Mary Cummins, Real Estate Appraiser, Real Estate Appraisal, Los Angeles, California, Mary Cummins.

Mary Cummins is a real estate appraiser in Los Angeles, California with 38+ years of experience. Cummins provides real estate appraisals for banks, lenders, mortgage brokers, Appraisal Management Companies (AMCs), lawyers, Courts, factors and private parties for lending, lawsuits, probate, estate planning, divorce and all types of litigation. Cummins provides 1004, 1073, 1025 and other form reports, narrative reports and historical appraisals besides real estate research and appraisal advice.

Showing posts with label survey. Show all posts

Monday, September 27, 2021

Fannie Mae - Racial Bias in Appraisals - by Mary Cummins Real Estate Appraiser, Los Angeles, California

fanniemae survey racial bias in appraisals, real estate appraiser, fannie mae, freddie mac, racial bias, discrimination, survey, fha, home loan, diversity

Fannie Mae just had a survey for appraisers about racial bias in appraising. Oddly enough I didn't receive an email or notice about it even though I'm on the list. Thankfully appraisers are sharing the survey. It'd be nice if the appraiser organizations would also share the survey besides the government notifying interested parties.

I think a survey is a good start. While there is currently a lot of talk about bias in appraising in the media I don't believe there is actually that much bias in appraising. It's a math formula based on numbers. At least a couple of software programs and then a few different people review each appraisal. The lenders, AMCs want the deal to go through. If they thought the appraiser was biased and killing their deals, they'd end up on the do not use lists and never be used again.

There is a lot of talk about bias in the media. The three main media stories about racial bias have been false. I did a FOIA request to get a copy of the investigation results of two of the cases in which people filed complaints. One didn't file a complaint. I'm still waiting for results. HUD makes it difficult by forcing you to file a new FOIA every 30 days because the investigation isn't complete. All other government departments only make you file one. They give you the results of the investigation when it's over.

Below are some of the questions. I am including my answers to the two free form questions at the end.

Question: "What can appraisers do to decrease racial bias in appraisals and incidents that increase reputational risk for the profession?"

(My response is to the second part of the question) "Appraisers should explain appraisal theory, methodology, comparable search, comparable adjustments, comparison of the subject to the comparables, why specific comparables were chosen over others, comments and overall report better for lay people buyers, sellers who will read it even though they are not the client. This is important because they are the ones who complain, file complaints and tell the media their generally mistaken interpretation of the report i.e. any value which doesn't meet their expectation "must be racial bias." Fannie Mae could add a form for lay people so they can properly understand, interpret the report and know how to properly request a reconsideration of value if merited."

Question: "What can Fannie Mae do to decrease racial bias in appraisals?"

Answer: "While I agree racism and racial bias exist I don't feel it's a major issue in appraising today. Buyers, sellers, agents are upset that appraisal values aren't meeting contract price which is currently higher that market value due to lack of inventory and low interest rates. People refinancing are upset that values aren't meeting their false high perceptions of value of their home. Fannie Mae can help reduce the false perception of mass racial bias with buyer, seller, agent education about appraisal theory, process, reports and how to submit merited reconsideration of value requests."

I personally feel that there are some people that will take some rejections and automatically assume bias because they've been discriminated against in the past. Some of these people need education about appraisals and valuations. Three appraisers can appraise the same property and come up with three different numbers. The variation should be slight if we're talking average sized tract homes, condos in areas with median prices homes, a sufficient turnover rate, home supply and a median density. There will be more variation on the extreme ends of value. Even Zillow admits this with their algorithms. That's why they don't give a Zestimate for homes above or below a certain price range. They also don't give Zestimates in areas of lower priced homes because their formula is not as accurate with limited data, older homes and homes in inferior condition. This is per Zillow themselves. Corelogic has a similar statement about their estimates.

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

Mary Cummins

Mary Cummins of Cummins Real Estate Services has been in real estate since 1983, over 35 years. She is licensed by the Bureau of Real Estate Appraisers. Mary Cummins was an agent and broker licensed with the California Department of Real Estate selling residential income, commercial buildings, raw land and homes for Merrill Lynch Realty in Beverly Hills and Westside Properties in Los Angeles before concentrating on appraisals. Mary Cummins currently provides real estate appraisals, expert witness testimony, historical research, legal real estate research for mortgage brokers, banks, lawyers, factors, insurance companies, financial consultants and private individuals. Mary Cummins was born and raised in Southern California. Cummins attended Beverly Hills Good Shepherd Catholic School and Beverly Hills High School. Besides being on the Dean's list, Mary Cummins was a top ten national swimmer and competed on the men's water polo team. Mary Cummins began college at the age of 15 attending the University of Southern California on scholarship, majoring in Psychology/Sociology. http://www.animaladvocates.us http://www.facebook.com/AnimalAdvocatesUSA

Monday, August 9, 2021

Measuring, describing land using metes and bounds, PLSS, lot and block and parcel numbers by Mary Cummins

mary cummins, real estate, appraiser, los angeles, california, plss, metes and bounds, land, real estate, real property, public land survey system, tax assessor parcel number, apn, lot, block, map, plot, plat, subdivision, tract, prime meridian, base line, section, township, range, tax assessor, parcel, assessor, survey, measure, describe, book, page, how to read, los angeles county

The original means of property descriptions and measurements in the US was the metes and bounds method. Metes and bounds was originally used in England for centuries then brought to the US with the first colonies. The "metes" are the length of the runs in a direction and the "bounds" are the boundaries. Below is an example of an older metes and bounds description of property one might find in a 17th century US land deed.

