Adapt or Die?

[xmtpedprl]

Buyers make mistakes - same as anyone else - and part of our job is to allow them - and everyone else - involved in the process to decide if:

A) They want to make that mistake

B) If so, do they want to bring money to the table to cover for their irrational exuberance

C) If they want to walk away

It's their call, all the time, but they need an honest report to make that call.

Dave...

 

[PropertyEconomics]

Sandy,
Unfortunately as an appraiser trainee there is very little you can do to change the current situation, EXCEPT, become certified and go after work that is non mortgage related. There is plenty and developing those relationships are often long lasting, enduring, and pay off over and over again.
As many have said, and this is not a slam at ANYONE in our profession, residential appraisers for the most part think inside the Fannie/AMC/Mortgage box. When the market sours, as it has now, there appears to be no end in sight and all appears bleak.
In prior posts I believe you said you have a number of years in the appraisal business, unfortunately, having never become certified you now cant make the decisions you need to make regarding a business you can call your own.
Diversity is the name of the game these days, and you will find, once diversified you will not go back to the mortgage lending business again because many of us have realized long ago that faster/cheaper just doesnt mean profitibility. Again with respect, the only way to make faster and cheaper pay is to be certified and have a group of trainees doing the work and the owner getting paid for it. Sad, unfortunate but true.
I simply would take the stance to never get faster and cheaper becasue you certainlyl will realize ... it just doesnt work.
Now is the time to take responsiblity for becoming certified ... and reaping the rewards that will happen. This market will not be down forever .. and those that survive will be busy again with good work.

 

[Webbed Feet]

<....... snip.......> Normally people that see that their gas guzzler products have fallen out of favor start changing the production line to make different products that consumers want. It's as simple as that-there is and will be less and less market for the poundage that the old fashioned appraisers are used to producing and much of the weight is due to USPAP despite the sow changes. <....... snip.....>

Mr. (Ms.?) Sandy,

From my view you are way out in left field on this. So far Mr. Hatch has nailed it best. What I would like to know is exactly what "Consumer(s)" are you posting about? Do you mean borrowers / property owners? Because if you do you are totally lost. Those poor folks are getting nailed for the same old fees, or higher ones, and ultimately the same old turn times after it can pass through more hands. This so-called demand for fast and cheap is NOT coming from them! It is being driven purely by a sales oriented industry that wants to close the sale before the REAL consumer can shop around, with that same industry grabbing a piece of the fees for additional profits for THAT industries pocket! The real "consumers" are not benefiting from the rush to close loans and manipulation going on to divert appraisal fee profits into the pockets of entities other than real estate appraisers.

I'm sorry, but your posts read to me like an old prostitute trying to predict that all other women will soon have to also be *****s because the majority of men all want *****s. So pretty soon no woman will survive the "market" if she doesn't ***** up her reputation. But you see I am with Mr. Hatch. We need the numbers of little *****s to be greatly diminished, those seeking to hire them getting their cars confiscated and then they get put in jail along with the little prostitutes. You see we have bunches of appraisers running around operating illegally, we've left it legal to keep asking them to do so, and don't punish all involved. That's the problem. It's not supply and demand. It is a blackmarket that is out of control and operating right out in the open for all to see. It's like mafia handing out money to juries at the courthouse door as juries pass by to go in. This is what you want all of us to stoop down to compete with?

Webbed.

 

[PropertyEconomics]

Mr. (Ms.?) Sandy,

From my view you are way out in left field on this. So far Mr. Hatch has nailed it best. What I would like to know is exactly what "Consumer(s)" are you posting about? Do you mean borrowers / property owners? Because if you do you are totally lost. Those poor folks are getting nailed for the same old fees, or higher ones, and ultimately the same old turn times after it can pass through more hands. This so-called demand for fast and cheap is NOT coming from them! It is being driven purely by a sales oriented industry that wants to close the sale before the REAL consumer can shop around, with that same industry grabbing a piece of the fees for additional profits for THAT industries pocket! The real "consumers" are not benefiting from the rush to close loans and manipulation going on to divert appraisal fee profits into the pockets of entities other than real estate appraisers.

I'm sorry, but your posts read to me like an old prostitute trying to predict that all other women will soon have to also be *****s because the majority of men all want *****s. So pretty soon no woman will survive the "market" if she doesn't ***** up her reputation. But you see I am with Mr. Hatch. We need the numbers of little *****s to be greatly diminished, those seeking to hire them getting their cars confiscated and then they get put in jail along with the little prostitutes. You see we have bunches of appraisers running around operating illegally, we've left it legal to keep asking them to do so, and don't punish all involved. That's the problem. It's not supply and demand. It is a blackmarket that is out of control and operating right out in the open for all to see. It's like mafia handing out money to juries at the courthouse door as juries pass by to go in. This is what you want all of us to stoop down to compete with?

Webbed.

The business of "flesh" is actually a very good comparision Mr Webbed. The Pimps (we know who they are) charge the full fee for their "services" while the prostitutes do all the work for a mere portion of the fee.
Very good analogy ... The Pimps are merely brokers .. as it were.
So ... the real question Sandy is do you want to continue to work for pimps .. and the resulting implication of what those doing the work for a mere fraction of the fee are????

Good analogy my friend ... good analogy.

 

[ddnma]

Buyers make mistakes - same as anyone else - and part of our job is to allow them - and everyone else - involved in the process to decide if:


It's their call, all the time, but they need an honest report to make that call.

Dave...

Honest, by whose standards? The appraisers? The end users want accurate values- a lot of users of appraisals feel that they get a more accurate opinion of value by reviewing the appraisal, avm BPO etc... they do not trust the value of most appraisals they see.

Too many appraisers opened shops since licensing without enough training to do a proper job... comp checks, contingent fees etc...

 

[PropertyEconomics]

Honest, by whose standards? The appraisers? The end users want accurate values- a lot of users of appraisals feel that they get a more accurate opinion of value by reviewing the appraisal, avm BPO etc... they do not trust the value of most appraisals they see.

Too many appraisers opened shops since licensing without enough training to do a proper job... comp checks, contingent fees etc...

Its because many "new" appraisers have adapted the fast and cheap model ... again proof it does not work. What more can one say. When you are so fast and so cheap they dont believe you .. Id say you have adapted too much.

 

[xmtpedprl]

I don't like the analogy, but that's just me.

Dave...

 

[Doug Smith SRA]

Simple Answer

Mr. Smith,

Then there is only one logical question.. Why are you not filing board complaints regarding all of those real estate appraisals?

Webbed.

I turned in an appraiser to the State Board in 2002. I am being sued for defamation. The case in scheduled for trial this September. The subject appraisal was done in 2001. The wheels of "justice" are slow. All expenses are out of my own pocket since E & O will not cover lawsuits if sued for turning anyone into the state. I have to live with this every day. I have learned my lesson the hard way. I am not a stakeholder. Let the client turn the appraiser in.

Only recently have I had the courage to do reviews again. When I am paid to review, I will review. My scope of work stops when I send in my review. My scope of work does not include being a hero. You guys can be the heroes.

 

[PropertyEconomics]

I don't like the analogy, but that's just me.

Dave...

Probably too fitting would be my guess .. but thats just me.

 

[xmtpedprl]

Right, probably not, but then again you wouldn't pass up an opportunity to say so on your best day now, would you PE?

Dave...