Thursday, December 15, 2011

Principle of Substitution

    I was considering what topic to write about, when I came across this email from Chris A. Graham.  Chris is the new President of the Kentucky Association of Real Estate Appraisers.  When the market is in a downturn, some builders do not have the financial awareness to realize that the market is not willing to pay full price for a new construction; yet they continue to build homes.  This email is a rebuttal issued by John S. Brenan of the Appraisal Institue, and I could not have said it better.  

December 13, 2011
Paul Lopez
National Association of Home Builders (NAHB)
1201 15th Street, NW
Washington, DC 20005
Sent Via Electronic Mail:

Dear Mr. Lopez:

    We are contacting you in reference to the attached NAHB press release dated Thursday, December 8, 2011, entitled, Flawed Appraisals Killing Home Sales, Hampering Housing Recovery.
    As the Congressionally-authorized organization that establishes appraisal standards and appraiser qualifications in the United States, we feel compelled to address aspects of the press release we feel need clarification.  The press release quotes NAHB Chairman Bob Nielsen as stating, “The inappropriate use of distressed and foreclosed sales as comparables in determining new home values is needlessly driving down home prices, killing home sales, causing more workers to lose their jobs, and delaying a housing and economic recovery.” Mr. Nielsen is also quoted as stating, “This is not only unfair and unreasonable, but it perpetuates the cycle of declining home values, drives more home owners underwater, harms local economic activity, and acts as an obstacle to the recovery of the housing market.”
    It is critical to understand that appraisers do not determine property values; they simply reflect the actions of buyers and sellers in the marketplace. An appraiser’s role is to “mirror the market” by analyzing the actions of buyers and sellers in the marketplace to produce a credible opinion of value. The press release also refers to “faulty appraisal practices,” where “brand new homes with sparkling appliances and interior upgrades get compared to a distressed property that has been sitting vacant and in disrepair.” All things being equal, it is certainly true that the more similar a competing property is to the subject property, the better a comparable it is likely to be. However, there are often reasons why an appraiser may have to consider comparables that are not as physically similar to the subject property as may be desired.
    One key component in appraisal theory is the Principle of Substitution, which essentially states that knowledgeable and typically motivated buyers would not pay more for a property if a similar property could be built (or if competing properties are available in that marketplace at a lower price). The press release claims that 53 percent of builders surveyed reported appraised values that National Association of Home Builders came in lower than the cost to construct. A concept many builders often fail to recognize is that cost does not equal value. In “depressed” markets, it may be common for buyers to be unwilling to pay the full cost to construct a home; in appraisal, this is known as external obsolescence, which is a loss in value due to factors outside the subject property. In these cases, that loss is attributed to a market where buyers have set a “limit” on the amount they are willing to pay, regardless of the cost to build.
    While few would argue that a new home is not physically similar to a home that is in “disrepair,” the effect of such properties on new home sales must be analyzed by the appraiser. For example, in marketplaces where many of the properties being bought are distress sales (e.g., foreclosures, bank-owned properties, short sales, etc.), it is not only permissible for appraisers to consider and potentially use these sales as comparables (or “comps”) but appraisers are required to determine the impact this activity is having in the marketplace. This is due to the fact that distress sales may very well impact the value of more “conventional” sales, because in several markets buyers may be reluctant to pay more for any property than the price level set by the distress sales (note the reference to the Principle of Substitution made previously). Further, if the number of distress sales (or distress properties available for sale) becomes so significant in a marketplace that it represents virtually the only activity occurring, the distress activity may actually become the marketplace.
    The press release also states, “These appraisal practices are a major contributing factor to the current acquisition, development and construction (AD&C) lending crisis that has choked off credit for home builders and threatens to prolong the current housing downturn.  Falling appraised values for land and subdivisions under development have led some financial institutions to stop lending to developers and builders, to demand additional equity and even to call performing loans.”  It is important to recognize that all state licensed and certified real estate appraisers in the U.S. are required by the Uniform Standards of Professional Appraisal Practice (USPAP)1 to be independent, impartial, and objective, and to perform assignments without bias.  Furthermore, the Dodd-Frank Act passed by Congress and enacted in 2010 mandates appraiser independence, and establishes penalties for lenders and other parties who attempt to unduly influence an appraiser. To even suggest that appraisers are subjective in the performance of their appraisals is contrary to an appraiser’s most basic ethical obligations under USPAP.
    Lastly, the press release states, “Since Sept. 2009, NAHB has held four appraisal summits in
Washington with representatives of federal banking regulators, the appraisal industry, the housing finance industry, the real estate, and housing sectors and others to find solutions that will allow appraisers to develop realistic valuations based on sales that are truly comparable.” The press release also adds, “The need to give top priority to addressing the complexity of property valuations in distressed markets and impediments to the flow of appropriate information on homes between appraisers and interested parties was discussed during the most recent summit, which occurred on Oct. 19.”
    We wish to emphasize that, in response to your invitations, The Appraisal Foundation has
participated in each of the four appraisal summits referenced in the press release. In addition, The Appraisal Foundation stands ready to continue to work with NAHB to assist in understanding and resolving any appraisal-related issues.


