Desktop Appraisals Becoming the New Normal

[Mejappz]

Regardless, even you can acknowledge that for virtually all other residential appraisers the prevailing fees have increased over the last couple years as a direct result of the supply/demand factors.

Not so fast.

 

[Mejappz]

 

[J Grant]

We are a direct engagement lender, and our appraisal fees have gone up roughly 33% over the past 3 years.

Makes sense as inflation and all other costs have risen. Plus fees were too low for far too long - even for direct lenders.

 

[Joe Flacco]

We are a direct engagement lender, and our appraisal fees have gone up roughly 33% over the past 3 years.

Well I don't know man. You are probably a direct engagement lender that operates like a AMC.

I havn't charged my clients extra for it having been busy or for rush reasons. But their standard fee schedule is very good. The fee schedules were good before pandemic and it will stay good.

 

[alebrewer]

Well I don't know man. You are probably a direct engagement lender that operates like a AMC.

I havn't charged my clients extra for it having been busy or for rush reasons. But their standard fee schedule is very good. The fee schedules were good before pandemic and it will stay good.

What does a direct engagement lender that operates like an AMC look like? We don't take a margin, if that's what you mean? We've adjusted fees 3 times in the past year alone.

 

[J Grant]

What does a direct engagement lender that operates like an AMC look like? We don't take a margin, if that's what you mean? We've adjusted fees 3 times in the past year alone.

That is correct , a direct lender engagement lender not take a margin. Which ever of them raised fees, good news ! I meant to say, an AMC owned by a lender

 

[Mejappz]

Makes sense as inflation and all other costs have risen. Plus fees were too low for far too long - even for direct lenders.

The fees have come up from the sewer. So now, instead of being paid 1980s type fees, it's more along the lines of the 1990s.

 

[J Grant]

Is that your way of saying that you think only the AMCs are responding to supply/demand by increasing their fees as a result of being unable to get their assignments done for less?

Regardless, even you can acknowledge that for virtually all other residential appraisers the prevailing fees have increased over the last couple years as a direct result of the supply/demand factors.

Right?

You usually have an agenda with these posts ... what is it on this one...yes, Fees have risen for some direct lenders, and for AMC;s due to supply and demand, though not evenly for all, and some direct lenders already paying a high fees saw no reason to change it. Inflation and the fact that appraisal fees were too low for a long time meant a long overdue rise was bound to happen.

However, an AMC treats supply and demand differently than a direct order lender does. Both AMC;s and direct order lenders have been paying higher fees recently , but ONLY the predator AMC;s will push them lower if market slows down and orders decrease. Even now, with fees higher, AMC;s still shop for the lowest they can get within that reality.

 

[Joe Flacco]

What does a direct engagement lender that operates like an AMC look like? We don't take a margin, if that's what you mean? We've adjusted fees 3 times in the past year alone.

You know like the engagement process and panel management is like an AMC.

What fee did you start at and what is it at now after adjusting three times?

 

[Mejappz]

Oh, this is a fun one that just came in a blast order for a beachfront Duplex. Available to anyone with a pulse.