"Commencing at a corner at the intersection of two stone walls near an apple tree on the north side of Muddy Creek road one mile above the junction of Muddy and Indian Creeks, thence north for 150 rods to the end of the stone wall bordering the road, thence northwest along a line to a large standing rock on the corner of the property now or formerly belonging to John Smith, thence west 150 rods to the corner of a barn near a large oak tree, thence south to Muddy Creek road, thence down the side of the creek road to the point of commencement."

Modern day property measurement and description use the government survey system or Public Land Survey System PLSS. The PLSS system is based on set principle meridian and base lines across the US based on exact locations using longitude and latitude. Using the base lines the land is divided into sections, townships and ranges, see image above.

A section is one-square-mile block of land. There are 36 sections in a survey township. A township is a square parcel of land of 36 square miles, or a measure of the distance north or south from a referenced baseline, in units of six miles. See image below.

An example of the PLSS description would be "the Northeast quarter of the Northeast quarter of Section 10, Township 3 South, Range 68 West of the 6th Principal Meridian, Arapahoe County, Colorado" or "NE/4 NE/4 of Section 10, T-3-S, R-68-W, 6th P.M., Arapahoe County, Colorado."

In the city the most common type of legal property description and measurement is the subdivision tract, lot and block method. After describing land using PLSS it's further divided into smaller tracts of land which are then divided into lots and blocks via plat maps. A plat map, also known as a “plat,” shows you how a tract of land is divided into lots in your county. It is drawn to scale and records the land's size, boundary locations, nearby streets, flood zones, and any easements or rights of way. A plot map is a single plot or piece of land. Below is a description of real property using the subdivision and lot names and numbers. Subdivisions or tracts can have regular names such as "Highland Park" or use numbers.

Lots 6, 7, and the South ½ of Lot 3, West 60 feet of South ½ of Lot 4, West 60 feet of Lot 5 and Lot 8, Block 20, OLD SURVEY, Leesville, Vernon Parish, Louisiana.

If it were just one full lot in a subdivision, the description could be just TRACT # 14386 LOT 286.

We also use the Tax Assessor Parcel Number (APN) to describe property. The APN uses the Tax Assessor’s Book Number, Page Number and the individual Parcel Number. An example of a parcel number in Los Angeles county would be 4248-005-021 where the first four numbers are the book number, next three are the book page number and the last number is the parcel number. Below is an image which explains Los Angeles County plat maps. Click to see larger.

Here's a specific example of a Los Angeles county legal description and APN. I'm using a property that includes parts of two lots to make it more complex. The legal description is "WESTMORELAND HEIGHTS TRACT S 41 FT OF LOT 43 AND N 20 FT OF LOT 44." This is an old tract so it has a name instead of a number. The Assessor's Parcel Number is 5074-019-004. The last number of the APN is in the pink circle, i.e. 4. The red arrow is pointing to the specific piece of land. It's the south 41 feet of lot 43 and the north 20 feet of lot 44. You can see the measurements on the lot lines, i.e. 20' x 41'. You see a lot tie or hook symbol in between lots 43 and 44 which shows the lots are tied together. It looks like a tall "Z" like this image and can be angled like an italic "Z." Click images to see larger.

When you buy real estate you are actually buying only the land. Legally this entitles you to anything permanently affixed to the land. If you look at a real estate deed you will only see the legal description and the tax assessor parcel number. You don't see a description of the home or any other structures on the land. In the US the main types of land descriptions and measurements are the Public Land Survey System PLSS, lot & block description and tax assessor parcel map and numbers.

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

Mary Cummins

Friday, January 10, 2020

Construction process, costs today are exponentially higher than 1900's, 1950's - Mary Cummins

Real estate construction costs, rising, permits, survey, architect, land costs, labor, materials, utilities, mary cummins, real estate, appraiser, appraisal, Los Angeles, California

Many people today have no idea how much it costs to build a new housing unit. Some are aghast at the $500K/unit estimate given to build housing units for the homeless or anyone. People also have no idea how long and difficult the process is today. Back in 1900 all you had to do at most was submit a two page form to the city and pay for the permits. You didn't need an architect, survey, soils, geological, engineer or even a drawing. You didn't need approval from your neighbors, other city departments, historical overlay zone committee members, building and safety, zoning and planning, dept of transportation... The cost today to build a unit is easily 100x what it was back in the day. It's also exponentially more difficult today. Today because there is no vacant land you have to demolish an existing structure and pay millions for the land. Then you have to deal with even more agencies and people. This article should explain some of the changes and challenges we face today.

