The Aerodynamics of a Housing Market

February 21, 2020

Or better yet, a cow.

But I digress…

Since I’m still foggy after an unexpected long morning of dental surgery, I’m going all video and pictures today. Some of my Housing Note Readers might even appreciate the visual break. I’ll be back in full next week.

VIDEO Dallas Building Defies Demolition Attempt

This just happened. “Looks Like We Have A Little Work To Do.”

VIDEO What You Can Throw At A ‘For Sale’ Sign

This clip is way too long, but I can sense the pure joy in his research.

Weeks A Median Male Worker Needed to Work to Afford a Year’s Worth of Major Expenses

An awful statement on male median income with implications for declining homeownership if mortgage rates rise.

VIDEO Walking On The Chrysler Building

Since Manhattan’s Chrysler Building was just sold for $150 million, well below the $800 million 90% stake that was purchased in 2008, I thought this vertigo-inducing clip was timely.

I’m taking bets here. How many of these people working on the Chrysler Building fell to their death?

Apparently the answer is “none.”

Appraiserville

(For earlier appraisal industry commentary, visit my old clunky REIC site.)

Ridiculously Small Adjustments

A friend and assessor just shared with me this analysis which also clearly illustrates a pet peeve of mine. And wine is the perfect way to convey it!

I have an appraisal of a house in [redacted] in which sales in excess of $5,000,000 were adjusted by $5,000 for a backyard tool shed. This photo illustrates a glass containing a one percent “adjustment” to a bottle of wine. The $5,000 adjustment would equal less than one-tenth of the one-and-a-half teaspoons in the nearly empty glass. This appraiser is not just good, he’s really good!

Dave Towne: CASH the darn check!

Told as only Dave can!

Appraisers……

I had an interesting conversation with a Chief Appraiser at a prominent AMC today (and no….you don’t have to berate or chastise me for using that expression) who told me they have a real problem with appraisers FAILING TO CASH FEE PAYMENT CHECKS!

This news was absolutely stunning to hear.

It is incredulous to me that people who claim to be ‘professional’ in their work, can’t figure out how to take a piece of paper with their business name on it and the amount it is valid for, to their bank and deposit the funds into their business bank account!

The Chief Appraiser said that the company’s accounting department spends inordinate amounts of time trying to talk with the appraisers who have not bothered to cash the checks. Often, those checks have an expiration date, after which no bank will allow it to be cashed. These appraisers sometimes will not respond when messages are left for them, or in some cases the appraisers can’t be found.

This is an incredibly stupid situation!

To alleviate this problem, the AMC in question is refusing to allow new vendor appraisers to accept fee payments by check. Instead, they only will permit payments via electronic deposit to the appraiser’s bank account.

Please appraisers ….. if you get paid via checks mailed to you, open the darn envelope, and then get the check deposited to your business account.

If you have someone else doing your bookkeeping, make an absolute requirement that any payment check received today is deposited ‘tomorrow.’ YOU should be monitoring your Accounts Receivables based on the reports you’ve done, and YOU should know day-by-day who owes you money, and who has paid you.

Don’t leave anyone who pays you by a paper check in the lurch due to your failure of processing your income payments correctly. Be the professional you claim to be.

OFT (One Final Thought)

Despite having no interest in trying out the sport, I’ve become obsessed with it.

Brilliant Idea #1

If you need something rock solid in your life (particularly on Friday afternoons) and someone forwarded this to you, or you think you already subscribed, sign up here for these weekly Housing Notes. And be sure to share with a friend or colleague if you enjoy them because:

– They’ll buy a Chrysler;
– You’ll buy a cow;
– And I’ll cash my check.

Brilliant Idea #2

You’re obviously full of insights and ideas as a reader of Housing Notes. I appreciate every email I receive and it helps me craft the next week’s Housing Note.

See you next week.

Jonathan J. Miller, CRP, CRE, Member of RAC
President/CEO
Miller Samuel Inc.
Real Estate Appraisers & Consultants
Matrix Blog
@jonathanmiller

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