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Are You Guys Seeing This?

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Jim Bartley

Thread Starter
Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Lately, I seem to be getting really difficult assignments. Either I'm one unlucky appraiser or a sneaking suspicion I have is coming to fruition. Namely, all the easy, cookie cutter type assignments are being done by AVM's. I am quoting fees of 150% - 200% and still not making money on these. Some are from outlying areas or just white elephants. I'm afraid to answer the phone! Are you guys/gals seeing any of this?
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
That's pretty much what my orders have been for over a year now. Yes, if the AVM thinks it's anyway near reliable and the borrower has decent credit - no appraisal is being ordered. My favorite LO told me all about it last year. Now it's more work for less pay. I'm adding all sorts of additional fees for unique or complex properties and still taking more time than 2 or 3 simple ones. Either that or the sale price is way over what the AVM says and then I'm still taking more time explaining to the Realtors, buyers, LOs why it can't make the sale price.

If anything, our fees are way too low for the kind of orders we are getting. The cookie cutters used to make up for the complex ones.
 

Nancy in Friday Harbor

Junior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Washington
Pam,
You said it beautifully!!
Even in this market, which has no homogeneity of housing and very few "subdivisions", I'm only seeing the really challenging ones. Add to that a really slow market (read few sales = few comparables) and my time per appraisal is way up. I'm afraid to divvy it up into $$/hour....... am I really working for minimum wage?!

Nancy
 

Judy Whitehead (Florida)

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Yes we are seeing exactly the same thing and have been for at least a year. I am working on one now that is a real bummer.....only because the owners have a first mortgage and someone loaned them a large, large second (with no "appraisal") probably an AVM. The owner said that the 2nd mortgage lender "promised that they wouldn't loan more than 100% of the value." Well, guess what - I am under what they owe and have comps on the same street and in the same subdivision.

These people know they are in trouble, and they have a young child. She works for one of my largest banking clients locally. They had already done a "drive-by" from the present lender that was (according to the owner) way less than my full appraisal and they were "disappointed" with that. And this should have been a cookie cutter.

We've discussed many times on this forum how some people are really getting themselves in deep doo from AVM's. And the shame of it is, the borrowers don't even know what it is.

But yes, we are really struggling with difficult appraisals here, too.

By the way, speaking of difficult appraisals, I got a call from another appraiser in Tampa yesterday, asking for help (he did offer to pay). He came all the way up here for an appraisal of a 4,000+ Sq. Ft. brand new house on 8 acres in the middle of nowhere. Talk about difficult appraisals! I asked him why he didn't just refer it up. He had already been to the property and was going to have to come back up here to find comps and take pictures. He said he didn't refer it to anyone because he was "trying to do the client a favor." What favor? I never mind helping anyone, but I guess I have FOOL stenciled on my forehead.
 
Joined
Jan 16, 2002
It's amazing. Yesterday I almost posted your identical posting, but had to run out to do an inpsection. Property turned out to be a turn of the century, stone cottage, 3622 sf GLA, on huge parcel, with historical preservation landmark status. Subject had 16 turns in the exterior walls
(and of course no survey available) !!!!!!!

I agree with other postings, I'm trying to remember when I last saw a typical/normal property.

I can just imagine property owner having it out with lender after AVM
cranks out some absurd number.... LO gets owner off their back by sending out the appraiser.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Maybe, I am just lucky, but it has always been that way for me. I am prepared. I have 12 years experience of appraising rural properties, log homes, manufactured homes, geodesic homes, earth homes, fat homes, skinny homes, even homes with chicken pox. (Why did that Oscar Meyer commercial pop into head mid sentence?)

Seriously, it is only going to get worse. Only the big time lenders that have embraced the AVM's are currently doing this. After a learning period the smaller lenders will embrace it like other technology. I have been EDI'ing for years, now every lender wants it because they finally figured out the benefits. If you do rural appraisals or complex appraisal assignments, you will always have work. AVM's simply can't do those correctly. Appraisers have been turning a blind eye to this situation, but the reality is coming. Start charging more for complex assignments and rural properties. However, get ready for the reality of other appraisers undercutting your prices in order to obtain work.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
I also am in a rural area, where homes are not exactly conforming or homogenous. I have done soooo many unusual properties, that it scares me when I do a cookie cutter. :lol: Now if only I could get the AMCs to undstand why I can't do their report in 24 hours for $175. :evil:
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Bank of America has essentially stopped requesting appraisals in Texas. All they are doing are desktops unless it's a unique property. Welcome to Credit Lending vs. collateral lending.

Roger
 
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