Bank Of America-destop Valuations

[Doug in NC]

It goes back to the "low fee" message posted on this forum. Unfortunatlely, if you don't do them, someone else will. I checked into doing some of those avm jobs. They paid about $50 each, and you got to do a real appraisal if you requested an upgrade. I would bet you would get less work if you requested too many upgrades.

I couldn't stomach doing those low fee jobs for anyone. I know ultimately that it would have just been putting myself and other appraisers out of a job. I think desperate appraisers who don't know how to market their services will take any kind of assignment just to get a paycheck.

I know of a local commercial appraiser who was doing them. She was so damned lazy that she said she didn't want to bother with doing the upgraded reports, she just wanted to do the "add your signature for $50" jobs!

 

[Travis McGee]

Hi Doug. I respectfully disagree- this does not rleate to the low fee board- that was about cutting fees for full appraisals. This is about another product that will be ordered whether we like it or not as an alterntive to full appraisals, and for the work involved, the $50 fee might be appropriate.

If they are USPAP compliant as stated elswhere in the post, why not? Think of yourself as a restaurant, a dinner entree is a full appraisal, a cup of coffee is this product. Restaurants make a lot of money on coffee.

Fee cutting inolves pricing a full dinner at cup of coffe fee.

 

[Austin]

Here is another angle to handling this problem. Make this statement: "I cannot tell you what the subject property is worth given the scope of appraisal that you requested, but I can tell you what the most probable price is of the most similar properties to the subject and you can make the assumption that the subject is as you perceive it to be in its locational environment and physical condition."

 

[Pamela Crowley (Florida)]

YOU, the APPRAISER, did not choose the comps.

THEY did.

How do you know they chose the newest, nearest, most similar comps unless you do your own research??? This is just a guess even then.

Ask yourselves WHY they want an appraiser to sign off of these.

 

[jeanwillick]

We don't get many, 1 or 2 a year, but it's basically a sophisticated comp check to see if they stated the comp facts correctly and to see if the original appraisal data is as stated. We get $100--or won't be bothered. Whenever we get a Desk Review or Field Review, we know a red flag has probably been thrown about something in the report and anticipate that we will have to do more work than is normally required. Charge accordingly.

 

[Jim Onderisin]

Thanks for the tips! I think I'll stay away from the "desktop" or the "pencil" or the "pull it out of your----" or the "we want your name and E+O insurance company on the form" type orders, whatever you want to call them. Also, jean pointed out the need to obtain good prices the reviews. As a group, I think appraisers have shortchanged themselves enormously. I don't do reviews for less than a full appraisal fee...they generally involve more work.

 

[Travis McGee]

Hi Jim. My feeling exactly-why are appraisers so afraid of losing business that they charge such stupid fees? If a managment company gives you work and the volume warrants a small discount, that is kind of justifiable, like a wholesale discount in other businesses . But to work for severely slashed fees ,and do reviews for $125 is absurd. I don't do reviews anymore either because the fees were very low pressure high always need it in 2 or 3 days. The loan officers realtors etc make THOUSANDS for every transaction and we are so afraid to charge a measly$50 or $100 more. $75 for a final inspection? DUH. They need it to close. We could charge whatever we want and they'd have to pay it. DUH DUH DUH


Try to get ANYONE to come out to your house to do ANYTHING skilled or semi-skilled, see what they cost. Repair people charge $75 an hour at least. Divide the hours you spend on a typical report, including phone time and follow ups and faxing, etc, take 25-30% off the top for overhead, board dues, data, gas etc and see how much you are REALLY making an hour. My figure came out to about $35 an hour. Half of a plumber. ( good for them) And only about a third more than my cleaning lady ( they get $60 here for small two bedroom place divide that by 2- 3 hours to clean it. )

A friend of mine just paid an astrologer $125 for a one hour reading-the going rate. Do we make $125 an hour?

 

[Kathy in FL]

OK, here I am again, up on my soapbox, defending BOA. (Are you listening, Mr. McDaniel???) You can't blame them for wanting everything they can get as cheaply as possible. (Capitalism, you've heard of it, right?) I've done their desktops and I think they're compliant. (At least by the time I get done with them they are.) To do one takes less than an hour. However, 99.9% of the time, I ask to upgrade them, and 100% of the time, they do.

With the proviso that I'm in a rural market with limited (competent) competition, I will say that I charge them full fee, and I get it...automatic deposit, with no billing, and no hassle. They don't nitpick my comps, complain about low values, they don't send me the comps to use (do they do that?), and they don't call me back needing the rural box changed to suburban. They assume that I know what I'm talking about in my market and treat me with respect. They don't second-guess me. They do like to get their work quickly, but I'm willing to deal with that.

I would work full-time for BOA exclusively if there was enough work in this market. The only negative is that they're big, and they have no loyalty. The minute they find someone cheaper/faster/better, they'll dump me like a hot potato.

Your experience may differ from that pictured on the box, but I like 'em!

Kathy in FL

 

[Tater Salad]

Kathy said,

You can't blame them for wanting everything they can get as cheaply as possible. (Capitalism, you've heard of it, right?)

I can so blame them for that! Good business is not about cheap, it is about value. Keeping costs down is good, unless it comes at the expense of quality. Putting my E&O on their AVM is cheap and a good value for them, but not for me.

Good for you that you get 99.9% of them upgraded. It then seems that you don't do these things, either.

It's amazing how the experiences are so different between those in metro areas and those in areas with less competition. Where I am, they are not like you describe.

 

[Kathy in FL]

Carole...I'd have to argue with you that it isn't about quality, it's about cheap. With appraisals, I'd have to say that what they're looking for is "good enough." Good enough to be FAIRLY reliable, but cheap and fast. How else to explain the rash of 2055's?

What lenders want is "good enough," cheap. They want Wal-Mart, not Rodeo Drive. Either we give 'em what the market demands, or we'll all be wearing those little blue vests with nametags.


Kathy in FL