Fees Clear Capital

[George Hatch]

That's what I'm seeing as well. The demand curve has been controlled and not to the benefit of appraisers.

"Controlled" implies a motivation to hurt appraisers. That may be so. Maybe there is some malice afoot. But if I'm betting on it, my $5 wager would get placed on "apathy". Not "malice".

Reasonable people will disagree.

I do not engage in the self-abuse of believing that any of my clients care about my well being. Or that they would miss me for more than perhaps a couple hours if I get hit by a bus today. I survive to the extent I am able to identify and exploit my opportunities in the market. That includes trying to provide a good value relative to the fees I charge.

Ain't none of us any better/worse than our last assignment.
Ain't none of us any more secure than our last assignment.
We are all of us operating on double-secret probation at all times.

 

[WestMichiganCG]

"Controlled" implies a motivation to hurt appraisers. That may be so. Maybe there is some malice afoot. But if I'm betting on it, my $5 wager would get placed on "apathy". Not "malice".

Reasonable people will disagree.

Controlled can be waivers or a de minimus. I wouldn't qualify that as malicious, just in the best interest of those that proposed it.

 

[George Hatch]

The way I would characterize it is that the demand for appraiser hours has been reduced by user discretion.

 

[gregb]

I've thought about this a lot. If you're the last one standing, you're in line for all of the bids. If you can survive on private work with a small amount of bank work, you'll be the last one standing when everyone else quits. You would be pushing a monopoly. You can write your own ticket. As I've gotten more experienced, private clients are willing to pay for my unique skill set. If the demand increases, so can my prices. If I was getting Clear Capital money I definitely would have pivoted into a new career. I think the experience of owning and running your own business is a skill set that could be harnessed into a higher pay grade.

No AMC work. Private clients, direct lenders for high end residential, VA work & residential income over 4 units makes me somewhat vulnerable if the VA work ends.

 

[WestMichiganCG]

The way I would characterize it is that the demand for appraiser hours has been reduced by user discretion.

I think "user discretion" is also tied to a risk and reward component.

 

[Joe Flacco]

I don't think user discretion is the problem. It is just number of loans. GSE's waive 20% of their 1/3 share of the residential appraisal pie. That is only like 6-7% of the pie. If the appraiser is 100% reliant on the GSE slice of the pie then they would see a bigger impact.

 

[Joe Flacco]

I think the worst is probably behind us anyway. Buyers are now accustomed to these rates and I think a dip in rates into the high fives will get the market moving again.

 

[J Grant]

I LOL at your characterization that my speculation of the possibilities makes me a "no friend to appraisers". Whether I do or don't consider the possibilities of these trends eventually winding their way towards their logical conclusions isn't going to affect the progression or non-progression of those trends. Nobody at these lenders are following what a couple dozen appraisers on this forum talk about.

That "too much time for the live bidding" is a pretty dumb talking point, too. If some lender or AMC was going to do it they could prepare their listings the day before, dump them all online at 7:00AM local time and let the bidding proceed for an hour. It might already be technically possible.

WWTSD?
What would the suits do?

Just because I can use a little imagination in these discussions doesn't make me a villain. Nor does your accusation that I am a villain make it so. Your agreement or validation isn't important enough to me to prompt me to keep my speculation to myself. Obviously. If your opinion mattered to me enough to stop then I'd stop. That I don't submit to such coercive attempts should be considered self-evident.

it. You came up with an idea ( live bidding ) to lower fees further but then want apparises to think you are on their side. Okay....moving past that,

There are several reasons it is a bad idea and why AMC's would reject it. The AMC;s are still subject to regulation about C and R, even though they can use their own surveys to justify their own low appraiser fees they pay. But still, the AMC sent an email, or have it on file, and they can thus claim the appariser provided their C and R fee. Even if the lowest always wins the order.e.

But if the AMC starts live auction-type bidding , an appraiser is competing with time pressure to bid lower and lower. And it is hard to say the AMC is compliant with C and R. Plus, it is degrading, (odd that escaped you ) so degrading that if an appraiser leaked it online, it would get outrage.

In addition, live bidding means apprasiers have to all be online at the same time - what are the chances of that happening? it is inefficient.

The AMC now has blast emails and a time frame to respond in an hour or whatever, which is plenty efficient, as well as fees on file for those that work that way, which is also efficient. Sometimes they just send an order out at X fee, and if it is rejected, they go on to the next appraiser. They have no problem whatsoever with their methodologies. r purpose. And they also have fees on file for each appraiser, and that is efficient for their purpose as well.

 

[J Grant]

Malice or lack of malice, the net result is low fees and misery for the majority of appraisers who deal with AMC work.

Though I personally don't think it is about malice- it's about a slick gaming of the blended fee and profit- the lenders and banks that use or own AMC's have a perfect system in place to exploit the appraiser to extract payment to the AMC from the appraisal fee. The AMC loves it because, unlike normal businesses that charge their customer a hard cost, the AMC offers a service that is basically free of hard costs to its customers ( the lenders), which is what gives the AMC's service an enormous market share.

I dont' think it is comprised of evil people, but by people who tune it out, If a segment sadistically enjoys it- hate to believe that but I suppose it is possible.

 

[glenn walker]

it. You came up with an idea ( live bidding ) to lower fees further but then want apparises to think you are on their side. Okay....moving past that,

There are several reasons it is a bad idea and why AMC's would reject it. The AMC;s are still subject to regulation about C and R, even though they can use their own surveys to justify their own low appraiser fees they pay. But still, the AMC sent an email, or have it on file, and they can thus claim the appariser provided their C and R fee. Even if the lowest always wins the order.e.

But if the AMC starts live auction-type bidding , an appraiser is competing with time pressure to bid lower and lower. And it is hard to say the AMC is compliant with C and R. Plus, it is degrading, (odd that escaped you ) so degrading that if an appraiser leaked it online, it would get outrage.

In addition, live bidding means apprasiers have to all be online at the same time - what are the chances of that happening? it is inefficient.

The AMC now has blast emails and a time frame to respond in an hour or whatever, which is plenty efficient, as well as fees on file for those that work that way, which is also efficient. Sometimes they just send an order out at X fee, and if it is rejected, they go on to the next appraiser. They have no problem whatsoever with their methodologies. r purpose. And they also have fees on file for each appraiser, and that is efficient for their purpose as well.

The AMCs right now have no shortage of appraisers who have the AMC portal App turned on and that phones in their hand or pocket 24/7 to capture E Mails and alerts. There are no AMC high volume guy's sitting looking at because those alerts are set on loud....Lmao