The ActiveRain Masterminds monthly challenge for February is complete, and the judges scores for each team are in!
If you missed this months challenge, you can read each teams entry here:
If you are new to the ActiveRain MasterMinds and want to learn what the monthly challenge is all about, you can click here about how to join and what the rules are:
http://activerain.com/groups/ActiveRainMasterMinds
Put your own team together and be part of the Creative Mindshare to coming up with solutions to issues in our industry!
Each month, the members of the winning team will receive 
BONUS POINTS, and everyone else who participates will receive 
BONUS POINTS!!
February's issue to find a solution for was:
Our outstanding Judges panel for the current six month term are:
OK, here are this months teams entries and the Judges scores.
I have randomized the scores from each Judge, so there is no pattern here to each judges score for each team for anonymity's sake. But we have posted each judges comments regarding the teams entry, which may give you some clues.
Which judges gave which scores to which team? Well, that's for all of you ActiveRain Peeps to gossip about!
The Judges scores and comments are:
Liz and Bill Spear, Charita Cadenhead, Cindy Marchant, Dan Schuman, Amy Schuman, Jerry Newman, Rita Fong
CARLA MUSS-JACOBS: Great intro. They nailed it on the Top 6 problems, and I didn't read anything about the appraiser not being from the area as a top problem. But, that was covered nicely in Solution #3: " If for any reason you feel the appraiser assigned to the subject property is not familiar enough to comp the property, request another appraiser." The #1 solution is paramount. Many of the other entries confused me when they said appraiser didn't have enough area comps. Made me wonder how the heck the listing agent was able to come up with listing price, if that were the case. Absolutely price the property correctly, which is a good thing to talk to potential clients about when they're "interviewing" other listing agents. BEWARE the over-priced listing, even if there's an offer . . . might not fair well under the appraisal microscope. I like the idea of leaving comps for the appraiser, and you covered yourselves acknowledging the undue influence.
LENN HARLEY: Stresses agent education and communication with appraisers
ELLIOTT TOPKINS: Their best thought was the suggestion that giving Buyer credits in the transaction puts a lot of pressure on the Appraisal. That was original and something I had never thought of before.
Chris Ann Cleland, Cindy Jones, Erica Ramus, Hannah Williams, Patricia Kennedy, Cherie Gottshall
CARLA MUSS-JACOBS: The issues are simple enough to digest. The solutions are as well. Suggesting a course is a great idea, also suggested by Stalwart Six . . . great minds on the same channel. And good point to bring up about the regulatory "employees" who write the ground rules being so far removed from the unintended consequences. "The idea of an independent valuation of a competent expert is crucial to the home buying and lending process." Well said.
LENN HARLEY: Excellent analysis of the existing problems and limitations on Realtors and practical solutions about how to work with appraisers, lenders, buyers and sellers through the process.
ELLIOTT TOPKINS: Again, like the “hands-on” approach and Patricia’s preface is instructive because it shows how varied people’s sales environments can change expectations from the Appraisal.
Juli Vosmik, Larry O'Sullivan, Max Kruschka, Deanne Olivas, Kate Wheeler, Karen Kruschka
CARLA MUSS-JACOBS: I like the fact that the MindMasters are coming from different parts of the country. And we read the same thing: out-of-area appraisers, hard to comp properties. New to the discussion is the computerized formulas used to evaluate based on zip codes over a large range. I can see this as an extremely important problem, as my local market areas vary so much within zip codes as well. To coin a phrase: Where's the Solutions?!? Absolutely provide the comps, narratives, and highlight the properties features, upgrades, etc. We only wish it were that easy.
LENN HARLEY: Strong on identifying problems but weak on creative solutions such as Realtor training.
ELLIOTT TOPKINS: Their answers did not hang together as well as the others. Good thoughts on unique properties. No one else really addressed the issues which these pose for all of us.
Melissa McKinney, Leah Stern, Joni Staples, Tish Lloyd, Kim Farrell, Debra Walsh
CARLA MUSS JACOBS: Overall consensus seems to have a running thread: out of area appraisers and using foreclosures as comps. Not sure I agree with "not enough comps in the area," because if that were the case, how was the comp done by the real estate agent to establish list price? I don't believe pending sales will be a viable option. The pending could sale fail (as we call it here), or not close at the price the listing agent discloses. An appraisal can't be made on these variables. Writing an offer to include an appraiser being within a 15 mile radius is hard to imagine. The seller can't stipulate to that, since they're not the one ordering the appraisal. Having a second appraisal is a great suggestion, and so is having one done prior to the listing . . . especially if the agent is faced with all the mentioned problems in this post.
