Corelogic Just Acquired Alamode

[hastalavista]

I believe I'm optimistic by nature, and am also a firm believer in the ingenuity of entrepreneurs.
Having said that, for this to be successful, I would envision the following:

A. The technical side is likely more complicated than we think. At a minimum, a secure system would need to be incorporated that meets the lender's regulatory requirements. So, there would need to be a dedicated tech person (not an appraiser).
B. Management of the system is a full time job. So, there would have to be a manager/CEO (best not to be an appraiser). And, perhaps, an assistant to run the mundane administrative tasks.
C. "If I build it, they will come" probably will not work. So, there would have to be a sales team (in all probability not an appraiser).
D. While there may be minimal compliance requirements for delivery systems now, that could change. At a minimum, this needs to be explored. So, there would likely be need for a compliance consultant (maybe an appraiser, but likely not).
E. The possibility that there are some appraisal-related issues with the system might occur. So, here is the position for an appraiser/appraisers to play. Not full time, but more on-call.
F. The scope and reach of the platform is going to have to be able to support the start-up costs and the maintenance structure of the organization (maintenance not only in terms of IT but in terms of personnel to keep it alive). So, I would forecast that to do so, this kind of program would need to be multi-state (regional) at a minimum.
G. Finally, what is the competitive advantage of this system over another? "Quality" of appraisers is not a competitive advantage. Licensed/certified appraisers are presumed to be qualified; and when they are found not to be, the lender (or its agent) will remove them. So the competitive advantage has to be: price; geographic coverage, and/or; ease of use.


This kind of business is not a PO box or run out of a spare bedroom: look at who is delivering this kind of service/product now and that is identifying who the competition is.
Next, one will have to develop a selling strategy that can convince potential clients to take on the service or switch from their existing provider. So the new product will have to offer something superior (I might not call it "significant" but I would say "definitive and demonstrable") to induce a client to switch to it from what they now have or to use it vs. continuing to do it in-house.

If I am correct, what does one think the possibilities are of gathering enough independent appraisers to launch this kind of endeavor?
Is it possible? Sure, it is a business plan and there are businesses that do this and are successful.
But realistically, how likely is it that such a plan would get past the funding stage?

 

[Evincere]

I think it's very clear what they mean. Sponsors don't just sponsor anonymously. They expect exposure in return. Appraiserfest is about to become a giant billboard for Corelogic. No matter how it is spun, alamode IS now corlogic and vise versa. Although the public may not recognize this, anyone in the know is aware of it.

Right or wrong, a lot of people here have a problem with that. We see it as a conflict. Alamode will have a name for this Kool Aid........ They'll call it "Synergy".

Some of us are just not that thirsty.

While I agree that CLs name splashed as ta sponsor of this event would be distasteful to many, myself included I think it’s important when considering the greater good - that the fest itself be a success even if it means capitalizing on CL dollars.

When one goes to a party or social event they usually have the option of who (guests) they choose to speak/interact with - a presence alone never a guarantee of acceptance or popularity

 

[Deleted member 130081]

I believe I'm optimistic by nature, and am also a firm believer in the ingenuity of entrepreneurs.
Having said that, for this to be successful, I would envision the following:

A. The technical side is likely more complicated than we think. At a minimum, a secure system would need to be incorporated that meets the lender's regulatory requirements. So, there would need to be a dedicated tech person (not an appraiser).
B. Management of the system is a full time job. So, there would have to be a manager/CEO (best not to be an appraiser). And, perhaps, an assistant to run the mundane administrative tasks.
C. "If I build it, they will come" probably will not work. So, there would have to be a sales team (in all probability not an appraiser).
D. While there may be minimal compliance requirements for delivery systems now, that could change. At a minimum, this needs to be explored. So, there would likely be need for a compliance consultant (maybe an appraiser, but likely not).
E. The possibility that there are some appraisal-related issues with the system might occur. So, here is the position for an appraiser/appraisers to play. Not full time, but more on-call.
F. The scope and reach of the platform is going to have to be able to support the start-up costs and the maintenance structure of the organization (maintenance not only in terms of IT but in terms of personnel to keep it alive). So, I would forecast that to do so, this kind of program would need to be multi-state (regional) at a minimum.
G. Finally, what is the competitive advantage of this system over another? "Quality" of appraisers is not a competitive advantage. Licensed/certified appraisers are presumed to be qualified; and when they are found not to be, the lender (or its agent) will remove them. So the competitive advantage has to be: price; geographic coverage, and/or; ease of use.


This kind of business is not a PO box or run out of a spare bedroom: look at who is delivering this kind of service/product now and that is identifying who the competition is.
Next, one will have to develop a selling strategy that can convince potential clients to take on the service or switch from their existing provider. So the new product will have to offer something superior (I might not call it "significant" but I would say "definitive and demonstrable") to induce a client to switch to it from what they now have or to use it vs. continuing to do it in-house.

If I am correct, what does one think the possibilities are of gathering enough independent appraisers to launch this kind of endeavor?
Is it possible? Sure, it is a business plan and there are businesses that do this and are successful.
But realistically, how likely is it that such a plan would get past the funding stage?

LOL - Too optimistic IMO opinion sometimes, but I certainly prefer it over perpetual pessimism.

I've started a fresh thread about an appraiser cooperative and would love to see you participate. I think you make some great points in this post. To quickly address your final questions:

#1 - The possibility increases as the industry changes and/or gets worse. IMO, the only way a collective works is in the absence of personal greed. It would need to be a FUBU thing, for us, by us.
#2 - Plans start with discussions. Countless businesses have started over coffee and written on napkins.
#3 - Realistically? No one can tell. Success will be contingent on commitment, perseverance and patience. I think the best chance goes back to my first statement, to make it about us and for us.

I would start this thing by simply gathering an email list and sending out periodical posts. Not a ton of expense there, but some time to gather and log emails. Then have an in-person meeting somewhere. I think through this process, the business plan would begin to develop. Maybe an online forum like this one without too much effort or expense.

 

[lefty2cox]

I believe I'm optimistic by nature, and am also a firm believer in the ingenuity of entrepreneurs.
Having said that, for this to be successful, I would envision the following:

A. The technical side is likely more complicated than we think. At a minimum, a secure system would need to be incorporated that meets the lender's regulatory requirements. So, there would need to be a dedicated tech person (not an appraiser).
B. Management of the system is a full time job. So, there would have to be a manager/CEO (best not to be an appraiser). And, perhaps, an assistant to run the mundane administrative tasks.
C. "If I build it, they will come" probably will not work. So, there would have to be a sales team (in all probability not an appraiser).
D. While there may be minimal compliance requirements for delivery systems now, that could change. At a minimum, this needs to be explored. So, there would likely be need for a compliance consultant (maybe an appraiser, but likely not).
E. The possibility that there are some appraisal-related issues with the system might occur. So, here is the position for an appraiser/appraisers to play. Not full time, but more on-call.
F. The scope and reach of the platform is going to have to be able to support the start-up costs and the maintenance structure of the organization (maintenance not only in terms of IT but in terms of personnel to keep it alive). So, I would forecast that to do so, this kind of program would need to be multi-state (regional) at a minimum.
G. Finally, what is the competitive advantage of this system over another? "Quality" of appraisers is not a competitive advantage. Licensed/certified appraisers are presumed to be qualified; and when they are found not to be, the lender (or its agent) will remove them. So the competitive advantage has to be: price; geographic coverage, and/or; ease of use.


This kind of business is not a PO box or run out of a spare bedroom: look at who is delivering this kind of service/product now and that is identifying who the competition is.
Next, one will have to develop a selling strategy that can convince potential clients to take on the service or switch from their existing provider. So the new product will have to offer something superior (I might not call it "significant" but I would say "definitive and demonstrable") to induce a client to switch to it from what they now have or to use it vs. continuing to do it in-house.

If I am correct, what does one think the possibilities are of gathering enough independent appraisers to launch this kind of endeavor?
Is it possible? Sure, it is a business plan and there are businesses that do this and are successful.
But realistically, how likely is it that such a plan would get past the funding stage?

This is good stuff. Thank you Denis.

Regarding competitive advantage, that is a tough one. Quality of the appraisal product and whether or not it would be better in "our thing" is a separate discussion, but I think the quality of service may be the edge. I can't think of one appraiser that I know who does a lot of work through management companies who doesn't operate with utter disdain for said company and the client. There is no "value-added" effort on the part of the appraiser, they pass on challenging assignments, make no extra effort and wouldn't pee on them if they were on fire. On the AVM side, much of the same. A kind of loveless "arranged marriage". Sure, the appraisal product is good but even if it isn't, AVM continues to utilize the appraiser because they need the coverage.

I remember a different time, a time when there was love between client and appraiser, a relationship built on trust. I remember I would never decline an assignment because it was challenging. I knew my client was counting on me, and I always delivered. I remember my business partner doing 2 inspections along the 2-hour drive to his father's funeral...getting an order on a Friday night from a good client, inspecting over the weekend and delivering by Monday because their processor forgot to order it.

I believe, and I may be wrong, that the only thing different from then and now for the appraiser is the feeling of being valued, belonging to something important. I think that if appraisers had hope in this respect, believed that they were building something good while earning their living, this feeling of obligation to the client for more than just the value opinion could return resulting in REAL value-added service. Not the crap AVM's offer.

