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About This Split Inspect/desktop Thingy

Do you think you will make more money or not with a desktop oriented business?

  • Yes, but more liability

    Votes: 1 2.2%
  • Yes, and with less liability

    Votes: 2 4.4%
  • No, I will make less and have increased liability

    Votes: 24 53.3%
  • No, I will make less but less liability or about the same

    Votes: 11 24.4%
  • Damifino

    Votes: 7 15.6%

  • Total voters
    45
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Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
OK... I get it. Lenders want it CHEAPER (Lord only knows why since the BORROWER reimburses the lender for the appraisal and cost is no issue or they would not use AMCs) So, they want to have a (cheaper???) Realtor, inspector, or DumDum The Village Idiot "inspect" the property for a low fee and YOU, the appraiser do a desktop report (preferably in 3 hours??? claim you can do 3 or 4 a day??? Competently??) for an equally cheap fee. EVERYBODY WINS! We all get a participation trophy!

Nevermind the logic, the accountability and the liability to the appraiser, but simple questions.

The FHA appraiser has a set protocol and climbing ladders, crawling around in attics, or crawl spaces is supposed to be done for FHA and both FHA & Fannie rules talk about distances from airports, etc. So two issues. If we as an appraiser must do these detailed inspections and cruise the neighborhood to see how many gas stations, cleaners, gas wells, sludge pits, cell towers, railroads, etc. are near the property, how do we do that with an inspection by someone else?

Isn't it kind of a lame excuse, which Phil Crawford put out in his podcast about "older appraisers" seeking work that is not requiring inspection because they have bad knees, etc. or don't feel safe on a ladder, blah blah blah. So is FHA, Fannie etc. saying that they want the appraiser to do a DETAILED inspection BUT are satisfied with a sloppy inspection by someone without a license in danger, just to get a cheaper fee.

So you argue that there will be a split... 80% plus LTV loans - full boat appraisal by appraiser with appraiser inspecting...and the "easy ones" will be with this split system OR...in cookie cutters, we let the computer do it.

So what is left? It's only the hard appraisals - rural, complex, unique, or impacted properties. Here is our niche, we do the tough ones for little more than the desktops with promise of lots and lots of desktops - all the while going back stip after stip (at a meeting this morning an appraiser said she is still working on stips with a FIVE MONTH OLD appraisal).

Listen, you are not going to make the 2.5 grade on 9 of 10 of these hard appraisals NOT BECAUSE THERE IS ANY DEFECT in the report, but simply because the market data is limited and the property is unique.

Appraisers are being boxed into corners that they will have to come out swinging sooner or later. Otherwise, we all get starved to death. When I lost almost all my business from my top three banks, 2 to RIMS incompetence and 1 to a change in ownership, I was lucky that half my work was non-lender. My assistant had to be let go. I didn't renew my appraisal software, and I am strictly narrative. But for residential appraisers, you are being pushed tighter and tighter into a hole...whatcha gonna do?

tenor.gif
 

The Warrior Monk

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
I haven't done any desktop appraisers for lenders. Would I do them? Yes, under the right circumstances, with the appropriate limiting conditions, and for the appropriate compensation. The problem is that for the numbers I see being tossed around for compensation, I'm simply not interested. I charge more for, say, final inspections, which have zero liability with no value conclusion.
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
I definitely think I'd earn less doing this type of report and be working MORE. "3 or 4 a day" vs 1 day? I still go back to CindyR's sig line: 2 @ $400 is not the same as 4 @ $200

I think my liability on these type of "products" would be about the same, maybe a little less, but not much, IMO.

I have no problem with appraisers who would want to do this type of work for whatever reasons (health, don't like to drive, don't want to inspect), but I enjoy going in the field. It breaks up my days!
 

CindyR

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
I definitely think I'd earn less doing this type of report and be working MORE. "3 or 4 a day" vs 1 day? I still go back to CindyR's sig line: 2 @ $400 is not the same as 4 @ $200
The signature came about after i called an AMC (way many years ago) about their new much lower fee schedule. The guy told me 'you can make it up on volume'. I expect the folks offering this new streamlined solution would say the same thing today. 1 @ $600 is not the same as 6 @ $100
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
The signature came about after i called an AMC (way many years ago) about their new much lower fee schedule. The guy told me 'you can make it up on volume'
I'll be honest, one of the reasons (and there were many) that I stopped my "volume guarantee" with ACT AMC was because of your signature line. I would see it from different posts of yours and as I was figuring out which way to go with my business (stay with the "guarantee" which was a $40k+ "guarantee" or raise my fee and see what happens) Your signature line was definitely a deciding factor.

I, too, can see this type of product, especially if offered by AMCs, being marketed as a volume type product.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
If the inspector is so good why don't you just let them appraise it (y)
As a fellow at our Appraiser table this morning said, "After several stips, I told them the next would require him to sign the report, too."
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
The FHA appraiser has a set protocol and climbing ladders, crawling around in attics, or crawl spaces is supposed to be done for FHA

i highly doubt these will never be a substitute for a full FHA appraisal due to the inspection requirements. unless FNMA writes new forms specifically for these i can't see them accepting this report either. there are already lenders using these things and touting them as "USPAP-compliant" forms but we all know they have no idea what they are talking about.

i see these as an alternative to exterior only appraisals, which in the case of my clients are only used for 1 of 3 purposes - heloc, bridge loans or pre-foreclosure situations where the lender wants an idea of the equity in the subject. to me they have the similar liability to an exterior only order, but that is dependent on the scope of work and limiting conditions that would be established before the order was accepted. i imagine there are some lenders out there who would use them for mortgages but i think they would have a hard time selling them on the secondary market. then again i could be completely wrong as i don't deal with that end of the spectrum and can only give thoughts from the point of view of an appraiser.

would i do them? the first thing to consider would be compensation, and at $55 per report the answer is no. i suppose i would have to take one assignment to see how it went and what the rate per hour would be, and there is no way to determine that other than to do one. to date none of my clients have ever mentioned doing something like this so it is not on my radar. like bnm i enjoy the field work as it breaks up the monotony of the office portion. there are some appraisers who only like field work and some who only like office work. i could see this possibly being a viable alternative for those who prefer the office portion.

fwiw the first time i heard about these things was in the beginning of 2013, and in 4 years i have never even had one offered to me.
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I'll be honest, one of the reasons (and there were many) that I stopped my "volume guarantee" with ACT AMC was because of your signature line. I would see it from different posts of yours and as I was figuring out which way to go with my business (stay with the "guarantee" which was a $40k+ "guarantee" or raise my fee and see what happens) Your signature line was definitely a deciding factor.

I, too, can see this type of product, especially if offered by AMCs, being marketed as a volume type product.

Hah! Good job Cindy R. :peace:
 

EddieB

Elite Member
Joined
Feb 17, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
i highly doubt these will never be a substitute for a full FHA appraisal due to the inspection.

Never say never. I do see this as a future lending instrument. Lenders do now and will continue to use other products in combination for their lending decisions.
 
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