Appraiser Shortage Myth

[mc1201]

Once again we're faced with a downturn. This time it's different. COVID-19 changed everything and allowed lenders to create dangerous new products and new waiver thresholds aimed specifically at eliminating the appraiser- which has been their goal for decades. I have run a successful business in Colorado for 23 years and have heard for years about the supposed appraiser shortage. It's just not true. The only reason it felt that way was due to an abnormal and greedy feeding frenzy for the past few years, in which everyone was unable to keep up- especially lenders. Now that 'normal' workloads have resumed, it's painfully apparent these new products have stolen our industry, which was the point all along.

Despite working primarily in a small town and being one of the most experienced appraisers in the whole county- it's extremely competitive due to low-ball appraisers that come from over 50 miles away to appraise in an unfamiliar market at unsustainable fees. The race to the bottom is on! Thanks low-ballers and sleazy lenders who lie and cheat their way to appraisal waivers whenever possible. I can't wait to exit this thankless, toxic industry.

 

[OSU Beavers]

Appraisal waivers and ALT products should not be allowed in a declining market!

 

[Elliott]

Interesting graph from the WSJ and as much as some people with an agenda want to subjugate the objective appraisal process, the sky may be falling or stabilizing but has a large cushion of equity and appraisers.
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[glenn walker]

Once again we're faced with a downturn. This time it's different. COVID-19 changed everything and allowed lenders to create dangerous new products and new waiver thresholds aimed specifically at eliminating the appraiser- which has been their goal for decades. I have run a successful business in Colorado for 23 years and have heard for years about the supposed appraiser shortage. It's just not true. The only reason it felt that way was due to an abnormal and greedy feeding frenzy for the past few years, in which everyone was unable to keep up- especially lenders. Now that 'normal' workloads have resumed, it's painfully apparent these new products have stolen our industry, which was the point all along.

Despite working primarily in a small town and being one of the most experienced appraisers in the whole county- it's extremely competitive due to low-ball appraisers that come from over 50 miles away to appraise in an unfamiliar market at unsustainable fees. The race to the bottom is on! Thanks low-ballers and sleazy lenders who lie and cheat their way to appraisal waivers whenever possible. I can't wait to exit this thankless, toxic industry.

Maybe you to adjust your fee, the days of high Covid-19 fees are over for many. Adapt or die

 

[Fernando]

Maybe you to adjust your fee, the days of high Covid-19 fees are over for many. Adapt or die

I knew the days of my high Covid-19 fees wouldn't last forever. I worked as much as I could getting the high fees knowing things could change.
When rates go back down next year, I'll be back in getting higher fees.

 

[chad hampton]

High wuhan fees? I treated my “partners” right. Normal fee was 450 or so. Not sure that’s considered high.

I agree with the OP, there was never a shortage. And risky alternative product and waivers should not be used today.

 

[Fernando]

High wuhan fees? I treated my “partners” right. Normal fee was 450 or so. Not sure that’s considered high.

That's your business model. I hope when business is slow they still have appraisals for you at $450.
My high appraisal fees compensated for the lower fees lenders/clients are offering me now. That is if I'm willing to work for $450.

 

[djd09]

Appraisal waivers and ALT products should not be allowed in a declining market!

Hope Floats for the Non-QM Sector​

December 16, 2022

Namrata Bhatia
The Deephaven executive believes the non-QM space will expand over the next three to five years...

non qm and an appraisal waiver......what could go wrong

 

[mc1201]

Maybe you to adjust your fee, the days of high Covid-19 fees are over for many. Adapt or die

Adjusting fees to $100+/- for a Desktop or Hybrid is the death of us all. I'd rather do something enjoyable without all the liability than work for slave wages. Good luck adjusting your fees- just know that lenders want to pay $0 and AI will eventually push you out

 

[glenn walker]

Adjusting fees to $100+/- for a Desktop or Hybrid is the death of us all. I'd rather do something enjoyable without all the liability than work for slave wages. Good luck adjusting your fees- just know that lenders want to pay $0 and AI will eventually push you out

Well in over 35 years we have had to adjust fees many times. In good times we raised them and in bad times we went with the flow. We also never have had set fees's we looked in our wallets and if they were fat we may have passed but if mortgage was due we did what we had to do. Anyone who has been in this a long time knew the Boom of the last 5 years would end or slow down, so like a farmer you filled your barns for a rainy day. If not quit and go get a real job, believe me its not as easy as it sounds, once self employed you are most likley ruined for life, and unable to hold a 9 to 5 job. SUCK IT UP it will probably only last two years or so , although I have been through a few five year droughts.