Getting work from AMCs

[bishopsnet]

Hello all. This is my first post to the forum. I don't want to beat a dead horse, however, I am a fairly new appraiser looking for general advice. I know things have been slow. I trained when rates were at 2%, got Residential Licensed in October of 2022, right when things slowed down. I am in process for my Certified, however, the BREA is dragging its feet. I'm struggling to get work. I get one a week on average. I've been told different things by different appraisers and I am trying to figure out how things work with the AMC's. I spoke to a seasoned appraiser in my area recently and he said he is doing 20 appraisals a week. If this is true, why am I getting one a week? I have been told by another appraiser to be the squeaky wheel and call and ask for work on a weekly basis. Is that going to do anything for me? The appraiser who supervised me said he never did that and didn't think that would work. Is it just a lack of experience and licensing keeping me from getting work or is there something I am missing?

Thanks,

Pete

 

[CGinMN]

I spoke to a seasoned appraiser in my area recently and he said he is doing 20 appraisals a week.

When are the GSEs going to put a stop to this?

Is it just a lack of experience and licensing keeping me from getting work or is there something I am missing?

If these are AMCs clients, it is most likely related to fee and turn time. Your license level in CA doesn't help.

 

[Fernando]

Right now there's more appraisers than work available. I could get 100 appraisals a week if my fees were very very low but I don't want to.
When you're independent appraiser, you are in business, and you have to find clients and other ways to make it work for you.
You sound like a younging and you have advantage in doing things faster than me. Faster than older appraisers.

 

[bishopsnet]

When are the GSEs going to put a stop to this?

If these are AMCs clients, it is most likely related to fee and turn time. Your license level in CA doesn't help.

I moved to a new area recently. My agent told me that FHA is big out here. I submitted for my Certified in June. It took BREA the full 90 days to approve my application. I sent them my five reports on 09/05/2024. Still haven't heard back. They changed it to where you give them the reports before they allow you to take the test now. The process didn't take this long when I got my AL.

 

[bishopsnet]

I moved to a new area recently. My agent told me that FHA is big out here. I submitted for my Certified in June. It took BREA the full 90 days to approve my application. I sent them my five reports on 09/05/2024. Still haven't heard back. They changed it to where you give them the reports before they allow you to take the test now. The process didn't take this long when I got my AL.

 

[George Hatch]

You came in during a brief spike in business. That wasn't a normal market for appraisal business. The current lull is also atypical when compared to the long term trend with "typical" lying somewhere in the middle.

One thing that happens when times are good is that the lenders drop their criteria for what they need from appraisers, both in experience and the quality of the work. Then when times are bad they crank down on both. Jr SL in 2021 was nominally acceptable when they don't have as many options, but becomes less desirable when they do have more options. Hungry CRs with 10+ years of experience charge the same fee as the "noob" SL with only 2-3 years in, so why not stick with the veteran?

It's possible that you may never again see the supply/demand ratios that were in effect when you came in. Then again, perhaps they'll make a return at some point.

 

[bishopsnet]

You came in during a brief spike in business. That wasn't a normal market for appraisal business. The current lull is also atypical when compared to the long term trend with "typical" lying somewhere in the middle.

It's possible that you may never again see the supply/demand ratios that were in effect when you came in. Then again, perhaps they'll make a return at some point.

So, then what is a normal expectation? I'd be happy with 5 a week. I was told by my supervisor that is normal.

 

[Fernando]

Covid times were one of the best appraisal period in getting high fees.
Appraisers who have been around for long time see the ups and downs. The downs can be really bad. And the ups is like money falling from the sky.
This is the career you can look forward to.

 

[George Hatch]

So, then what is a normal expectation? I'd be happy with 5 a week. I was told by my supervisor that is normal.

Based on the comments I've seen the regulars on this forum make, that sounds about right to me. The question is, how long before that level of demand picks up again? If the mortgage interest rates were to drop to 4% again then the demand would skyrocket. If/when. Alternatively, people could become acclimated to paying 5+% as being the new normal and the demand could inch up more gradually.

Just wait until the market trends go into moderate and consistent decline. That's when the volumes really drop.

You are in competition for work. About the only way forward for you is to compete on terms which are significant to these lenders and their AMCs. Quality/Service/Price. The 3-legged stool of commerce.

 

[Fernando]

I got spoiled with the high appraisal fees few years ago. I'm not doing as much because fees have fallen back.
I have a fellow appraiser younger than me and he's willing to go out further (brings back memories) and more tech savvy and doing many appraisals.
Each appraiser is different.