Class Valuation

[J Grant]

I believe no matter how many of us leave the industry, the ongoing migration to other forms of valuation means the demand for full fee 1004-type reports will stay in lockstep with the supply of appraisers able to complete. I will be shocked if fees don't decrease by end of 2026.

The powers that be control demand for appraisALS. Our control of available appraisERS means squat.

I doubt fees will decrease. There is no further down to go without making it 100% unprofitable to continue, even at full fee and for those who suffer with an AMC taking a cut it is economic suicide.
I think fees will rise a bit, but we are all speculating.

 

[Overimprovement]

Are you referring to appraisal waivers?

And hybrids and AVMs and PDC desktops and all other online forms that are accepted from the monster AMCs in lieu of 1004s. Once the new forms gather enough data, the exodus of traditional orders will accelerate.

 

[Essexfenwick]

My advice would be to diversify your client base and type of work, with an emphasis on adding work that is not lending related. I am talking about assignments for estates (including partial interest gifting), divorce, pre-listing, relocation, etc. Such work tends to be less sensitive to interest rates (and more lucrative than chasing the same work most others are chasing).

Developing such work requires a commitment to outreach and marketing, and some just don't want to do that. I have met many who tell me they hate that kind of stuff.
When I had a firm in Middle Tennessee we were constantly speaking at agent meetings, sponsoring agent events, working with the BAR Association etc.

Happy to connect and share ideas on what worked for me in the Nashville market.

For this kind of work I would recommend getting an MAI or SRA. To separate from the crowd without a complicated sales pitch. Your clients are going to be attorneys and CPAs they like the resume bling for their clients .

 

[Essexfenwick]

I'm not doing the new form until it's mandatory in 11/26. I might never do it. I might tell AMCs I'll be there in November 26 and then ghost them. It's total BS step 3 to build their automated system and disappear appraisers with data collectors. If everybody did it we have a fighting chance.

 

[cashcatz]

The new UAD forms don't concern me so much as they will be abstracted behind the resi form software. If it's all implemented well with good UX/UI, much of the tedious stuff will get pre-filled and just require a look-through then you focus on the analysis and important stuff as usual. Or it will be a total dumpster fire; guess we'll see.

 

[Alsie35]

The new UAD forms don't concern me so much as they will be abstracted behind the resi form software. If it's all implemented well with good UX/UI, much of the tedious stuff will bet pre-filled and just require a look-through review. Or it will be a total dumpster fire. Guess we'll see.

Alex, I'll take "what is a dumpster fire" for $500 please.

 

[Fritz in NY]

For this kind of work I would recommend getting an MAI or SRA. To separate from the crowd without a complicated sales pitch. Your clients are going to be attorneys and CPAs they like the resume bling for their clients .

That won't help at all. $$$ is king. No one cares.

 

[jhornet88]

I did a good amount of work for class about 5-6 years ago . I think one year with them I did over $45,000 worth of Class assignments or about 8 assignments per month . My “score” was nearly perfect then the reports suddenly stopped coming from them all together after what I thought was a 5+ year joint relationship . I later learned they “hired” a staff appraiser full time in my area and gave him every single assignment in a 30 mile radius . If for some reason the staff guy didn’t want to do an order they would then send out the crappy order for quotes - typically rural - complex - something nobody wants basically . This sums up Class is a nut shell . I still think it’s very weird that regulators would allow Class to hire their own appraisers ? How on earth is that legal ? So they are reviewing themselves ? What a joke and what a racket .

 

[chad hampton]

I did a good amount of work for class about 5-6 years ago . I think one year with them I did over $45,000 worth of Class assignments or about 8 assignments per month . My “score” was nearly perfect then the reports suddenly stopped coming from them all together after what I thought was a 5+ year joint relationship . I later learned they “hired” a staff appraiser full time in my area and gave him every single assignment in a 30 mile radius . If for some reason the staff guy didn’t want to do an order they would then send out the crappy order for quotes - typically rural - complex - something nobody wants basically . This sums up Class is a nut shell . I still think it’s very weird that regulators would allow Class to hire their own appraisers ? How on earth is that legal ? So they are reviewing themselves ? What a joke and what a racket .

They don’t allow them. No one is overseeing anything. AMCs live in a scofflaw environment. But when oversight isn’t proactive, this is what you get. Obviously the middle man isn’t permitted to morph into also one of the other 2 men.

 

[glenn walker]

They don’t allow them. No one is overseeing anything. AMCs live in a scofflaw environment. But when oversight isn’t proactive, this is what you get. Obviously the middle man isn’t permitted to morph into also one of the other 2 men.

You don't know what your talking about
any AMC can have both employed in house appraisers on staff and also independent fee appraisers they send orders to.

Nothing illegal in Dodd Frank or Law. Not liking it is fine, but most large AMCs have both. Don't confuse not liking a business model as being illegal.