John S. Brenan
Director of Appraisal Issues
The Appraisal Foundation
(202) 624-3044

1 USPAP is developed, amended, and promulgated by the Appraisal Standards Board of The Appraisal
Foundation, as authorized by Congress.

Wednesday, December 7, 2011


I ventured out to the stores late on “Black Friday”.  This was the first year I had done so, because I think the hassle of standing in line at night is silly.  I went out because all of Thanksgiving Day I had no cell signal in Meade County.  My purchase was a new smartphone, which was badly needed.  So the other day I was thinking how long have smartphones been available, and I'm just now getting one. 

The point is technology will catch up with just about everyone at some point.  I have two uncles who are computer Illiterate.  That did not stop them from getting I pad 2’s.  With some help from the Apple Store, they will eventually get the hang of it. My father-in-law doesn’t need a smartphone or the internet, but he likes to play card games on the computer.  Even elderly people who don’t have computers or smartphones rely on technology for the bulk of their health needs. 

If you embrace technology or shun it, technology is here to stay.  If it is used wisely and to your advantage you will be just fine.  

Saturday, December 3, 2011

New Home

    It has been a while since I had added a new post.  Having 12 weeks of a college level writing course has kept me away for too long.  This post is not about the appraisal industry or Real Estate, but rather just catching you all up on what has been going on in my life.
    English 111 started in September, but turned out to be a writing class.  If you didn’t have the basics of English before you came to the class you were already behind the eight ball.  At the same time, I unexpectedly came across a home to buy.  It was beside a piece of property that we already own, and it was at a good price.  So as my family and I were moving in, I decided to remodel our new home, and I had to leave town for training and a trip to Pennsylvania for furniture.  All of this and I was still working full-time. 
    Mid-October through November I had English 112, more work, more remodeling, more work, more writing, and did I mention more work?  It is now December and things are winding down.  The remodeling is almost done, and I am finished with my writing classes.  I enjoyed the writing classes because I actually learned a lot, and I feel more confident in my writing.  My family enjoys the new home, and they are looking forward to living in it for a little bit before I start remodeling the basement.  Come back often because there will be some new content on this page.  I hope everyone had a good Thanksgiving, and have a Merry Christmas.  

Monday, November 14, 2011

Market Update

I want to thank Josh Hay for sending these to me.  I think I'll be using them more often.

