AVM’s and the future of the Appraiser???

[Charlotte Dixon]

Mike,


Luxury Double-Wide, isn't that a oxymoron?

TC

No, TC, it's a trailer..... :roll: Where have you been? :lol:

 

[Paul Ness MAI]

I think the luxury models have a beer tap coming out of the floor in the living room next to where the sofa would be if you hadn't spent the extra money for the luxury model. They also have a really cool built-in gun rack that opens from both the living room and master bedroom.

 

[Verne Hebert]

I like the qualifier "lucrative". I would say the days of lucrative ended in the latter 80's.

Its difficult to say what the AVM inpact will be. In rural areas it will have little. In urban areas any major public blowout could kabosh them nearly completely. I mean really, S__T happens. Who would have anticipated the nosedive of the dotcoms two years ago?

I am training a guy now (most reluctantly I might add--said I would never do it again) and I gave him a pile of stuff to read while I gave him all the reasons not to become an appraiser.

I would not recommend it today unless you intended to go to the commercial side (which is not everyones cup of tea, for one reason or another) or heavily specialize. There is little need for good appraisal work in the residential sector.

Your training to date is good education however and there are many related, or springboard, opportunities.

Here you can make more money (and money is not everything) as a waiter, nail practitioner, wood flooring installer, countertop installer, or selling Tshirts to tourists.

Good luck on your decision.

 

[Charlotte Dixon]

I think the luxury models have a beer tap coming out of the floor in the living room next to where the sofa would be

Yeah, I wouldn't want that assignment. Those beer taps probably wouldn't be typical for the area and could be considered an over-improvement. So how do you adjust for those?

 

[Mike Garrett RAA]

Not if you are from Arkansas or Missouri

 

[Steve Owen]

Leon, where did you get the idea they didn't have BPO's? I got into the business in 1993; my dad was in real estate thirty years before that. That's how he got into appraising, before they had certification; he got tired of giving price opinions (I'm not sure they called them BPO's) and decided he might as well get paid for it.

As for AVM's, I learned how to do regression analysis the first year I was in the business. It's really the same thing and its been around since at least Pythagoras (sp?).

I'll stick to my earlier statement: If you have a brain and good ethics, you have a future in this business. If you are lacking in either one, then you may be replaced by an AVM.

I have a good friend who runs a rather large shop here. He is fond of telling his staff "we are all just thirty days away from unemployment." If I'm wrong about my first statement, then the past experience and education will help me land other economically related work.

 

[TC]

Verne,

Maybe the 80's were lucrative for OWNERS of appraisal shops, I know I made a ton of money for my former bosses. But right now I am making more than I ever did in the 80's and in some cases, more than my old employers. The best revenge is living well.

TC

 

[Leon Stewart]

Leon, where did you get the idea they didn't have BPO's? I got into the business in 1993; my dad was in real estate thirty years before that. That's how he got into appraising, before they had certification; he got tired of giving price opinions (I'm not sure they called them BPO's) and decided he might as well get paid for it.

As for AVM's, I learned how to do regression analysis the first year I was in the business. It's really the same thing and its been around since at least Pythagoras (sp?).

I'll stick to my earlier statement: If you have a brain and good ethics, you have a future in this business. If you are lacking in either one, then you may be replaced by an AVM.

I have a good friend who runs a rather large shop here. He is fond of telling his staff "we are all just thirty days away from unemployment." If I'm wrong about my first statement, then the past experience and education will help me land other economically related work.

Steve:

I referred to BPO's as a replacement for the Appraisal Report. In otherwords, BPO's that are used by the Lender as an appraisal report to support a mortgage loan. The CRA is an instrument prepared by a sales agent for a homeowner to give them a general Idea of the market and price range for similar properties in the area, and that's what BPO's are suppose to be used for now, but they are not. Many Realty Agents still prepare CRA and BPO's for their sales clients, but lenders are not suppose to use them for mortgage loan purposes. But the BPO is just one part of the decline that has been taking place in the appraisal business in the last three or four years. The Business can't improve for the future, but based on these changes that have taken place in recent years, it will continue to decline since no one is concerned with changing the structure of the business.

Leon