Desktop Appraisals Becoming the New Normal

[glenn walker]

are you estimating value of the comparables?

finite number of orders at lower fees each are what will make it different from today

The impact will comes slowly as more waivers are used -more desktops and more 2055 drive-bye which will be used on loan defaults. The appraisal industry is now getting a broader menu of choices and services . The Covid-19 was the opening to use as test cases and to get appraisers assimilated into the concept of the new virtual world of employment . As the purchase markets and refinance markets slow down its going to be a real shock that borrowers-lenders-bankers will not pay for high cost appraisals anymore. Consumers are not happy with appraisers or our fees and those voices im sure have been heard .

 

[J Grant]

The other way desktops/hybrids will affect the field is fewer appraisers can produce more volume. That is great if the fewer are the competent appraisers, not great if the fewer working are the less competent/less experienced , getting volume because they will agree to do them cheaper or faster.

Now if a marginal appraiser can do 10 a week, soon they can do 30 a week.

 

[J Grant]

The impact will comes slowly as more waivers are used -more desktops and more 2055 drive-bye which will be used on loan defaults. The appraisal industry is now getting a broader menu of choices and services . The Covid-19 was the opening to use as test cases and to get appraisers assimilated into the concept of the new virtual world of employment . As the purchase markets and refinance markets slow down its going to be a real shock that borrowers-lenders-bankers will not pay for high cost appraisals anymore. Consumers are not happy with appraisers or our fees and those voices im sure have been heard .

Agree it will come slowly, giving folks time to make decisions. How enduring these new products are will depend on the amount of chaos or problems they cause among users and parties, or if they are as smooth and efficient as hoped for ( and results wrt credibility ) will see !

As a person nearing semi retirement age, I am happy to drive less in exchange for a bit less $. But overall I do not think it will be good for profession or origination loans for res work - fwiw

 

[glenn walker]

Do they refuse because they don't believe the standard SOP of the textbooks that the cost approach is most applicable in new construction or that they are simply incompetent and cannot do a credible cost approach?

Because today's VA fee panel is loaded with some real lazy old appraisers who have been extorting veterans and anyone of them who refused to do a cost approach on new construction should be immediately terminated. When I was a SAR I saw some of the worst crap ever produced and VA has done a poor job weeding out bad appraisers-once on panel they start acting like their supreme court judges appointed for a lifetime career.
Many had admitted to me that when they had 10 days even if they finished in 1 day they left it on there desk until day 10 because they could. Of course this will cause blow back by the old VA guiys on here but the truth is most are dinosaurs who need to retire and go home as our veterans deserve a lot better service and lower fees.

 

[George Hatch]

so what ? Appraisers are human and are concerned about money. is this another appraisers are hypocrites because they say it is about credibility when all they care about is the fee posts ?Must have been hundreds by now. Amazing how appraisers like to undermine their own.

Appraisers are concerned about the fees, AND concerned about credible results. One does not negate the other

Yes it absolutely is about the hypocrisy. And the foolishment the hypocrites are attempting by cloaking their financial concerns with the mantle of moral outrage.

A discussion that's about the money should be about the money; not citing credibility as their primary concern.

So let's talk about what happens when appraiser productivity gets leveraged by technology-enabled desktops and hybrids. The demand for appraiser hours declines. We will need fewer heads to service the remaining effective demand. That means that if the number of appraisers doesn't decline in parallel to the reduction in demand then the fees will also decline. That means that nobody should be taking trainees on in the face of a declining demand for their productivity.

Noting the obvious doesn't amount to advocating those changes or those outcomes. It only serves to put the idea out there that the march of technology and changing users expectations should be taken into account by appraisers and some of them might do better for themselves by adapting to the changing environment as opposed to attempting to obstruct it.

 

[glenn walker]

Agree it will come slowly, giving folks time to make decisions. How enduring these new products are will depend on the amount of chaos or problems they cause among users and parties, or if they are as smooth and efficient as hoped for ( and results wrt credibility ) will see !

As a person nearing semi retirement age, I am happy to drive less in exchange for a bit less $. But overall I do not think it will be good for profession or origination loans for res work - fwiw

No big deal based on food-gas and price of homes out here i doubt too many will be busy late this year and with dual monitors one will be looking at one for a desk top order and other eye will be on AF lying about the big fees their getting.

 

[Terrel L. Shields]

i doubt too many will be busy late this year

Looking at the stock market today...and the prospects of ever higher oil and inflation well above 4% for the next unknown number of months? Remember, if the inflation number does drop to say 2% quickly, it likely means the economy just came to a big screeching halt and in doing so means appraisers will be twiddling their thumbs, and house prices falling, while food stays high. Lower car sales, lower good sales - only staples will remain steady.

 

[alebrewer]

finite number of orders at lower fees each are what will make it different from today

The finite orders part is already happening in many markets... heck - we might be back in the $300's for full fee appraisals once appraisers have to start competing again.

 

[J Grant]

The finite orders part is already happening in many markets... heck - we might be back in the $300's for full fee appraisals once appraisers have to start competing again.

Not for direct clients, the only ones making appraisers "compete" for low fees are the AMC';s.

 

[alebrewer]

Not for direct clients, the only ones making appraisers "compete" for low fees are the AMC';s.

I wish I lived in J's world - where everything was perfect except for the evil AMC's....