Fannie Mae Q3 Update

[Tim Hicks (Texas)]

Good god, nobody lowers their fees whenever they benefit from a time saver. The AMCs have many time savers now due to tech, and they take as high a cut as ever. I am ready to give up on our own profession, reading this kind of reasoning.

So, If a lender was offering $600 and your fee is normally $700, you would not take it since you don't have to spend 1-2 hours driving comparable sales?

Lenders and the GSEs are always complaining about the high appraisal fees mostly because of the AMC model. I am saying I would have no problem taking $50-100 off my rural appraisal fee to not have to drive the comparable sales.

Do you ever get bid orders for $400 or $450 and counter with your fee and never get the job? I am not naive to think that there are other appraisers out there that are willing to accept work for nowhere near my fees.

 

[Tim Hicks (Texas)]

I get 1-2 emails a day asking for bids on assignments. I rarely get the order. Have you ever offered a lower fee to see if you would get the order? I know my son thinks he might get an order when he offers $450 and two days, but he rarely gets the order then and he needs the work just starting out.

 

[CGinMN]

They just level the playing field for honest appraisers. A lot of your competition already wasn’t taking the comp pics, and they were making a better hourly rate because of it.

 

[JTip]

How many CG's hop in their private jet to take original comp photos of the golf course comps on both sides of their state?

On top of that, do they even personally look at the subject or have a lackey measure and photo the subject?

I should have become a CG.

 

[Surf Cat]

I am open to arguing that point, but it really does save a rural appraiser hours on every assignment.

Admittedly, I've never done a rural appraisal. The market areas I work in are suburban or urban with plenty of data.

That being said, don't you learn why the price point of the comparable is the way it is when you finally reach the destination of your comparable and observe it?

To me, with the designs and styles of the dwellings being so different from one another, driving the comparables is everything. Everyone knows that Realtors present the properties they are selling at the best angles, in the best light with their photos.

As I pull up to some sales, before I even put the car in park, I say to myself "that's why this sale is so low". Or at the top of the range. Quality of construction, an externality, siding the blight of the neighborhood, fronting multi-family.... it all comes to light when you actually drive and observe the sales.

 

[Dublin ohio]

That being said, don't you learn why the price point of the comparable is the way it is when you finally reach the destination of your comparable and observe

I just drove 4 sales this morning. 3 of the 4 photos were of a mailbox and/or driveway

 

[Justinjla]

Admittedly, I've never done a rural appraisal. The market areas I work in are suburban or urban with plenty of data.

That being said, don't you learn why the price point of the comparable is the way it is when you finally reach the destination of your comparable and observe it?

To me, with the designs and styles of the dwellings being so different from one another, driving the comparables is everything. Everyone knows that Realtors present the properties they are selling at the best angles, in the best light with their photos.

As I pull up to some sales, before I even put the car in park, I say to myself "that's why this sale is so low". Or at the top of the range. Quality of construction, an externality, siding the blight of the neighborhood, fronting multi-family.... it all comes to light when you actually drive and observe the sales.

You can continue to do that.

 

[alebrewer]

The elimination of original comp photo requirements is in line with the general direction the GSE's are headed. That requirement originated at a time when most appraisals contained 3 comps. And as we all know, 'value' can change dramatically based on which 3 'comps' you use. Hence the gradual shift toward the 'CMS' (competitive market segment) instead of the ole '3 sale reports'. Eliminating the pic requirement is in line with that shift.

 

[Charles West]

There is no way I wouldn't drive the comps, too many unknowns to walk away from. This is an idiotic policy.

 

[Surf Cat]

You can continue to do that.

Of course! I will continue with my dinosaur ways, not relying solely on wow and now tech. No, I won't be making as much as the skippies.... but I'll certainly know what I'm signing to and be able to sleep at night.