I agree. We have personally felt a large drop in the appraisers here in our areas and clients that we haven't worked with in a while are now calling us to see if we want to prepare work for them. AMC's work best where there is a massive oversupply in appraisers (as they can pit them against one another and spread out the work). If, however, they have fewer appraisers to choose from, they have to be more careful and offer more to each. Its simple supply and demand. AMC's can't function without appraisers; and they are beginning to see that now more than ever.
That is why they are now all scrambling to hire "staff" appraisers. They want to make sure that their pool of appraisers is still large enough to ensure low average cost per appraisal order and they still can pocket the rest. Why do you think the majority have all shifted to "Now Hiring Staff Appraisers". We get a new letter every day saying another AMC is hiring staff appraisers. They see the writing on the wall. If they can't control us by our oversupply, they will control us by making us their literal employees! They may pay $60,000 per year + insurance, etc.; but you can be sure you are going to do 10 or more appraisals a week to make that money. Even if your salary ended up at $80,000 per year with bonuses and insurance ; you can bet you will do AT LEAST 400 appraisals that year to get there. Every few months they will provide new tools to help their appraisers be more efficient (i.e. we have a system that will "pre-pull" comps for you based on the AMC's new AVM...). The will use this efficiency to "trim" their appraisal staff and "streamline" their processes (i.e. each appraiser will have to do more reports).
I've heard from appraisers on here who say staff appraising is the best thing they've done; and that's great. More power to them. That is totally their decision and who am I to judge how they feed their family. While I don't think it is the best decision one can make when considering the future of our industry as a whole; I can understand that some if not many appraisers out there don't see any other option. I can't tell anyone not to do it; and I could be way wrong about how and why AMC"s are hiring staff appraisers. It could be a coincidence. People have to do what they have to do to put food on the table. I just worry that we are taking a HUGE advantage we will have and flushing it down the toilet...
I've always said, it only takes one appraiser to do them at $150...Now AMC's are making sure that our gain (a surplus of appraisal orders and under-supply of appraisers) will be there gain by hiring their own staffs. They have no other reason to hire staff appraisers than because it makes them money. They wouldn't hire staffs knowing full well it would cost them. If they have to pay C&R fees to their independent contractors; the easiest solution is to turn the independent contractors into dependent employees. Don't think that just because they only ask you to do 6 appraisals per week now that it won't turn to 9 in 6 months or so. Once you've given up your business and work for them; your choices become limited. You are SOLELY dependent on them to pay your bills. They will have complete control. Why do you think you have to sign a contract saying that you will not provide appraisal work to anyone else. You can ONLY offer your services to them and no one else.
I wish I could say that this shift is going to be a good thing and work out to our advantage. Traditionally I actually am quite optimistic about our industry. I even think that there are several AMC's out there that are good to their appraisers and can be a positive member of our industry (create a buffer between the appraiser and the lender, etc.) The way I am seeing people flock to staff appraising for AMC's, however; it scares me to think that our future will not only be more heavily tied to working WITH AMC's...we will have to begin working FOR them or not work at all.
But as with all things, we will see. I for one don't think AMCs are evil. They are just business trying to make a profit like we all are. I just want to make sure we do what we can to ensure that we too make a profit. Only time will tell.
