Adapt or Die?

[SANDY]

We have come to the conclusion that appraisers must adapt or die. The writing has been on the wall for a long time now and it says---our clients want cheap and fast products period. We all were hoping that the current crisis would change things in favor of independently developed quality appraisals backed by thorough analysis supported by the principles behind USPAP. It's not going to happen-the hvcc if adopted will be watered down and/or its implementation will result in numerous disasterous side affects that threaten to make things worse.

It's time for the folks that regulate us to make some changes that allow us to compete with avms, bpos and the like. Change USPAP to allow us to perform BPO like appraisal products--ie.. get rid of the poundage requirements of the drive-by form and develop an appraisal product that let us compete with the brokers and avm products or just let us do bpos and cmas under the same rules as the brokers. If ya can't beat em-join em.
If you think about the appraisal business in the overall context there is no other logical conclusion that one can arrive at-some here may have been able to carve out their litle niches but the overall market for the traditional appraisal products that we are allowed to perform is just about gonzo. Time to get TAF to allow us to compete on a level playing field.

Ok-bang away!!!!

 

[Randolph Kinney]

Are you saying that USPAP should be changed to allow incompetence as the standard? And the SOW should be changed to allow the traditional comp check SOW?

 

[Scott Lanz]

Ok, so drop your appraiser license and become a Realtor. Now you can compete and you have joined them.

Problem solved.

 

[jturner01]

While I understand where you are coming from, I agree with the last poster. This would just open the door for more incompetence. I feel what needs to take place is for us to take a stand and really stand for the change. The majority of appraisers in the past have just stood casually on the side and said it will take care of itself. We need to get rid of all the junk out there that is nowhere near as reliable and get the greed out of the equation. If the LO were to be liable(penalties, loss of license) and knows that underwriting is going to have to order an additional appraisal they will not be so apt to go with the number hitter or the avm.

 

[CANative]

You can do BPO's if you like. You just have to call them appraisals and comply with USPAP. And if you want to do them for fifty bucks like the desparate, out of work real estate agents go ahead.

How about if "the ones that regulate us" made real estate agents comply with USPAP when doing BPO's so they would have to work at our level instead of us working at their level?

 

[SANDY]

Good points folks but those points don't alter reality-the reality seems to be in favor of fast and cheap over quality for so long now despite what has happened. It just makes no sense to me. I don't see things changing in our favor. I guess I am just frustrated this morning.

 

[jturner01]

fast and cheap, or greed as I call it, is what got the industry in this mess.

 

[Terrel L. Shields]

It's time for the folks that regulate us to make some changes that allow us to compete with avms, bpos and the like.

You cannot compete with free or near free. If you cannot provide a value added service, you are just competing for the bottom. If you do cheap appraisals, then its hard to sell yourself as above average quality and therefore you will not get the better assignments. They give them to "better" quality appraisers. Further, you put out a cheap product you have the same amount of liability and a WHOLE lot more chance of making a mistake. Since you are a PROFESSIONAL then the court holds you to a DUE DILIGENCE standard that no AVM has to bother with.

 

[SANDY]

You can do BPO's if you like. You just have to call them appraisals and comply with USPAP. And if you want to do them for fifty bucks like the desparate, out of work real estate agents go ahead.

How about if "the ones that regulate us" made real estate agents comply with USPAP when doing BPO's so they would have to work at our level instead of us working at their level?

Which scenario is more likely to happen since those that regulate appraisers can't control or regulate the realtors?
We would still have the ability to perform the quality appraisal products-offer them side by side and let the lenders decide which product to order. Let us give them what they want and let's quit trying to save the world because it obvious didn't work and won't ever work.

 

[Lee Lansford]

...It's time for the folks that regulate us to make some changes that allow us to compete with avms, bpos and the like. Change USPAP to allow us to perform BPO like appraisal products--ie.. get rid of the poundage requirements of the drive-by form and develop an appraisal product that let us compete with the brokers and avm products or just let us do bpos and cmas under the same rules as the brokers. If ya can't beat em-join em...

If one elects to "compete" with AVMs and BPOs/CMAs, one might choose to allow his or her appraisal license to lapse and then..."compete" in that market.

Or, alternatively, a professional appraiser might want to consider that he or she does not want to have near-total reliance on appraising for residential lending for his/her income.