LaPlante Appraisals' Blog

 

AMCs were established after the 2008 crisis to bring back trust and impartiality in the appraisal process. Unfortunately, trust has still proven to be an issue as fee transparency has come into question. Most consumers do not know that the “appraisal fee” charged on the closing statements entails the bundled charge concept which is where the AMC absorbs a majority of the fee, while the appraiser is left with a greatly reduced amount.

These discussions in the industry have shifted towards focusing on the fee splits and the additional costs that come with it for homebuyers. For example, statistics show that there are certain transactions where the AMC’s share can be equal to, or at times greater than, the appraiser’s payment. Such practices greatly increase the overall cost during closing. Regulators, consumer advocates, and even industry professionals have all united on the topic, pleading that the market operates on fairness and rules, and those changes are necessary.



At present, AMCs oversee the entire process of appraisal for various lenders which includes hiring appraisers, distributing assignments, and ensuring quality control is maintained. However, fee transparency is lacking as the recent data showcases a gap between payment made by the consumer and the money the appraiser receives. For example, a recent Business Insider analysis places certain AMC’s cut can be equal to or greater than the appraiser’s fee which raises an entirely different set of issues.

Now is the time for homebuyers and Realtors to take control. Ask your lender or realtor for a clear, itemized breakdown of all appraisal-related fees. Use this information to compare costs, negotiate better terms, and ensure you’re not overpaying for services you don’t fully understand. Empower yourself by staying informed—your vigilance can drive industry reform and lead to a more transparent and equitable mortgage process for everyone.

 

As a real estate appraiser who recently completed a comprehensive solar continuing education course, I wanted to share some crucial insights that real estate agents and attorneys should understand when dealing with properties equipped with solar photovoltaic (PV) systems.

Key Considerations for Real Estate Professionals
System Ownership and Documentation

One of the most critical aspects of any solar-equipped property transaction is understanding the ownership status of the system. Real estate agents should:

• Verify if the system is owned outright or leased
• Check for UCC filings to confirm if the system has been paid off
• Ensure title companies are aware of the solar system's status during purchases
• Request the original invoice and installation documentation from homeowners

Market Value and Financial Implications

Understanding the financial aspects of solar systems is crucial for proper valuation and client advisement:

• Market acceptance varies by region and utility provider (for example, some utility companies are more solar-friendly than others)
• Net metering policies and connection fees can significantly impact the system's value
• System size, age, and efficiency all play crucial roles in determining market value
• Energy production history and utility savings documentation are essential for accurate valuation

System Performance and Documentation

For proper evaluation of a solar system, professionals should obtain:

• At least 6 months of utility bills to establish baseline energy costs and savings
• Documentation of the system's size in kilowatts (kW)
• Warranty information, particularly for inverters
• Maintenance records and performance history

Important Technical Aspects

While you don't need to be a solar expert, understanding these basic technical points can help you better serve your clients:

• System orientation (azimuth) and roof tilt significantly impact energy production
• Monocrystalline panels are typically more efficient and expensive than polycrystalline
• Microinverters vs. string inverters can affect system performance and maintenance costs
• Solar PV systems typically have a useful life that aligns with roof warranty periods

Best Practices for Real Estate Professionals
For Real Estate Agents

1. Request the Green Building Addendum from homeowners with solar systems
2. Understand the difference between owned and leased systems
3. Maintain relationships with qualified solar installers for technical questions
4. Document system details in MLS listings accurately (support documentation is extremely helpful for appraisers comparing systems with comparables)
5. Consult with an appraiser experienced in solar PV valuation before listing properties with solar systems or when representing buyers interested in solar-equipped homes
6. Consider pre-listing solar valuation services to sellers through partnership with qualified appraisers such as LaPlante Appraisals
7. Provide clients with accurate expectations about solar system value by obtaining professional appraisal expertise

For Attorneys

1. Review UCC filings and title documentation thoroughly
2. Understand local utility policies and net metering agreements
3. Be familiar with solar lease transfer requirements
4. Ensure proper documentation of system ownership in transaction documents

Looking Forward

The solar energy landscape continues to evolve, with new technologies, financing options, and regulations emerging regularly. As real estate professionals, staying informed about these changes is crucial for providing accurate guidance to clients and protecting their interests in transactions involving solar-equipped properties.

