Let The Borrower Pick The Appraiser

[Mike Kennedy]

That's incredible, if"everyone already" think we are "grossly overpaid".?? What led to that conclusion? Appraisers badly need to pool resources and do some PR /create an information website so that members of the public, RE agents, and anyone else can see the breakdown of what we are paid, the hours that go into it, and what it comes out to. AMC or lenders trying to get us to work as cheap as possible ...I suppose they want people to believe we are grossly overpaid to justify what they do?

I agree that not many outside of our own profession cares what we are paid.

What lead to that conclusion are the minnows GLEEFULLY and EAGERLY quoting 2-3 TAT at 1995 appraisal fees which result in many cases in a doubling of their gross earnings compared to their apprentice years........(which often extended beyond the 2 year licensing period). Why? their former dupervisors paid them a pittance per inspection/report. To the newly and recently fully licensed and/or certifieds - $200-300 bucks a shot sure beats the hell out of $50-100. Plain and simple - as long as appraisers CHOMP AT THE BIT for fees UNDER 400-500. - lenders and their agents will gladly keep them churning and burning at HALF fee (unadjusted for inflation vs say 1995).

INFLATION CALCULATOR (FIGURES BELOW DO NOT FACTOR IN SCOPE OF WORK OR EXPANDED REPORTING ELEMENTS / NON-COMPLEX SFRES ASSIGNMENTS ONLY.)

"The U.S. dollar saw inflation at an average rate of 2.16% per year between 1995 and 2016. $250 in the year 1995 is worth $391.70 in 2016."

"The U.S. dollar saw inflation at an average rate of 2.16% per year between 1995 and 2016. $300 in the year 1995 is worth $470.04 in 2016."

http://www.in2013dollars.com/1995-dollars-in-2016?amount=250

** ESTIMATES above also do NOT factor in significant increases in "E&O Insurance rates NOR MLS fees, electronics, other ops expenses i.e. CPA fees, attorney fees (when applicable, office rent (when applicable), phone bills, data services costs, etc. ( ex. ours went from $250. in 1995 to the current $2,000. annually)

 

[Eli]

Market power on price due to an oligopsony. Keep that in mind relative to public trust. Louisiana ain't done yet.

 

[Eli]

Market power on price due to an oligopsony. Keep that in mind relative to public trust. Louisiana ain't done yet.

Really, or like appraisers, the profession itself argues for licensing and degrees in the vain illusion that it "improves the profession" which is code word for creating an artificial shortage to drive up fees. We currently have bartenders trying to get the state to license them. Do you honestly think they are doing it to "to protect the public" (it's already illegal to serve someone under the influence), so is bad drink mixing a real problem?

I cherish education way more than I did as a youngster. I could if I had the time post studies after studies that prove its value.

 

[timd354]

r

That's incredible, if"everyone already" think we are "grossly overpaid".?? What led to that conclusion? Appraisers badly need to pool resources and do some PR /create an information website so that members of the public, RE agents, and anyone else can see the breakdown of what we are paid, the hours that go into it, and what it comes out to. AMC or lenders trying to get us to work as cheap as possible ...I suppose they want people to believe we are grossly overpaid to justify what they do?

I agree that not many outside of our own profession cares what we are paid.

For some reason, many people otuside the profession think that we don't do much to earn our money....I remember borrowers on numerous occassions making comments to me during the apprasial inspection that my $450 fee was a lot of money for an hour or less of work, not understanding that the inspection was but only a small part of the appraial process. I also remember an article that was published around 2005 or 2006 that stated that the average appraiser made about $110,000 year, which considering that a college degree was not required at the time, probably seemed like a lot of money to most people, considering that was about 2.5 times the average household income at the time

 

[timd354]

And the sad part is most could do much more credible and reliable work if they were paid more because it would bleed into better education and more TIME spent on the job which would benefit everybody.
Appraisers.

Bull, back in 2000-2007 when everyone in this business was making large fees, most appraisers did nothing to obtain a better education or to take more time doing appraisal reports...instead many appraisers hired trainees and chruned out as many reports as possible...too many people were just incentivized to churn out more and more reports in order to make more and more money. The idea that paying the exact same people who are doing appraisals today more money will result in these same people becoming better appraisers and producing better appraisal reports has no basis in reality.

