Showing posts from April, 2018

What Happens When Contracts Rocket Past List Prices

by Mike Armentrout In light of the historic low inventory levels, the existing demand appears to be exploding.  This does not mean that the current demand is unprecedented in terms of volume.  We simply have some markets with a very low supply of available listings and a disproportionate number of buyers. This is not only resulting in multiple offer scenarios but is also ramping up the offering prices as buyers are leveraging whatever they can to beat out the competition.  In fact, it has become a wild West environment as agents are attempting new strategies to win the bidding wars. So with all this frenzy, one might ask when will it change?  The simple answer is, when supply comes more into balance with demand.  Until then however, appraisers are going to have to work through some minefields. With agents desperately seeking new listings, they are feeling the heat to close as many buyers as possible.  The last thing they want to deal with is appraisals coming back less than t

Regulation Differs Between Accountants and Appraisers?

by Mike Armentrout So the other day was ironically Friday the thirteenth.   It started off without a hitch until I got the dreaded call from my accountant.   He hit me with the news that my various personal returns and first quarterly estimates would result in me writing checks that totaled over $16,000.   I spent the weekend pouring over the numbers and still could not figure out how I owed so much more than the prior year and yet only made a few hundred dollars more than last year.   I talked and texted the accountant several times with questions in hopes of finding cause for revision, but was met with only disappointment.   I am sure he could sense my growing frustration.   In fact, I’m sure the thought crossed his mind that after twenty four years of doing taxes for our company and the personal taxes of my business partner and myself; he just might lose us as a client. Then it hit me.   This was eerily similar to many calls we get as appraisers from disgruntled AMCs,