Hybrid Appraisals

[Bobby Bucks]

I don't want to start a new thread this one is close enough It's in Charlotte
LOOK AT WHAT i JUST RECEIVED IN MY EMAIL from an AMC
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AMC I have a new order available: Short-Term Rental Market Analysis— 7307 Blyt

• NO INSPECTION REQUIRED; MLS PHOTOS ACCEPTABLE.
• Please see attached “STR MA” outlining the scope of work for this request.
• The form appraiser will utilize to complete the report is also attached as “AN STR Market Analysis.”
• 
  
• Completed Sample report attached (STR Pro form).

Please provide your fee and estimated completion date. Thank you for your consideration!

The short term rental market analysis and hybrid are in the same "bag of tricks" vault at the AMCs. When summer vacation time gets closer, we can expect AMC pseudo royalty to begin "begging" appraisers to perform them while insulting them at the same time.

 

[Carnivore]

Res Appraisers are going the way of the Dodo Bird. I could take some time and replace the words below to substitute for describing the res appraiser.

The dodo bird went extinct primarily due to human activities, including overhunting, habitat destruction, and the introduction of invasive species like rats, pigs, and cats, which preyed on the birds and their eggs

Res Appraisers are going the way of the Dodo Bird. I could take some time and replace the words below to substitute for describing the res appraiser.

The dodo bird went extinct primarily due to human activities, including overhunting, habitat destruction, and the introduction of invasive species like rats, pigs, and cats, which preyed on the birds and their eggs

It won't be long before a res appraiser will be on display in the Smithsonian

 

[Non Sequitur]

Boots on the ground appraisers can argue all day long, but the truth is the GSE’s are promoting hybrids as “nearly all SFR and condo loans will qualify for a PDC based valuation solution.”

The future is here. If you’re one of the lucky ones who are licensed in multiple states and have an in with one of the chosen AMC‘s or staff groups, good for you. Make bank while you can because they will replace you soon enough with a noob who they trained to do it their way. The rest of us will have to move along soon enough.

 

[Terrel L. Shields]

the dodo bird went extinct primarily due to ....the introduction of invasive species like AMCs, Hybrids, Property Inspectors, which preyed on the appraiser and made a mockery of FFIREA and Frank-Dodd.

fixed it

Make bank while you can because they will replace you soon enough

The secondary market appraisers will basically disappear. The future for appraisers is to sell themselves to a smaller community bank who needs an in-house appraisal reviewer and/or evaluator as a low-cost substitute for the AMC. And, of course, these kinds of banks are being forced to sell out by the regulations that favor the mega bank. 50 years from now, there will be no small banks. There will only be the mega TBTF bank. Probably merged into only a handful - 5 or so perhaps- banks who will all be on line and all your banking will be on-line and cash will be a thing of the past.

 

[George Hatch]

Our past indicates to our future.

If the price of the technology is right the appraisers will use technology to leverage their productivity. Appraisers will sell the level of SR1/SR2 that their clients are willing to engage and pay for (the two not necessarily being commensurate with each other). If Vic the appraiser won't do it at the prevailing rate in the market then his clients will just go find someone else who will. If Vic withdraws from the market none of his clients are going to miss a beat. Neither Vic nor any of the rest of us mean anything to our clients beyond what we did for them today.

Nor is that lack of personal empathy from the lenders a one-way street. Appraisers are also emotionally detached WRT the financial well being of our clients. If Wells withdraws from the mortgage business today none of those fee appraisers are going to be sending cards or flowers to the employees Wells ends up laying off. It's just business insofar as the appraisers are concerned. They'll just start looking for other clients to fill the gap.

 

[alebrewer]

Their issue does not appear to be that appraisers don't want to do them. Their issue is the lenders are not utilizing the option like they thought they would.

Why would they use this complicated multi-step process with twice as much work for the same cost when they can just order an appraisal and be done with it?

There is no market for hybrids. It will be going away soon.

Agree with all but the bold. The impetus to bifurcate the appraisal process goes way deeper than just trying to save the consumer a few $/bit of time. With the PDC, the GSE's are affectively getting a 'property condition update' every time a PDC is performed. Remember that one of the biggest struggles with AVM's is the property condition component. Another is the functional utility component. Periodic PDC's solve for both of those unknowns.

 

[George Hatch]

Maybe they'll drop hybrids altogether. Or, they might just keep their options open, subject to the actual demand for them.

 

[Bobby Bucks]

I am not expecting to see hybrid's scale in today's market. I think some lenders will use them in a targeted fashion like rural areas where they could pick up some efficiency. I think they could scale if/when the market picks up. A few years ago in testing when volume was high, we observed a ~5-6 day average turn time savings for hybrids. Weeks in some areas. High volume is when it really works for the appraiser too because they are not flipping back and forth between the traditional and hybrid process. Appraisers could sit at their desk with a queue of PDCs ready to go and complete 3-6 hybrids a day. At $350-$450 per, they were making good money and we had many say they didn't want anything but hybrids. It takes volume for this to happen, but we all know the market is cyclical and there will be high volume periods again.

It's important to remember, we do not dictate what valuation option a lender and consumer use. We present options based on our calculated risk of the loan.

Has anyone talked with a peer who is completing 3-6 a day for those fees? One must wonder what else is being exaggerated in their sales pitch.

 

[Non Sequitur]

The only thing that will save boots on the ground appraisers is politics. If Dr. Calabria doesn't kill this stuff true independent appraisers are done. Nearly all GSE work will be funneled to AMC and national firm staff appraisers.

 

[Non Sequitur]

Has anyone talked with a peer who is completing 3-6 a day for those fees? One must wonder what else is being exaggerated in their sales pitch.

My WAG: When they were test running this during the pandemic they handpicked a few appraisers and fed them as much as they could eat. The reality is, when you aren’t living in an echo chamber those numbers aren’t anywhere near reality. And we will likely never see pandemic volume again, so when these things are widely adopted the predictions of needing only around 20% of existing appraisers will likely come true. And I know that GSE‘s hate to hear it, but those guys sitting at the table having coffee are not paying anywhere near those fees.