Mortgage bond prices ended lower last week, which pushed mortgage interest rates slightly higher. The early portion of the week was relatively tame compared to recent trading conditions. Most of the weakness came Thursday following stronger than expected weekly employment figures. Weekly jobless claims came in at 390k, better than the expected 400k mark and generally not bond friendly. Continuing claims came in at 3,615k, which also beat estimates. The reaction was negative and sent rates slightly higher ahead of the extended holiday weekend. Positive stocks also pressured rates at times throughout the week. Mortgage interest rates rose by approximately 1/4 of a discount point for the week.
Date and Time
Producer Price IndexTuesday,
Nov. 15,
8:30 am, et
Up 0.4%,
Core up 0.2%
Important. An indication of inflationary pressures at the producer level. Weaker figures may lead to lower rates.
Retail SalesTuesday,
Nov. 15,
8:30 am, et
Up 1.4%Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.
Business InventoriesTuesday,
Nov. 15,
10:00 am, et
Up 0.2%Low importance. An indication of stored-up capacity. A significantly larger increase may lead to lower rates.
Consumer Price IndexWednesday,
Nov. 16,
8:30 am, et
Up 0.3%,
Core up 0.1%
Important. A measure of inflation at the consumer level. Weaker figures may lead to lower rates.
Industrial ProductionWednesday,
Nov. 16,
9:15 am, et
Up 0.2%Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity UtilizationWednesday,
Nov. 16,
9:15 am, et
77.2%Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
Weekly Jobless ClaimsThursday,
Nov. 17,
8:30 am, et
387kImportant. An indication of employment. Higher claims may result in lower rates.
Housing StartsThursday,
Nov. 17,
8:30 am, et
610kImportant. A measure of housing sector strength. Weakness may lead to lower rates.
Philadelphia Fed SurveyThursday,
Nov. 17,
10:00 am, et
6.8Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
Leading Economic IndicatorsFriday,
Nov. 18,
10:00 am, et
Up 0.2%Important. An indication of future economic activity. A smaller increase may lead to lower rates.
The report on business inventories basically gives a broader look at the durable goods, factory orders, and retail sales reports. Not only is this report an important part of the investment component of the GDP, but it also provides additional evidence about the economy in the upcoming months. Changes in business inventories slow as the economy approaches a peak, and rise as the economy approaches the trough of a recession. Therefore the change in business inventories is a leading indicator of GDP. The data for this report, which are published by the Department of Commerce's Census Bureau, comes from a monthly survey of inventories, orders, and manufacturers' shipments, in addition to the merchant wholesalers and retail trade surveys.
In this environment every piece of data has the potential to cause some volatility.
RATE LINK is provided by Market Information for Mortgage Professionals. Copyright 2011. All Rights Reserved. Mortgage Market Information Services, Inc. The information contained herein is believed to be accurate, however no representation or warranties are written or implied.

Saturday, September 17, 2011


Universal Appraisal Dataset (UAD) has been a hot topic this month.  If you have purchased a home or refinanced your existing home via a conventional mortgage this month, then you have probably seen its effects. 
In a nutshell, UAD is a product of the recent Frank-Dodd Legislature that went into effect earlier this year.  It is designed to standardize Fannie Mae and Freddie Mac appraisal reports, thus making reviewing and finding potential fraud easier.  In addition to the fundamental language of the report changing (you need a definitions page to decipher the report), there is a lot of additional data that is now entered into what used to be a summary report. 

There are three tiers of appraisals.  Restricted use reports have very little data in them.  Summary reports have just enough data in them to justify the conclusions in the report, but not all the data is presented.  Finally, there is a self-contained report, where all the data is presented.  As you go up in the tiers, the fee should go up.  As a residential appraiser, I am usually engaged by lenders to provide a summary appraisal report.  That means they don’t want all the details, just enough to make an informed and educated decision on lending for that particular loan.  However, with the additional data that they are now requiring, we are on the verge of all our reports becoming self-contained. 

In addition to the inclusion of additional data, the language of the report has changed.  Let me give an example.  Here is what used to be entered on the sales grid of a 1004 form for the basement:
50% Finished
Pretty straight forward wouldn’t you say?  Well, here is what UAD now requires in the same field with the additional data:
What this deciphers into is that the basement is 1800SQFT, 900SQFT of it is finished with a walkout and one recreation room.  Here is my problem with all this.

The body of standards that govern the appraisal industry is the Uniform Standards of Professional Appraisal Practice (USPAP).  In the preamble of USPAP it states “It is essential that appraisers develop and communicate their analyses, opinions, and conclusions to intened users of their services in a manner that is meaningful and not misleading”.  UAD has been taylored to the lender in the transaction and does not take into consideration the other intended users in a transaction, such as loan officers, underwriters, Realtors, buyers and sellers.  I personally believe that UAD is a violation of our preamble.  How can we maintain a high level of public trust if the product we are producing is not understood by the majority of the public?  Oh sure, we provide a definitions page on our reports that explain the abbreviations, but no such information on how that data is now entered. 

