Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California

Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California
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Showing posts with label price. Show all posts
Showing posts with label price. Show all posts

Friday, November 12, 2021

Home Staging is to Increase Sales Price. It's Not About Racism. Mary Cummins Real Estate Appraiser

Recently there have been a few media articles about black people who allegedly white washed their home i.e. removed all traces of blackness and received a higher appraisal value. These misleading articles have spread a false narrative about real estate agents, appraisers, sellers, buyers and the legitimate process of "home staging."

When someone lists their home with a real estate agent for sale the agent will tell them they must prepare and stage their home. Below is a brief summary of how a seller should stage their home in order to get the best price in the least amount of time from Smart Box Moving and Storage. As a real estate broker and appraiser for over 38 years I agree with this list.

"When you are preparing your home to put it on the market, experts suggest that a key part of home staging is removing personal items from the house. A strategically staged home typically sells faster and for more money so it’s important to take the necessary steps to properly stage your home. Removing certain items from the home will make your home feel larger, more organized, and will also help prospective buyers visualize themselves living in the home. Prospective buyers will take notice of every detail in your home so don’t turn them away by having the wrong items in your house. Consider removing the following items to ensure your home appeals to all buyers. 

Family Photos

While you may adore those large portraits of each of your kids, it’s best not to showcase those when you are staging your home. Buyers might be distracted by all of your family photos and it could make it harder for them to envision themselves living in your home. The idea is to help buyers visualize themselves in your home and this can be difficult with a display of family photos. 

Taste Specific Artwork and Accessories

Typically, when you decorate your home, you do so according to your own taste and personality. However, when staging a home, you don’t want your personality to stand out. For instance, you might be an avid hunter but not everyone will appreciate animal heads hanging on the wall. People might also be offended by certain artwork such as nudes, religious art, or political posters. It’s best to remove any taste specific decor and place a few neutral pieces around the home instead. 

Collections

Collections have a tendency to take over a space and make it appear cluttered. Buyers might miss the detailed crown molding if they are distracted by an overwhelming collection. A portable storage container is a great solution for storing your valuables and collections while you are selling your home. 

Awards and Certificates

While you might be proud of those diplomas, sports trophies, and school certificates, now is not the time to display them. Much like the family photos, it can be difficult for buyers to envision themselves in your home when they see so many of your personal items. Depersonalizing space is important because it will help buyers psychologically move in. 

Firearms

If you keep guns in your home, it might be a good idea to place them in storage while selling your home. Not all buyers will be comfortable with the idea of having firearms in the home and this can be a deterrent. 

Personal Items

As tiresome as this might seem, it’s important to erase the evidence that you actually live in your home any time you are showing it to a potential buyer. Remove personal items such as toothbrushes, medications, shampoo, glasses, dirty laundry baskets, dirty dishes and so on. You can hide many of these items in pretty baskets or boxes with lids. You can even hide things in plastic bins that will easily slide under the bed. 

Pets

They may be your best buddies but your furry friends don’t appeal to everyone. Pets are messy, dirty and stinky and not all buyers love them. Some people might be turned off by the fact that there are pets in the home so it’s important to find a place for them to go when you are showing your home. You should also remove any evidence of pets living in your home such as food bowls, cages, and toys.

Excess Furniture

Having too much furniture crammed into a room can make the space look smaller and this is definitely something you want to avoid when selling a home. Your goal should be to arrange furniture in a way that compliments the architectural features of the room while giving the illusion of spaciousness. You also want furniture that serves a purpose and showcases how the room could be used. For example, a desk and chair would show that the room could be used as an office while a bed and dresser would show that the room would make a nice bedroom. Avoid excess furniture or furniture that doesn’t belong. For example, you wouldn’t want a treadmill sitting in your bedroom. A portable storage unit is an ideal solution for storing your excess furniture while your home is on the market. "

The most important item to remove is personal items and photos. From blog article "Why You Should Remove Personal Items in Home Staging," "Removing personal items is perhaps the most important thing when it comes to home staging. Potential buyers don’t want to know about the family that lived on the property before. You risk distracting or alienating potential home buyers by leaving personal items on display (family photos, religious texts, favorite movies, even sports memorabilia). Imagine walking into someone else’s home for the first time. You’re likely on your best behavior and very hesitant about breaking something or going into a room you’re not supposed to be in. It’s not as comfortable as your own home because the space simply is not your home. That’s the opposite of what you want your buyers to feel. Ideally, when someone walks into a staged property, they can easily visualize the space as their home. Lining the walls with personal artifacts ruins that illusion. Nobody wants to feel like they’re intruding."

There are a few people with their own agenda who are promoting the false narrative that black people must white wash their home when it's being appraised because real estate appraisers are racists who appraise black people's home lower than market value. That is absolutely false. Real estate appraisal is based on the home characteristics and recent sales only. Appraisers don't care about the race of the owner, tenant or buyer. We generally never even meet them or know what color they are. We only care about the structure and what other similar homes have sold for. We use the same methodology as Automated Valuation Methods which are robots who don't see any people or the home.

Sometimes a homeowner will tell me "I'm sorry my home is messy today." I generally jokingly tell them, "it's fine. The bank wouldn't care if you had dead bodies hanging in here. They only care about the structure and the value." That is the absolute truth. The bank just wants to make money on the loan. They want a full market value appraisal so they can make money. The appraiser wants the same. If we were to come in below market value, we'd never be hired again and lose money. There is absolutely no incentive for an appraiser to come in low.  

A few media articles stated that a black family had their home appraised. The value was lower than they liked. They decided to white wash, stage their home and request a new appraisal. The second later appraisal came in higher. In this quickly appreciating market of course a later appraisal would be higher yet they attributed the rise in appraisal value to their white washing. They could have just changed the door mat and the same thing would have happened. With certain areas appreciating 30% in a year that turns out to 2.5% per month. With a $500,000 home the appreciation could be $25,000 in two months. The appreciation could be even higher if they first had it appraised it during a slower sales time of year then later reappraised during the peak sales times when there were more buyers, sales and higher sale prices. It would be even higher if it's an area that's being revitalized or as some say "gentrified." I've seen increases of 40-50% in a year in some of these gentrifying areas recently.

Racism is a huge problem in the US which we must try to eradicate. Racist things happen to people of color all the time. Since the murder of black George Floyd racism against black people has been a huge issue. That said not everything is due to racism. Many people's appraisals are coming in lower than expected because of the fast appreciation rate in the market. Closed and recorded sales lag 45-60 days behind contracts for sale. During that time home values appreciate. This is not the fault of the appraiser but the nature of the mandatory historical approach to home value. 

Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.


Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin

Friday, October 29, 2021

Sellers, Buyers set home values NOT Appraisers - by Mary Cummins Real Estate Appraiser

Sellers, Buyers set Property Values NOT Real Estate Appraisers, Mary Cummins, Los Angeles, California, real estate appraiser, real estate appraisal

UPDATE: I tweeted my article to Andre Perry. After he made a few ridiculous replies which only showed how much he doesn't know about appraisers and appraising he blocked me. Thank god I just swallowed my sip of iced tea or I would have spit it all over my computer monitor laughing :-D This guy can dish out bad statistics, bullshit and racism but can't take simple facts. 

FTR Andre Perry has stated many times that Appraisers are racist and biased. Here are some quotes. He stated this as a fact when it's not. From written testimony from U.S. House of Representatives Committee on Financial Services. "And we’ve witnessed viral news stories revealing how appraisers value Black and white homeowners differently." He's one of the main people spreading those false media articles about alleged bias which I researched and about which I wrote articles. 

"We don't want to lay the complete blame on the loss of home values on appraisers," said Perry. "They are certainly an important trigger but the same attitudes that appraisers have, so do [some] lenders, real estate agents and other people in various markets." Many more citations below.



Andre Perry, Brookings Institute, Know your price, valuing black lives and property in america's black cities, andrew m perry, andre montel perry, @andreperryedu #andreperry, brookings, book, racism, bias, real estate, appraisal, avms, research, paper, black, white, race
Andre Perry, Brookings Institute, Know your price, valuing black lives and property in america's black cities, andrew m perry, andre montel perry, @andreperryedu #andreperry, brookings, book, racism, bias, real estate, appraisal, avms, research, paper, black, white, race


Andre Perry, Brookings Institute, Know your price, valuing black lives and property in america's black cities, andrew m perry, andre montel perry, @andreperryedu #andreperry, brookings, book, racism, bias, real estate, appraisal, avms, research, paper, black, white, race
Andre Perry, Brookings Institute, Know your price, valuing black lives and property in america's black cities, andrew m perry, andre montel perry, @andreperryedu #andreperry, brookings, book, racism, bias, real estate, appraisal, avms, research, paper, black, white, race

Andre Perry, Brookings Institute, Know your price, valuing black lives and property in america's black cities, andrew m perry, andre montel perry, @andreperryedu #andreperry, brookings, book, racism, bias, real estate, appraisal, avms, research, paper, black, white, race
Andre Perry, Brookings Institute, Know your price, valuing black lives and property in america's black cities, andrew m perry, andre montel perry, @andreperryedu #andreperry, brookings, book, racism, bias, real estate, appraisal, avms, research, paper, black, white, race

In the intro of his book Andre admits to having anger management issues with people with whom he disagrees. He said he "verbally assaults" people. He stated "My life "which has been beleaguered with unpredictable outbreaks of rage, largely stemming from reminders of past feelings of vulnerability and worthlessness. Minor disagreements with lovers, friends, colleagues, and strangers often turned into blowout arguments, for reasons unknown to them." The intro of his book also shows that his main focus in life seems to be that white people have done him and black people very wrong basically destroying everyone's lives, family and specifically their money. He stated his father died in prison and his mother abandoned him and his brothers with the local baby sitter. It does sound like a tough life that has affected his view of life and others. He stated his goal in life is to show that the main problem in this world is white people. Read the intro to his book and come to his own conclusion. The intro is online and free. 

ORIGINAL: Everyone knows the "fair market value (of a house) is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts." This is the basis of our world economy and free market society. Everyone agrees with this except hate monger Andre Perry who blames lower property values on "racist white appraisers." 

Andre Perry just wrote another crazy article about racism and real estate. Someone needs to contact the editor at the Brookings Institute about allowing flawed statistics, misleading research and the promotion of racist hate mongering in their name. 

Andre Perry has never let facts and data stand in the way between reality and the racist narrative he's created and actively promotes. He believes everyone in the US is responsible for home values in areas which are mainly "black," i.e. over 50% black per his own criteria, being lower than areas that are mainly "white," i.e. 1% or less "black." He actually only compared a few extremely different areas. This article proves that Perry's paper is based on extremely misleading data selection and biased comparisons which were then used to invent a false and misleading racist narrative. Note that his paper has never been peer reviewed or published in a journal article. It would never pass peer review. A "refereed (peer-reviewed) journal is reviewed by expert reviewers as a quality-control measure." I just checked Perry's resume and he has no peer reviewed articles or papers on his false racism in appraising theory.

In the article Andre Perry wrote "Lower home prices in Black neighborhoods reflect how much we value their residents." Nope. Home prices reflect the price agreed upon by a willing seller and buyer. It has nothing to do with the value of residents. The Appraiser also has nothing to do with the home price or value. A seller could sell his home for $100,000. If the buyer pays cash, there's no appraiser or appraisal. Seller and buyer set the price which is later publicly shared by Zillow, RedFn and MLS. Those sales set the market price for similar homes. Seller and buyer alone control that price and value

Now if the buyer wants a home loan, he'll probably need a real estate appraisal. The purpose of the appraisal is so the bank knows there's enough equity in the home to pay off the loan in case the borrower defaults on the loan. I could appraise that home for $10,000,000,000,000,000,000,000,000,000,000,000,000 and the sale price stays the exact same at $100,000. The home still sells for $100,000. THE APPRAISER AND APPRAISAL DON'T AFFECT THE PRICE OR VALUE! This proves that Andre Perry does not understand the concepts of value, price, real estate, economic principles, basic math...or common sense. His "paper" includes almost every single major statistical error possible. Why does anyone believe this guy or that meaningless paper? It has less merit than an op-ed.

If Perry wants to blame someone for lower home values in some black areas he needs to blame the buyers of those homes which are mainly black per his "research." He should tell those greedy (sarcasm) buyers to pay $1,000,000 for that $100,000 home if they "value their residents." "Don't be a cheap bastard! Pay the seller more than what that home is worth! Do it for the good of the community!" (sarcasm) You sell a few homes for $1,000,000, they're all worth $1,000,000, right? Sadly, no.

FTR I attended the 2019 meeting Perry mentioned in his article. That was the first time I encountered Andre Perry and his lack of real estate, economics or statistics knowledge. 

From Perry's article. Notice he speaks about himself in the third person. Who does that? He doesn't even know that the Appraisal Institute is just a private org that doesn't certify or regulate the appraisal profession. I added what is in parenthesis.

"In 2019, one of this blog’s authors (Andre Perry) testified in Congress along with representatives from the Appraisal Institute and the Appraisal Foundation, two organizations that help certify and regulate appraisal professionals. When Rep. Al Green of Texas asked the panel to raise our hand if we believe “discrimination plays a role in the devaluation of property in neighborhoods that are predominated with minorities,” I was the only one who raised a hand."

