Best AMC

[CGinMN]

Industry definition of "quality" is probably different from your definition of quality.

For sure. But apparently even by their own standards they’re not successful at incentivizing “quality.”

As many here know the big AMCs give appraisers a report card, and many of the metrics have nothing to do with report quality. They measure things like communication, on time report delivery, number of hours to respond to revisions, etc. Being a good appraiser and a good AMC appraiser are different skillsets.

 

[alebrewer]

For sure. But apparently even by their own standards they’re not successful at incentivizing “quality.”

As many here know the big AMCs give appraisers a report card, and many of the metrics have nothing to do with report quality. They measure things like communication, on time report delivery, number of hours to respond to revisions, etc. Being a good appraiser and a good AMC appraiser are different skillsets.

Just curious, and not to be argumentative at all, but what would a good metric be for quality?

 

[EddieB]

Just curious, and not to be argumentative at all, but what would a good metric be for quality?

A good place to start would be with the minimum USPAP standards. Like proper HB&U analysis, comparable sales verification, actual appraiser photos, analysis of comparable sales including reasoning for adjustments and final reconciliation. You know, minimum standards that I see missing in many appraisals that funded purchases and refis.

Back to the OP and deciding between AMCs:
A good place to start would be to proactively look at the appraiser panels they have set. Review if they broadcast orders to license holders (alive or dead) or actual vetted appraisers. Ones that have demonstrated competency in the market area and property type. Something the AMC is tasked to do but only a small percentage bother with

 

[spittman]

I didn't read through all the posts but I'm just gonna keep it real @JMcGuire1122. Most appraisers on here are not gonna give up their favorite AMC client on a public forum. To do so means risking having opportunities taken away from them by having said AMC flooded by more appraiser applications. I wish we as appraisers could come together and demand a fair system and C/R fees from AMCs but we are all in business to make a living so there will always be those appraisers that get the job because of their low fee. I do appreciate that you are trying to find a "good" AMC, but it ain't gonna happen here out in the public.

 

[spittman]

No, they are not quite that sophisticated. Instead, Zillow pays "bait and switch", by giving you a WIDE range.

A property on Zillow will have a range of, for example,"$580,000 -$625,000" *BUT* that range is WAY DOWN on the page. What you see at the TOP of the page, in BIG letters is: "Zillow Estimated value: $625,000".

Get it? They are "pimping" the estimated value to the top of the range to encourage people to sell (and use Zillow). If I go to the house I just sold at (arguably) over market, they will list the "Zestimate" at about $25K MORE than what I just sold it for. Which is crazy.

Realtor.com is MUCH more of a reliable estimator.

Also in the link that no one clicks on "The Zestimate is Zillow's best estimate of this home's market value. It is not an appraisal and it should be used as a starting point."

 

[CGinMN]

Just curious, and not to be argumentative at all, but what would a good metric be for quality?

Pay me six figures with fringe benefits, call me chief, and I’ll let you know.

 

[TerryRohrer]

For sure. But apparently even by their own standards they’re not successful at incentivizing “quality.”

As many here know the big AMCs give appraisers a report card, and many of the metrics have nothing to do with report quality. They measure things like communication, on time report delivery, number of hours to respond to revisions, etc. Being a good appraiser and a good AMC appraiser are different skillsets.

It is similar to selling cattle. There is never a reason to pay a premium, but are a plethora of reasons and conditions for which discounts are warranted!

 

[alebrewer]

A good place to start would be with the minimum USPAP standards. Like proper HB&U analysis, comparable sales verification, actual appraiser photos, analysis of comparable sales including reasoning for adjustments and final reconciliation. You know, minimum standards that I see missing in many appraisals that funded purchases and refis.

USPAP - definitely an objective standard from which to glean metrics on quality. I think the challenge is 'rating' the level of adherance, no? IOW, at a basic level, either you do an adequate H&BU analysis, or you don't - it's a binary metric. To get more granular, though, and try to apply a measure that says one H&BU analysis is 'better' than another one is the challenge... Did you include reasoning for adjustments and final reconciliation? Yes or no - again, binary. In order for a metric to be meaningful - at least as regards something as slippery as quality - is a challenge.

To be sure, AMC's measure metrics that fit their needs - turn times, declination rates, OT delivery rates, revision rates, etc. OTOH, those metrics are quantifiable. A lot of other 'quality' metrics aren't...

 

[Tom4value]

Asking which is the best AMC is like asking which is the healthiest cigarette. AMCs were formed to provide a barrier between the lender and the appraiser and to provide their clients with quality appraisals. They did a good job, to a detriment, to the first point and provide zero to the second.

For the first point, you have a third party that slows down the process. This happens with assigning the appraiser, with shopping for the lowest fee, and then when the underwriter has questions. Takes forever because of the third party and you can’t get clear confirmation as to what they want.

The second part is the most frustrating. AMCs have stooges who have a checklist from the client as to what they want. More times than not, it has nothing to do with good appraisal practice. The stooges are not appraisers and only want appraisers to conform to lender’s requirements. They don’t think.

 

[Alsie35]

Asking which is the best AMC is like asking which is the healthiest cigarette. AMCs were formed to provide a barrier between the lender and the appraiser and to provide their clients with quality appraisals. They did a good job, to a detriment, to the first point and provide zero to the second.

For the first point, you have a third party that slows down the process. This happens with assigning the appraiser, with shopping for the lowest fee, and then when the underwriter has questions. Takes forever because of the third party and you can’t get clear confirmation as to what they want.

The second part is the most frustrating. AMCs have stooges who have a checklist from the client as to what they want. More times than not, it has nothing to do with good appraisal practice. The stooges are not appraisers and only want appraisers to conform to lender’s requirements. They don’t think.

There is a lot of truth in what you write, but happily - especially with small local 'boutique' AMCs - it is not always the rule. Many of those small AMCs are run by appraisers and serve local lenders who put standards and quality over the "mill work". I'll once again praise PEMCO Ltd out of Sacramento as the best of those that I have done business with. I am gonna miss them - I've become a better appraiser thanks to their input and advice over the years.