Albuquerque, New Mexico Flat lined_______

[eatduzt]

I have been a certified residential appraiser in the Albuquerque, New Mexico area for 10+ years & have never seen work this slow. All of the larger lenders have changed to AMC's. The brokers are also starting to make the transition to AMC's as directed by their lenders. The result is a lack of work for traditional fee appraisers. I looked into joining an AMC, but they typically make a 42% to 50% cut of the appraisal fee. In addition, they their "Appraisal fee", that they charge the client is way below market. The AMC I am referring to is Valuescape. They asked me to do an appraisal in Santa Fe, which is 1.5 hours from Albuquerque, where I do the majority of my business. I typically charge $550.00 for a non-complex appraisal in that area, which takes into account 3 hours of travel time. They wanted me to do an appraisal on a $1.2 million dollar home in Santa Fe for a fee of $365.00, of which I would make 58% or $211.70. Gas alone would be $60.00, which leaves me with $151.70.

These AMC's are destroying our livelihood. I have a bachelors degree, an MBA, and am a State Certified licensed Residential Appraiser. These AMC's have no qualifications that I am aware of; and make nearly as much as the appraisers who perform the work + they do mega bulk appraisals. The companies should be illegal as they clearly violate section 8 of RESPA which pertains to "ADD-ON" fee's without actually having performed a service. Does anyone know if there is any legislation pending that would outlaw these AMC's other than the Cuomo vs. Eappraisit/LSI ?

How would we go about getting something together as a group?

 

[Randolph Kinney]

How would we go about getting something together as a group?

You don't. Eventually the supply of cheap appraisers will be exhausted as they leave the business. If the lending volume picks up, there will be a shortage of appraisers. Prices will go up.

 

[Restrain]

Your work is worth exactly what someone will pay for it. They don't care about your background, your experience, or anything else. They want someone to do an appraisal for what they will pay for it. That's all.

Realistically, you are going to have to either accept the fees and live with it, or open an office in Santa Fe, spending 3 of your 5 days a week there, sleeping in a motel.

It's gonna get worse before it get better...if it ever does.