I decided to go find this video to refresh my memory as I was working while listening, watching the original hearing. Andre Perry is a liar. See the video below. The guy directly behind him also raised his hand so 2/26 people. He was not the only one. Perry also lied about the question. This is the real question, "Do you believe that invidious discrimination, invidious is harmful, (full definition: Treating a class of persons unequally in a manner that is malicious, hostile, or damaging; unfairly, unjustly discriminating) plays a role in the devaluation of property in neighborhoods that are predominated with minorities but more specifically black people? If you do believe this, raise your hand. If you think black people are being discriminated when their property is being appraised, would you kindly raise your hand." Andre Perry raised his hand. This shows he is specifically talking about appraisers appraising properties and not AVMs here. AVMs are not appraisals. This is why Appraisers are upset. He accused us of invidious discrimination besides bringing up and widely sharing anecdotal media articles about alleged discrimination by appraisers. 



All the real estate experts with many years of experience and multiple degrees in real estate did not and do not agree with Andre Perry. This shows that Perry does not know what he's talking about. I also would not have raised my hand. The property in question is not, was not devalued. There is no discrimination in property valuation because it's based on a math formula. Most Appraisers never see the buyer, seller or know their race. It's just an address to us. The robot appraisals don't see anyone or anything, not even the property. Andre Perry's paper is based on robot appraisals and prices agreed upon by sellers and buyers. Appraisers had nothing to do with the data he used. I'm not saying racism doesn't exist. It does. It's just not an influence in real estate appraisal especially robot real estate valuations like Zillow.

Perry states that homes in black areas are worth $48,000 less than in "similar" white areas. Then what explains the differences among the values in white areas? It can't be discrimination against black people because they're white. Same thing happens in brown areas. What explains the lower value of a white owned home in a black area? Again, the owner is white and not black. Will all the white and brown people with lower home valued be compensated by any new government initiatives or reparations for low valued homes? Perry has been talking about using his $48,000 figure as a measure of reparations for black people. What about the rest of us suffering from low priced homes? I don't even own a home. Will all people who don't own homes, even homeless people also be getting a check? 

In the article Perry talks about the Indiana and Florida media articles about alleged racism in real estate appraisals. Recently he said those were just media articles and we don't know if it was racism or not. He even said recently he's never said appraisers were racist and he doesn't feel they are. Now he's back to promoting the idea of racist appraisers again! This guy will say whatever the audience in front of him wants to hear. He doesn't even know his own truth. He's that insecure.

His recent article is about the "Brookings and Ashoka Collaborative Innovation Challenge." They're offering money which he will most likely reward to a like minded friend who promotes his racism. Stuart Yasgur the VP & Global Leadership Group Member represents Ashoka #stuartyasgur . The prize is supposed to go to the person who solves the problem of homes in specific black areas being worth less than homes in specific white areas. I may send in a solution to the problem. My solution is that the problem as defined by Andre Perry doesn't exist. He created it. I solved it. Poof, it's gone. Where's my check?

#andreperryedu #stuartyasgur #brookingsinstitute #ashoka #racism #hatemonger #marycummins #realestateappraiser #realestateappraisal #brookings #race #bias #appraisal

Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.


Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin

Sunday, October 3, 2021

Bruce's Beach, Willa & Charles Bruce beach property in Manhattan Beach, California being returned, Appraisal, value, by Mary Cummins

Bruce's Beach, Bruce Beach, Willa Bruce, Charles Bruce, park, racism, black, african american, mary cummins, real estate appraiser, real estate, los angeles, california, kkk, whites, racist
Bruce's Beach, Bruce Beach, Willa Bruce, Charles Bruce, park, racism, black, african american, mary cummins, real estate appraiser, real estate, los angeles, california, kkk, whites, racist

UPDATE: 01/03/2022 Bruces will sell property to Los Angeles County for $20,000,000. That's right in line with my historical estimate below. Janice Hahn said "“This is what reparations look like,” she added, “and it is a model that I hope governments across the country will follow.” The question now is will everyone get back property they previously sold via eminent domain? The Bruce's were paid way over market value for their land when they sold it to the government. They signed an agreement. Can everyone undo, redo those sales? If so, I need to start a new business. Imagine everyone who sold a lot worth $10 can now get $20,000,000! There were about 40 lots owned by many different people in that "improper" eminent domain transaction. They were black, Latino, white... Does it matter since it was deemed improper by Janice Hahn? Time to undo the Dodgers site, Chavez Ravine, freeway land, school land... 

https://www.dailybreeze.com/2023/01/03/bruce-family-to-sell-recently-returned-land-to-l-a-county-for-20-million

06/23/2022 Janice Hahn stated the following,

“At long last, the descendants of Willa and Charles Bruce will be able to begin rebuilding the wealth that has been denied to generations of Bruce's since their property was seized nearly a century ago,” said Hahn."

Just to be factual the Bruce's were paid over market value for their land at that time. I did a historical valuation below based on similar land sales reported in latimes.com and other newspapers. Back then all sales were reported in the newspaper. They weren't "stripped of their land." The city bought it from them. They didn't lose their wealth or money. They made a lot of money on the sale. They could have bought other investments with that money and maybe they did. 

The key issue is they didn't want to sell it. They hired a lawyer to fight eminent domain proceedings. They lost. All of the people in that specific block area, white and black, had their land taken and paid for legally by eminent domain. They were all paid over market value with the Bruces getting the most money. Many citizens complained about paying over market value for the park, see articles below. 

Of course no one in eminent domain sales wants to sell their property. If they did, there wouldn't have been eminent domain proceedings. There have been many eminent domain proceedings in Los Angeles and California, some legal, some not so legal. Many times they've been paid over market value. I know because I've done eminent domain appraisals for people, cities and counties in this area. Will we now reopen all of those cases? Bet I could find the descendants of the other nearby lots taken by eminent domain. I could also find the owners of other eminent domain proceedings such as Dodger Stadium, all the freeways, schools, parks, animal shelters... Not all of those were 100% legal actions. Some were taken for one purpose then used for another like the South LA animal shelter. I was on the Prop F Committee when that happened.

And if we're really going to right some wrongs, we need to give all the land in the US back to the Native American Indians. We also need to give land back to Latinos, Asians ... who lost it through forced repatriation and other horrible acts by the government. Otherwise it's a bit discriminatory to pick and choose which person gets reparations for eminent domain transactions and which doesn't. Of course the government couldn't afford that so it's all moot. 


Below is the county plan to return the property.

"County staff has negotiated a transfer agreement to return the Property to the
Bruces ("Transfer Agreement"), and a 24-month lease agreement, with an annual rent of
$413,000 plus responsibility for all operation and maintenance costs, to lease the
Property back to the County ("Lease Agreement"). The Lease Agreement includes the
Bruces' right to require the County to acquire the Property within a certain timeframe, and
the County's right to require the Bruces' to sell the Property to the County within a certain
timeframe, for a purchase price not to exceed $20 million. The annual rental amount is
supported by an economic analysis. The purchase price has been confirmed by
appraisals to be equivalent to or less than fair market value..."

