Be the Driver, rather than just a passenger of your appraisal practice

[George Hatch]

Appraisers work on staff at lenders and appraisers work as employees for various govt entities; and at salaries that are generally consistent with other employees of comparable skill and utility. We can see what those salary ranges look like; what those employees are worth to those employers when they are able to own/control 100% of that appraiser's weekly productivity. If they can get an average of (let's say, 8) 1004s out of an appraiser a week in exchange for average of $2k/week salary/benefits/overhead then $2k/8 is more/less what an appraisal is worth to those lenders.

That's how much an appraiser is worth to a lender. That's your value in the market outside of being self-employed where you are free to thrive/starve.

 

[Sandra Koutsopoulos]

"This is permanent with the 50-60% waivers on all loans, the hybrid, desktop push..."
So I'm just speculating now, but if these increasing interest rates result in some sales price declines, and Buyers are stretching or doing buy-downs to make the financing more affordable, do you think maybe lenders would actually want/demand a REAL appraisal to see where their collateral value actually is due to the increased risk? Maybe we'll see some biz from that.

 

[J Grant]

"This is permanent with the 50-60% waivers on all loans, the hybrid, desktop push..."
So I'm just speculating now, but if these increasing interest rates result in some sales price declines, and Buyers are stretching or doing buy-downs to make the financing more affordable, do you think maybe lenders would actually want/demand a REAL appraisal to see where their collateral value actually is due to the increased risk? Maybe we'll see some biz from that.

What is a REAL appraisal?

Every appraisal is supposed to be a real appraisal, regardless of the form or how brief. So I dont understand this post.
While more detailed explanations or better supported adjustments can make a user more confident in the appraisal, which is a good thing, it does not change the actual risk. Either the market value is well supported and credible, or it is not. If it is not, including a bunch of dazzling charts and biblical length narrative won't make it credible.

That said, the reality of business conditions of too short term times or using less competent people to throw profit to an AMC is a terrible idea wrt producing credible appraisals and always was.

 

[J Grant]

Appraisers work on staff at lenders and appraisers work as employees for various govt entities; and at salaries that are generally consistent with other employees of comparable skill and utility. We can see what those salary ranges look like; what those employees are worth to those employers when they are able to own/control 100% of that appraiser's weekly productivity. If they can get an average of (let's say, 8) 1004s out of an appraiser a week in exchange for average of $2k/week salary/benefits/overhead then $2k/8 is more/less what an appraisal is worth to those lenders.

That's how much an appraiser is worth to a lender. That's your value in the market outside of being self-employed where you are free to thrive/starve.

In almost every field, salaried people make less per service if one breaks it down, than independent contractors, because the salaried people trade off a certain potential of higher earnings for security and benefits. The independent typically can earn a higher price per service but takes on the risk of uncertainty /lean times.

 

[Sandra Koutsopoulos]

"REAL appraisal" vs using waivers.

 

[Dublin ohio]

At my age and after almost 30 yrs in this business. I am more than content to be a passenger

 

[Tiffany Gibbons]

That is great and all but a passenger/driver pep talk and suggestions don't help if you are a typewriter store selling and repairing them. There is only so much work. Res appraising is a done deal for a large majority of the appraisers left who survived the last die off in 2008-2010. This is permanent with the 50-60% waivers on all loans, the hybrid, desktop push and greatly reduced fees yet carrying the same 100% liability, the whole race thing, AMC's , refi market gone for many many years. There will obviously be jobs and work for commercial appraisers and some residential but a tiny fraction moving forward permanently. So over the next 1-5 years appraisers will tap out for retirement or changing careers are various personal decision point junctures. Commercial may do ok. Residential is toast. Are you an appraiser or a writer trying to drive viewership to articles and clicks ?

He is the latter. All his posts are asking questions like do appraisers get on the roof or look under the sink. He has another post based on the same CG appraiser saying he did a full narrative for a divorce, 46 pages long and it took the appraiser 5 hours from start to finish. He thinks because it was residential, he did it for less than $600, and thinks commercial narrative fees are from $3000 to $5000 tops. He posts that the average fees for residential appraisals are around $300 to $425 in Tennessee, so he wonders if the hourly wage based on this 1 CG and "turn time" answers from this forum for a "simple house appraisal" justify such a high hourly rate, not taking appraiser experience, education, and expenses into account, of course. He is an "investor/blogger". I love when non appraisers give us advice on our careers.

 

[Elliott]

Selling the sizzle: easy to take classes, get mentored, be your own boss, 3 hours to put out a report, make big money, do the math, easy six figures. Just don't be realistic, don't talk about board complaints, don't talk about the pressure to meet expectations.

 

[RustyTapeMeasure]

Source?

The amount of waivers per Fannie, states it will increase each year, this is what they estimate they were at before rates JUMPED up.....I have not clue and have not inquired as of today. https://appraisaltoday.com/2021/04/09/appraisal-waivers-almost-50-of-fannie-freddie-loans/

 

[RustyTapeMeasure]

I knew a typewriter repairman - one of my classmates and an underclassman. The latter was a specialist on Selectrics. He made the rounds of the local high schools maintaining theirs. The classmate ran a small office supply and sold as well as serviced typewriters. Boy that went south fast. I wouldn't know who or where to go to get a typewriter fixed.

Only specialization makes more dependable money. The mortgage racket is just that - varies with mortgage rates and demand for houses. There are a lot of appraisals that don't get done for the lack of finding anyone to do it. That results in valuations that are not based on a certified appraiser rather on the statement of an owner, a BPO (in my state brokers can do estate valuations), an expert, engineer, or non-licensed appraiser (think planes, machinery, timberland, RV parks, etc.)

The two typewriter guys within 30 miles of me in Los Angeles stay quite busy BUT they are the only 2. : ) SO yes there might always be a place for an appraiser doing more standard fare interior inspection URAR type reports I think for many this industry is a dead man walking.....refi crazy boom is gone for years, waivers ever present and a big dent in appraisal volume add in the bonus extras of hybrids, desktops, racial component and you have a dramatically decreased level of need for appraisers and inability of many of them to make a full time living wage at it.