• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

10 Ways To Kill The Appraisal Industry: By Anonymous Lender

Status
Not open for further replies.

Julio E. Sune Jr. (FL)

Thread Starter
Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Warning!!--Content will result in High P/O-Meter Readings!!

An anonymous lender submitted the copy below to the Appraisal Buzz. Of course it is controversial and many will take offense.

10 Ways to Kill the Appraisal Industry
by Anonymous Lender

1.Make sure you ALWAYS demand full fee no matter what quantities/efficiencies dealing with a Vendor Management Company or Large Bank may offer. Most banks prefer to have appraisal costs as high as possible to reduce their profits. This is especially true on consumer equity loans when the bank will typically pay for these costs and not pass them on to the consumer. Banks hate to have their cost of doing business low. For this reason we would never look for an alternative to paying $325.00 for a drive-by in a rural county so we can do a customers $10,000.00 home equity loan. Our margin on the previous example is about $300.00 a year so this guarantees we will be upside down on this loan for almost 2 years before we would realize a profit.

2.Make sure you network with all the other appraisers in your area and decide that no one will negotiate a lower price. Remember Banks love to pay high prices and will never look for ways to drive down costs. Driving down costs never worked for any business. History is littered with the failures that tried. Wal-Mart, Dell, and Southwest Airlines notable examples.

3.Make sure you erect as many barriers as possible for more people to enter the appraisal industry. With a shrinking field of appraisers someday soon we will be guaranteed to have to wait days or even weeks for an appraisal to be completed. Our customer's hate it when they receive quick service and would much rather prefers to wait as long as possible. This is especially true when the customer has plans for a purchase with the money. I'll never forget how happy a customer of mine was once when someone else purchased the used boat they wanted to buy because there was a delay in getting their home equity loan closed.

4.Refuse to do Drive-by appraisals. Our customers would much rather use up a vacation day and worry about having their house spotlessly clean so that you can spend 10 minutes walking through it than to have you come by some-time at your convenience and take a picture of the outside.

5.Don't invest in technology. It is by far more desirable to wait for an appraisal in the mail than to receive it electronically. This would require a quicker loan process and may inadvertently satisfy the borrowers.

6.Don't promptly return phone-calls checking for status and if you are by chance reached in person or return a call is sure to promise the report by a certain time then not deliver. We are happiest when several promised by dates pass and we still don't have the report. The best excuse is that you are waiting on better comps. We realize that the perfect comp is probably for sale right then and is just waiting for a buyer.

7.Be sure to be a hostile as possible to any product or process that offers an alternative to high prices and slow turn times. Those banks that "don't get it" may occasionally try to do small dollar, low LTV loans with products other than a full walk through appraisal. They are most likely to change their mind when they get angry calls from appraisers about them.

8.Refuse to accept work from Vendor Management companies. Banks desire to have large staffs that do nothing but hunt around for appraisers to accept orders and keep track of a variety of different prices. It is also preferable to process dozens of different payments for several appraisers than to get billed and pay for services just once a month with one check.

9.Be hostile to change of any type. Things are always better the way they are and should be left alone. Any new idea must be bad simply because it's new. Refuse to try things differently. If your at a bank and they start to talk about trying something different just get in your horse and buggy and head back to your log cabin. Electricity is just a fad and will fade away just like the AVM.

10.Keep doing things just the way you are!!!

:evil: :evil: :evil: :evil: :evil: :evil: :evil: [/b]
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
Those ten things, if practiced to the extreme, would kill any industry. You could easily write "ten things that would kill the mortgage industry" along those same lines.
 

xmrdfghap

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Florida
So, in their opinion, to sustain and even enhance business prospects for the appraisal industry, we need to

1. Accept whatever reduced rate someone wants to offer. This has worked so well with trial lawyers, doctors, and CPA’s that it is amazing to think we don’t already do it.