I unfortunately don’t have an answer for this.  Appraisers are still fighting last years battles, and seem to be of little effect when it comes to initiating policy that governs our industry.  We have a tendency to react, which puts us at least a year behind the political eight ball.   I guess our independent, impartial and unbiased nature leaves a bad taste in the majority of our mouths when it comes to getting politically involved.  I do not exclude myself from this majority, I would rather write letters to my Senators, Represenatives and industry leaders as opposed to engaging in the political rat race.  Thankfully, there are those in our field who take on this burden, and they have my thanks. 

Well, what do we have to look forward to?  How about the FHA jumping on board with UAD starting in January of 2012?  Happy day, I can’t wait!

Friday, September 2, 2011

ANSI Standards

You would be surprised how many times I am questioned about the square footage (SQFT) of a home.  As Real Estate appraisers, we are required to measure homes based off American National Standards Institute (ANSI) guidelines.  Hopefully, I can put some of these questions to rest by explaining some of the most common misconceptions.

“Why is my SQFT so low?  We just added a sun room.”  Depending on how you plan the addition of your room will determine if it can be added as SQFT.  The area must be accessible through a finished portion of the home and must be a four season room (heated and cooled).  Recreation rooms, bonus rooms and sun rooms that come off unfinished portions of the home (i.e.  garages) do not meet ANSI standards.

“Why wasn’t the SQFT in the basement included?”  It actually was considered in the final opinion of value, just as a separate component from the above grade SQFT.  When we input the data into our reports, we use the above grade SQFT and the amount of the basement that is finished.  This is a technical point which we sometimes depart from when dealing with berm homes.  The above grade SQFT, basement, and the portion of the basement that is finished are all adjusted separately. 

“Why wasn’t that room considered in the SQFT?”  In order to be considered in the SQFT, the room must meet two requirements.  First, the room must be habitable (which mean finished walls, ceiling and floor).  Next, the room has to have utility.  In order to have utility, it must serve a purpose that people want, which would include closets and storage spaces. 

Let me wrap up by tying off a few loose ends.  Staircases can only be counted once, so they are excluded from the second floor.  Ceiling heights need to be at least 7’ with a few exceptions.  If the room is habitable, has utility and is connected by a finished portion of the home, then it may be included in the SQFT. 

I’ve attached a link to the ANSI document that will shed light on the details that I’ve outlined in this article.  Again, these are the most common questions I hear on a regular basis about the SQFT of homes, and I hope I’ve answered them.  If you have any more questions, please post a comment and I’ll do my best to answer it for you.   

Friday, August 19, 2011

What is functional obsolescence?

 Today started out like most days.  I had an appraisal in southern Hardin County and I knew I was going by a truck stop I like to stop at, so I took my son along.  I try to use appraising to teach the kids when I bring them along, so today we worked on identifying addresses on an MLS sheet, following directions and opening doors for ladies.  Then the real lesson started, which I’m sure Derek didn’t get.

I got a call shortly after leaving home that a homeowner wanted me to come by and measure his home because he though it should have more SQFT than it did based off a recent appraisal.  To make a long story short, he thought his home was worth more, and the cure to getting more value out of it was to pick the SQFT apart.  After measuring his home and explaining how we measure homes and why (that’s another story an ANSI standards), I steered the conversation to the source of his value issue, functional obsolescence.

Functional obsolescence is an impairment of desirability and usefulness caused by new inventions, changes in design, and improved processes for production (Appraisal of Real Estate 12th Ed.).  Let me illustrate.  In the 80’s, builders typically built low to moderately priced homes with only one bathroom and small bedrooms.  Over the years however, people have come to demand a 2nd bathroom and larger bedrooms.  If you were to isolate the median sale price of several similar older homes and do the same with the newer homes and all other things being equal, you may find a consistent difference in value.  That difference is the amount of functional obsolescence.  Another example would be a washer and a dryer located inside a bedroom.  Who wants Mom coming into their room at 5:30am to do a load of wash?  There may be some functional obsolescence associated with these areas.  I keep saying “may” because sometimes the market doesn’t take into consideration the obsolescence if it’s a feature that they may still want. 

