid regardless if the transaction closes or not.

The HVCC was designed to build a firewall between these commission based folks and the appraiser.  But, and PLEASE read this carefully, nowhere does the HVCC even hint that the appraiser is not allowed speak to the lender, real estate agent, home owner or anyone else!   

There are many reasons that the HVCC is being misunderstood, not the least of which are the monumental changes in the lending industry.  Do yourself a favor, take 10 minutes (really, only 10 minutes) and read the 6 page HVCC for yourself, and then browse the FAQ’s on FNMA website.

Then, pass what you learn along. 

The HVCC and FAQ’s

(click to see larger image; no information will be gathered by clicking)

I am often asked by brokers what appraisers need to disclose in the appraisal regarding the subject property.  Disclosure requirements for the appraiser are similar to that for brokers; all relevant information that is known to the appraiser must be disclosed.  Brokers must disclose this information to the buyers and sellers, and appraisers must disclose this information to the lender.   

In deciding whether a particular item in a home is important, I often ask myself if I were lending the money on this home, would I want to know about this item.  Most often the answer is yes, and the item and its affect on value must be discussed in the appraisal.

For example; say the home has a worn our roof that needs to be replaced.  The buyer knows about the roof and will perform the repairs at the buyers expense. The listing or selling agent might ask if the appraiser must mention the old roof in the appraisal since the buyer knows about the condition and will make repairs. 

This is a reasonable question and comes up often regarding condition items in the home.  In this example, if the old roof is still in place when the appraiser visits the home, then the old roof and its affect on value must be discussed in the appraisal. 

There are several alternate options.  If the lender approves, the home can be appraised as if the roof were repaired, but the fact the old roof is still in place must be discussed.  However, it is sometimes difficult to have the lender accept previously unknown condition items in the middle of a loan transaction. 

The easy solution is to have the roof repaired prior to the appraisal being performed.  This is becoming common practice; in this market it is much easier to market a home and get a loan if all repairs have been completed.  I always discuss condition issues with listing and selling agents, and often with the home owner and buyer.  This helps me work through the issues and offer solutions that are in compliance with appraisal regulation.

One final item; there is a persistent rumor that appraiser can not talk to the lenders or agents.  This is not true.  Once the appraiser is hired, the appraiser can discuss any relevant information about the physical property.  And, this is a great time for the appraiser to offer solutions to challenges such as the one discussed above. 

This is an image of American Flags in the Potters Field in San Benito County, California.  Click to view larger image - I promise its a nice image, and you won't have to sign up for anything!

Happy 2010!  Boy, what a decade.  Are you happy, sad, mad, indifferent?  Always a glass half full - but I'm thirsty and can't reach it kind of person.   I react to most things with a mixture of either intense apathy or intense emotion.

Speaking of emotion, many folks ask about the photos I post in my blog.  Being and outdoor type of person (which is what got me out of an IBM clean room and behind the wheel of a tape measure,) I enjoy taking photos of the great scenery I get to enjoy in my work.  I began photography in Junior High.  I enjoy landscape photography; just about any scene that catches my eye and makes me, well, feel something.

Take a peek at my photoblog:

Steves Photoblog

Back to work, , , well maybe soon. 

 (click to see full size)

10-21-2009; Guest Column, Freelance News

Many folks recently attended our local county planning and supervisor meetings arguing against arbitrary growth control; a recent victory was achieved when the county supervisors voted to remove the 30% inclusionary ordinance.  Many thanks to those who took time to speak, and thanks to the Supervisors for listening! 

Growth control ordinances shrink the supply of homes; as supply goes down prices go up.  Why did housing prices keep going up through the dot-com bust and 9-11?  The reason was the short supply of housing caused by growth control, made even worse by the Hollister sewer building moratorium.  At the peak of the market fewer than 3 families in 20 could afford a home; this is not a sustainable market, and the crash was inevitable even without the sub prime mortgage mess.

Growth control was created to stop sprawl and save open space; great ideas that were widely supported.  The problem is we also stopped supplying enough homes.   High prices keep the average family from being able to afford a home, and also shrink the supply of low income affordable housing.  When the average price of a house is $600,000, few communities can afford to subsidize housing for low income families. 

