Elliott & Company Appraisers

February 2008

A Publication of ELLIOTT® & Company Appraisers

THREE MAJOR APPRAISAL TRADE ORGANIZATIONS
TALK CONSOLIDATION

Executives from the Appraisal Institute (AI), the American Society of Appraisers (ASA) and the American Society of Farm Managers and Rural Appraisers (ASFMRA) have been discussing the possibility of the three trade organizations consolidating.

If the three organizations indeed do consolidate, AI board members insist that its designations, including MAI and SRA, remain intact and that the real estate appraisers must dominate the consolidated board. ASA represents not only real estate appraisers, but also appraisers of jewelry, machinery and other valuables.

DROP IN INTEREST RATES REVIVE MORTGAGE ACTIVITY

In a refreshing change of pace from the mostly gloomy news of the recent past, mortgage lending activity has picked up in the aftermath of the three-quarter-point interest-rate reduction by the Federal Reserve Board on January 22 and an additional half-point drop on January 30, during its regularly scheduled meeting. According to Freddie Mac's Primary Mortgage Market Survey, fixed-rate mortgages have dropped to their lowest interest rate levels in four years.

"When the Federal Reserve cut the target federal funds rate by three quarters of a percentage point, the action was extraordinary in both the magnitude and the timing of the rate cut," said Frank Nothaft, vice president and chief economist of Freddie Mac. "It is the largest cut since October 1984 and also the first time in more than six years since the Fed took such action outside of a scheduled Federal Open Market Committee meeting."

The result of this historic rate cut has led to an improvement mortgage lending activity. Countrywide Financial's Dave Doyle reportedly experienced a 50% increase in incoming calls at the lending institutions call centers, which he is in charge of.

ELLIOTT® & Company Appraisers is pleased to see the increased volume in activity of our friends in the mortgage-lending industry and stands by ready to assist them in their appraisal needs.

ELLIOTT® OFFERS INSURANCE REPLACEMENT COST EVALUATIONS

As we reported in a previous newsletter, insurance experts estimate 60-70% of homes in this country are underinsured. We suspect this also may be true of businesses. We do know that a replacement cost analysis of the real estate and other physical assets of a business can remedy the situation.

An appraisal of a company's physical assets can be very useful. It prevents the business from the danger of under-insurance and the economic waste of over-insurance. Once the appraisal has been completed, if a disaster occurs, the company can satisfy its "burden of proof" requirements. An independent listing of the assets has been documented. Insurance companies and the courts accept this as proof of loss. This evaluation can also be used for other purposes.

ELLIOTT® provides complete insurance evaluation throughout the United States, including insurable value appraisals, replacement cost analyses and insurance/casualty loss evaluations.

Our experienced professionals provide insurance evaluations on all types of commercial properties, from large manufacturing plants and factories to small hotels and apartment complexes.

We can also assist with personal property evaluations for all types of manufacturing and production machinery, office furnishings, hotel and apartment furnishings, professional office and retail furnishings, computers and office machines.

QUOTES OF WIT & WISDOM

"A judge is a law student who marks his own examination papers."
-- H.L. Mencken

"Do not accustom yourself to use big words for little matters."
-- Samuel Johnson

"A good listener is not only popular everywhere, but after a while, he gets to know something." -- Wilson Mizner

"Whenever you are asked if you can do a job, tell them, 'Certainly I can.' Then get busy and find out how to do it." -- Theodore Roosevelt

"Life is just a mirror, and what you see out there, you must first see inside of you." -- Wally Amos

"The beginning of knowledge is the discovery of something we do not understand." -- Frank Herbert

"Luck is what you have left over after you give 100 percent." -- Langston Coleman

"The worst loneliness is to not be comfortable with yourself." -- Mark Twain

"Love is an exploding cigar we willingly smoke." -- Lynda Barry

"The best liar is he who makes the smallest amount of lying go the longest way." – Samuel Butler


For previous newsletters or columns written by Charlie Elliott, MAI, SRA, president of ELLIOTT® & Company Appraisers, for mortgage publications visit our Web site at www.appraisalsanywhere.com.



CONTACT US
Newsletter Editor: kevin@elliottco.com	Web Site: www.appraisalsanywhere.com
3316-A Battleground Avenue • Greensboro, NC 27410