Remember the home I was measuring?  It has one bathroom, no central air, ceiling height under 6’5” in the kitchen, crawlspace and no garage.  This is in a market that typically has multiple bathrooms, central air and some kind of parking (carport, or some sort of garage).  I was amazed that the homeowner was hung up on a few SQFT and didn’t notice the big red elephant in the room. 

Does someone make a functional obsolescence removal kit?  Well, not really.  You can stay on top of it by regularly maintaining your home and updating it every so often.  Here are a couple questions you can ask yourself or those in the know: Is there a new feature that new construction homes have that mine does not have?   Has there been a change in building code?  Before shelling out the bucks on your next remodel job, it would be a good idea to do some research.  Talking to your Home Owner Association, a local building inspector, a REALTOR, a builder, an appraiser or a home improvement store salesman will give you a good start.  Needing updates may vary based off how progressive of an area you live in.

Part of my job is to help the general public have a warm fuzzy feeling about dealing with appraisers.  Mr. Homeowner was about to throw all appraisers under the bus because he felt he had been ripped off, but after I took the time to educate him, he now has a better understanding and a game plan.  On the other hand, I would hate to be the next appraiser to walk into his house, because he will be all over him/her like white on rice!  Derek took all this in stride, because ultimately, he was looking forward to eating at a restaurant with Dad. 

Wednesday, August 10, 2011

AMC''s ordering in KY

I get several requests per week from appraisal management companies (AMC's) that operate outside of the state of KY.  You would be surprised how many of them have no idea that in order to do business in the Commonwealth, they need to register with the Secretary of State.  Most of these AMC's are unaware they are in a position to be fined for non-compliance.  Visit the following link to get signed up:

On a separate note, AMC registration will be mandatory starting Oct 1.  There will be very stiff fines for AMC's who try to do business in KY without registering with the Kentucky Real Estate Appraiser's Board.  Please visit the following website to get signed up:

Friday, August 5, 2011

CVR's now available on the order page

Our Collateral Valuation Report (CVR) isn’t only for lenders.  Whether you are a homeowner, banker, investor or a lawyer, the CVR has something for all types.  Not only is this powerful valuation tool flexible, but it’s affordable too!  Coming in at only $175, the CVR is our middle of the road product.  Click on the following link for a better look at all the CVR provides.

Thursday, August 4, 2011

Elizabethtown #34 on Forbes List

We have know this for years, but everyone else is just finding out.  Our local area has so much to offer, employment, location, recreation, location, tourism and location.  Check out Forbes ranking for our fair city and others around the area that are in the top 50.

Monday, August 1, 2011

Heartland Cruise-In

 Well, I've got to hand it to the folk who put on the car cruise this weekend in Elizabethtown.  There were a ton of classic cars, trucks and motorcycles there, including vendors and a manufactures midway also.

My family is originally from eastern PA, and we are a mopar family.  Ever since moving to KY, I have been painfully aware of the lack of pentastars when we go to the track or a car show.  This weekend was a pleasant surprise.  No less than 30 mopars graced this weekend’s field, including a very rare 69 Roadrunner with a 426 Hemi.  

Derek made out like a bandit as usual.  We weren't even there 20 minutes and someone gave him a balloon and a hot wheels car.  Here he is standing beside his favorite car because it was the only car that was shorter than him!  Now I know what you are saying, "hey that ain't no mopar" well, you are right.  However, it does have a 331 Chrysler Hemi in it which makes it ok in my book.  

I'm already looking forward to the next Heartland Cruise, hope to see you there!

Wednesday, July 27, 2011

Appraiser knocked out in Hardin County?

Haven't you thought about it as you're standing in the tee box and some one half way down the fairway walks across.  Or better yet, the ball sweeper comes along if you're at a driving range and you say to yourself “I bet I can knock him off that!".  

Well, I was appraising a home in Pine Valley golf course yesterday, and as I was doing my thing in the back yard, I heard "swisshhhh, crack, plop", kind of like a walnut falling out of the top of a tree.  I didn't pay much attention to it the first time or second for that matter, but on the 3rd time I started catching on. They were gunning for me!  

