Where are the orders!

[nycvalue]

17 bid orders from AMCs in the last two weeks this month and none were accepted. Where are all of the appraisal orders and where is this industry going! It’s miserable waking up to an empty inbox.

What fees are you guys bidding for a regular 1004 URAR? Because I go low and nothing then I set it to normal fee and also zip. Something is off.

Any advice would be greatly appreciated. I am in the New Jersey/New York market.

 

[Terrel L. Shields]

Find better AMCs? I don't know. I don't compete in that area, but my clients are local banks and they provide some stability in that they do not use appraisers on the basis of low fee. I know one banker who told his loan officers to NOT use people who hint they will bring in whatever value they need or that low ball or high ball fees.

But it is a time of year, people go on vacation, and put off refi's etc. until later in the year.

OTOH, you can use that time to write to the CFPB with stories of low-ball offers, and remind them that fee and turn time are not what the FDIC and GSEs require. It requires an appraiser be chosen by qualifications. Name names, send any low-ball offers and argue that it is below C & R...

 

[George Hatch]

Technically, the requirement for the AMCs is for the appraiser to be adequately qualified. Not necessarily the most qualified, not necessarily by some competitive scale of qualifications. More similar to a go/no-go benchmark, not to some imaginary 97% > 95% benchmark.

​

 

[Fernando]

I recently bid on an exterior appraisal at a low fee for me at $425.
I haven't heard from the AMC. Nothing on the status. Very rude.

 

[George Hatch]

Also, and before our resident "refuses-to-read-for-content" gets going on it again, the operative clause in the above citation as it relates to AIR requirements is "independent of the transaction", which is not a reference to self-employment and operating in isolation of the intended user's expectations for SR1/SR2 development and report content.

 

[Terrel L. Shields]

Technically, the requirement for the AMCs is for the appraiser to be adequately qualified.

​

When turn time & fee are the only requirements...? Well, so.... when do they do that? I mean if they did, they would not be sending bids to newbies, Licensed appraisers on FHA assignments, or mixed commercial/residential to CR. The only thing they check is how close to the property, and even then, why send me a offer to bid on a house that is over 100 miles away? Desperation? Stupidlity? Blanket email dumping?

 

[George Hatch]

This ain't 1990 no more, and most 1-4s are not so crazy atypical appraisal situations that only a local can understand the appraisal problem and perform competently. In terms of how much "geographic competency" it takes to perform an appraisal on a typical 1-4 property I daresay having access to the local database is going to be more relevant than whether or not the appraiser has ever driven through that particular subdivision or shopped at the local Krogers. That, and spending the requisite amount of time/effort to research and analyze the local market trends and the subject's market segment.

I'm not local to Marin City, but even from several hundred miles away I can see 100% of all RE transactions across all property types that have occurred there over the last 20 years and I can find the MLS listings for all of the actual SFR sales that were marketed through the MLS. I can find and understand the zoning (which many of the locals don't even do that) , I can find the topo maps and flood zones and I can see from the overheads when the GLA is reported significantly different in the public records than exists onsite. I don't need to be local to do any of that. I just need to have the skills to do it and the willingness to reinvent the wheel to get to that point.

Now the GSE requirement is a little more stringent in that the appraisers certify to having "the knowledge and experience in appraising this type of property in this market area", but exactly how many assignments in a local does it take to effectively meet that requirement? 2x/yr? 1x/yr? 3x in the last 5yrs?

Sorry, but most market segments aren't that special. Not just for SFRs, but across most property types. Other than timber, ag and mining, of course.

 

[J Grant]

17 bid orders from AMCs in the last two weeks this month and none were accepted. Where are all of the appraisal orders and where is this industry going! It’s miserable waking up to an empty inbox.

What fees are you guys bidding for a regular 1004 URAR? Because I go low and nothing then I set it to normal fee and also zip. Something is off.

Any advice would be greatly appreciated. I am in the New Jersey/New York market.

I do not bid to AMC's but I have been appraising for over 20 years and have ( after rebuilding my hard-won clients post HVCC) enough direct order/lender work that I do not need to- of course, if that changes and is gone I would rethink whether to stay in this field

If you are just another appriser with a res license in a populated area, and newer as well, and your only clients are AMC;s then IMO you might want to think about a different profession - unless you want to get an SRA ( I do not have one but would get one if starting out ) or better yet, go for the commercial license. Either one is a big commitment but is the only way out of the AMC low-fee bid nightmare, which does not offer a sustainable income or career.

The other options are to work for a county assessor's office or move to a remote or weather-challenged area where there are few appraisers and they are desperate for people. Otherwise, face a life of misery and low fees. Sorry to be blunt, but those are the only realistic options, barring regulatory change, which is needed but may not ever occur.

Things will get busiesr if and when rates lower but that is still not a career plan because rates rise and fall in cycles and the low fees from AMC;s do not provide enough savings for the lean times.

 

[Fernando]

A lot of appraisers think it's that simple. Need to be familiar with location and neighborhood. Know school district. Know other nuances.
Appraiser thinks they have all the information but has to do additional research and work to be well competent (thus those outside appraisers should charge more).

 

[J Grant]

This ain't 1990 no more, and most 1-4s are not so crazy atypical appraisal situations that only a local can understand the appraisal problem and perform competently. In terms of how much "geographic competency" it takes to perform an appraisal on a typical 1-4 property I daresay having access to the local database is going to be more relevant than whether or not the appraiser has ever driven through that particular subdivision or shopped at the local Krogers. That, and spending the requisite amount of time/effort to research and analyze the local market trends and the subject's market segment.

I'm not local to Marin City, but even from several hundred miles away I can see 100% of all RE transactions across all property types that have occurred there over the last 20 years and I can find the MLS listings for all of the actual SFR sales that were marketed through the MLS. I can find and understand the zoning (which many of the locals don't even do that) , I can find the topo maps and flood zones and I can see from the overheads when the GLA is reported significantly different in the public records than exists onsite. I don't need to be local to do any of that. I just need to have the skills to do it and the willingness to reinvent the wheel to get to that point.

Now the GSE requirement is a little more stringent in that the appraisers certify to having "the knowledge and experience in appraising this type of property in this market area", but exactly how many assignments in a local does it take to effectively meet that requirement? 2x/yr? 1x/yr? 3x in the last 5yrs?

Sorry, but most market segments aren't that special. Not just for SFRs, but across most property types. Other than timber, ag and mining, of course.

That is your opinion only, and your pattern is to provide a rationale for the worst of the worst of client actions.

Propepers are MORE complex than in 1990 and much more expensive, so local expertise is more important than ever. Thd online data now is not that different tan 1990, same MLS and same overhead maps etc.

Carry on spinning it for hybrids and remote appraisers doing work in areas they know nothing about. The next step will be outsourcing to India or China since no local knowledge is needed, and you will support that, too.