Fee For Desktop Reports

[NC Appraising]

What fee to charge?

The frog in the pot analogy is the best way to determine your fee.

Most IFA appraisers will be the frog, which starts out in luke warm water ($125 per fee). Things are going good, you are completing the same amount of hybrids as you use to complete 1004s.

The water is heating up (notice your banking account is low). You dont jump out as you are still have work coming in, volume. A month later you are a boiled frog, and you did not even realize it (no money to pay your bills).

Easy math:
350 per 1004 traditional appraisal x 20 a month = 7,000 month.

350 x 5 = 1,750
125 x 15 hybrids = 1,875
3,625. The frog is boiled dead in the water.

The above is high in my opinion and represents normal market conditions. How many appraisers are currently doing 20 a month? Not many.

The moral of the story...the volume may stay the same, but your fees (pay check) will be cut in half. Under current market conditions, I would base the above math at 10 appraisals a month.

 

[NC Appraising]

A few appraisers will make out good...will lower their fees for all products and make some of it back in volume.

The frog appraisers, 80% of us will be the boiled frog.

At the end of the day, volume of work will remain the same; although the volume now takes into consideration for the drop in orders from appraisal waivers and AMC staff appraisers.

 

[Tom D]

I wonder if borrowers pay the same for a hybrid as they do when the appraiser does the full appraisal and inspects

one of my big lender people hates them, they cost more & take longer to get, they order it thru an AMC. also more annoying for the people ordering them. just telling what they tell me.
somewhere there is a fold in reality with hybrids, FNMA & us.

 

[ucbruin]

one of my big lender people hates them, they cost more & take longer to get, they order it thru an AMC. also more annoying for the people ordering them. just telling what they tell me.
somewhere there is a fold in reality with hybrids, FNMA & us.

The lender orders them but the individual employee hates them....

 

[Essexfenwick]

Makes no sense. Using 2 humans instead of one is low tech.

 

[shrubberyvaluation]

Makes no sense. Using 2 humans instead of one is low tech.

Obviously its about bias. A field 'inspector' has no liability for being biased against someone and making the property appear worse then what it is. Of course we all know its to push more loans through with fraud as the data collector will be incentivized to overlook any defects to churn and burn through.

 

[Tom D]

The lender orders them but the individual employee hates them....

actually FNMA wants them ordered, but the lender hates them so much that they change them to a normal 1004. The loan office managers also don't like them, extra cost & time for a new more speedy process, ha ha.

 

[J Grant]

A few appraisers will make out good...will lower their fees for all products and make some of it back in volume.

The frog appraisers, 80% of us will be the boiled frog.

At the end of the day, volume of work will remain the same; although the volume now takes into consideration for the drop in orders from appraisal waivers and AMC staff appraisers.

The volume of work will be lower, because with hybrids an appraiser can complete the report in less time, so there will be less to go around. And what will the I lowered my fee to $125 guy do when the next guy lowers it to $100?

NEBWBIES, do not go into this field on the residential side, because barring a regulatory change, this is the future, at least regarding AMC work, and the entrenched by-design AMC system has a large share of the lender volume, unfortunately. Appraisers who have good direct lender clients won't be giving them up and those clients have limited spots on their panel. It is career suicide for any young person to consider getting a residential-only license, imo.

 

[J Grant]

actually FNMA wants them ordered, but the lender hates them so much that they change them to a normal 1004. The loan office managers also don't like them, extra cost & time for a new more speedy process, ha ha.

Does FNMA want them ordered?
I thought FNMA gives lenders the option of which product to order, but FNMA approves certain properties for certain valuations options. I assume Fannie thought lenders would jump on the hybrid train, but the more prudent ones won't, especially if the cost is the same or similar and there is no advantage to an inferior product. Though the lenders or AMC's in lock with Fannie/Freddie will choose the hybrid option because they can monetize it better.

It's almost as if the future for AMC profiteering got baked into the "modernization" plan. Why not call it the appropriate name? it is not Appraisal Modernization, it is Appraisal AMC Monetization.

 

[ucbruin]

actually FNMA wants them ordered, but the lender hates them so much that they change them to a normal 1004. The loan office managers also don't like them, extra cost & time for a new more speedy process, ha ha.

Seems that the lenders have options....
Like everything else, with practice/time/usage, the hybrid will get more efficient....
Especially if we are talking AI replacing the human report writer....