Appraisals in 2024

[KHS445]

Many of my assignments are over 50 miles away. What matters is what you charge. I love being paid for driving somewhere.

Exactly what I do. One of my better clients has multiple locations within an approximately 150 mile stretch north to south and I am located about 60 miles south of the north end. I work their entire market and routinely charge $100 to $200 more than my local rate to go to north end of their service area and $250+ to go to south end.

 

[Cob]

I miss the $10,000 per month Trump years.

Hmmmm, I was doing that in 2021 as well, when he was out of office.

 

[George Hatch]

I'm a CG. I cover a large cross section of property types and a large geographic area, and I go where my clients go. I live in San Diego County but it actually takes me a lot less time/effort to appraise a property in L.A. or Riverside or San Bernardino counties than to appraise the same in SD County. More driving but a lot less time/effort scratching for relevant land sales and rents and sales comps. Usually.

Greg Boyd lived in one of the rural areas of Northern Calif. He was constantly commenting on the amount of driving he had to do in order to make a living in his local. All-rural is a completely different deal than working in one of the metros.

 

[Alsie35]

Yes.... but then you are paying the driver.

True, except that in our case it's a close family member-trainee living under the same roof and doing a lot of home chores for the "room and board" as well ... heh, heh, I said we had a SYSTEM ... ... its worked out real well so far ... going on six years ... before that it was just me & the missus, but we were lucky to "plus up" just in time for the 2019-2022 appraisal boom ...

 

[Fernando]

When i first started i would take my wife wirh me on the further rides. She liked looking at the sample houses, then maybe stop at a flea market or mall on the way back. Was a paid day out with da wife. This was before cell phones and the internet days. We took a horse and buggy to the subject in those days.

In the early days when we were young and poor, my wife would help me with the appraisals. She was fast and efficient. She was instrumental in pushing me to break from bank and go independent.
Now she doesn't have much involvement in my appraisal business. I'm all by myself.

 

[Tom D]

I won't tell you all how easy my big urban appraisal life has been as far as doing the appraisals. That i fugured out how to be productive and never get stipped.

The killers in this paradise has always been the economic turns.
And the savant idiots doing certification, hvcc, USPAP and more minutia paperwork.

How can i explain how it was before that. The garden of eden and making money.

 

[devin]

Gee, the first two years of Biden were the busiest ever for appraisals, and I made more than in any other time- did his "bidenomics " do that, too?

It is not his economic policies that are killing the business; it is Fannie and Freddie's decision to use Waivers, which replace a big chunk of appraisal volume. Combine that with the fact that refinances are down because most people refinanced when rates were low, and purchases have stalled due to high mortgage rates, which a president does not control. There will be a rate cut in September which will make us somewhat busier, but IMO, the best years of this business are behind us, due to the move away from using traditional appraisals at the GSE decision level.

Do you think they will do away with the waivers eventually ' or are they here for good?

 

[George Hatch]

It is my assumption that the GSEs have been comparing the results of their AVMs against the appraisals they've been getting. For years. They don't waive the appraisal on all the low LTV loans, just some of them; and they're not doing any waivers on any purchase money or cash out refis above the 80% LTVs. I interpret these policies as indicative of how much confidence they have in their AVM.

If I was Fannie/Freddie and I already had access to a 1004 that had previously been performed on this property in the last 5 years I might be able to have a lot more confidence in the outcome of my AVM on that property than if my most recent appraisal on it was 10 or 15 years ago.

 

[Zoe]

It is my assumption that the GSEs have been comparing the results of their AVMs against the appraisals they've been getting. For years. They don't waive the appraisal on all the low LTV loans, just some of them; and they're not doing any waivers on any purchase money or cash out refis above the 80% LTVs. I interpret these policies as indicative of how much confidence they have in their AVM.

If I was Fannie/Freddie and I already had access to a 1004 that had previously been performed on this property in the last 5 years I might be able to have a lot more confidence in the outcome of my AVM on that property than if my most recent appraisal on it was 10 or 15 years ago.

My old boss that is deceased said just wait til next downturn.

I do fear some of this waiver stuff will be like a Great White Shark when it bites.

It is the downturn in the market is when all hell breaks loose.

At least independent appraisers won't be 1st in line of fire.

We won't need bailout money.

May need another focus. Like foreclosures.

 

[Zoe]

I'm a small business and with all the fees we have to pay this maybe my last year. Three appraisals in a month just doesn't get it for me. Bidenonomics has killed my business! We have so many real estate agents that are packing it in too!

I know dang well you could find other options using your current experience and skills.

Let's look in mirror and say where else can I look with my experience and skills?

You have tons of options.

If you want to stay in 1004 world. Find the lenders that are doing most mortgages in your area. If you want to shift gears?..............that is fine too. Your experience and skill are valuable.

Don't underestimate your possibilities.