Bifurcated Appraisal Inspections/new Ny Legislation?

[Michigan CG]

People in general are short-sighted including appraisers. Appraisers don't like the Hybrid appraisal product............ um, scratch that, appraisers don't like the FEES for these products. HELLO folks, they have only been offered by AMCs which always look for the lowest fee possible and will lie about the time it takes to do them to convince people to do them.

Fees in EVERY industry settle to what is acceptable to the market (buyers and sellers of services/products). The supply and demand will even out like it always does. Increased regulations and laws only tend to manipulate the market.

SO what if these products settle into the market and the fees are about $300? Appraisers would be jumping to do them, but not in New York.

 

[Evincere]

So why don't they just use AVM's and BPO's to begin with? Why **** things up with 2 people, one to do the inspection and another to do the appraisal? How is that more efficient?
We all know the answer, don't we?

**.

Obese child goes to Momma every morning and asks to have Ice Cream for breakfast. Momma says “No” - child then goes to Pappa who wants to be liked and please the child and says, sure, anything you want so long as it makes you happy

 

[DWiley]

So why don't they just use AVM's and BPO's to begin with? Why **** things up with 2 people, one to do the inspection and another to do the appraisal? How is that more efficient?
We all know the answer, don't we?

A while back, I got an email from Suntrust about these "hybrids". Didn't take me long to read between the lines that this is all about the fee. "These take no more than a hour or two to complete". Bull****.

They used hybrids because they wanted the added credibility that the appraiser brings. It was their choice. But, if the appraisers don't want to do it, they will find another solution. Its certainly not a fee thing, because they were paying more for the hybrids than they are paying for the things they are moving to. Appraisers just keep trying to protect the 1004, but the result is just losing more and more appraiser work.

 

[The Bob]

Then why not use appraiser's to do the inspection? If it's not about the fee, why not use someone that already knows how to measure and can note any functional/external items?

Edit: I would certainly entertain the idea of just doing inspections if the fee was reasonable. I like getting out of the office.

 

[Evincere]

SO what if these products settle into the market and the fees are about $300? Appraisers would be jumping to do them, but not in New York.

Strawman argument when you know Daxm well that’ $300 to the Appraiser is not or ever going to happen.

 

[DWiley]

Then why not use appraiser's to do the inspection?

Speed. Simple as that. We get inspections done in an average of 1.4 days. Appraisers, on average, wait longer than that to even call. Appraisers might say they don't need that speed, but that is what they want.

 

[djd09]

let the evaluators and such sign them. when they blow up the lenders will have to buy them back because they used a non-appraiser.

 

[The Bob]

Speed. Simple as that. We get inspections done in an average of 1.4 days. Appraisers, on average, wait longer than that to even call. Appraisers might say they don't need that speed, but that is what they want.

Danny, can you tell me what the fees are for an inspection? My guess is if it's reasonable, a lot of appraiser's would do them. Seems like it would be a win win for the client and the appraiser-inspector.

 

[djd09]

Unacceptable Appraisal Practices

misrepresentation of the physical characteristics of the subject property, improvements, or comparable sales;

https://www.fanniemae.com/content/guide/selling/b4/1.1/04.html

hope iggy the inspector is good.

 

[George Hatch]

What difference does it make what the inspection fee is? This is a serious question.

Have you ever tried to offer multiple service types to your clients, each with different turn time expectations? And example would be performing a certain number of desk reviews every week along with a certain number of 1004s. It almost can't be done on a constant and ongoing basis and its certainly not a sustainable business model that a large percentage of appraisers could be expected to service.

The only way it can work is if your client will accept the longer turn time that fits in with your regular workload instead of the expedited turn times that go with the quicker assignments, which in this case would defeat the purpose of breaking the inspection out from the desktop. In this B-F model BOTH services will have a short turn time. None of these clients are going to wait a week for the desktop appraisal to be returned.

Regardless of the fee, the only way to use appraisers as inspectors will be if there are enough such assignments - every week - for those appraisers to specialize in that service in order to meet those turn times. It is that division of labor that would enable a person to specialize.

It's also more than likely that the TAT expectations for the desktops will also be super short, so that's another complicating factor for the program. Those appraisers will probably have to specializing in desktops, otherwise they won't be meeting their TAT expectations.