There was a lawsuit case #21STCV38353


Another doc.


I tried to find the actual appraisal but couldn't. I may request it in a state information act request. I agree with their value but I just want to see it. 

UPDATE: As expected many people now want to revisit their sales, settlements, property transfers in eminent domain actions all over the US. Organizations such as "Where is my land?" have been started to accept and make claims to government for more money starting with California. If government were really serious, they should be giving the original owners of the land, Native Americans, their land back or cash value. There's already talk of revisiting the land sold via eminent domain for the many Los Angeles freeways such as the 101 and the 10. There is even talk of giving money to people who were merely tenants of that land and had no ownership interest whatsoever. Many politicians talking about this today are coincidentally currently running for office. 

I knew this case would cause many new claims. How will each claim be evaluated? What documents and proof will be needed? How will the properties, damages be evaluated? I did research on Bruce Beach, Chavez Ravine, 101/10 freeway eminent domain cases property values. Some were paid under market value, some market value and some over market value for their land when it transferred. Will they just be given today's value of the land or the land, or the difference in values minus cost of money over time? How far back in time will they go? Back to the time of the Native Americans? This will be a complex issue. 

ORIGINAL: In 1912 Willa Bruce bought her first of two lots in what is now Manhattan Beach. The lot was 33' x 100' located at what is now 2600 (2608) The Strand, Manhattan Beach, California. (Scroll down to see information about the property). She stated in 1912 that she paid $1,225 for the lot. Mrs. Bruce opened her beach stand selling food and renting bathing suits so people could enjoy themselves at the beach and swim in the ocean. At the time black people were not welcome at local beaches and did not own land there. Her beach stand became known as Bruce's Beach

The park which is currently named Bruce's Beach is not where Bruce's Beach used to be located. Bruce's Beach was located on The Strand on the beach. The park is located a few blocks away from the beach. Based on what's I've seen so far the two lots are about 33' x 100' or about 6,666 sf. combined. The lots are directly where the Los Angeles Lifeguard station is located. 

Below are some newspaper clippings in chronological ordered. I transcribed a few of them starting with one from 1912.

"COLORED PEOPLE'S RESORT MEETS WITH OPPOSITION. REDONDO BEACH. June 24. The establishment of a small summer resort for negroes at North Manhattan has created great agitation among the white property owners of adjoining land. The new summer resort which at present consists of a small portable cottage with a stand in front where soda pop and lunches are sold, and two dressing tents with shower baths and a supply of fifty bathing suits, was opened last Monday by the dusky proprietor and patronized by many colored people from Los Angeles. Yesterday when a good-sized Sun day crowd of pleasure seekers had gathered and donned their bathing suits to disport in the ocean, they were confronted by two deputy Constables who warned them against crossing the strip of land in front of Mrs. Bruce's property to reach the ocean. For a distance of over half a mile from Peck's pier to Twenty-fourth street, a strip of ocean frontage is owned by George H. Peck, who also owns several hundred acres of land in Manhattan in addition where Mrs Bruce's property is situated. This strip has been staked off and "no trespassing" signs put up and consequently the bathers yesterday could not get to the beach without walking beyond Peck's strip of ocean frontage. This small inconvenience, however, did not deter the bathers, on pleasure bent, from walking the half mile around Peck's land and spending the day swimming and jumping the breakers. All along the beach in front of the prohibitd strip which was patroled by the constables, the light hearted "cullud" people frolicked in the breakers or lay on the warm samd enjoying the sea breezes. 

Mrs. Bruce, a stout negress whose home is at No. 1024 Santa Fe avenue says most emphatically that she is there to stay, and that she will continue to rent her bathing suits to people of her race. She owns a lot on Manhattan avenue 33xl00 feet for which she paid $1225, a high price compared to the cost of near by lots. She says she purchased the property from Henry Willard, a real state dealer of Los Angeles. The entire next block in the Manhattan addition between Twenty- sixth and Twenty-seventh streets has been leased to Milton T. Lewis, a colored real estate dealer, by Willard. Lewis proposes to rent space for tents on this block to negroes who desire to come to the beach. 

The situation, as described by Mrs. Bruce, has a pathetic side, for she avers negroes cannot have bathing privileges at any of the bath-houses along the coast, and all they desire is a little resort of their own to which, they might go and enjoy the ocean. "Wherever we have tried to buy land for a beach resort we have been refused, but I own this land and I am going to keep it." She and her associates feel that it is unjust that they should not be allowed to "have a little breathing space" at the seaside where they might have a holiday. Her husband is a chef on a dining-car that runs between Salt Lake City and Los Angeles. Property-owners of the Caucasian, race who have property surrounding the new resort deplore the state of affairs, but will try to find a remedy, if the negroes try to stay." June 27, 1912 Part I, Los Angeles Times. 

June 19, 1919 Juneteenth picnic at Bruce's Beach.

Bruce's Beach, Bruce Beach, Willa Bruce, Charles Bruce, park, racism, black, african american, mary cummins, real estate appraiser, real estate, los angeles, california, kkk, whites, racist
Bruce's Beach, Bruce Beach, Willa Bruce, Charles Bruce, park, racism, black, african american, mary cummins, real estate appraiser, real estate, los angeles, california, kkk, whites, racist


Bruce's Beach, Bruce Beach, Willa Bruce, Charles Bruce, park, racism, black, african american, mary cummins, real estate appraiser, real estate, los angeles, california, kkk, whites, racist
Bruce's Beach, Bruce Beach, Willa Bruce, Charles Bruce, park, racism, black, african american, mary cummins, real estate appraiser, real estate, los angeles, california, kkk, whites, racist

1924 the City of Manhattan Beach voted to condemn Bruce's Beach to build a park. Condemnation proceedings began against the Bruces. This article below states it was racism and hatred against the Bruces and black people. I transcribed the article below the image of the article. The land ended up being vacant for 30 years and no park was built until many years later. They should have won the lawsuit but lost because of judicial corruption against black people. Must have been depressing to be a lawyer representing black people back in the day. Even today it's depressing trying to stand up for your rights in places with judicial corruption like good ole boy Texas and the South. 

December 26, 1924, California Eagle

Bruce's Beach, Bruce Beach, Willa Bruce, Charles Bruce, park, racism, black, african american, mary cummins, real estate appraiser, real estate, los angeles, california, kkk, whites, racist
Bruce's Beach, Bruce Beach, Willa Bruce, Charles Bruce, park, racism, black, african american, mary cummins, real estate appraiser, real estate, los angeles, california, kkk, whites, racist



"Bruce's Beach Fights Condemnation. Mr and Mrs Chas. A Bruce and their son, owners of Bruces Beach, are facing an action in the Superior Court filed by the City of Manhattan in which that city, seeks to condemn all the property owned by colored people at Manhattan Beach, under the pretext that it is to be named for a public park.

