My New Blog

This blog post shall help explain the nuances of appraising real estate on the island of Catalina. I've been contacted recently by several AMCs regarding appraisals on Catalina Island. Apparently clients who request these appraisals are having difficulty finding qualified appraisers on the island. 

I am an appraiser that is qualified and knowledgeable enough to appraise single family and 2-4 multi-unit properties located on the island. I must caution clients out there that properties on Catalina are non-standard appraisals that do not carry the typical, standard SFR fees they may be used to on the mainland market. Unless you are based on the island, which I am not because it is not a viable business model option, the time and cost of transportation to and from the island is but one factor in the cost of the assignment. Transportation once on the island is another expense, and since the island does not have building records, additional time may be required researching LA County records on the mainland.

Avalon and Two Harbors are beautiful destinations if you are vacationing and they take on a different dynamic if you are there assessing property values. If you need a real estate appraiser to evaluate property values on Catalina Island, please do not hesitate to contact me.

I decided it was time to blog again after I finally saw some published local data that confirmed what I have been seeing over the last 6 months. The blather coming out of different channels informing the public that values were on the mend, job numbers are looking rosy and spending was on the rise was, as it turns out, just blather. I have my own opinions about the job market and consumer spending, but I will stick to what I know, and that is real estate values.

Dataquick reported that the median home value in Orange County has dropped below $400,000 (it was $399,000) for the 1st time since April of 2009, ouch. I've appraised approximately 40-50 homes in the past few months and I concur that values have slid in most OC zipcodes over the past 6 months. The outook in my opinion is more of the same. At the height of the market in 2006 it used to take 2.5 median incomes to afford the median OC home. I wonder what the figure is now, considering home values have dropped, but so has the number of jobs........

The deadline for filing for an "informal" assessment review has passed - it was April 30th. You haven't missed much because the "informal" hearing is only a phone call to an assistant Assessor that usually leads to "I'm sorry, there is nothing we can do at this time". It is not much more than a standard tactic to discourage you in the process. Since you missed that deadline, you can still seek a hearing through the more practical and realistic "formal" assessment appeals process. You can now file for your "formal" appeal from July 2 thru Sept. 15th by filling out an application available on line or at the Assessor's Office.

After completing your application for the formal appeal process, you'll need to find comparable properties which support your claim of decreased property values. You will need to find at least three similar closed sale properties and research their location, size, amenities and value on or around January 1, 2011. Remember the County requires the "90 day Rule" which means your comparable properties need to have a sale date within 90 days of January 1, 2011. 

As a professional real estate appriser, I can provide this service for you. I have created an appraisal report for use in determining property value for tax appeal purposes. It's shorter and less complicated than the appraisal reports used for loan purposes and I charge a lower fee as well. My fee is usually $250 for a Single Family Residence and typically $399 for a multi-unit property, but could be more, or less, depending upon the complexity of your situation. If it appears that your property's value may not be less than the Assessor's taxable value, then I will tell you and not charge for my service. I will not only provide you with the appraised value of your home but I will provide you with the three required comparables you'll need in your hearing.

As an additional service, I have attended several formal tax appeal hearings for my clients. I have been very successful (in 4 counties!) in obtaining significant tax assessment reductions for my clients. The name "formal appeal hearing" sounds intimidating but don't let that deter you. It's not very difficult at all. If you have solid comparables to support your argument, you'll do just fine. For this reason, I strongly suggest you take advantage of the services I have to offer.

Please contact my office to learn more about my appraisal services for appealing your tax assessment. I can be reached at 714-969-8565 or at mcrose@coastappraisalinc.com. Please  Provide me with your property address and I will give you further advice as to whether an appeal of your tax bill is advisable.

Apparently the folks at John Burns Real Estate Consulting in Irvine believe rents are projected to rise. I quote, "We believe the apartment business is set to explode, with steadily rising rents and occupancy that will justify new construction". Wow- what may be true in Irvine is far from the truth just 40 miles away in Riverside/San Bernardino County. I have 4 rental houses in San Bernardino and  I'm getting downward pressure from 3 of my 4 tenants to lower the rent, or else they are moving out.  Many of the rental houses in the Inland Empire are occupied by residents who are receiving subsidized housing support through some type of federal or county housing authority. These housing authorities are under the economic crunch to cut their budgets so consequently they are cutting their aid- which requires the landlords to cut their rent or else.

I'm trying to decide what my "or else" action will be.

First, this question should come as no surprise to those of you in the real estate industry that have been paying attention and have been trying to hang on in our beleaguered profession. The quick and dirty answer to this question is simply because fraud exists most where it has the greatest opportunity. Since California is first and foremost (with Nevada and Florida) a leader in the Short Sale industry, we attract the most crooks.

The truth tends to find it's way to the top to those that want the truth, and I think the general public is finding out what most appraisers have known for more than 2 years. The financial reform and house cleaning of our industry by the same individuals who greatly contributed to this mess in the first place is slowly revealing itself. The Chris Dodd/ Barney Frank/ Andrew Cuomo trifecta that decimated the appraisal industry (and continued the housing malaise) is now slowly revealing itself to those who want to know why the real estate industry can not heal itself. Appraiser independence is almost nonexistent in the mortgage industry with the advent of the Bank Owned and controlled "Appraisal Management Companies". The professional appraiser, at least the best of them, have started to retire enmasse or have stepped away from the mortgage industry. Broker Price Opinions by self interested Realtors and automated valuation models has facilitated the downward spiral with little or no accountability. Who will be the next boogeyman, if not the appraiser this time??

I had a discussion in my office this morning about how hard it is to network and link my profile and blog with my friends and associates that are mortgage professionals and Realtors. Several associates want to connect with me via Linked-In and other social media avenues. I have already said "yes" to a few of them, but then I discovered that what I have to say about the current housing and real estate situation does not bode well in their efforts to paint a happy face on the current state of affairs in our industry. All one has to do is read my last few blogs and then contrast that to what is being said on most mortgage/realtor websites and you can see my quandary.

To be an unbiased appraiser has become harder and harder nowadays. The government has singled out my industry to harsh, not-well-thought-out regulation that has become fraught with unintended consequences. The governments well intentioned (?) attempts to make our profession more independent has actually led to many appraisers being led around by the nose by large Appraisal Management Companies that, surprise, are owned by the Big Banks. Not only do these appraisal management companies tell you how long to complete an assignment, regardless of the complexity, they also tell you how much you will be paid. The funny thing is, they don't tell you WHEN you will be paid. I for one will not work for most Appraisal Management Companies (AMC) because of their negative impact on the mortgage industry and the increased costs to the end user, the borrower.