Does Minimum Wage Increase Help Or Hurt The Appraisal Business?

[Eli]

Banks are still dictating how much they give an AMC, how many times have you heard... we only have approval for ... amount and would need to contact the lender for an additional fee request. Lets face it, banks are still dictating the market.

No, not exactly. State governments are involved, consumer protection, FTC with AMC's. It's different now. But yes too. FTC is a big new player.

 

[J Grant]

That's too bad and probably an exception. I think that increasing the minimum wage does increase wages overall. What decreases wages is paying people below minimum wage. Those willing to work below minimum wage are a problem. Whether minimum wage is 7.25 or 15 an hour a gallon of milk is still going to cost a similar amount. Places like California where rents are sky high is where the inequity exists. The cost of living is very high compared to wages. It would be one thing if wages were higher and costs were higher, but as time marches on the ratio between the cost of living and paid wages gets worse. Our governments keep restricting the development of land for housing and it is becoming more scarce while our population keeps growing.

Perhaps more people should think about having kids in today's economy with shrinking jobs/resources...why many millennials live at home or subsidized by mom/dad- do today's; parents want to support their kids forever?

That aside, the govt is not restricting development in Cali, they've run out of build able land in many areas. Prices of goods made overseas are not going to rise if our min wage rises since their wage is not affected by US labor rates, but the people who work in internet stocking warehouses or local stores their higher rate may affect prices.

Still, some prices remain fixed such as mortgages or those who live with family or on fixed rents, and making more $ gives them more purchasing power which can pour money into local businesses. A a min rate change to $15 an hour albeit by 2024 would see a dramatic shift in the economy vs a modest increase to $9 or $10 an hour - the shift would see wins and losses , the total as a win or loss can not be known until it occurs. We do know now that so many people earning low wages leads to a stagnant economy in local areas because they lack disposable income to put back into the economy.

 

[Eli]

Banks are still dictating how much they give an AMC, how many times have you heard... we only have approval for ... amount and would need to contact the lender for an additional fee request. Lets face it, banks are still dictating the market.

No, not exactly. State governments are involved, consumer protection, FTC with AMC's. It's different now. But yes too. FTC is a big new player. State governments too.

 

[Michigan CG]

Of course AMC;s can manipulate supply and demand in their segment of the business,

You cannot grasp supply and demand............

Exactly how does the AMC manipulate supply and demand? If there is an area with a shortage of appraisers do they clone a bunch of appraisers and put them on a bus to the area? Your argument has never had an ounce of merit.

If Fred is getting all the work he wants at $400 why would he take $300 from an AMC? You think appraisers are stupid?

 

[Amy Perkins]

Perhaps more people should think about having kids in today's economy with shrinking jobs/resources...why many millennials live at home or subsidized by mom/dad- do today's; parents want to support their kids forever?

That aside, the govt is not restricting development in Cali, they've run out of build able land in many areas. Prices of goods made overseas are not going to rise if our min wage rises since their wage is not affected by US labor rates, but the people who work in internet stocking warehouses or local stores their higher rate may affect prices.

Still, some prices remain fixed such as mortgages or those who live with family or on fixed rents, and making more $ gives them more purchasing power which can pour money into local businesses. A a min rate change to $15 an hour albeit by 2024 would see a dramatic shift in the economy vs a modest increase to $9 or $10 an hour - the shift would see wins and losses , the total as a win or loss can not be known until it occurs. We do know now that so many people earning low wages leads to a stagnant economy in local areas because they lack disposable income to put back into the economy.

Well since 50% of the wealth is in the hands of baby boomers and 23% in the hands of foreigners, we might need to ask why exactly are those adult children still living in the basement. The boomer generation had the advantage of the Saver generation, specifically the Great Depression era generation as parents. They suffered greatly and wanted the best for their kids. These parents did everything they could for their kids, the "me" generation, more specifically the boomers did not. The boomers were so used to taking all the profits and good jobs while the Generation Xers had very little. The Millennial grew up with the modern standards of morality, which is next to none. Except of course the morality of not polluting the environment, essentially throwing themselves under the bus with no growth policies. The Boomers had all the divorces, the face lifts, and the wealth. All the while, the boomers are also responsible for most of the pollution and widespread STDs due to the Disco era. The boomers have had virtually no economic peril and the millennials have known nothing but economic peril. The boomers have fewer expenses and most of the wealth. They are reportedly going to be the longest living generation in history. The boomers have less than ten years left and 50% of all that wealth will be transferred, except for those that have a sticker saying "we are spending our children's inheritance." I am not saying just because boomers are the most greedy, most immoral generation that every boomer is like that. After all, there is diversity in all groups and exceptions to the rule. You got ten years left, why not help that adult child in the basement live in a real home; don't you know the greatest joy is seeing your children prosper? Responsibility and opportunity have the greatest effect on depression. How will you boomers sleep at night thinking about meeting your maker? As for the foreigners taking over our wealth, buy American and I personally hope we tax all the imports we can. We need to literally keep it in the family and have a greater sense of loyalty.

 

[ucbruin]

You cannot grasp supply and demand............

Exactly how does the AMC manipulate supply and demand? If there is an area with a shortage of appraisers do they clone a bunch of appraisers and put them on a bus to the area? Your argument has never had an ounce of merit.

If Fred is getting all the work he wants at $400 why would he take $300 from an AMC? You think appraisers are stupid?

I'm not always in agreement with JG....
But I can see the scenario that she at times presents....
AMC "staff" appraisers can take the lion's share of assignments and impact both volume and fees....

This seems more plausible to me in 2019 than it did in 2014....

 

[J Grant]

Amy, a lot of boomers are going broke supporting grown kids and or their aging parents. Did boomers squander resources ? Yes, much of it due to ignorance. Every generation has to deal with the times it live in. The younger generation now sees the lack of jobs and population pressure on the environment so why are so many having kids when they know they can't support them and especially teenagers and single parents? That is their actions alone.

The millennials did get short stick economically, but many never finished college or trade school and use that pathetic poor me act as an excuse to live at home or keep getting parents money...I know quite a few personally in this category.. I may be a baby boomer but I was self supporting since early twenties never took a dime from my parents after I went out on my own .

 

[Renee Healion]

per Post 305
All or nothing thinking is a cognitive distortion. Further, it is neither logical nor persuasive. It does seem to be a way to shift blame while still making yourself miserable.

I don't buy into blaming generations or dividing ourselves more than we are. Take it easy on yourself and others. Go for a walk or have a cup o tea.

 

[Michigan CG]

AMC "staff" appraisers can take the lion's share of assignments and impact both volume and fees....

No. You don't get it either. If there are appraisers making $400 per assignment why would they take a $300 assignment from an AMC?

Staff appraisers cannot take all the work unless there is a shortage of work. Again, supply and demand.

There are not that many staff appraisers in our business.

 

[J Grant]

No. You don't get it either. If there are appraisers making $400 per assignment why would they take a $300 assignment from an AMC?

Staff appraisers cannot take all the work unless there is a shortage of work. Again, supply and demand.

There are not that many staff appraisers in our business.

You never answered my question about supply and demand the two tiers of fees when lender pay a different fee than AMC;s with same supply of appraisers in the same area.

There are many staff appraisers at AMC;s and large lenders and this gives those companies leverage over fee appraisers