2. Treat peers with disdain, ignoring all others engaged in the same business. Refuse to spend time discovering competitive pricing. Backstab and undercut the competiton at every opportunity.

3. Train as many people as you can possibly manage, encouraging them to go into competition with you. At which time they can backstab and undercut the you at every opportunity.

4. Provide a product that is flawed by bad information but that is convenient to the clients. I suppose this is why E&O is available, after all, why buy it if you won’t use it?

5. (Not too sure about this one.......what technology are they talking about? I have a notebook, soon to be getting a tablet, with cellphone internet and wi-fi, adobe, digital, data services,....what am I missing?)

6. Hang out at the office so you can respond to the 5th call that day from the 5th clerk asking about the appraisal you delivered yesterday.

7. Be agreeable to any reduction in the price you have had for the past 6 years, and accept full responsibility for not having a 24 hour turnaround time on every assignment regardless of complexity.

8. Accept all work from your competition, at a reduced rate, collecting their fees, and waiting 3 months for your payment. Ensure these assignments receive priority over full fee work.

9. Accept a clerks idea of a new work product and accept that clerks opinion of its adherence to USPAP.

10, And most of all, let the AVM’s and Bankers run your business the way they want.....after all, it is THEIR loan on the line.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
A response is not worth the effort. It is obviously presented by a bitter employee with little or no experience in the mortgage business. WE are independent business people and not their employees. It is our choice in how we do business, not theirs.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
They left off number 11.

11. Always demand payment up front because we mortgage giants have impeccible credit, always pay our bills and may or may not be in business next week depending on how we mismanage your money.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Thanks Greg, I was hoping someone would go through that pile of sh*t and write up responses to it. Given a little more time, I'm very sure you could make it even better than what you've already done.

Sure sounds like an AMC manager wrote that - another attempt to make appraisers into sheep in line to be sheared.
 

Dennis J. Black ASA IFAS

Senior Member
Joined
Mar 5, 2002
Professional Status
Certified General Appraiser
State
Florida
Did you ever notice how it so often is portrayed that we are not aboard the client's party boat. This completely ignores the very basis of appraising. We are to be independent, impartial, and objective, not a rubber stamp.

This thread did not get me annoyed. It just confirmed what I already knew.

Have a great day.
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
Anonymous could be anybody. A really cynical person could even suggest that the 'Appraisal Buzz' people were having a slow newsweek and decided to write their own editorial. I dunno how responsible it is to publish such a one-sided and inflammatory piece without attribution. If someone has the guts to tell us how we should be running our business for the betterment of everyone other than ourselves, they should at least have the hair to sign it.

The fact that the AVM and AMC vendors are having trouble getting what they want from us at cut-rate pricing (after all, who is interested in working for $10/hour?) is not our problem. They're the ones who are trying to insert themselves into our business relationships and abscond with a large percentage of every fee we generate whilst contributing almost nothing to the process. They need to go back to the drawing boards and find a way to actually earn the money they are trying to take.


George Hatch
 

Jim McGrath

Junior Member
Joined
Jan 25, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Thanks Greg, I was hoping someone would go through that pile of sh*t and write up responses to it. Given a little more time, I'm very sure you could make it even better than what you've already done.

Sure sounds like an AMC manager wrote that - another attempt to make appraisers into sheep in line to be sheared.

Pamela, the appraisal buzz, and Joan Trice, have always been pro AVM, and AMC. That's where her advertising income comes from, what else do you expect from her? She probably wrote it herself.

One encouraging thing about it is, since they are now complaining, they must be suffering from appraisers who won't do their c**p.

Jim
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Yes Mr Mortgage Guy YOU accept WITHOUT CONDITION Drive By Appraisals out in in RURAL AZ No problem we'll do them REMEMBER WITHOUT CONDITION means when they pull out of the home YOU get the HOME as they left it. WITHOUT CONDITION means you are totally responsible for the home should the borrower default. NOW do U want to send out those Drive By request?
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks