No one wants to work

[sputnam]

For a long time, I've thought that the Lender's and AMC's complaints about an appraiser shortage were over hyped. My suspicion was that there was a shortage of appraisers willing to work really cheap and really fast. Now I'm starting to believe that they have a point about a shortage. Today, I got a call from a friend who works in a small AMC. They have been unable to find someone who was even willing to quote a fee for an appraisal at the beach. It's well outside my service area... but, I probably could have gotten any fee I asked for. As an old manager used to tell me (back when fees were $300 or so, if every appraiser charged $500 or more, then lenders would be paying $500 or more.

 

[TerryRohrer]

For a long time, I've thought that the Lender's and AMC's complaints about an appraiser shortage were over hyped. My suspicion was that there was a shortage of appraisers willing to work really cheap and really fast. Now I'm starting to believe that they have a point about a shortage. Today, I got a call from a friend who works in a small AMC. They have been unable to find someone who was even willing to quote a fee for an appraisal at the beach. It's well outside my service area... but, I probably could have gotten any fee I asked for. As an old manager used to tell me (back when fees were $300 or so, if every appraiser charged $500 or more, then lenders would be paying $500 or more.

I don't disagree, but it is a two-way street. I work in areas where there is simply very little data. I have quoted repeatedly, but seldom get an assignment, then get the appraisal they paid half price for to review because, even though they closed the loan, they don't believe the product. And with good reason...there is no substance and no indications of competence. I have quoted some assignments where I have told them I will provide a well reasoned, supported, credible report, but I won't accept the assignment with 30 pages of stop and call and other stipulations that take longer to read, much less address, than completing the appraisal. I have been quoting one all week that is asking for a 1004. I google the property and there are at least 2 dwellings on 80 acres (four tracts) but the listing talks about 9 cabins and a bath house. I have suggested the AMC and lender google the property and make sure it meets their lending requirements. There is no response, but a few hours later, I get the original request from another AMC. At least 4 on the same property so far.

 

[Terrel L. Shields]

Because they do not want to take a particular assignment is no sign they do not want to work. Often over the years, the ones I got burned on were new clients. Won't pay and demand samples and copies of W-2 even when a corporation, plus E & O and a 20 page list of BS to comply with. So no, I am not going to bid. I found another little factoid. A party that is willing to pay a high fee often does so because they don't intend to pay anything anyway. "If I intended to pay you, I could have used anybody." as one old wag used to say.

 

[Tim Hicks (Texas)]

For a long time, I've thought that the Lender's and AMC's complaints about an appraiser shortage were over hyped. My suspicion was that there was a shortage of appraisers willing to work really cheap and really fast. Now I'm starting to believe that they have a point about a shortage. Today, I got a call from a friend who works in a small AMC. They have been unable to find someone who was even willing to quote a fee for an appraisal at the beach. It's well outside my service area... but, I probably could have gotten any fee I asked for. As an old manager used to tell me (back when fees were $300 or so, if every appraiser charged $500 or more, then lenders would be paying $500 or more.

It does not matter to me, I will not work for AMCs. I decline immediately no matter what the fee. I am not enabling them to survive. They will have to survive without me.

 

[Fernando]

Tract home appraisers are easily available and fees are low.
Homes on beach are unique and require more skill to appraise.
Clients willing to pay and knowledgeable appraisers know it.
Those less knowledgeable take these assignments and are not competent and get in trouble.

 

[shrubberyvaluation]

For a long time, I've thought that the Lender's and AMC's complaints about an appraiser shortage were over hyped. My suspicion was that there was a shortage of appraisers willing to work really cheap and really fast. Now I'm starting to believe that they have a point about a shortage. Today, I got a call from a friend who works in a small AMC. They have been unable to find someone who was even willing to quote a fee for an appraisal at the beach. It's well outside my service area... but, I probably could have gotten any fee I asked for. As an old manager used to tell me (back when fees were $300 or so, if every appraiser charged $500 or more, then lenders would be paying $500 or more.

Maybe it has more to do with transparency and the waste of time with quoting in most cases.

 

[Fernando]

Maybe it has more to do with transparency and the waste of time with quoting in most cases.

If you don't quote, you can't get the assignment which is fine when I'm the only bidder.
The trick is to be as fast as possible to get preliminary info on subject and estimate amount of time to do the appraisal based on experience and quote the appropriate fee.
Each property is unique to me and hs low to high range fee structure.

 

[sputnam]

The only way you learn and become a better appraiser is to do the 'hard' ones from time to time. The more difficult appraisals offer an opportunity to learn but, also to make a pile of cash. Eventually, some appraiser will accept the assignment I mentioned....And they will get whatever fee they ask for. I'm guessing that will end up being $5k or more... for the appraisal of one, single family dwelling that happens to be on the beach. If I knew someone in the area that would help me access data, I'd do it.

"Maybe it has more to do with transparency and the waste of time with quoting in most cases." Many businesses and professionals have to quote fees. It's part of doing business. I'm not sure when appraisers decided they were so special that they shouldn't have to tell potential customers what the fee for a service would be. Personally, I wish we could have convinced Lenders to let us charge based on an hourly rate for time spent. But, I do understand that some appraiser would 'cheat'.

Anyways, If anyone is interested in the assignment, let me know and I'll pass your info along.

 

[chad hampton]

There's been so much bad blood built up over the years, very few appraisers respond to bid requests. In my former career, bid requests weren't sent out until the estimated cost was well into the 5 figures. For anything less, they sent it out based on standard professional qualifications.

Send the order to an approved appraiser on your panel and they will let you know if the fee needs to be adjusted to account for complexity, location, etc. That is how a profession operates. AMC's did this to themselves - and if their lenders are the ones that ask for bids, the AMC needs to inform them that's not how this works. The AMC had this entire industry handed to them on a silver platter, they need to start doing their part.

 

[jay trotta]

IMO - the only reason to request a "Bid" is to determine how much you can skim off the top for being the middleman

Prior to the last bailout, Requests were sent to obtain a cost for the assignment - you could estimate the time to actually do a professional (the elements required) job and get it back in a timely fashion. Now, every job is a "Rush", but without compensation, therefore, "customary & reasonable" is non existent.