Bruces Beach. as it is commonly called is one of the best known resorts patronized by our people in the State of California, and many outings and parties have been held there during the past fourteen years the Bruces have maintained it. 

The Bruces have won an enviable reputation by reason of the upright and Chi??? conduct, and even their enemies at Manhattan Beach who are fostering the papers to confiscate this property under the guise of 'condemnation' proceedings, admit that their conduct has been exemplary and the management of the place of the highest order. 

Atty. Willis O. Tyler has been engaged to prosecute the defense of the Bruces and is preparing an answer to the Condemnation Proceedings in which he will set out the fact that racial prejudice is the real question to be tried and that there is no necessity for the condemnation of the Bruce' property for park purposes. In fact, says Atty. Tyler, there is much vacant-property on both the north  and south side of the property which could have been obtained and the fact that the city seeks to restrict its proposed park to the property owned by colored people duly is palpable attempt to use the condemnation proceedings as a ruse to carry out the race prejudice which has taken this particular form of objection to members of our group having the right to enjoy bathing in the Pacific ocean." 

Turns out the city condemned 30 lots total for the park, see the link below I just found. Five were owned by blacks and 25 were owned by whites. Some had shacks and some were vacant. Allegedly the amount of money paid for the land was more than market value at the time. This caused citizens to be upset that the city spent so much money over paying for the land for a park. The 1929 condemnation payments were for about $100 to $2,900 per lot. The Bruces received about $14,500 for the two lots of land in the condemnation process though their lots were improved. One person received $1,300 and another received $2,900 for one lot in the same block 5. These lots also faced the ocean and were right next to the Bruce's lot. Based on this settlement it appears the Bruces were paid over market for their land. It appears they were paid more than many of the white people. Still, they didn't want to sell and the city didn't build the park. It was an abuse of the condemnation process to run out the Bruces. I feel the white neighbors pressured the city to condemn the land for a park just to push the Bruces out of the area due to racism.

I found some land values from newspapers.com for PECK'S MANHATTAN BEACH TRACT. 1905 the land was offered for $350 to $800. At the same time someone else was offering them for $550 to $1,100. 1908 block 2 lot 11 sold for $10. 1907 lot 1 block 12 sold for $10. Based on what I'm seeing the Bruce's over paid for the property when they first bought it. I assume they were happy that someone would sell them the land as most wouldn't sell to black people at that time. Allegedly Peck sold two blocks to black people via a black real estate agent. The agent and Peck clearly ripped them off for profit. Peck also ripped off white people as it was a less desirable area. This area was farther from the pier and other development. That's why it was vacant for so long. That's probably why Peck allowed black people to buy it. Thank god things have improved though we are still far away from any real equality. The Bruce's paid $10 for their second lot in 1920 when they earlier paid $1,225 for their first identical directly adjacent lot.

I decided to do a historical evaluation of the land as of 1929 when the Bruce's were paid for the land. Lots were still asking $375 from George H. Peck. That's the same price he was asking in 1905. He didn't get it in 1905 and doubt he got asking in 1929. In 1926 the city of Manhattan Beach bought 36 lots on The Strand in a more desirable area north of the Bruce's lots for $75 a front foot from Peck. The Bruce's lots were 33' wide each so that would be $4,950. The Bruce's lots were in a much less desirable area farther from the pier and development. Even then the citizens of Manhattan Beach said the city paid too much for Peck's land. It appears Peck had a good "relationship" with the city for them to pay such a premium for his lots over others. 1929 ocean view lots on the sand in Manhattan Beach for $595 asking max. 

I stumbled upon other news items concerning the Manhattan Beach parks in 1929. The city was going to turn those sites into parks. They stated they couldn't afford to maintain the parks so they asked Los Angeles County to lease and maintain them as a county park. California had just offered $3,000,000 funding for cities, counties to buy land for parks from private parties. The county agreed to take over George H Peck's 1/2 long strip of The Strand June 1929. I think this may have been the strip of land Bruce's patrons were not allowed to cross over so they had to walk 1/2 mile up and around that strip to get to the ocean. That may be a different strip but it's the same sand strip in front of The Strand boardwalk which we now call "The Strand." Based on everything I've seen the Bruces were paid over market value for their land in 1929. Still, they didn't want to sell.  

This land used to be somewhat worthless as it was sand dunes. It was kind of like swamp land back in the day. The land speculators made a ton of money selling the land. Of course Peck liked selling them the land as he made out like a bandit. He over charged many people. Manhattan Beach eventually ended up hauling away the sand dunes and selling the sand to be used in construction elsewhere years later. There is only one sand dune left in Manhattan today.

Willie "Willa" Bruce died September 5, 1934 in Los Angeles, California. "BEACH OWNER PASSES Mrs. Willie Ann Bruce, proprietor of Bruces beach, passed away after a long illness - September 5 Funeral services were held from the First AME church, Eighth and Towne, with Rev. J. B. Isaacs officiating. She is survived by a son, daughter and grandson, all of Los Angeles."

Based on records she had five children but only one survived, her son Harvey Anthony Bruce who died in 1954. Harvey had two sons, Harvey and Bernard who are both dead. I assume they have children. 

Governor Gavin Newson signed Senate Bill SB 796 in 2021 allowing the State of California to allow Los Angeles County to give the land to the Bruce family. 

Information about the land and value

Based on everything I've read the two lots are 33' x 100' each. They are located at 2600 The Strand, Manhattan Beach, California 90266, see map below. The original address was 2608 The Strand, Redondo Beach, CA. The Los Angeles County Lifeguard Training Facility is located directly on top of the land. The County offered to give them the exact two lots or two lots in the parking lot directly next to them. The County also offered to continue to use the land and just pay them rent. 


Below are the parcels circled in red and a satellite image of the same. I don't know exactly which two parcels they are so I'll assume they are interior lots and not a corner. Update, first lot was lot 8 of block 5. They bought lot 9 for $10 in 1920. Both interior lots. The legal description of the entire site today which includes six lots is PECK'S MANHATTAN BEACH TRACT  LOTS 5,6,7,8,9 AND LOT 10. The Los Angeles County Tax Assessor number is 4177-024-901.



Below is a satellite image of the site. It's at the red tiled Lifeguard Training Center building. The Center and its parking lot are six lots. Two of the lots are the lots in question. 


