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The easy answer is when there are too many adjustments. However, selecting good comparable sales in the boroughs of New York City is easier, in my opinion, then in the suburban sprawl in Nassau and Suffolk County. When the geographical area contains developments, similar lot sizes and house designs, then the selection can also be easier. Its when the improved sites have different designs, lot sizes, views, etc. that the appraiser must be knowledgeable when selecting the right comparable sales. Such is appraising on the eastern end of Long Island. Granted there are times when there are a considerable amount of sales and selecting the correct comparable sale is easy for the professional. But when sales are down it becomes more difficult to select the proper comparable sales. Only a seasoned Certified and Licensed State Appraiser should be employed. Their knowledge of the present real estate market as well as their ability to make proper adjustments based on their historical appraisals including paired market analysis, enables them to estimate true market value. Remember, what some consider comparable sales are really not comparable. The appraiser's clients will be able to understand why the appraiser selected the comparable sales to adjust for there differences and why the appraiser estimated the fair market value for their property. 

Posted in:General and tagged: comparables
Posted by Richard Wayne Abatelli on October 24th, 2019 12:07 PMLeave a Comment

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October 2nd, 2019 5:12 PM
Appraisers love to quote statistics especially Median Sales Price for a specific area, for a specific period of time. However, there are real estate statistics that cannot be used in the appraisal process such as: homes with peaked roofs sell for less than homes with flatter roofs; dwellings with red doors sell for 20% more than those with black doors; single family homes with pet doors sell for more than those without pet doors; and dwellings with nice views of the backyard sell for higher prices.
Most of these funny foibles are the result of a handful of basic statistical fallacies. Unfortunately, statistics and today's data science are not always simplistic. What appears to be true, often is not. But they are interesting although finding the assumptions wrong, brings light and awareness of how the world really works. 


Posted by Richard Wayne Abatelli on October 2nd, 2019 5:12 PMLeave a Comment

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August 13th, 2019 1:44 PM
According to Fannie Mae's chief economist, repeat home buyers are less likely to get more than one quote when shopping for a mortgage. First time buyers were more likely to shop which raised the overall average # of quotes obtained by home buyers to 2. Only a fraction of those who got only 1 quote expressed regret. It is obvious that mortgage shopping can be a complicated and time-consuming  endeavor because it means looking at several interrelated components, e.g., rates, fees, points and assumptions about how long the borrower will stay in the mortgage. Advertised quotes are often "teasers" while a true quote is based on variables that are unique to each home buyer and can be evaluated differently by each lender. Fannie Mae shows that consumers of all backgrounds lack knowledge about mortgage basics. Remember, competition  only works if consumers assess their options. Consumers should realize that one can save thousands of dollars by getting multiple mortgage quotes. Building their knowledge may motivate more home buyers to comparison shop. 

Posted in:General and tagged: mortgage/buyers/loan/
Posted by Richard Wayne Abatelli on August 13th, 2019 1:44 PMLeave a Comment

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Appraisers provide a service which is one of the hallmarks of a profession. However we produce a product, which is a component of one definition of a industry, the production of a product. So, real estate appraisers provide both a service as well as a product.
My opinion and the opinion of others is that real estate appraisal is a profession. Here's why, part of the definition of a profession requires the practitioner to master the knowledge of some department of learning or science. As a real estate appraiser there is a body of knowledge which I must learn, then master, to provide my service, competently.

Posted by Richard Wayne Abatelli on July 16th, 2019 11:11 AMLeave a Comment

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July 2nd, 2019 6:57 PM
We celebrate July 4th as a festive holiday. Typically bringing friends and relatives together for fun and relaxation. We notice all the flags in our hamlets, villages, towns and cities. Most realize its a national holiday but do they really understand the meaning of this day in history. Each and every day we listen to the cry's  of those who seek the freedom we have. Yes, July 4th, 1776, Independence Day gave each and every citizen of the United States freedom. Let us put aside our difference's and remember the costs many have borne and understand each and every day our freedom is in jeopardy.
Let us all be proud to be free and be an American.

Posted in:General
Posted by Richard Wayne Abatelli on July 2nd, 2019 6:57 PMLeave a Comment

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June 20th, 2019 11:51 AM
Today, June 30, 2019, the Subcommittee on Housing, Community Development and Insurance will hold a legislative meeting. No appraisers have been invited as witnesses. Appraiser's, those individuals with "boots on the ground" should be the one's questioned. Watering down the appraisal process without the "eyes and ears" of the industry, will not protect the taxpayers. Could this be the start of the next mortgage manipulation and fraud? 


Posted by Richard Wayne Abatelli on June 20th, 2019 11:51 AMLeave a Comment

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June 4th, 2019 8:14 AM
Latest reports indicate renters are more cost-burdened than homeowners, and that the cost to rent a single-family home has increased significantly, while the typical mortgage payment an costs associated are lower.
Over the past 13 years, rent has increased 36% while a typical mortgage payment has declined 4% over that period. Yes, the median price for a single family home has increased on the average of 5-6% over the past several years on the North Fork of Long Island, so purchasing still requires a considerable down payment. But, over the same 13 years, homeowners costs for their monthly mortgage payment and other owner expenses went down 10%(30% to 27%) versus the cost to rent which remained similar, around 46% of their monthly income.

Posted in:General and tagged: renters/homeowners/mortgage
Posted by Richard Wayne Abatelli on June 4th, 2019 8:14 AMLeave a Comment

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