AI Connect

[Terrel L. Shields]

biggest cheer for the college requirement is knowing many a trainee are not being taken advantage of by a sorry *** supervisor, like they were. And even if they are able to, it is not likely to last near as long as it did before with some. Based on the number of new trainees coming in, it is practically gone.

People endure pain (like pee-poor supervisors) when the goal is to escape as soon as possible while accomplishing their goal (independent license).

 

[Terrel L. Shields]

We are putting out reports that have an effect on peoples lives

and so often our reports to banks are meaningless exercises, inaccurate, and marginally useful ...no, frankly, they are most often useless. And, are the functions of the appraiser any different, or any more valuable to the bank client than they were in 1980? Probably not.

That is two years.

The way our state forces you to calculate it, I doubt anyone could do 4,000 hours here in less than 4 years. None of my CR trainees took less than 3 years. They simply do not credit you for driving time, research time, etc. They allocate a mere 20-40 hours for the biggest commercial properties . And now ad valorem experience where so many appraisers started is considered "no experience" whatsoever. What kind of intellectual honesty is that? It becomes a wink wink joke between the regulator and the applicant.

 

[Gobears81]

and so often our reports to banks are meaningless exercises, inaccurate, and marginally useful ...no, frankly, they are most often useless. And, are the functions of the appraiser any different, or any more valuable to the bank client than they were in 1980? Probably not.

I have been retained to determine the sale price of a property- if I were on either side, I would want to know that the value is not off by $1, much less several thousand dollars or more which could be attributed to typical market variance (and I have also done multiple appraisals for the bank where they are directly using that assignment to determine the sale price). I hear all of the time how this appraisal directly affects financing. So it seems pretty important to me.
Edit-realized that the context was to banks only.

 

[Elliott]

Stephen said, "So how is that possible? How could we be declining in numbers and experiencing declining fees? What happened to Adam Smith's invisible hand (supply and demand)?"

How? I always somehow feel I have to defend Adam Smith. I imagine biology majors are always explaining Darwin. The "how" is new technologies, new forms, new regulations, new loan programs. There are many minor micro-influences to the aggregate of demand for 'appraisals.' And then look at the the aggregate of 'supply.' During the last 6 years we found a whole new group of appraisers willing to pump out reports for $275 and less and a group of AMCs just stupid enough to accept them.

The recognition of "training your competition" is interesting. I figured that one out 30-years ago.

 

[Eli]

People endure pain (like pee-poor supervisors) when the goal is to escape as soon as possible while accomplishing their goal (independent license).

That college degree gives them many more exit doors when dealing with unethical and abusive type jobs, which are common in the real world. And right now, from an income and benefit standpoint, they wouldn't have to look very far. There are some crying pee-poor supervisors today just wondering what went wrong and why they can't find a trainee.

 

[factsandtruth]

and so often our reports to banks are meaningless exercises, inaccurate, and marginally useful ...no, frankly, they are most often useless. And, are the functions of the appraiser any different, or any more valuable to the bank client than they were in 1980? Probably not.
The way our state forces you to calculate it, I doubt anyone could do 4,000 hours here in less than 4 years. None of my CR trainees took less than 3 years. They simply do not credit you for driving time, research time, etc. They allocate a mere 20-40 hours for the biggest commercial properties . And now ad valorem experience where so many appraisers started is considered "no experience" whatsoever. What kind of intellectual honesty is that? It becomes a wink wink joke between the regulator and the applicant.

http://www.mortgagenewsdaily.com/4252005_Appraisal_Fraud.asp


Terrel, I just want to remind you of your words in 2005. Read in the comment section(click link), the first commenter(Terrel Shields) and read the other comments. You want to go back to 2005????

 

[factsandtruth]

I like Bills comments from the artice: From the article post in the "Mortgage News Daily by Glenn Setzer Appraisal Fraud: A Need to Sort Out The Victims From The Perps?"






"bill
on

Here we go again. We have been complaining about pressure to "hit" value for quite some time. But, how do you compete with a 24 hour shop full of trainees? I know of a "shake & bake" school where the graduates are put right to work. Imagine that, a trainee one day on the job appraising a $3,000,000 home in Naples, FL! Like having a dental tech doing jaw surgery. Fees should be based on time required, and no way can you jam out a report that would comply with USPAP in 24 hrs on a regular basis! "

 

[Mike Kennedy]

"80,000 licensed real estate appraisers in the US today down from about 100,000 in 2000. If trends continue it means there will only be 60,000 real estate appraisers in the coming decade and a half."

Good. Supply directly impacts Demand and Fees. Current Over-supply given the "new" reliance on AVHums.....vs "human" Appraisals (declining) tied to increases in the de minimus.......causes declining fees and quality.

Independent Res Appraisers will wind up on staff of the largest AMCs or leave the business. The exodus in the next 5 years will bring supply and demand back into equilibrium which will result in increasing fees to the remaining Humans with demonstrated expertise. It is also probable, IMO, that Appraiser-reviews of the "desktops, windowsills and realtor generated price duhpinions will increase. Desktop appraisals done by Appraisers (whether called CMA or BPO or any other term ordered by HAL2000 will increase dramatically once THAT CHIT hits the proverbial "fan" and investors force Lender buy-backs by the droves.

For those seeking to get out of the "rat race" - visit the MARKETING sub-forum.

 

[Terrel L. Shields]

Terrel, I just want to remind you of your words in 2005. Read in the comment section(click link), the first commenter(Terrel Shields) and read the other comments. You want to go back to 2005????

WTF are you driving at? This is the second time you've tried to bring this up. And it has nothing to do with the current thread. So your point I understand not. 2005 - The pressure for bad appraising came from the lenders. The newbies at that time represented some of the ill trained troops that were thrown into the battle as cannon fodder. The wise appraiser slipped quietly off into the night during that period of time. They eschewed the lender work and attempted to move their business into a more professional world. Lenders are a tiny portion of my life and I could live without them. So? Why do I care about training anyone? First off, if they wanted to be residential appraisers, I am not the guy. I don't do secondary market and haven't for 10 years.

So for everyone who also wonders what F & T is yammering about, here is that 2005 post that seems to so offend him/her< "Amen. I have been pressured so much by mortgage brokers I now refuse to work for them. I am doing more commercial mineral appraising and less residential appraising. I even have an anti-mortgage broker statement on my website. Feel free to quote me from there. Terry" The anti-MB statement has been overtaken by events and I took it down years ago, FYI.

In any case 2005 or 2015, the addition of college requirements, additional hours etc. is meaningless piffle meant to charm the powers that be and satisfy our handlers that we are trying to "improve the profession" when we have done absolutely nothing to "improve" anything over the years. Practice makes perfect only if you practice perfectly, otherwise you are only engraining a bad habit.

 

[Terrel L. Shields]

That college degree gives them many more exit doors

Sure... shoe salesman, manage a Pizza Hut, car salesmen (ask them if they have a degree...a lot do). My garage door installer has a degree in Physics. My neighbor who salvages old poultry equipment has an Animal Science degree; my CPA has a masters degree in Animal Science. The guy who built my garage in 1983 has a geology degree, but after his short building career he started repairing TVs, got a contract with WalMart and did repairs on their returns. Today Ozark Electronics is a multi-million dollar repair center. Time and Chance taketh us all.