Inclusionary ordinances were an attempt to provide affordable homes; every new large development was required to provide 30% (or some arbitrary percentage) of the homes as affordable housing.  The problem is that a 1,000 unit development provides only 30 affordable homes per year, not nearly enough to do any good.  The idea worked so poorly that most communities have abandoned the idea. 

The best way to provide affordable homes is to control high housing prices, and the best way to control high housing prices is to provide an adequate supply of homes.  But what about sprawl?  We can’t go back to building like we did before, right?

Exactly right.  But what regional planners have learned is that we can supply a lot of homes without sprawl.  The typical low density housing tract found in most cities provides only 5 homes per acre.  But, build a mix of low, medium and high density homes and you have 10 to 15 homes on that same acre of land. 

Newly planed subdivisions are using this idea.  The higher density condos, townhomes and patio homes will be far more affordable than the detached homes on large lots.   These mix density developments provide “affordable” homes without arbitrary government intervention.

This idea is working all across the country.  Mixed density tracts are being built around historical farms, preserving historical treasures.  Downtown districts are building apartments over storefronts, bringing residents into commercial districts.  Large mixed density subdivisions are building parks, walking and biking trails, all the while providing affordable homes. 

Let’s support our local planners, council members and supervisors, and ask them to get rid of growth control and land use plans that do not work.  We don’t need sprawl, and we don’t need arbitrary growth control.  What we do need is to reasonably priced housing for our community.

Steve Loos, state certified general appraiser

Hollister, California

stephenloos@gmail.com

www.freelancenews.com

This months Q&A: Don’t appraisers have to follow some standard?

I am almost embarrassed folks had to ask this question. My red faced answer is yes, of course. If an appraiser performs an appraisal for a federally regulated loan (conventional bank, credit union, FNMA, FHA or VA) then that appraisal must meet guidelines set forth in the Uniform Standard of Professional Appraisal Practice (USPAP.)

The appraiser must be competent to perform the appraisal and competent in the geographical area, and must provide an appraisal similar to that expected by market participants and peer appraisers. In other words, the appraiser must consider the same physical and legal characteristics, market conditions and comparable properties that the buyer, seller, broker and other appraisers would in estimating a value on the same property.

I was recently sent a copy of an appraisal for a home in a gated golf course subdivision where the appraiser did not use one comparable property within the development.  I have seen too many of these appraisals where the appraiser was obviously inexperienced, ill-trained, or simply negligent.

So how does this happen, and what can you do?

Since the now infamous HVCC was adopted by the Feds, lenders have moved a huge amount of the appraisal process to unregulated third party appraisal management companies. As many of you have found out the appraiser who shows up is not always “on the ball” for our market area - and spends all of 5 minutes at the property before rushing off to the next appraisal. And, once a faulty appraisal makes its way to a lender there is little chance to plead your case and obtain a new appraisal; the credit market is far too jumpy.

If you come across an appraisal that does not meet your idea of a good appraisal (it’s like a rattlesnake; you know one when you see one) there are two things you MUST DO.

First, let the lender know in a professional and easy to understand manner why the appraisal did not provide a credible result; inappropriate comparables, missed or miss-stated facts, an appraiser who is not familiar with the area, who spent far too little time looking at the subject property or who acts in an unprofessional manner, etc. Don’t complain that your deal died because the appraiser missed a value; this is not proof the appraisal is inadequate, especially in this market. Also, don’t complain to the management company who sent the appraiser. It is the lender alone that has final responsibility for appraisal quality, and the lender will care that this happened.

Second, send a copy of the appraisal to the Office of Real Estate Appraiser at www.orea.ca.gov. I know it’s a pain, but we have to fix this situation, nobody else will. The OREA and DRE are taking this very seriously, as are professional trade organizations such as the Appraisal Institute, CAR and NAR.

The good news is that there are lenders and management companies that seem to be getting things right, or at least trying and new regulations are addressing some of the problem areas. If you have a question regarding appraisals give me a shout. If I don’t know the answer chances are I can find someone who does.