Unfortunately for them, I finished what I was doing and got the heck out of Dodge.  It was kind of funny and still is, but I've always wondered what homeowners think about the backside of their house being occasionally pelted by golf balls that live on a golf course.  

Besides, what were these guys thinking? "Hey! see that guy in the green shirt, bet ya a cold one I can get him before he gets around the corner of the house!" 

Saturday, July 23, 2011

Collateral Valuation Report (CVR) Now Available!

The Collateral Valuation Report (CVR) is a desktop application program that is capable of valuing properties as accurately as a URAR report, and can be delivered to you in about 24 hours. This report is designed to be completed by a certified appraiser who has local area knowledge of the neighborhood.  This appraisal report is ideal for:
▶▶ Replacing BPOs
▶▶ Portfolio Analysis
▶▶ Reviews
▶▶ Litigation
CVR integrates public records, MLS, flood, imagery and other relevant data directly to the report. In addition, the appraiser can define the neighborhood and use the most sophisticated analytics available. Adjustments are supported, comparable sales and listing are ranked and scored and ultimately, all of the data is available for an appraiser to interactively provide the most supportable valuation solution.  The CVR is an affordable valuation solution.  Better than a BPO, Less than a URAR.

Click on the following link to find out more about this powerful new product.

Appraising with good help!

Friday was a full day.  Appraisals in Bullitt and Jefferson Counties with a stop in the Highlands for lunch.  I've had several opportunities to appraise in this area, and I always enjoy going there.   This trip Kendra picked where we ate for lunch, which turned out to be a very nice Chinese restaurant off Bardstown Rd.     

Monday, July 18, 2011

Emergency Legislature passes!!!!

The appraisal industry has been in turmoil since 2008 and the sub-prime mortgage meltdown.  It’s literally been every 6-12 months some new legislature has been coming down the pike that has not always been in the best interest of the industry.  Let’s recap.

2008 saw a change in the testing procedure that appraisers get their certification through, which had not changed since 1991, making it even more difficult for new blood to enter the industry.  Then in 2009 we saw the abominable Home Valuation Code of Conduct (HVCC) policy rammed down the industry’s throat by the Attorney General of NY (who has ties to the AMC industry).  What was so bad about the HVCC was that lenders panicked and opened the door for Appraisal Management Companies (AMC) to run unchecked for the next two years.  Rock bottom fees for appraisers, increased rates to customers, poor quality control, extended underwriting times and black-listing were just some of the issues we have dealt with since this virus has infected our industry. 

Just imagine the entire building industry being cut off from its customer base so the builders don’t experience pressure from their clients to throw in an extra pantry or build a deck for free.  Not only that, but imaging the builders now having to go through a 3rd party company to access customers, and not be able to charge what their marginal cost is.  Now they are told they will build the house for “X” because if they don’t they will be black-listed.  Yes, there are appraisers who violated the foundation of appraising by not being independent, impartial and unbiased.  The answer is deal with the problem, and let the industry correct itself. 
2010 saw some light with states starting to pass legislature that regulated AMC’s, but nothing changed in KY as an attempt was made to pass a bill, but stalled.  We did see however the passage of the Frank-Dodd Legislature, which is the largest sweeping change in the financial industry since the Great Depression.  In a nutshell, the legislature creates new regulatory agencies to hopefully prevent taxpayer bailouts and the collapse of the financial industry.  Fortunately, a small part of this legislation addresses AMC’s and appraisal fees.  In 2011, we now have legislature passed in the Commonwealth that puts muscle behind the KY Real Estate Appraiser Board (KREAB) in relation to regulating the AMC’s that plan on doing business in Kentucky. 
More regulatory power is expected to be granted to the KREAB in late 2011 to further shore up the appraisal industry in our state.  Items such as: fees, mandatory payment periods, proper notification of removal from rosters, allowed communications to certain parties in the mortgage transaction, disclosed appraisal fees and no indemnification clauses are just a few of the items that are possibly coming. 
I enjoy being an appraiser, and the past few years have been hell, but those who stick it out, band together and do what is right will prevail. I have literally had to overhaul my customer base every year for the past 3 years, but hopefully the tide is turning.  As a member of the Kentucky Association of Real Estate Appraisers (KAREA) I want to thank all the folks in the background making this happen. 

