Airstream
Senior Member
- Joined
- Mar 27, 2022
- Professional Status
- Certified Residential Appraiser
- State
- Wisconsin
Just received an email a few days ago. A major direct lender client says that as of October 1 the reports will be ordered as 3.6 (unless not secondary market). They have been a little late to the game because they merged with another bank. So really this entire process goes all 3.6 as of October 1 unless it is a home equity line or something not sold to GSEs.
On a previous post I said an AMC ordered a 3.6 appraisal for $400. I bid $600. Well 2 days later I get the bid for $600. Which tells me a few things: 1) Appraisers are not accepting low fees for 3.6 2) Appraisers aren’t ready to do 3.6. Could be a combination of both. This company seldom if EVER TAKES my bids on appraisals. The only ones I ever get are ones that are complex and no one wants to do like muli-family.
But I now know at least 4 appraisers that are either not doing 3.6 or just left the business. There will be a thinning of the herd for sure. But with rates going up, we probably won’t see any big increase in volume. I fully expect rates to hit close to 8%. But if we ever get inflation under control and rates come down. Look out for a boom in refinancing.
On a previous post I said an AMC ordered a 3.6 appraisal for $400. I bid $600. Well 2 days later I get the bid for $600. Which tells me a few things: 1) Appraisers are not accepting low fees for 3.6 2) Appraisers aren’t ready to do 3.6. Could be a combination of both. This company seldom if EVER TAKES my bids on appraisals. The only ones I ever get are ones that are complex and no one wants to do like muli-family.
But I now know at least 4 appraisers that are either not doing 3.6 or just left the business. There will be a thinning of the herd for sure. But with rates going up, we probably won’t see any big increase in volume. I fully expect rates to hit close to 8%. But if we ever get inflation under control and rates come down. Look out for a boom in refinancing.
