While much has been written about the multitude of complex reasons behind the collapse of the real estate market in 2007, it is the opinion of this writer that there is one primary reason for the collapse. Simply stated, banks loaned money to borrowers who lacked the ability to pay back the loan. That’s it, pure and simple. If you loan money to someone who has no resources to pay back your loan, you will lose money almost every time and it matters very little if you have any collateral for the loan. This should be known as the prime directive: “Thou shall not loan money to someone who cannot pay you back.” There certainly are many other reasons behind the collapse, but if the “system” had not violated the prime directive the collapse would not have been so sudden, so precipitous, and so prolonged
Real estate appraisers rely heavily on data—and lots of it. They also need reliable E&O coverage to protect the business they've worked so hard to build. Thanks to the new partnership between NDC and CRES, both services are available at one affordable rate with the new “Appraiser One” package.
Between accepting assignments, working with clients, and preparing reports, finding time to meet your state’s continuing education requirements can be a real hassle. However, keeping your license current and in good standing is a must for any real estate professional.
Non-lender work is growing in popularity, as appraisers have grown weary of outrageous AMC demands and competing for low-ball fees. But the grass isn’t always greener on the other side: non-lender work has its cons, and AMC work has its pros. Don’t believe us? We’ve laid out some of the pros and cons of both types of appraisal work.
According to Freddie Mac, fraudulent property flipping schemes is an emerging trend and it raises serious red flags for appraisers and home inspectors. While there are plenty of legitimate and credible property flippers in the market, the rise of flipping schemes puts real estate professionals at high risk of litigation. When in the field, use these tips to help safeguard yourself against potential claims and lawsuits associated with quick and dirty flips.
Insurance: that annoying but potentially beneficial thing we pay good money for and hope to never use. Insurance can protect your car, your business, your family, your home and more. The downside? It can often put a big red target on your back that says “sue me.”
When I was in law school about 100 years ago, my real property professor mentioned “caveat emptor” in almost every class. Loosely translated this means “let the buyer beware.” The legal principle behind “caveat emptor” is that a person who buys something without any kind of warranty is responsible for making sure it is in good condition, and if they don’t take this responsibility, then tough luck.
To say that there has been an enormous change in the real estate industry over the last few years is an understatement. Appraisers have taken most of the fall for the housing crisis, and continue to experience the effects of the fallout. Here are five critical issues that will continue to impact our industry if we don’t take a stand and fight back now.
Despite the fact that California has some of the highest personal taxes of any state in the nation, it is nonetheless buried in debt. Governor Jerry Brown estimates that California’s current debt load is somewhere in the neighborhood of $132 billion, which has forced the government to make deferred payments to school systems, Medi-Cal patients and public employees' retirement funds. In light of these circumstances, one option the state might want to consider would be the so-called “mansion tax.”
The latest and greatest technology may be a boon to your home inspection business, but it’s likely not covered by your E&O carrier. While tech advances quickly for inspectors, insurance companies have yet to catch up and therefore may not offer appropriate levels of coverage just yet.