Below is a complex building permit application which was approved. It's a two story 1906 very good quality home in Los Angeles. It cost $3,000 to build about 3,000 sf or $1/sf. This included everything for this high quality home. This was very, very expensive in 1906. This home exists today.

This home was built in a more rural area of Los Angeles in 1934. 672 sf for $1,000 or $1.40/sf. Look at this form. No architect, engineer, contractor. You could built it yourself. You didn't need a licensed contractor, plumber, electrician. There were no building and safety regulations or planning and zoning and no inspections. You want to build a house or school right next to a liquor store, highway, industrial plant? Okay.

This home was built in 1952. Again, no architect, engineer but there's a contractor because this person doesn't want to build it himself. Can you imagine no building and safety regulations? This time there is a little sketch. 2,200 sf built for $8,300 or $3.77/sf. That's it.

Below is the budget for a four-plex in the city of Los Angeles. This is the actual budget. Again, not my client. They paid $1.1M to buy a tear down home on an R2 lot. It cost $2,000,000 to build four units or $500,000 per unit. This developer is highly experienced. This soon to be property is in a not so good area of Los Angeles. This doesn't include a lot of other costs such as selling commission, transfer fees, property taxes...if they sell it. These people hold property and don't sell it. They'd have to sell over $2,000,000 to make a profit. We appraisers figure in a 20% profit so they would most likely sell it for $2,400,000 which seems about right based on the area. These are not luxury units. They are bare bones basic minimum requirement units. They're built dormitory style as if for students.

Cut to the chase today, 2020. It easily costs $175/sf to build an average low quality home. The amount of paperwork involved would be at least 3-5 feet tall not including plans and surveys. This cost doesn't include architect, survey, engineer, geo, soils, grading, utility hookups, appliances, finishes... It also doesn't include time, effort and money getting approvals from building and safety, planning and zoning, neighbors, NIMBYs, neighborhood lobbyists/extortionists, HPOZ Committee, transportation... It doesn't include mortgage payments, insurance during pre-contruction and during construction. It doesn't consider that you can only choose a piece of property with a very specific zoning in a very specific area. It can easily take two years from permit application to breaking ground. That's two years of holding costs just to do nothing. After you break ground it could take another year to have building and safety inspect the electrical, plumbing, mechanical... elements of your home so you can continue to the next step. It could take up to two more years getting a Certificate of Occupancy. All of these things take a lot of time and money.

This is why Mayor Eric Garcetti can fund a housing a project and not have a grand opening for at least two to five years. I was on the Prop F Committee to build the new animal shelters and fire stations. I've gone through the process over years with the City Committee. They actually did a really good job staying on top of things even when issues arose. Still, it took years and wasn't cheap.

The high cost of land, construction materials/labor, excessive red tape, NIMBYs dragging out the costly process is why we have a housing crisis. This is why we need housing for homeless, low income and even low middle class people today. Because of all the obstacles to building new units not enough units have been built over the past 30-40 years which is why rents are so high. It's a basic supply and demand issue. Rent control made the situation worse as landlords left the rental market and few new units could be built.

Some say "developers are just greedy." No, they're not. They're developers. Their goal is to build a project and make money. As an appraiser we figure in 20% developer profit. Many times they don't make 20%. They can end up losing their entire investment because building projects is extremely risky. Other people sell cars, clothing, medical services. They also expect to make a profit. It's just economics.

I've offered many solutions to these problems in my many articles about the housing crisis and solutions. The main solution is to limit NIMBY's power to stop projects. Some cookie cutter 2-8 unit projects should be automatically approved and need no further approvals from neighbors or NIMBYs. I just wrote this quick article so people can see how much it costs and how difficult it is today to build housing. People are yelling at Mayor Eric Garcetti like he is intentionally stalling on building new housing. He is doing everything in his power to build new units. He is stymied by NIMBYs.

Recently there was a project to build 250 units on vacant land with units for homeless, very low income, low income and market rent units. People fought it because they wanted more units for very low income. This was a private developer offering to build low income units when there is no law that states he must build super low income. NIMBYs killed the project. A low income housing unit in the hand is better than two in the bush. NIMBYs are one of the biggest causes of the housing crisis.They have a place to live so eff everyone else.

FYI I have nothing to do with any of the homes listed above which is why I used them. I have never appraised, inspected, sold them. I just pulled some random buildings of specific ages.

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.

Mary Cummins

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

Monday, September 27, 2021

Fannie Mae - Racial Bias in Appraisals - by Mary Cummins Real Estate Appraiser, Los Angeles, California

Monday, August 9, 2021

Measuring, describing land using metes and bounds, PLSS, lot and block and parcel numbers by Mary Cummins

Friday, January 10, 2020

Construction process, costs today are exponentially higher than 1900's, 1950's - Mary Cummins