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RAC Town Hall March 31, 2022 With Byron Miller, SRA, AI-RRS: Feeling ANSI about Fannie Mae’s new measurement requirement?

RAC offered a free one-hour ANSI webinar to provide clarity to appraisers everywhere. RAC Member and Past President Byron Miller, SRA, AI-RRS, a contributor to the 2021 ANSI standards manual Z765-2021, discussed appropriate measuring standards and updates that Fannie Mae has made effective April 1, 2022. Byron was interviewed by RAC member and Past President Jonathan Miller, CRE, CRP.

ATTENTION To all of the non-RAC members that joined the presentations, rest assured RAC provides useful, actionable, information to its members during these monthly town halls, plus you connect with a wonderful group of members (that always have something to say or contribute).

Want to know more about RAC? You can start by visiting our website and emailing our to our Executive Director Cheryl Fisher for additional information and

Materials that were discussed in the webinar

– Fannie Mae: Standardized Property Measuring Guidelines
– Fannie Mae: (Selling Guide) How is the gross living area measured and calculated?
– Home Innovation Research Labs: Purchase the ANSI Standards (these standards are copyright protected.)

The Webinar Video

Here is the video of the March 31, 2022 RAC ANSI Webinar:

Additional ANSI Insights

After you’ve watched our March 31, 2022 RAC ANSI Webinar, you might want to take a look at some topics Byron Miller prepared for the webinar (answers in ALL-CAPS):

* What is the ANSI standard and how do you get a copy? STANDARD FOR MEASURING SINGLE FAMILY RESIDENIAL HOMES; WWW.HOMEINNOVATION.ORG

* What constitutes a standard? SOMETHING PEER-REVIEWED

* What constitutes being peer-reviewed, and why is that important from say an ad-hoc “standard?” IT INVOLVES INCLUDING INDUSTRY STAKEHOLDERS. IT IS A DEFINED PROCESS, PROVIDING PUBLIC COMMENT, AND PUBLIC FEEDBACK. AD-HOC IS TYPICALLY IS A SINGLE PERSON OR ENTITY THAT DEVELOPS, AND DOES NOT EXPOSE TO PUBLIC FOR FEEDBACK.

* Why use a standard? ie: what are the benefits of standardization? CONSISTENCY, REDUCES VARIABILITY & LIABILITY

* How often is the standard updated? VARIES, ON AVERAGE EVERY 10 YEARS

* How does this differ from HUD, USDA, & VA requirements for measuring? THOSE ARE NOT STANDARDS BUT ARE ASSIGNMENT CONDITIONS OF GSE (GOV’T SPONSORED ENTERPRISES. THIS IS A SUBTLE BUT IMPORTANT DISTINCTION. LOOSELY, THEY COULD BE CONSIDERED “AD-HOC” STANDARDS.

* How do you get on the consensus committee? APPLY, HOME INNOVATION PUT OUT SOLICITATIONS.

* Can you describe the process involved in making changes via the consensus committee? REVIEWED ALL COLLECTED QUESTIONS, PRIORITIZE, PROPOSE CHANGES, EXPOSE TO THE PUBLIC, ITERATE

* Can you talk about some of the items that you were aware of that give appraisers the most heartburn regarding the standard? Egs: stairs, sloped ceilings, areas under the stairs (unfinished basement caveat), bump-outs (fireplace, non-floor to ceiling bay areas, etc.), ceiling heights. HANDS DOWN – STAIRS.

* How does gross living area relate to the Z765 standard? IT DOESN’T, Z765-2021 DOES NOT DEFINE OR DISCUSS GLA, IT DEFINES ABOVE-GRADE, BELOW-GRADE, FINISHED, AND UNFINISHED SF.

* What about below-grade square footage? BELOW-GRADE SF IS DEFINED IN THE Z765-2021 STANDARD. IN SHORT, THE STANDARD CONSIDERS ANY AREA THAT HAS EVEN A FRACTION OF IT’S OVERALL BELOW-GRADE AREA TO BE COUNTED IN WHOLE AS BELOW-GRADE SF. THERE IS ONE POSSIBLE EXCEPTION, AS INDICATED IN THE STANDARD. HOWEVER, I LEAVE THAT TO APPRAISERS TO READ FOR THEMSELVES IN THE STANDARD.

* And what about the concern regarding using the comparables? USE THE SAME APPROACH THAT YOU CURRENTLY DO IN DEALING WITH MULTIPLE DATA SOURCES.

* The ANSI Z765 standard is a residential measurement standard for single-family dwellings. Can a be used for multi-family dwellings? NO

* What about measuring using condominiums? ANNEX P.4 IN ANSI STANDARDS

* There are certain situations where you could be measuring a finished second-story dwelling with sloped ceilings, or for that matter, a third-story sloped finished area that has no square footage as per the ANSI standard. What does Fannie say about handling that situation? COULD USE EXCEPTION “GXX001”

* What about berm homes, which are homes that are buried either completely or mostly below grade? “GXX001” – EXCEPTION

* Can I use the Z765-2021 on a 1025 form? NO

* What about on a desktop appraisal? – IT IS NOT REQUIRED BUT RECOMMENDED.