I think mortgage appraisal clients, at least the ones who have been around long enough to remember, also hunger for the same.

 

[lefty2cox]

I would start this thing by simply gathering an email list and sending out periodical posts. Not a ton of expense there, but some time to gather and log emails. Then have an in-person meeting somewhere. I think through this process, the business plan would begin to develop. Maybe an online forum like this one without too much effort or expense.

If this is a serious discussion, which it is for me, I think email or some other platform for discussion is preferable. I do like the idea of a forum as well, but I'm concerned about moles. This forum is open to everyone. AVM employees, software companies...although, defectors welcome as their insight would be helpful.

 

[ucbruin]

This is good stuff. Thank you Denis.

Regarding competitive advantage, that is a tough one. Quality of the appraisal product and whether or not it would be better in "our thing" is a separate discussion, but I think the quality of service may be the edge. I can't think of one appraiser that I know who does a lot of work through management companies who doesn't operate with utter disdain for said company and the client. There is no "value-added" effort on the part of the appraiser, they pass on challenging assignments, make no extra effort and wouldn't pee on them if they were on fire. On the AVM side, much of the same. A kind of loveless "arranged marriage". Sure, the appraisal product is good but even if it isn't, AVM continues to utilize the appraiser because they need the coverage.

I remember a different time, a time when there was love between client and appraiser, a relationship built on trust. I remember I would never decline an assignment because it was challenging. I knew my client was counting on me, and I always delivered. I remember my business partner doing 2 inspections along the 2-hour drive to his father's funeral...getting an order on a Friday night from a good client, inspecting over the weekend and delivering by Monday because their processor forgot to order it.

I believe, and I may be wrong, that the only thing different from then and now for the appraiser is the feeling of being valued, belonging to something important. I think that if appraisers had hope in this respect, believed that they were building something good while earning their living, this feeling of obligation to the client for more than just the value opinion could return resulting in REAL value-added service. Not the crap AVM's offer.

I think mortgage appraisal clients, at least the ones who have been around long enough to remember, also hunger for the same.

"I remember a different time, a time when there was love between client and appraiser, a relationship built on trust. I remember I would never decline an assignment because it was challenging. I knew my client was counting on me, and I always delivered."

I agree with you on this...
A good relationship meant accepting all assignments because you "knew" challenging assignments would equal out with the slam dunk assignments....

The one upside (and it's really not an upside, but I'll grab onto something) to the way companies now assign work, is that I no longer have any guilt feelings when I decline some of the orders....

 

[Deleted member 130081]

If this is a serious discussion, which it is for me, I think email or some other platform for discussion is preferable. I do like the idea of a forum as well, but I'm concerned about moles. This forum is open to everyone. AVM employees, software companies...although, defectors welcome as their insight would be helpful.

F-them moles. The business I would start would include a valid appraiser license as a requirement. Lose your license, lose your share.

 

[lefty2cox]

The one upside (and it's really not an upside, but I'll grab onto something) to the way companies now assign work, is that I no longer have any guilt feelings when I decline some of the orders....

Definitely, one of the pros about how things run now...and that can be used as a selling point for a new way... our 1st competitive advantage.

"So, Mr. potential client, does it bother you that the appraisers you use now have no guilt about treating you like crap?"

 

[Deleted member 122624]

I think I saw this twice and no one responded to it. Am I the only one excited about this! Please provide more detail. I don't expect to renew with alamode after this. I am a recent convert to alamode. I just picked them up a few years ago when NCV was no longer being actively developed. I never liked the software, but I felt they were a better company than Bradford. I no longer feel that way. So I have no more loyalty to alamode. So I am now waiting with an open mind for the next appraisal software company to woo me over.

This new software company you speak of. Are they by chance out of Houston Texas? I spoke with an appraiser out there a few months ago who was working on some cloud software. But he was having issues with the UAD portal and the big boys playing hardball and having a lock down on it. I was hoping to hear back from him and sign up for a beta trail but I never heard from him. Interestingly, their website no longer has the option to run a beta trial. Am I close...

EDIT: Nevermind, beta trial page is still up. I was on the wrong page. Can you give more info on what you know?

I have beta tested this new software. It’s not the company you speak of. It’s really good and has everything you need built into it. It’s coming out in JUNE. Still have a couple more tests to do.

 

[Ca Ar Independent]

I'd love to see a nationwide boycott of Alamode. As in, NO appraisers renew their service. I'm done, hated Corelogic for years for multiple reasons and I will not be giving them my money and my data willingly. Clickforms we say?