There is more land located on the other side of The Strand which meets the sand. This is the strip of land which used to be owned by George Peck. That land is now owned by the county and Federal government. I think they may have taken it by condemnation. It makes you wonder if the county would have taken Bruce's land by condemnation for the Lifeguard Center years later if Manhattan hadn't taken the land for a park. Of course the Lifeguard Center only took the land because it was a vacant park.

I've appraised a lot of property in this area on The Strand. I don't think the two lots are worth $75,000,000. I pity whoever does the appraisal  because if they don't come in around $75,000,000, they'll probably be called a racist, get negative reviews on their business, death threats and maybe even some complaints against their license. I know that sites right next to those lots are single family homes and duplexes. The lot would have ended up single family zoned if it wasn't condemned for a park. The Bruces were living at the property. It was sold as lots for homes. I pulled all properties located on The Strand right next to the site sold within the last two years. Obviously there are no land sales. If we look at the cheapest home, duplex sales on The Strand with similar sized lots we can get the land value. 

2316 The Strand 5,715 sf lot with 5,500 sf 6 bed, 7 bath home sold 09/2021 for $16.5M newer home.

2508 The Strand 4,556 sf lot with 5,328 sf 4 bed, 5 bath home sold 09/2021 for $12.2M newer home.

2804 The Strand 3,481 sf lot with 3,469 sf 4 bed, 4 bath home listed for $16.4M didn't sell older home. 

2722 The Strand 6,927 sf lot with 6,000 sf 8 bed, 9 bath duplex sold for $17.7M 11/2020 built 1951 sold for land value as a double lot. 

2508 The Strand

Just for a high ballpark figure we can use 2508 The Strand one block away. This has a newer luxury quality amazing house on it and it just sold. If it were only land, it would have sold for $2,677/ft. Obviously the land is worth less than that because it has an amazing house on it. 6,666 sf Bruce Beach site x $2,677 is $17.8M. This would be the maximum, maximum the site would be worth today if it were sold on the open market.

Fortunately 2722 The Strand sold 11/2020 for $17.7M as a double lot development for land value. It's two blocks away. This is slightly larger than the Bruce site. Based on all I've seen the current market value for the site is somewhere about around $17.7M. This is not an appraisal as I have not inspected the site and don't know all the limitations and issues with the site. It might not be possible to build anything on the property today because of the California Coastal Commission, it's in a tsunami zone and low laying area. There could also be an issue because there's a lifeguard tower in front of the site. There is also the other piece of county land that is between the property and the beach/ocean. This is not waterfront property. If that's the case, they should just rent the site to the County Lifeguard Center as is. If they try to develop it or sell it for development, I see a lot of litigation, costs and hassles by neighbors and government agencies. 

It'll be interesting to see if this opens up the flood gates for more people wanting back the land they sold, gave away, had condemned, stolen by the government years ago. I could really see Native American Indians asking for their land back. Their land was stolen outright except for a few who sold though not on fair terms. Some original Mexican owners who owned the land after Native American Indians would also be entitled to some land as well. They had their land stolen or swindled from them. I could see others just wanting to renegotiate or take advantage of the huge increase in real estate values. 

UPDATE: A recent article stated the Los Angeles County Tax Assessor will be reappraising the property with "no zoning restrictions as is." I assume this will be for tax purposes of the assessor is appraising it. If they charge transfer tax or capital gains, there will be a huge tax. They'd have to sell or lease it back instantly. No zoning restrictions means it could be used as commercial, retail, hotel ... anything. I appraised it as it's most likely zoning which is residential. It would be worth more with no zoning restrictions. As they are only two small interior lots bounded by the Life Guard building and parking lot there is no way they would really build anything like a hotel or restaurant. With the Coastal Commission, single family neighbors, NIMBYs and others I doubt they could build anything other than residential. At that point I think the Life Guard would have to move the center entirely. 

Just found this great history of the Bruce's and their land after I wrote the article.

https://www.manhattanbeach.gov/home/showpublisheddocument?id=46093

Nice Powerpoint presentation

https://www.manhattanbeach.gov/home/showpublisheddocument/44319/637333659463800000

Here is a thesis someone wrote about Bruce's Beach from 1956. 

https://scholarworks.calstate.edu/downloads/xk81jm67x

Los Angeles County report on how the land would be returned. They suggest maybe swapping some land in the park for the two lots. Many suggestions. 

http://file.lacounty.gov/SDSInter/bos/bc/1109402_BoardMemo-ReturningBruce_sBeachtoitsRightfulOwners-6-30-21.pdf

Here's a map of tract 8867 which shows people used to own the lots basically on the sand west of The Strand. All that land now belongs to the government as the high tide lines have changed. 

https://pw.lacounty.gov/sur/nas/landrecords/tract/MB0115/TR0115-082.pdf

Another old plat map before the area was further subdivided 

https://pw.lacounty.gov/sur/nas/landrecords/tract/MB0028/TR0028-041.pdf

Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.


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Friday, May 10, 2013

Real estate agents, add an appraisal clause to your contract - by Mary Cummins real estate appraiser

Attention real estate agents. Please, add an appraisal clause to your offers, contracts. Here's a sample, "If the appraised value is $10,000 less than the contract price, buyer will make up the difference in cash. If the appraised value is more than $10,000 less than the contract price, buyer has option to make up the difference in cash or cancel contract for full return of deposit." You can also state that if the appraised value is less than contract price, you can just walk with your deposit. I'm talking about the appraisal value for homes selling for cash with appraisal clauses or homes selling with loans that need appraisals.

AMCs and banks are giving us strict orders on comparables we can use and adjustments we can make. For an average home we must use comps +/- 15% difference in gross living area, within one mile radius, sold within the last 12 months and currently listed. I don't want to see anyone lose their deposit. Properties in my area are selling over list with multiple offers because there are so few good properties currently listed. Getting them to appraise is difficult. There are fewer listings which mean fewer sales which can be used as comparables. In general most of the inventory needs work. It's difficult to appraiser a home in great condition if all other sales were distressed sales that need complete renovations. We can make the adjustments but still need to bracket the sales price which can be tough.

Search the internet for other appraisal clauses. I am not an attorney. Talk to an attorney about any sales contract or offers.

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.

 

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.


Google+ Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary Cummins-Cobb, Mary, Cummins, Cobb, wildlife, wild, animal, rescue, wildlife rehabilitation, wildlife rehabilitator, fish, game, los angeles, california, united states, squirrel, raccoon, fox, skunk, opossum, coyote, bobcat, manual, instructor, speaker, humane, nuisance, control, pest, trap, exclude, deter, green, non-profit, nonprofit, non, profit, ill, injured, orphaned, exhibit, exhibitor, usda, united states department of agriculture, hsus, humane society, peta, ndart, humane academy, humane officer, animal legal defense fund, animal cruelty, investigation, peace officer, animal, cruelty, abuse, neglect #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit

Friday, August 10, 2012

Sample AMC appraisal guidelines to help real estate agents understand requirements of reports - Mary Cummins

Mary Cummins, Cummins Real Estate Services

 

This article is a response to an article in "Valuation Review." The article is titled  "Survey: Realtors report contracts still impacted by low appraisals. 'Realtors reported that a percentage of contracts are being canceled, delayed or renegotiated due to low valuations, blaming the process, inappropriate comparables, lender demands and AMC requirements for the issues that still plague the marketplace.'" 

