Front & Center: Judy Haas discusses the art and science of home appraisals
The answer may differ, depending on whether you ask a buyer or seller.
What really matters, though, is how much a certified appraiser thinks it’s worth. That number determines what a bank, credit union or other lender will loan a buyer, or a homeowner seeking to refinance.
“Appraising is both art and science,” says Judy Haas, co-owner of Benson & Associates.
“There are so many factors to consider – location, condition, amenities, land value, replacement cost, and recent sales of comparable homes.”
If Haas estimates lower than what a borrower expected, she may get an angry phone call or a stack of recent sales to consider as possible comps.
Once, when her estimate came in high, the borrower offered Haas a bottle of 20-year-old Scotch whisky as thanks. “Of course, I couldn’t accept it,” she quickly added.
During a recent interview, Haas explained how she went from typist to welder to driver to mechanic to appraiser, and suggested last-minute tweaks that homeowners can make that might nudge their appraisal a little higher.
S-R: Where did you grow up?
Haas: Charleston, South Carolina.
S-R: What were your interests back then?
Haas: Sports – particularly softball – and reading about history.
S-R: Were you aware of Charleston’s wonderful old architecture when you were young?
Haas: Absolutely – all the big porches, and the shotgun homes that were built straight up and straight back. There were some beautiful places.
S-R: Did you go to college?
Haas: I took the Civil Service test out of high school and became a clerk-typist at the naval shipyard. But I got bored, so I became an apprentice welder. Four years later I became the first woman welder in the Charleston naval shipyard since World War II. During the next 10 years, I worked on everything from submarines to tenders.
S-R: Then what?
Haas: I went to work on oil rigs as a welder and roustabout. Then I injured my back and decided I needed to switch careers. So I got a job with Spokane Transit driving the elderly and handicapped around. Later I switched to the mechanics section and worked on vans, because it was more money and more interesting.
S-R: How did you learn about mechanics?
Haas: I hung out with my dad a lot, and he was always fixing cars to sell.
S-R: What led to your career in real estate?
Haas: I reinjured my back, so in 1992 my partner – the Benson in Benson & Associates – and I opened a real estate and property management company on North Division.
S-R: How did you get into appraising?
Haas: One day a retired Air Force guy from Texas – “Cap” – showed up. He had both a real estate license and an appraiser’s license, and asked if he could hang his real-estate license in our office. I was interested in becoming an appraiser, because you always get paid. Sometimes with real estate you run people around for days, and then they go buy a for-sale-by-owner. So he helped me learn appraising. After that I worked full time in the appraisal business, but didn’t get certified until 2005.
S-R: As housing prices peaked several years later, were you ever pressured to come in with high appraisals?
Haas: Absolutely. If you couldn’t hit your mark, they would move on to another appraiser who could. We’ve never worked that way, and we’ve lost a lot a business because of that. But we’d rather stay true to our values.
S-R: What happened when the market cooled off?
Haas: Lenders lowered the fee they paid appraisers. People who needed to feed their family might do an appraisal for $175 or $200. We didn’t need to, because we had other interests – rentals and such. But it was bad for the profession. A lot of appraisers quit. And without appraisals, banks won’t lend on property.
S-R: Have things turned around?
Haas: Yes. Eventually banks were held more accountable – the rules and regulations changed – so fees started climbing back up, which is good. We’re professionals and should be paid fairly for our services.
S-R: How have the rules changed?
Haas: There’s a lot more paperwork for us, and a lot more for lenders. Twenty years ago, a typical appraisal took four hours. Today, because of all the extra forms and requirements, the same appraisal might take a day or two.
S-R: What’s your opinion of websites such as zillow.com? Are they accurate?
Haas: I think Zillow prices tend to be higher than appraisers’.
S-R: Is there a busiest time of year?
Haas: I’ve been busy the last five years. I work anywhere from eight to 12 hours a day. And I have an in-home office, which makes it hard to get away from work.
S-R: Do you have a territory you serve?
Haas: I used to go anywhere – all the way to the Canadian border. Now I try to stay in northeast and northwest Spokane.
S-R: Do individuals ever hire you to do appraisals so they know what their home is worth?
Haas: Occasionally. I also do estates. But 99 percent of my appraisals are for lenders.
S-R: What do you like most about your job?
Haas: The freedom. I set my own hours.
S-R: Any 12 hours of the day?
Haas: (laugh)
S-R: What do you like least?
Haas: When I make a mistake – which happens – and have to change the appraisal. Sometimes I’ll wake up at 4 in the morning and realize I forgot something, or a lender catches a mistake.
S-R: What about your job makes you most proud?
Haas: Helping people refinance for whatever reason, and helping young people purchase their first home. I’m part of the process that makes dreams come true.
S-R: What’s been the biggest surprise?
Haas: When I sign appraisals, I write “J.E. Haas” – never “Judith” – because when I started out, a lot of people wouldn’t hire women appraisers. This profession was a men’s club, and people still assume “J.E.” is a man.
S-R: If someone knows their house is about to be appraised, is there anything they can do to improve their chances of a strong estimate?
Haas: A lot of people ask me that, and I tell them, “Imagine your parents are coming over. How would you want your house to look?” Junk in the yards affects the condition of the landscape. Strong odors aren’t supposed to affect an appraisal, but they can. Again, it’s a condition issue.
S-R: What else can impact appraisals?
Haas: A severe winter can lower home prices, which might have repercussions a few months later when we look for comps. Lenders typically want to see three comparable homes within 1 mile that sold in the past six months.
S-R: What about unusual properties for which there are no comps, such as architect-designed or super-energy-efficient homes?
Haas: Then you need special training to factor in those unique features.
S-R: Did skills learned in your other careers transfer to this one?
Haas: Sure. Welders and mechanics tear things apart and put them back together. Appraisers do sort of the same thing – we break a property down to its basic elements, paying attention to details, then put all those details together to arrive at an estimate of its true value.
S-R: Looking back, do some appraisals stand out?
Haas: When we were appraising on Maui, I saw my first infinity pool, which took my breath away. And I appraised the homes of some pretty famous people – Kelsey Grammer … (Carlos) Santana.
S-R: What’s your favorite style of architecture?
Haas: The wonderful old homes in Browne’s Addition, with the elaborate soffits and curved, leaded windows. Those are fun to appraise.
S-R: How do you relax?
Haas: I love watching sports – the Seahawks, Gonzaga women’s basketball, the WNBA Seattle Storm, softball. And I love to cook. A friend just went through having both breasts removed, so I took her some baked spaghetti with homemade sauce. She told me that was the first thing she’d been able to eat and really enjoy since her surgery. That made me feel good.
This interview has been condensed. If you’d like to suggest a business or community leader to be profiled, contact Michael Guilfoil at mguilfoil@comcast.net.