Dustin Harris/Appraiser coach

[J Grant]

Anyone on board with this should get into another profession, like selling time shares?

What are the chances that one of D's low paid criagslist hired appointment setters will be "entrepenurial", and lift personal homeowner info for an identity theft scam or the like? Sending confidential and sensitive information out to an outfit like this deserves whatever fallout comes from it...meanwhile, rake in the $ from the drive through Mcdonalds school of appraising!.

 

[ockyappraiser]

Let me ask you. . .is there anything you would look at that would make your appraisal practice more efficient?

I did an field inspection last week where there were two appraisals ordered, mine being one of them. As it turned out, we both showed up at the same time. The other appraiser got out a tape measure and begin to work around the house. I showed her my Disto and asked if she had ever considered using one. She said she did not trust lasers. This was a 4600 sf house. It took me 20 minutes to measure all floors. She readily admitted she would be at it for over an hour.

I know many appraisers that refused to let go of paper. They print off every bit of information they find. Then they lay it all out and begin the reporting process using one monitor. This versus those that do not print anything, but are using 2-3 monitors and digitial storage workfiles.

I also know several appraisers in my market that do not subscribe to any service but MLS (only because they have to). They physically go to every courthouse and look up every file. They do this even though every county in our area has on line data service that would give you the same thing. . .but you have to subscribe.

then compare the two scenarios where one appraiser downloads the order via Xsites and which sets up the order. Then he/she uses data import software to pull in the public data, FFIEC, FEMA, etc. For the custom fields, they use Dragon speech to input those. Comps are automatically populated in the grids through importing software. This vs those that are typing in everything from printed copies.

So again. . where are the conversations on improving our business? You seem to imply that any suggestion of becoming more efficient and saving time in the reporting process yields poor reports. I would argue that there are those that have and will continue to spend the money it takes to do some of the things I have outlined above to raise their practice to the next level.

At the end of the day. . .we can raise rates, or take more orders. There is no other way to make more money in appraising. If your bottom line continues to be smaller every year then the past year. . .why are you still in business? I continually push for higher rates. My rates are higher now then before the AMC influx. But both of us have the same amount of available time. When you reach the level that the market will accept in rates, when do you look at turn times to enable you to do more reports?

 

[J Grant]

If appraising were a timed event, such as track and field, you surely would have "won" over the appraiser who took longer to measure the house. Since it is not, some are comfortable at a diff pace than another.

Nothing wrong with efficiency or using modern technology, but it gets to a point where those who rely on speed as a business model start looking to it to ever increase the bottom line at the expense of thoroughness. You are a prime example, trying to squeeze out more and more, ultimately turning to an outscourcing service such as Dustin.

In appraising, mortgages are for for 30 years and hundreds of thousands of dollars are at stake, plus the home buying is the biggest decision many people make financially. I think it's wrong to skimp on results for speed, this is not a hamburger, this is somebodys's equity and future at stake. Speed as the ultimate goal is a direction that is detrimental to the profession.

Ways to increaser profit: specialize in high end/complex properties, take on associates, or get the cert gen license or an SRA designation.

Beyond that , one has to realize there is a cap on earnings as an appraiser. As a single practictioner, res only appraiser, there is a limit to what you can earn and do a decent job on reports. If you can't accept that, get a side business, flip houses, trade day stocks, or go for a field with unlimited earnings, such as comission sales.

A nurse does not earn as much as a doctor. Some make very good money, if they specialize , such as surgical nurse. Stil,l there is a limit to what even the most specialized nurses can earn. A doctor earns more because of education level, higher liability and responsiblity etc.

Appraisers are not doctors and we are not lawyers. If you are ambitious, go to law school on the side or become a stock trader.

An appraiser rushing through reports to crank em out is like a nurse piling on shifts and bleary eyed, rushing from patient to patient, not knowing who is getting which meds etc. There is a limit to how "efficient" anyone can be,. Certain professions have certain ceilings of pay, and a res appraiser can earn very good money but unless they form an AMC or lock up a client, there is an earning ceiling.

 

[ockyappraiser]

first, I'm not considering outsourcing anything. I would just like to hear other people's ideas and how they do things. Second. . .again look at the list of suggestions I offered. Are you really saying that those that use Distos, tablets, speech recognition software, multiple monitors, and multiple on line data sources are doing inferior work over the guy wtih the tape measure and pad an pen?

I would counter that I invest FAR more money in my profession then those that are still using the tape and pad.

At the end of the day, it depends on where you are coming from. If you consider yourself an appraiser rather then a businessman, then you will join the ranks of those complaining about our profession, damming the AMC's and insisting that anyone doing the job faster then the other person is a skippy. I like to think of myself as a business person, in the business of appraising. In other words, I don't want to ever get to the point of thinking my way is the only way. . .or even the right way. The business person is always open to new ideas and ways of BOTH offering a better product, and going it more efficiently. . .and YES. . .at greater profit.

At the end of the day. . .the business person is in business to make a profit. Those appraisers that disdain being business people. . .and view them selves only as appraisers. . .should really look to working for others because in the end, they are simply employees.

 

[Tim Hicks (Texas)]

My, my, my how the topics have changed over the last year. It wasn't that long ago that we were whining about AMCs dominating the business and appraisers leaving the profession due to lack of work. Now, we are discussing appraisal "coaches" and technology to increase our productivity. The appraisal business is cyclical and there will be slow days ahead. Productivity will not be issue again.

Find your happy medium and realize that fastest is not best if quality suffers, but failure to not acknowledge technoligical advances will also lead to your demise.

 

[ockyappraiser]

well said. . .and good balance.

 

[J Grant]

Good post, Tim!

 

[Tim Hicks (Texas)]

I just can't believe how quickly some forget how suddenly things can grind to a halt. It is not all your brilliant marketing and charm that is bringing in the business right now. Appraisers should be just working smarter and harder without incurring needless expenses they may not be able to afford in the future.

 

[J Grant]

Some appraisers look at reports as a "product", thus, the less time spent on each one, the more money one makes..(to the point of exhaustion/max capacity)

However, appraising is a unique profession, where the appraiser themselves ARE the product. The appraiser is really selling their expertise, experience, market knowledge, reputation. .

No matter how hi tech the gadgets, one simply has to spend adequate time, at some point in the process, THINKING about, and digesting the information in order to develop judgement about the data, market conditions, etc.

We need to keep in mind while racing through a stack of reports, that these reports will be associated with us for many years...those long, S L O W years afterward .

 

[ockyappraiser]

all good points. There is, however, a "selling" aspect to what we do. There are a given number of clients out there. We have to be able to communicate clearly why it is in their best interest to use us over the other guy. To simply say. . .I have more knowledge. . .is not going to cut it.

Also. . .at the end of the day, people do business with people that are easy to deal with. I try to make it a point to be polite and friendly to both the homeowners (even when they complain about a low appraisal) and the clients (yet even the low ball AMC's.) We don't have to accept low rates. However, I have had orders come to me simply because I was polite in my dealings with the reps and kept them informed.

I asked an AMC rep once what it was like to deal with appraisers. She said most that she talked to were either rude or cussed her out. She said it made it really difficult as she was just doing her job and what she was required to do.

I'm hoping that all the "militant" appraisers will be such jerks that they get cut off from those ordering the appraisals, and then supply and demand will have its day. . .as there will be fewer appraisers in the pool getting higher rates. . .for simply being polite, helpful, and doing what they say they will do.