 

 
Below is a sample of an Appraisal Management Company's (AMC) instructions to real estate appraisers. I took out all identifying information of the AMC and replaced it with “---.” People need to realize that we must follow all of these instructions. In the current market it is sometimes difficult if not impossible to find comparables that are similar to the subject and conform to these guidelines. In the past if we could not find comparables that met the guidelines, we could deviate and use other comparables as long as we explained things in detail. These guidelines are especially difficult with custom or luxury homes which don’t conform to the average home or with comparables that are short sales or foreclosures.
 
As you can see from these guidelines, appraisers now must do three times as much work than in previous years. Appraisers are now being paid less than half of the appraisal fee. The rest of the fee goes to the AMC. If we don’t follow these guidelines, we don’t get paid anything. If the client cancels the purchase or refinance contract, we also don’t get paid. If we are late, we don’t get paid. On top of this AMCs are making all orders rush orders. We have to complete all of this in two days from when the order was placed online, not from when we see the order or when we inspect the property. It sometimes takes a couple of calls to get an appointment to view, measure, inspect and photograph the subject property. Nowadays every appraisal is like a race. With condos it’s even more difficult as we must get information from the HOA or management company. 
 
I’m writing this just so people understand everything that’s involved in an appraisal for a conventional loan for purchase or refinance with a regular bank. 
 
----------------------------------------------------------------
 
“By accepting this assignment, the appraiser is acknowledging geographic familiarity and competence to complete and provide a supported opinion of value in compliance with USPAP and adherence to Fannie Mae, Freddie Mac and all other agency guidelines. The appraiser must act and dress professionally while inspecting the subject property. The appraisal will be relied on to make a lending decision, the reader of the report must be able to understand how the appraiser arrived at their conclusion.
 
================================================= 
DO NOT PROCEED if the following conditions apply...
================================================= 
 
  • IF THE SUBJECT’S PRODUCT TYPE DIFFERS FROM THE ENGAGEMENT LETTER – STOP AND CALL --- 
  • * If the subject is a refinance but is currently listed or has been listed for sale in the prior 180 days.
  • You are not the appraiser specifically named on this order for this property as you may NOT BE PAID for the report. 
  • * Subject property is a manufactured and or mobile home. Manufactured home is defined as “any dwelling unit built on a permanent chassis, including those attached to a permanent foundation system.” 
  • * Subject property is under construction or in the process of remodel 
  • * If the Subject property is rated less than average (C5 or C6) please stop and call ---. At inspection, please take a photo of any/all factors effecting condition. You will be asked to either write a brief addendum about the condition or will be advised to complete the report "subject to repair". 
  • * If the subject has significant mold issues that need to be remediated. 
  • * If the subject is an SFR but also is income producing (i.e. working farms, beauty shop, dog kennels, dental or accounting office’s).
If you encounter ANY of the above situations, please contact your --- Order Specialist immediately for further instructions. If appraisal is completed without notifying ---, appraiser may not be paid.
 
==================== SPECIAL REQUIREMENTS ====================
 
 *** Our client requires that you attempt to contact the borrower/access provider within 24 hours of receiving this order. Please contact us immediately if you have any problems gaining access to the property. ***
 
  • COST APPROACH section must be filled out. The source of the cost figures must be included in the report. In addition, the appraiser must document the depreciation method. The appraiser should not back into the estimated land value. Where possible, vacant land sales should be referenced. 
  • If the land to value ratio for the subject exceeds 30%, a detailed explanation is required; if the land to value ratio for the subject exceeds 80%, call --- for further direction.
  • If your subject is located in a market where marketing times exceed 6 months, then your report must include support and detailed explanation for marketing times exceeding 6 months and its impact on value. Also, the majority of your comps should show "days on market" greater than 180 days. 
  • If the subject property has security bars, you must mention if the bars have safety release latches, and if they are in compliance with local fire/safety codes.
  • If the subject is a purchase transaction, the SALES CONTRACT AND ALL ADDENDA MUST BE REVIEWED AND the impact of financing and sales concessions, if any and their effect on value should be properly analyzed. Note: The sales contract is considered a relevant piece of market data. In cases where the estimate of value falls below the contract, please provide a complete reconciliation providing the reasoning that supports the value conclusion.
  • If the subject is a refinance and vacant, please check to see that utilities are working. Please add this information to the report.
 
---------------------- LICENSING REQUIREMENTS ---------------------- 
 
  • Only a State Certified or State Licensed appraiser may complete the assignment. 
  • If the subject property is valued over $1 million, a Certified Residential Appraiser or higher is required to complete the report.
------------------- REPORT REQUIREMENTS -------------------
 
 For Single Family Residence and Site Condo in condo projects that consist solely of detached dwellings use form 1004. 
  • Itemized Cost to Cure is required ONLY when repairs are needed. (List cost for each individual repair item and a total cost to cure). All repair items require a photograph. If Health and safety issues are noted, please complete the report "Subject to" Health and safety items only. All other repair items should be considered in a cost to cure. Photographs are required. 
  • ACREAGE – Client requires the total site area to be included in the appraisal value (i.e. if the public record indicated a site of 64 acres, then all 64 acres are to be valued in the report.) 
  • WELL/SEPTIC - If the subject is on well and/or Septic, you must comment if this is typical for the area and if there is any impact on value. 
  • Sales and/or Listings should bracket the subject's gross living area (GLA). If this is not possible, please provide a detailed explanation.
  • If the subject's final value conclusion is above the predominate value for the area, a detailed explanation is required to explain why it is.
  • You must have two data sources for all sales in your report. One can be public records or a public records data provider but the other data source should be MLS, or builder, or broker, or agent or seller or buyer etc. It is not acceptable for the second data source to be "exterior inspection".
  • Comment on any external factors stating what type of structures or land uses are present, if they affect marketability (positive or negative) or are considered an external obsolescence (in which the box on page 1 of the URAR should be marked YES for site conditions/external factors). Address whether or not the comparables shares similar influences.
  • For RURAL: If dated or distant comps are used in your report it is mandatory that a complete and detailed discussion be made in the report about what lengths you went to find more recent and closer comps and a detailed reconciliation on which comp(s) get most weight in your appraisal.
----------------------- COMPARABLE REQUIREMENTS -----------------------
 