 

[djd09]

The high quality socialized report has made everyone better together. Q4C3. Copy. Over.

 

[George Hatch]

That's incredible, if"everyone already" think we are "grossly overpaid".?? What led to that conclusion? Appraisers badly need to pool resources and do some PR /create an information website so that members of the public, RE agents, and anyone else can see the breakdown of what we are paid, the hours that go into it, and what it comes out to. AMC or lenders trying to get us to work as cheap as possible ...I suppose they want people to believe we are grossly overpaid to justify what they do?

I agree that not many outside of our own profession cares what we are paid.

Don't get me wrong about fees - I'm just making an observation about how people outside our business perceive us. I think most appraisers work hard for the fees they make, possibly too hard.

I console myself with the other perks of the job. That works for me. So this is where I break into The Speech, the high points of which I think we all need to hear from each other from time to time and in one form or another:

I believe in the legitimate role appraisals play in furtherance of providing our users with the information, analyses and conclusions it takes to assist them in making informed decisions. I believe in appraisers and I believe in the appraisal profession. I believe appraisers as a group are hard working and conscientious and I'm way more comfortable in the company of my professional peers than in any other group I can think of except for my immediate family.

But I try not to ever lose sight of the fact that as far as the banking business goes we are often considered parasites, and the due diligence function we perform is sometimes regarded as a drag on commerce. A traffic barrier impeding and sometimes halting the progress of that deal.

I also try to have realistic expectations for how we and our work is or isn't valued in that market. I believe that any appraiser who needs external validation for the appraisal function or the pat on the back for a job well done is in the wrong line of work. That's not what we do and it's not what drives most of us. Most appraisers I know - including every last soul participating in this thread - are internally motivated. That's no fluke, either; its basically a critical attribute without which none of us would have survived in this business.

That's why I have no problems dealing with clients and users whose orientation and benchmarks are different than ours'. It makes it easy for me to assume the "I'll do me and you do you" attitude with others whose professional priorities conflict with ours.

I realize it ain't personal, it's just business. I think it might be helpful if we all kept that in mind.

 

[OSU Beavers]

Round Robin based on distance to the subject. My peers and I are getting tired of passing each other on the freeway every week.

 

[Michigan CG]

A livable wage appraisal fee is commensurate with VA fee schedule as a base.

According to some, a livable wage is $15/hour because they DESERVE it no matter their skills?. A livable wage for you is the VA schedule, again no matter the skills?

No one is entitled to anything. Everyone is entitled to present their work quality and work ethic to their prospective or current employer. If the employer does not like the work product they can get rid of that person. Life is not fair.

 

[J Grant]

MichCG, Do you think the AMC is ENTITLED to a large portion of the appraiser fee? Do they DESERVE it no matter their skills?

Because despite your mantra about entitlement , the reality is this. A borrower pays $475 to the mortgage bank. Bank uses AMC The AMC shops the job out, finds an appraiser at $300 ., the lowest bid. It goes to a mediocre appraiser who bid the lowest. Meanwhile a more skilled appraiser with a higher higher work quality and work ethic, who according to you, "desreves" a higher fee, loses the order because they bid $350.

THAT is the problem, I am speaking about. I am speaking out against this system. You are supporting this system with your argument. Yet you at same time complain about low AMC fees in r posts/ appraisers doing poor work travelling far in your area for these low fees.)

I mention the VA fee as it is not based on the low fees AMC's have driven down to Thank you (sarcasm) for thinking so little of the profession you support appraisers being paid less. That it is driving good appraisers out of business and rewarding the fast/ cheap, who do the generic canned comment work you dislike, seems not to register.

You argue for keeping a system that is rewarding the fastest, cheapest appraiser and driving those with higher work ethic and quality out of the field. All because the client profit incentive does not recognize the higher skills, work ethic and quality as of prime importance in selection. It recognizes how much $ they can make off an appraiser as prime importance in selection.

Your preaching about entitlement rings false in relation to this particular dynamic tied in with third party or profit based client control of ordering, though it might apply elsewhere. I doubt you will recognize it though, and expect you to keep arguing in support of a system that refuses to pay for what you claim deserves higher fees ( better skills, work ethic, quality) .