October Research Announces that Forsythe Appraisals will Sponsor 2007 National Appraisal Survey

 

 

October Research has announced that Forsythe Appraisals will be the exclusive sponsor for its National Appraisal Survey, set to be released this fall.

 

“We are were very fortunate to have been asked by several outstanding companies to help us with the release this important research and are pleased to have a company the caliber of Forsythe Appraisals now to be involved with us,” said David Hutton, editor of Valuation Review. “Forsythe is recognized as one of the thought leaders in the valuation industry and they will be an excellent source of analysis and commentary on what the results of the survey tell us’, said Hutton.

 

The highly anticipated sequel to the landmark appraisal survey, first conducted in 2003, will provide the real estate appraisal industry with answers to several questions that have arisen since the first research was conducted.

 

One result of the survey at that time revealed that 55 percent of appraisers surveyed across the country said they had felt uncomfortable pressure to inflate property values and overstate housing conditions.  The upcoming report will build upon the findings of the initial study.

Tim Forsythe, CEO of Forsythe Appraisals said ‘this may be the most important piece of research the real estate industry will receive in the next few years. It will quantify and qualify several key questions around appraiser business practices and valuation processes. The results will likely influence future regulatory actions and business decisions made by originators and the investor markets alike’.

October Research has collected the data for its 2007 Survey, which includes a national sample of over 1,000 real estate appraisers who have been surveyed by the company on key issues in the real estate services industry, including whether or not they have ever felt uncomfortably pressured to overstate the condition or value of the property they are appraising. 

Three Volumes of Research

The research will be released in three separate volumes throughout the next twelve months. Volume one will focus on appraiser business practices including how often they feel pressure from customers to change values or overstate property conditions.

Volume two will report on what technologies appraisers are currently using and what they may be adopting in the future. Most valuation technology companies will be interested in what appraisers have to say about their technology usage patterns and preferences. 

Volume three will ask lenders and originators about their current valuation practices and preferences along with how their valuation processes may change over the long term.

 “Like our 2003 survey, today, everyone wants to know whether the problem of pressure on appraisers to inflate property values and overstate conditions has increased or decreased since that time. We once again expect this report to be widely cited by newspapers, magazines and media outlets nationwide for the data that it reveals,” Hutton said. 

 

“Our initial research uncovered a reality that people in the industry widely suspected, but up to that point had never seen quantified. The sheer number, however, really shook the investor markets and called into question some very basic assumptions about the mortgage and valuation process. I think the industry is anxiously awaiting the results to see how much has really changed since then.”

 

Hutton says this survey will contain a gap analysis which will report on how the results have changed from 2003 to 2006.

The new survey revisits many of the questions asked in the initial report.  It also will expand the scope of inquiry, asking appraisers who have felt pressure to detail the types of pressure applied, the source of the pressure, and the perceived consequences for their refusal to overstate. 

Appraisers speak out on technology

Forsythe added “This survey is going to provide some critical data for the technology markets also since participants were asked to identify the brand of technology they currently use; rate their satisfaction with the products; and indicate whether they would be seeking to change providers in the future.”

Hutton says the survey asked respondents to inventory the strong and weak points of their current technologies they deploy in their businesses.

Appraisers taking part in the survey will also be asked about their perception of the impact of AVMs on their businesses as well as their thoughts on the state of the profession, including trade organizations.

“Certainly, any company considering a business relationship with professional real estate appraisers or with a stake in the industry will find this survey to be an indispensable tool,” Hutton added. “We’ve been asked for years when we would follow up our 2003 findings, and now we can say it is on the way.”

About October Research Corp.

Located in Richfield, Ohio , October Research is the nation’s leading provider of market intelligence, business news and regulatory information for the real estate settlement services industry. During 2005, the company was named a Top 10 Weatherhead 100 company by Case Western Reserve University as one of the region’s fastest growing businesses.

 

The company produces several print and electronic publications including: Valuation Review, Real Estate Technology, The Legal Description, The Title Report, Broker Newswire and RESPA New. It also has two divisions supporting continuing education and market research: October Seminars and October Studies. 

 

About Forsythe Appraisals

Headquartered in St. Paul, Minnesota , Forsythe Appraisals was founded in 1940 by the grandfather of the Company’s current CEO and President. Forsythe Appraisals is the largest independent residential appraisal company is the United States and currently operates 37 branch offices nationwide.

 

Forsythe Appraisals, LLC is owned and managed by John and Tim Forsythe , together with John and Jeff Turner, founders of Hillcrest Capital Partners (HCP). Located in Minneapolis , HCP was established in 2002 as a private investment firm to make control investments in high quality businesses based in the Upper Midwest .

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