Evaluation Liability

[Meandering]

I may be in the minority, but I believe $100-$125 might be a decent fee for a desktop portion of an evaluation. But are lenders or AMC;'s paying that? I've had more than a few solicitations for evaluation work at a fee of $45.

Minority isn't exactly the category.

Do yourself a favor and read the IAEG and understand exactly what an evaluation is and entails, before you go believing the BS your AMCs tell you.

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[SpartanAG]

I may be in the minority, but I believe $100-$125 might be a decent fee for a desktop portion of an evaluation. But are lenders or AMC;'s paying that? I've had more than a few solicitations for them for a fee of $45. Which is crazy,

Lender's in my state are charging their customer's $150 - $200 for an evaluation. The evaluation forms are generally a single page which covers the points required by the IAEG guidelines. Cookie cutter evals take about 15-30 minutes if data is plentiful. Rural or oddball properties can take a bit longer. These evaluations are typically completed by unlicensed persons.

I after the crash in 2008 when lenders were reorganizing their appraisal departments, I provided an evaluation product to my local lenders. Before I offered the product, I met with my state board to ensure everything was in compliance with USPAP. As Mr. Wiley has pointed out, it wasn't a primary source of income, but it was nice filler work. I still offer a commercial evaluation product to some of my clients (yes, technically it is an appraisal that I offer).

 

[DWiley]

As Mr. Wiley has pointed out, it wasn't a primary source of income, but it was nice filler work. I still offer a commercial evaluation product to some of my clients (yes, technically it is an appraisal that I offer).

That work was very good in that role for us. With a staff of appraisers there was almost always someone who had a few extra minutes to fill. We created a "form" in Word and used that. We chose the Restricted Report option, but one could just as easily create an Appraisal Report template

 

[J Grant]

Lender's in my state are charging their customer's $150 - $200 for an evaluation. The evaluation forms are generally a single page which covers the points required by the IAEG guidelines. Cookie cutter evals take about 15-30 minutes if data is plentiful. Rural or oddball properties can take a bit longer. These evaluations are typically completed by unlicensed persons.

I after the crash in 2008 when lenders were reorganizing their appraisal departments, I provided an evaluation product to my local lenders. Before I offered the product, I met with my state board to ensure everything was in compliance with USPAP. As Mr. Wiley has pointed out, it wasn't a primary source of income, but it was nice filler work. I still offer a commercial evaluation product to some of my clients (yes, technically it is an appraisal that I offer).

Are these commercial that you refer to? ( I assume so). If yes..that would explain the higher pay out.

 

[SpartanAG]

Do yourself a favor and read the IAEG and understand exactly what an evaluation is and entails, before you go believing the BS your AMCs tell you.

The evaluation standards stated in the IAEG are just the minimum. There is nothing saying that they can't be added to, to make the product USPAP compliant.

 

[J Grant]

Some evaluation work I have been offered on res lending side ( all offers rejected at the $45 fee), were to be done on a client's online form, which if it is similar to the online type of forms for BPO work is not an easy format to deal with.

An appraiser's own form or a page narrative would be a lot simpler/faster

 

[SpartanAG]

That work was very good in that role for us. With a staff of appraisers there was almost always someone who had a few extra minutes to fill. We created a "form" in Word and used that. We chose the Restricted Report option, but one could just as easily create an Appraisal Report template

I created a template for my old residential product using Alamode stuff. I have a commercial that I created in Word that I still use from time to time. It is basically an augmented restricted appraisal report. My state board is good with it, my clients are happy with it and the regulators give it a thumbs up. Everyone is happy.

Are these commercial that you refer to? ( I assume so). If yes..that would explain the higher pay out.

The $150-$200 evaluations are residential in nature. I no longer provide that product, but that is what lenders are currently charging for a residential evaluation in my state. I currently provide a commercial product and the fees are much higher, but also much less than a typical "commercial" appraisal.

 

[J Grant]

A number of residential appraisers would (mo) find a $150-$200 a fair fee for an evaluation.

 

[SpartanAG]

An appraiser's own form or a page narrative would be a lot simpler/faster

It is, and you would need to create something that meet both the IAEG guidelines and USPAP, because the lender forms don't meet USPAP. The lender doesn't care what you use as long as the product meet their needs. My old employer ordered or performed around 200 evaluations a month in your state. And I'm familiar with a few other lenders that do the same. It is a growing market. Banks are beginning to order more outside evaluations and reduce in-house staff in order to cut some costs. If you do work for your local lenders (the stuff they keep in-house), then you would likely be able to capture some of that evaluation work, if you wanted it.

 

[SpartanAG]

A number of residential appraisers would (mo) find a $150-$200 a fair fee for an evaluation.

A buddy of mine (unlicensed) makes a fine living doing evaluations and construction inspections for local lenders. And his little company is expanding as more lenders move from in-house staff to outside contractors that they don't have to pay when work slows down.