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NAR’s Move To Replace Real Estate Appraisers With RVM’s

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It is going to be very interesting to see how things work out. I would guess that the need for most appraisals and/or BPO products for lending will be elliminated. The big question is how long it will take to happen? We talked a lot about this topic when discussing AVM's etc in the past. But, to now have the NAR attacking the appraisal profession is a very, very bad sign. Even those that pushed the AVM in the past always were careful to say appraisers would play a role, perhaps even run the AVM. The NAR didn't even bother with that. They appeared to have kept the plan "top secret" and then when they were ready, they openly announced that their product would become the "gold standard". No attempt was made to even try to explain how the appraiser members would fit in, because appraisers are not in the plan.

We knew the new education requirements would greatly reduce the # of people coming into the field. We know that many are now hanging by a thread because of the HVCC. Now, the NAR has announced their intentions to replace us all together. Where do we go from here?

My guess is that it will take a couple years to make this happen. Don't let this time go by without planning your exit stratagy! It could happen sooner, or maybe take a little longer, but I have to believe we are in the end game right now. For many of us, it will be like having a company we work for tell us they are closing the plant in two years and that will be it.
 
"The sky is falling!"

Not.

10 or more years ago I "learned" that AVMs would replace appraisers. :)

What I learned subsequently was that AVMs (and NAR's product) are merely additional tools for use in the valuation of properties.

There will always be opportunities for the competent and ethical appraiser.
 
I may be naive, (or just plain wrong), but this does not worry me. With an AVM from the Realtors, half of the time it will come in below the contract price, so I would think that it will never meet the Realtor's needs. I may not have a lot of faith in Fannie/Freddie, but I can't really see them embracing this, because it will be proven inaccurate.
 
leelansford said:
"The sky is falling!"

Not.

10 or more years ago I "learned" that AVMs would replace appraisers. :)

What I learned subsequently was that AVMs (and NAR's product) are merely additional tools for use in the valuation of properties.

There will always be opportunities for the competent and ethical appraiser.
Click to expand...


Funny,

I was telling my peers about AMC's in 2004-2006. 95% of them had no idea what a AMC was, and they all laughed at me when I told them that this wll be the new wave. This was before the HVCC or the market crash.

It's a waiting game I guess. I just hope YOUR right this time.
 
....when near subjects like this come up I always remember a conversation with a talented used car man with over five decades of successful experience. This experience was selling to and between dealers from Tennessee to the West Coast and Colorado to south Texas. His comment to me was, "...a lot of people will tell what something is worth, but I will tell you what I will give...". This means to me that the able, willing and informed will always have something to do. Cars with apt & accurate informations should be much easier due to complexities involved to determine as a measured commodity. But the system has not been able to eliminate the auctions, wholesalers, retailers, salvage players, etc. from the game. It takes local players with local or moved product to make it all happen. Each has its role and the players change due to their individual performances and constantly varying conditions or markets. If this much simpler business and products cannot be "nationalized" by the Big Five lenders and the auto makers by now, why should the real estate industry be more controllable?
The appraiser as an expense or income participant in the lending business is most small, therefore, of little financial influence. Now if I was to worry about a major change in the RE Game, it would be sales commissions, title expense, etc. as being areas to alter the income/expense streams for the industry's future. The lender should be more interested in an adequately developed opinion of value than supporting tens of thousands in sales and processing expenses around or through a loan balance or collateral value. I understand from new builders that their selling expenses are here about 12% and to that could be added other fees and points and interest. Taking all the work from appraisers would contribute little to or from the real estate mortgage game's figures. I still feel that attained credibility will be necessary to solicit fundings from foreigners who provide money for our governmental and individual debts. This poverty will force quality valuations for years to come, especially after this national fraud we have "put" on them in exchange for their exports of goods and energy........we traded these exports for phoney "papers" vs. Treasuries which could not be safely defaulted on...........best to all.......rs
 
I was reading one of the articles where is states the following "After Young provided an overview of RPR for NAR's Appraisal Committee Friday, he faced a barrage of questions about its impact on appraisers" Of course the article does not report what, if any answers, were given to those appraisers in attendance. It will be interesting to read reports of those exchanges.
 
....I may offer to sell their house for $400 commission or appraisal fee.......rs
 
Don't worry, the self appointed USPAP police, state boards, regulators, etc have a vested interest in having appraisers as pinatas. The regulatory-enforcement complex will be the appraiser's powerful ally. Need I mention the support from the CE industry?:icon_mrgreen:

The option of hanging an RRR or whatever it is called in effigy is just not as good of a safety diversion for the rioting masses. AVM's don't need CE, just occasional tweaking.
 
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