* How do I conform to the ANSI standard? That is, can I claim partial conformance to the standard? NO

* What is the level of granularity of measurements? MEASURE TO INCH OR TENTH OF FOOT ENGLISH MEASUREMENT SYSTEM, OR TENTH OF METER (DECIMETER) METRIC MEASUREMENT SYSTEM. RESULTS ROUNDED TO THE NEAREST FOOT OR METER.

* What is measured? ALL IMPROVEMENTS, EGS: DECKS, PATIOS, PORCHES, BREEZEWAYS.

* What about ADUs, outbuildings, and garages? Z765-2021 ONLY COVERS SFR HOMES, NOT ADUs, OUTBUILDINGS, AND GARAGES

* What about the reporting format, what is contained in it? PARTITIONED ABOVE, BELOW, FINISHED AND UNFINISHED AREA STATED IN A DECLARATION (FOUND IN ANSI STANDARDS).

RAC member Terri Love comments on Pennsylvania’s non-essential real estate classification

Leading Pittsburgh appraiser and RAC member Terri Love SRA, AI-RRS of Kulzer Love Appraisal Services was interviewed by Pittsburgh TV station WTAE, to bring awareness to the non-essential classification of real estate appraisers and brokers. They number about 100,000 in the state, yet Pennsylvania remains an “island” in comparison to the actions of their surrounding state neighbors who have classified appraisers as “essential.”

This article describes the situation in Pennsylvania.

The 2018 Worldwide ERC® and RAC Appraisal Report Writing Contest!

Relocation Appraisers & Consultants (RAC) and Worldwide ERC® are partnering to offer relocation appraisers the chance to demonstrate their excellent report writing techniques in a Worldwide ERC® Summary Appraisal Report Writing Contest.

Don’t delay – only the first 50 entrants will be considered. Entries must be received by June 15, 2018.

Get useful feedback from the experts and showcase your skills to a wider audience!

Click here for more information!

A special thanks to RAC member Allen Gardiner, SRA for leading the effort for RAC!

RAC Member Ernie Durbin Receives 2018 Valuation Visionary Award from CRN

Our very own longtime RAC member Ernie Durbin, Chief Valuation Officer for Clarocity Corporation, was named the 2018 Valuation Visionary award winner by Collateral Risk Network (CRN). Here’s the interview with Appraisal Buzz.

Each year, the Collateral Risk Network presents the award in recognition of the person who demonstrates leadership, innovation, professionalism, and one who strives to better the industry for their peers. We will be presenting the award at Valuation Expo in Charleston in March.

Ernie Durbin is renowned for creativity with technology advancements and industry-wide involvement. Ernie is widely recognized as an innovative leader with vision and foresight. Ernie was nominated by his peers and we are honored to recognize him as the 8th recipient of Valuation Visionary.

I can’t think of anyone who is more future-orientated in our profession than Ernie and we thank him for all he does for RAC.

Congrats Ernie!

Jonathan J. Miller CRP, CRE
RAC President
jonathanmiller@rac.net

Dwellworks Featured Appraiser: Sherry L. Kaley, Knoxville, TN

One of our RACers, Sherry L. Kaley, was the first featured appraiser in the new Dwellworks newsletter.

Sherry L. Kaley is a Certified Residential Real Estate Appraiser, and partner of Kaley and Tuck Real Estate Appraisers, the only two-woman appraisal firm in Knoxville, and has been appraising in Knoxville/Knox County and eight adjoining counties for nearly 20 years…

Congrats to Sherry!

Jonathan J. Miller, CRE, CRP
RAC President 2017-2018
Relocation Appraisers & Consultants
www.rac.net

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RAC Conference Frisco TX: Changes, Challenges, Solutions

As I’ve said many times, the annual RAC conference is the best appraiser-centric conference I’ve ever attended. It is developed and operated by active appraisers who are working to help you thrive as a professional.

As the current president of RAC, I’m proud to be part of an organization comprised of the best residential appraisers in the U.S.

Click here for more information.

RAC Blog Awakes from Slumber To Leverage Members Extensive Valuation Knowledge

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For those of you that don’t know me, I’m Jonathan Miller, a long time member of RAC who dabbles in social media. At our recent conference in Dallas I was asked by the RAC Board to help share our membership’s wide array of valuation expertise with the public. This web site seems like a perfect vehicle to do that.

One of the reasons I’ve remained a RAC member for more than half of my 28 year appraisal career is because RAC members are the best residential (and commercial) appraisers in the country. I always wanted to be aligned with RAC – even though my market area has always seen limited relocation work. I knew it was important to maintain access to their collective knowledge so I could continue to grow as a valuation professional…and the membership is comprised of a great group of people.

What began as an organization that literally “wrote the book on relocation appraising” for ERC is really much more than that. RAC members are also known for their appraisal expertise of complex residential properties including litigation support, testimony and reviews. So much so that RAC has incorporated that message into their new tag line – “RAC: Providing valuation solutions for complex residential properties.”

We’ll soon be providing other ways to keep connected and informed so stay tuned!