The real estate industry is adapting to include more detailed reporting of energy-efficient features in standard property documentation. Fannie Mae's Uniform Appraisal Dataset (UAD) requirements are being updated to include more comprehensive reporting of green features, including solar installations. This change reflects the growing importance of energy efficiency in property valuation and transactions.

For accurate valuation of solar panel systems, real estate professionals can benefit from working with appraisers who have specialized training in solar PV valuation, such as LaPlante Appraisals. We use industry-standard tools and methodologies to determine the true market value contribution of solar installations, helping ensure accurate pricing for listings and informed decision-making for buyers. LaPlante Appraisals can provide detailed analysis of solar system value, taking into account factors such as system age, efficiency, and local utility rates to determine the actual value these systems add to a property.

This blog post is based on recent continuing education coursework and reflects current industry knowledge as of January 2025. Always consult with qualified solar professionals for specific technical advice.

 

As we wrap up 2024, we thought it would be insightful to review and analyze the last 12 months of rental data in Maricopa County. Fluctuations in the number of available rentals and the volume of rented units offer insight into pricing power, competition, and investment opportunities. In the past 12 months, we see significant changes in Arizona's rental market, especially when analyzed by square footage. This analysis provides a comprehensive view of market shifts, offering valuable insights for stakeholders across the real estate industry. 
 

Between November 2023 and November 2024, Arizona’s rental market experienced notable shifts in both supply (active listings) and demand (sold listings). 

• Supply Growth: Overall, the number of active rental listings increased significantly from 15,780 in November 2023 to 21,427 in November 2024—a 35.8% increase. This surge suggests more rental properties entered the market, increasing choices for renters but also raising competition for landlords.
• Demand Increase: On the demand side, sold listings also rose, but at a much slower rate. The total number of rented units increased from 4,505 in November 2023 to 5,045 in November 2024, reflecting an 12% increase.
• Months of Supply (MOS): The Months of Supply (MOS) index rose from 3.50 to 4.25, indicating that supply is growing faster than demand. This shift suggests the market may be tilting toward a renter’s market, where renters have more negotiating power.

As we see there is an oversupply in smaller rentals, while good competition in the mid-size market and a larger saturation in the luxury market. The rise in MOS across all size categories indicates that renters are gaining more leverage in lease negotiations. Investors may see longer listing periods and should prepare for potential rent adjustments.

Arizona’s rental market is entering a period of flux. If supply continues to grow at a faster pace than demand, landlords may face longer listing times and downward pressure on rental prices. New construction activity and economic conditions will play a significant role in shaping future supply and demand. For renters, this shift signals an opportunity to find better deals and incentives. Investors may want to be cautious about acquiring small or large properties until the market stabilizes.

Stay tuned for 2025 updates on Arizona's rental housing trends to stay informed and ready to make strategic decisions.

As the year winds down, it's the perfect time to pause, reflect, and express gratitude for all that has been accomplished at LaPlante Appraisals. Serving Maricopa County as a trusted residential appraisal service has always been our passion, and this past year has been one of significant milestones and meaningful growth.  

This journey wouldn’t be possible without the support of our clients, colleagues, and community. As we look back, we’re humbled by the opportunities we’ve had to grow as a business and to contribute to the appraisal industry. Here are some of the achievements we’re celebrating:  

1. Diversified Revenue Streams

This year, one of our key focuses was diversifying the types of appraisal assignments we handle, and we’re proud to say we made great strides in this area. Traditionally, much of our work has come from lending-related assignments, but in 2024, we successfully expanded into private appraisal services. This shift allowed us to serve a wider range of clients, including real estate agents, attorneys, and families navigating significant life transitions.  

By providing private appraisals for divorce cases, estate settlements, probate proceedings, and pre-listing evaluations for real estate agents, we’ve been able to meet a broader spectrum of needs in our community. Each of these assignments brought unique challenges, requiring a careful, customized approach—and we embraced the opportunity to deliver results tailored to each client's specific situation.  

