Tell us how you really feel about appraisers ...

[cashcatz]

The problem with the real estate appraisal industry is that appraisals cost too much and take too long. It is ridiculous that it costs $500 to $800 for an appraisal that takes three weeks to complete. In many instances everybody already knows what the property is worth. Also, there is a shortage of real estate appraisers. The average age of an appraiser is over 60 years old and there are only 60k of them versus 1million real estate agents.

The bottom line is that when a purchase real estate transaction happens, everybody already knows what the house is worth. The broker already listed it for the right price based on comparables. And if it is notpriced correctly, the valuation can be verified with data.

Consequently, there are talks inside Fannie Mae and Freddie Mac to approve automated appraisals with floor plans and sketches. In two years, we might see 50 percent of appraisals on refinancings done likethis.

Source: https://classicvalueinvestors.com/wp-content/uploads/2024/08/Voxtur-Investment-Report.pdf

 

[Joe Flacco]

Stock price was 15 cents when this was published on August 12, 2024. Now it is one cent.

Looks like the report was part of a pump and dump scheme.

 

[glenn walker]

Agree it's moving quickly towards what I've labeled as being actuarial planned obsolescence. lol

 

[Surf Cat]

Welcome to the club Voxtur..... have fun driving drunk people around while making Uber and Lyft lots of money and having your passengers throw up in your personal ride essentially making what appraisers do.

 

[OSU Beavers]

The bottom line is that when a purchase real estate transaction happens, everybody already knows what the house is worth. The broker already listed it for the right price based on comparables. And if it is not priced correctly, the valuation can be verified with data.

Consequently, there are talks inside Fannie Mae and Freddie Mac to approve automated appraisals with floor plans and sketches. In two years, we might see 50 percent of appraisals on refinancings done like this.

Even if it is listed at market value, there is a little thing called the Realtor Shuffle, where the final contract price is raised and the seller then kicks back that amount to the buyer for closing costs.

That inflated closed sale is now used by the AVMs to support a bogus refi value.

Don't even get me started on Builder In Kind Contributions above the 6% limit in the form of interest rate buydowns.

 

[djd09]

hey borg...good luck in east cleveland

 

[Fernando]

How about refinance appraisals? Odd of getting two appraisers to come to same refinance value is low. And of course, Fernando's value is the more accurate one.

 

[sputnam]

So... it's fine for a gas line plumber to charge $250/hour, or more, for labor.... but it's not okay for an appraiser to get $500 to $800 for an appraisal that might take 6-8 hours labor, sometimes more, from receiving the request to delivery of the report? Most of the time between the assigment and delivery is scheduling.... and it's often the property contact who causes the delay. The problem is that everyone thinks appraising is easy.... that they know as much as the appraiser does. I worked in RE full time for 10 years before my dad finally admitted that I knew more about it than he did. Never mind that the extent of his RE experience was living in houses. The other part of the problem is that so many appraisers shortcut the work.

 

[J Grant]

So... it's fine for a gas line plumber to charge $250/hour, or more, for labor.... but it's not okay for an appraiser to get $500 to $800 for an appraisal that might take 6-8 hours labor, sometimes more, from receiving the request to delivery of the report? Most of the time between the assigment and delivery is scheduling.... and it's often the property contact who causes the delay. The problem is that everyone thinks appraising is easy.... that they know as much as the appraiser does. I worked in RE full time for 10 years before my dad finally admitted that I knew more about it than he did. Never mind that the extent of his RE experience was living in houses. The other part of the problem is that so many appraisers shortcut the work.

Agree. And when buyers spend hundreds of thousands for a property/and lenders lend hundreds of thousands to over a million, an appraisal fee is well worth the relatively minor amount of $. And few res appraisers are getting $800 or taking 3 weeks. Even a starter property, which used to be 150k, is often 400k now.

Amazing how they always target the apprasial fee, when lenders typically make tousands to tens of thousands of $ on loan junk fees and points.

 

[chad hampton]

Appraisals don't cost 800 and take 3 weeks to complete. Anyone or any article that claim that is full of ****. I'm in a typical SE fairly large city and C&R fees in this market are around 400 and take 3-5 business days.

I assume anyone claiming these ridiculous numbers of 800 and 3 weeks are snake oil pushers who are trying to sell the next latest and greatest junk technology system that will make them the $800.

I don't want to hear anyone ***** about appraisal fees. We didn't create the AMC system that adds on double what the real fee is. Go complain to your lender that you can call an appraiser for $400, so why are they telling you 750?