AMC free bidding

[Refuse2Lose]

Bidding is not the purpose of an AMC but it shows intent. An AMC is SUPPOSED to use a ROTATION of qualified appraisers close to market of the subject. The purpose is not to BID appraisers against each other to maximize the AMC profit with no regards to location, competancy or experience. AMCs have put lenders at risk by using the cheapest 'appraiser' or firm that has a non licensed trainee do 3/4 of the work. But nobody cares if frim Skippy hits a number that works. I know of 2 firms in my market that act this way and I know the AMCs who use them.

 

[cashcatz]

More secure than connect which is foriegn owned.

Who wrote the code? This looks like it's an AI code platform. If so, I doubt whoever vibed this up has the technical background to know anything about security let alone what it takes to run and maintain a software product. That said, I do very much appreciate any effort to get rid of AMCs.

BTW are you sure Connect is foreign owned?

 

[ucbruin]

More secure than connect which is foriegn owned.

So not very secure....
Or very secure....

 

[DWiley]

No, the lender will choose the bids. It does not choose the appraiser it presents the bids and who it is from. They dont even have to take the lowest bid. They can choose who does it. If a certified appraiser is slightly higher, they can choose them over a licensed appraiser. Its not always about the cheapest and fastest; its about quality.

Have you talked to any lenders to see what THEY want in such a system?

 

[J Grant]

I dislike her idea because it replaces AMC bidding with bidding to procure the lowest fee but without an AMC involved. So what is the point? The work will just go to the lowest-fee appraiser, probably the same low-ball appraisers who underbid everyone else at the AMCs. The point of non-AMC work is to get higher fees/ the retail C and R for the appraiser

From the lender's perspective, it makes no sense, and the OP has not tested the waters by getting even one lender on board to attract appraisers.

 

[Surf Cat]

I dislike her idea because it replaces AMC bidding with bidding to procure the lowest fee but without an AMC involved. So what is the point? The work will just go to the lowest-fee appraiser, probably the same low-ball appraisers who underbid everyone else at the AMCs. The point of non-AMC work is to get higher fees/ the retail C and R for the appraiser

From the lender's perspective, it makes no sense, and the OP has not tested the waters by getting even one lender on board to attract appraisers.

I like the idea of circumventing AMC's however, this is just an idea and hasn't gone through all the necessary steps that many posters have brought forward. In other words, it's still in development.

I agree with you on the bidding. It should be more like a three-tier price points based on customary fees for the location.

 

[J Grant]

I like the idea of circumventing AMC's however, this is just an idea and hasn't gone through all the necessary steps that many posters have brought forward. In other words, it's still in development.

I agree with you on the bidding. It should be more like a three-tier price points based on customary fees for the location.

No offense to the OP, but I don't think it will go anywhere. The easy part is getting appraisers to sign up, and she seems to be struggling with that. The hard part is getting lender clients to sign up, and she does not offer a clue as to how she would make that happen.

Low fee bidding by itself imo will not appeal to most lenders. They are okay with low-fee bidding at an AMC because the AMC does that pesky task at arm's length from the lender. A lender does not profit from a fee split; only the third-party AMC does, so the lender has no profit incentive to pursue the lowest fee. They want reasonable fees that the borrower can cover, and they like the simplicity of charging every borrower the sme standard appraisal fee within the same regional area.

IDK, maybe she could get hard money lenders or that type of client to sign up if they pay for the appraisal out of their own pocket. Though imo the relatively small differences in fees from bids would not win over a lender client unless they were a greedy idiot. A hard money lender or anyone with their $ at stake wants to work with a proven appraiser they are familiar with and most already have that. They want an appraiser who knows what they are doing. They are not going to risk hiring an unknown appraiser just because they charge $50 less.

I am not a fan of AMC;s because of the fee bids/low fees. If the AMC got compensated from the lender and left the appraisal fee to go to the appraiser, I would be fine with it. But from the lender's POV, using an AMC costs them nothing in hard costs (typically) and offers them admin help, screening, review, etc. Why would they leave all that to use a site offering a bunch of appraisers who are just fee-bidding with each other, and then the lender has to do all the other admin? A lender who is okay with doing their own admin usually has their own fee panel.

 

[George Hatch]

OP didn't come here looking for suggestions or long form discourse. She came here looking for encouragement and support.

 

[ucbruin]

After 23 years as a member....
Who does that....

 

[George Hatch]

I would say that the combination of less-than-supportive comments have made their respective points, and that in this case there's no utility in continuing to chip on the plan.