On July 15, 2011 Kentucky Governor Steven L. Beshear signed a Statement of Emergency for 
administrative regulations 201 KAR 30:310 to collect the AMC Company registration fee, 30:320 require 
the surety bond for AMC company registration, and 30:330 complete the AMC company registration form.
The Executive Order grants the Kentucky Real Estate Appraisers Board only the authority referenced 
above, for purposes of beginning the registration of Appraisal Management Companies desiring to do business 
within the Commonwealth of Kentucky. 
All regulations, including those referenced above, must be presented to the Legislative Research Commission 
for review, and there must be a hearing before final approval is binding.     
The three administrative regulations does grant the Board the authority to immediately begin accepting registration, 
collect the fee of $3,500, and require acknowledgement of a surety bond secured by each company in the 
amount of $500,000. 
Registration will require the completion of each of the attached forms, and the forms with payment must be 
completed and returned to the Kentucky Real Estate Appraisers Board office at the address identified on each form. 

Although the statute requires renewal prior to October 1, registration from July 18, 2011 through 
September 30, 2012 shall not require renewal prior to October 1, 2012.
If anyone has questions, please contact:
Larry Disney
Executive Director
Kentucky Real Estate Appraisers Board

Appraising in Hardin County

The southern part of Etown has a tendency to be forgotten, but its local market is pretty stable.  The Sportsman Lake/Stoneybrook area has under a year's worth of inventory in it.

Appraising in Meade County

Wow, there is still a bunch of inventory on the market in Doe Valley, but sale prices have been steady.  Click on the image for a closer look...

Friday, July 15, 2011

Appraising in Grayson County

It's always a pleasure heading to the Grayson Co. courthouse and seeing Milt and the gang at PVA.  I had an appraisal down that way the other day and had to have the family with me because we had to drop our other car off at the shop.  Whenever I bring any of the kids into the Grayson PVA, they all say with big smiles "Ohhh, he's got his help with him today!".

Wednesday, July 13, 2011

Crashing browsers and wild donkeys!

I was putting the finishing touches on an appraisal I had done in Radcliff earlier, when all of a sudden I could not get my local MLS to work.  Well, to make a long story short, I had to uninstall and reinstall Chrome in addition to all my plugins.  The frustration part about the whole thing is halfway through doing this I was cut off with tech support and had to finish it on my own.  I figured it out, and all seems to be well, but I almost threw the computer through the wall a couple of times.  

But that isn’t all!  How about ¾ of the way through this my wife spots 2 donkeys running across the back yard!!  What an afternoon, crashing browsers and wild donkeys, sounds like a country song.

Monday, July 11, 2011

The skinny on BPO's

Two computer cartoons duke it out over a Broker Price Opinion.  Very funny!

Absolutely Amazing!

Is this what superman would look like if he rode a bike?  I can't believe the stuff this guy does and doesn't destroy his bike every time.  Keep in mind no suspension and the only thing absorbing the shock of dropping off a 20' wall is the guys legs!

Google Me!

Google will be entering the social media area later this year with Google+.  It is a cloud based social network that is in the testing phase right now and Google hopes to rival other social networks such as Facebook and Twitter. 

On another note, I was noticing that when a tech company starts buying up the competition that the Feds start paying more attention concerning anti-trust and monopoly laws.  Well, it looks like it’s already started.  Check out the second link to find out more about Goggle’s Chairman and the Senate panel.

Wednesday, July 6, 2011

Appraising in Meade County, KY

I always enjoy taking the kids with my on appraisals, because they go with the expectation of learning something new.  Yesterday Daphne and I were appraising a home and not only did she help measure the home, but she helped find the street numbers on the MLS sheets  for the comps I was taking pictures of.  It never fails, when we are done I always get asked “daddy, can we go to a restaurant?” or “daddy, can we get a cup of coffee?”   Usually I give in J,  I love my kids!