LENN HARLEY: Good analysis but impractical solutions that would require changes in appraisal guidelines.
ELLIOTT TOPKINS: Like the way they thought the Realtor can get involved. Especially these days, with every sale being important, there doesn’t seem to be “too much” that the rest of us can do. This team stressed getting accurate date in front of the Appraiser, and reviewing what was produced. That made a lot of sense to me.
Barbara Todaro, Gita Bantwal, Irene Kennedy, Jennifer Fivelsdal, Maureen McCabe, Tim Kennedy
CARLA MUSS-JACOBS: Good historical beginning to their post. "Due to lack of home sales" is broad, and market specific. In some markets there are sales in areas which are not top-heavy with foreclosures. There should be a clear distinction between distressed/REO sales in appraisals and Synergy's points on this issue are well-taken. Especially in markets laden with REO's and shorts. I would have liked to have read more of how Realtors'® could become more involved. Under HVCC FAQ's: Q64 Realtors® can be quite proactive, and need to be, IMHO.
LENN HARLEY: Good descriptions of the issues but impractical solutions since they rely on changes by appraisers.
ELLIOTT TOPKINS: I liked the local stress for appraisals. I would like to have seen more thought put in as to what the “x” factor is for distress properties.
Karen Crowson, Karen Fiddler, Jane Peters, Allen Sietsema, Norma Toering, Melissa Zavala
CARLA MUSS-JACOBS: Love the red flags . . . and once again, the out-of-area appraiser rears his ugly head. MLS membership is a simple solution, and one that makes absolute sense. The Gold Standard brings up the VA appraiser, and this is another challenge. AMC's, valuation discrepancies, appraisal reviews . . . all are out of sync, especially when considering "Buyers and seller have contractually agreed to a price for a pre-determined time subject to the appraisal." Many things are riding on that one sentence (buyer loan locks, sellers move-out dates, etc., and so on.). Contractual timelines are so often ignored. Stalwart Six also suggests removing the key from the lock box, and meeting the appraiser at the property. I disagree. I would not want any undue influence. If the appraiser is mandated to be a member of the MLS, the lockbox access would be available to them to make their independent appraisal. IF the appraisal does not come to value, the listing agent can then provide them with the relied upon/relevant comps, summary sheet, statement of value -- or simply leave it at the property for the appraiser. See HVCC FAQ's: Q64
LENN HARLEY: Good grasp of the problems Realtors encounter but some of the solutions are impracticle requiring cooperation of the appraisers
ELLIOTT TOPKINS: The title won me over from the jump. Also thought the express thoughts about the lock box and the vacuum problem were well-reason and apt.
Lori Cain, Tricia Pearson, Corinne Guest, Sharon Alters, Kat Delong, Paulette Teel
CARLA MUSS-JACOBS: HVCC is the guide on appraisals, and I'm glad Stalwart Six was HVCC driven when creating this month's entry. Loved the "perspectives" from the various players in the appraisal process. Detailing the main issues then the solutions makes this worth a read. Great video presentation. The Sellers' perspective was haunting on the video. Having some classes on "How to Think Appraisal" is a good idea. I can't help wonder if a pre-emptive appraisal if there is a particular property in a challenging market -- going in to the listing, might be money well-spent for the sellers to consider. Agents can certainly discern these types of things when they run comps, e.g., a particularly difficult property to price, might be the same particularly difficult property to appraise.
LENN HARLEY: Shows an understanding of the appraisal process and very practical recommendation for Realtors managing the transaction and working toward smooth transactions.
ELLIOTT TOPKINS: This was my favorite, probably because of the YouTube usage. Like their thoughts on pre-informing the appraiser and trying to be sensible in terms of what comps should be included.
SO THE WINNER OF FEBRUARY'S ACTIVERAIN MASTERMINDS CHALLENGE IS:
Lori Cain, Tricia Pearson, Corinne Guest, Sharon Alters, Kat Delong, Paulette Teel
Each member of the Stalwart Six has won 1,250 Bonus Points Each!
All other participants have won 500 Bonus Points Each!
CONGRATULATIONS TO EVERYONE for your thoughts, input, and participation.
A well-earned 500 Bonus Points to all who participated!
Watch for this month's new challenge which will be posted on March 15th!
Get your Team together and let's solve these issues!!