  • 3 Closed Comparable Sales. All comparables must be within 1 mile from subject and sold within the last 6 months. NOTE: If comparable sales exceed proximity/sale criteria, detailed explanation is required. 
  • Provide 1 Comparable listing, if available. (TWO listings are required in a "declining" market.) Listings must support the value estimate. 
  • Please provide days on market (DOM) for each listing or pending comparable property used in the report. This would include total days on market not just the days on market since the last price reduction. 
  • If the subject property is valued over $1 million, a total of five comparables are required, the required 3 sales above, and any two additional comparables, either active pending or sold. Any other sales considered relevant, however not comparable, should be narrated within the supplemental addendum. 
  • You must make list price to sales price ratio adjustments to any listing or pending comps used in your report, or provide commentary to explain that no list price to sales price adjustment is warranted when not made. 
  • The appraiser must provide a reconciliation of the sales comparison approach. Specifically, why each of the comps used in the report were chosen and which comp(s) are given most weight in the appraisal and why. This is in addition to the reconciliation of the 3 approaches to value. 
  • Market and Time Adjustments – Time adjustments must be explained and supported with market data.
  • Across the grid adjustments – All positive or negative adjustments made to all comparables require explanation and market support. These are specific adjustments for condition, construction quality, view and location. (Example: If first 3 comparable sales are in inferior condition, it is necessary to provide a 4th comparable sale in similar condition even if it is dated or a distant sale.) 
  • A wide unadjusted range with only less conforming comparables available (causing line, net, and gross adjustments to exceed typical guidelines) requires detailed support for individual adjustments and adequate commentary is critical for underwriting purposes. Lastly, with the challenging comp data resulting in a report with higher adjustments or a wider adjusted range, the reconciliation commentary on the report needs to be very specific as to the weighting of the comparables and why as to arriving at the final estimate of value. 
  • An explanation is required on the adjustments to the comparable sales whenever the gross adjustment exceed 25% and net adjustments exceed 15%. Please be certain that the gross living area adjustments per square foot for the comparables are consistent. *An explanation is required when using comparables with a GLA variance greater than 20% * When use of dated or distant comps is necessary, justification for their use must be included. A thorough explanation of the available market data and the expanded search parameters utilized is expected.
------------------ PHOTO REQUIREMENTS ------------------ 
  • Front, rear and street scene of the subject property. 
  • Interior photographs, which must, at a minimum, include: – the kitchen; – all bathrooms; – main living area; – examples of physical deterioration, if present; and – examples of recent updates, such as restoration, remodeling, and renovation, if present. 
  • Photos of pools, outbuildings, views (if applicable). 
  • Photos of any deferred maintenance that would affect property value.
  • Original front photos of each comparables used. If MLS photos are used, a current photo taken by the appraiser is still required. Clients will only accept MLS photo if comp is in an inaccessible community. Appraiser then must provide photo of obstacle as well and a detailed explanation.
NOTE: Please DO NOT include pictures of people on any of the images in the report.
 
---------------- REQUIRED EXHIBITS ---------------- 
  • Location map with subject and comparables used. 
  • Subject building sketch – Sketches must include all outside dimensions, calculations, labels for all rooms and out buildings. 
  • 1004MC form 
  • A copy of the appraiser's license is required in the report.
--- and --- requirements and advisements Advisement on Private Streets 
Private Street properties only
  1. Report to provide details on whether a written private street agreement exists. 
  2. Identification of the comparables being located on private or public streets is required.
  3. Commentary on market reaction to private versus public street location is to be included.
Advisement on Adverse or Functional issues 
  • Make sure the appraiser has fully described the functional issue. 
  • Make sure the appraiser has fully analyzed the functional issue. 
  • Provide photographs
  • Make sure the appraiser has fully assessed and proven the impact on value and marketability on any adverse condition.
  • Atypical Properties 
  • Common mistake: insufficient information; make sure there is detail about what makes the subject atypical and unique. 
  • Please make sure the appraiser discusses if the subject would compete with other homes in the market 
  • Describe the type of buyer that would be interested in this kind of home in this market and discuss if it is a limited buyer pool.
  • When possible, provide homes with similar impairment or similar functional issues
Requirement on Non Permitted Additions: This is a condition of assignment
Non-permitted or non-verifiable as permitted living areas should be analyzed for their potential impact on value and adjusted. This could result in either positive or negative adjustments. Simply ignoring non-permitted areas is not acceptable. You must provide your source used to determine the additions were not permitted.
 
Non-permitted additions may be common and typical in some areas, having both market acceptance and a positive market reaction related to their perceived value.
 
In situations of non-permitted additions, please answer the list of questions below and complete the report being sure to address each issue within the addendum. The report addendum should summarize the itemized points listed below and should contain at least 1 comparable with a similar unpermitted feature to demonstrate it as being common and typical for the area and to support market acceptance. 
  1. Completed in a workmanlike manner? 
  2. Common and typical for the area? 
  3. Provides contributory value? 
  4. Are comparables with similar non-permitted improvements available and can be utilized in the report? 
  5. Affect on marketability is positive?
  6. Conforms to zoning? 
  7. Property could transfer without obtaining the lacking permits? 
  8. Property could transfer without demolition of the addition? 
  9. If destroyed, could all of the existing improvements be rebuilt?
 
If the quality of the added improvement is consistent with the existing dwelling, market acceptance and positive reaction exists, and there can be a reasonable expectation of its permanency, the client will recognize the non-permitted area as acceptable collateral for loan purposes. In most cases the additional living area will be reflected in the GLA; however an acceptable alternative is to account for it as a separate line item adjustment. The later may be more appropriate if the justifiable rate of adjustment for the non-permitted area is different than the GLA rate, and necessary if the non-permitted area is detached from the main dwelling as would be the case in the examples of a pool house or an in-law cottage.
 
If the non-permitted addition or modification has resulted in creating any health & safety issues that must be remedied, then the report needs to be made SUBJECT TO only the necessary repairs or alterations to remedy the H&S concerns.
 
**In California - --- does not require the appraiser to determine if Co2 detectors are present and the report should not be made "subject to" simply based on the lack of the co2 detectors.
 
All appraisal reports are subject to appraisal review. You may be contacted to provide responses to questions resulting from a review of the appraisal report. Additional research, analysis/and or supplemental appraisal information may be requested.
 
SUBMITTING THE REPORT 
 
For *** **
 
*** DO NOT submit invoice with completed report. Invoices are paid 30 days upon completion of the order. Please be reminded that the order will ONLY be considered complete once our client accepted the appraisal report. In the meantime, you must
be available to make ANY corrections/revisions, if necessary.
 
It is important that all instructions and requirements mentioned above have been fulfilled before submitting the report to prevent any delays. Failure to comply with all the requirements will result in non-payment of the order.

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.


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