2. Joining the Veterans Affairs Panel

One of our proudest moments was being accepted as a Veterans Affairs (VA) Panel Appraiser. This achievement reflects our dedication to providing exceptional service and, more importantly, gives us the chance to serve those who have served our country. We look forward to helping veterans navigate the homebuying process and we’re honored to play a small role in their journey.  

3. Collaboration with Industry Peers

This year, we focused on fostering connections with fellow appraisers and industry professionals. By sharing knowledge and collaborating with peers, we’ve contributed to a stronger, more supportive appraisal community. These partnerships have not only enriched our own practices but also reinforced the value of teamwork and mutual respect in our industry.  

4. Preparing for Growth

Thanks to the trust and loyalty of our clients, LaPlante Appraisals has grown to the point where we’re preparing to expand our team. This milestone is a testament to the hard work, dedication, and values that have guided us from the start. We’re excited about the future and eager to bring on new team members who share our commitment to excellence.  

Image by Ylanite Koppens from Pixabay

Looking ahead, we’re committed to continuing to provide high-quality, reliable appraisal services while embracing new opportunities for growth and collaboration. To all who have been part of our journey—thank you. Your trust and encouragement inspire us every day.  

Here’s to another year of serving Arizona with integrity and dedication! 

If you ask a realtor, appraiser and homeowner, what constitutes a townhouse versus a condominium you will likely get various answers. The difference between a townhouse and condominium goes beyond the style or design of the home. 

   

As appraisers, we look at the ownership rights and legal descriptions of the subject to determine what the real property includes. For a condominium, you own the structure, for a townhouse or single family home, you own the structure and the LAND. This is the key difference between a townhouse and condominium. Take a look at the difference in assessor cards between these two types of properties. Can you see the differences and tell which one is a condominium and which one is a townhouse ? 

      
Condominiums have an undivided interest in the surrounding common elements and land. This means they all share a part of the surrounding areas together with the other units within the complex. While a townhouse owns the structure and the land it sits on with no other shared interests with neighbors. So in these two examples, Rough Rider's structure outline is the same as the structure, while 24th Pl shows a lot line and some land rights beyond the subject's structure. Another key is to see what the legal description states.

Does it say "LOT" in the legal description? Does it mention an undivided interest in common areas in the legal description? 

When ordering an appraisal, it is important for the lender and title to know the ownership type. This is because they have different lending requirements for different type of properties. Condominium loans can be more expensive due to restrictions related to shared and/or jointly owned building spaces, making the loans potentially more risky. As an appraiser, we are typically asked to verify if there is any pending litigation for the HOA in the condominium. If so, this can make the loan riskier and sometimes lenders will not loan on it. 

But I am not an expert on the lending side of things, so I asked another friend to come and share his perspective from the lender's view. Here is what he had to share: 

Determining whether a property is deemed a townhome or a condo by the county can be make-or-break for financing. From the lending perspective, “Townhome” is a style, and this home can either be a PUD or a Condo in official classification. If it’s determined that it is officially a PUD, just in the style of a townhome – it’s business as usual. No overlays. You’re financing just another Single Family Home that happens to have an HOA.

If it is determined that it is officially a condo: that opens a whole new set of obstacles as Kari discussed earlier. Now we have to look at what loan type we’re using as they all treat condos a little differently. We need to get a copy of the CC&R’s, Master Insurance Policy, a condo questionnaire needs to be filled out and HOA’s , tragically, have “varying” levels of diligence and efficiency. If you’re utilizing programs such as Grants or Down payment Assistance, you need to double-check their guidelines & overlays with Condos and how they’re treated if they’re on HUD’s approved condo list or not.

I’ve seen many a loan be rejected due to failure to identify the loan type, and can’t stress enough the importance of being able to spot it. --Ryan Zamudio

If you are planning to purchase a condominium or townhouse and want more information or have questions please reach out. Ryan is very personable with great energy, he is passionate about what he does. Ryan can be reached at: ryan.zamudio@edgehomefinance.com or find him on Facebook or Instagram @lender.ryanzd