Getting work from AMCs

[bishopsnet]

Attacks from many sides. From the Biden administration to big AMCs taking over that are ethically challenged.

I do feel like AMCs are becoming a monopoly. And if you have staff appraisers, you're not technically an AMC. You're an appraisal company.

 

[Mejappz]

Sounds like a churn and burn chop shop....... Shop takes all appraisals on the cheap, sends runner to "inspect" subject and photo the comps. Next, photos and notes are sent to the report writers, whom then send it to the signer as "did inspect". This is not appraising.

This is exactly what the GSEs and their preferred AMCs want. While they may send some of their minions to present a different perspective for appearances, this is the system they truly favor.

 

[shrubberyvaluation]

This is exactly what the GSEs and their preferred AMCs want. While they may send some of their minions to present a different perspective for appearances, this is the system they truly favor.

They want conformity, not accuracy.

 

[Essexfenwick]

This is the longest down period since the 1980s. The last time rates were jacked up to fight inflation. Reagan set the economy up for decades of generally lowering rates. 2008 rates hit rock bottom and stayed there till 2021. They can’t jack them up like they should without bankrupting the government and highly misallocated economy. So we are stuck in a stagflation dragging on and on with semi high rates keeping inflation high but not exponential.

 

[Overimprovement]

What makes you say that? It's just a downturn in the market.

There are many threads on this site that deal with this question. Look up waivers, PDCs, hybrids, just for a start. Most of my clients completely, like 100%, stopped sending orders toward the end of 22 and into 23. Most never returned. A couple have sent total garbage orders. But I think the biggest culprit is AMC's who have on-staff salaried appraisers taking all the 'typical' orders.

And no person is kicking out 20 appraisals a week and adhering to USPAP and the certs they sign on a 1004 form. I call BS on that as well.

 

[Mejappz]

They want conformity, not accuracy.

They want this. Happy user.

 

[Tom4value]

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

Welcome to the forum, Pete.

Several times you mentioned your “supervisor”. Are you no longer working with this person? I ask because you have been an appraiser for only a couple years and it sounds like you are off on your own. In my opinion, 2 years, though perfectly legal, is way too soon to be off without someone to mentor and judge your work. If you can work for the “20 appraisal a week” person, you can gain more experience and not have to worry about work flow.

I bring this up because, yes, lenders may see your experience and opt for the experienced appraisers over the novice. In fact, many lenders only work with Certified appraisers.

Regarding advice on gaining clients, the best time to build a client base is when things are busy, not when it is slow. Right now, you are competing for clients with literally everybody. I got nearly all my clients during the busy times when other appraisers were saying, “no”. I said, “yes”.

It is not doom and gloom. You can work with a seasoned appraiser who will feed you work as you gain experience. If on your own, you can keep looking for an AMC who will take a chance on you as you build up a database to show new clients. Eventually, things will pick up and you can find clients. Just be aware that AMC work is low lying fruit, which is usually rotten, so always look ahead. Good luck!

 

[J Grant]

What makes you say that? It's just a downturn in the market.

It is not just a downturn in the market

I don't know if you keep up with the changes at Fannie and Freddie, but over the last few years, they have been using WAIVERs in place of appraisals, and it has grown to replace a percentage of appraisal work. Idk how much but my estimate is depending on lender clients and the market area between 20% - 40% of appraisals replaced by it. Taht is permanent unless regulators or others make a change and decide not to accept them. some lenders might use a lot of them, and some very few. A borrower of course, can opt to get an appraisal instead of a waiver if they choose but many go with the waiver -

perhaps look into a county assessor job?

If you stick with appraisals, try to learn to do the difficult /complex and high value orders -

 

[J Grant]

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

Personally, I think a lot of those appraisers make it up. Even with low fees, who in the world has the volume of 20 a week, and why is it all going to one appraiser?

I am not a fan of AMC;'s but they do have a big share of the business esp for newer appraisers who it is harder to get on direct order lender lists or private work.

Apply to a gazillion AMC;s and see what sticks. I am all for higher fees, but if $400 is not getting you AMC work - esepirment - try $375 or $350. Below that IMO it is not worth staying in the business.

 

[Surf Cat]

Yeah this guy said he didn't lower his fees. I call BS. He did say he was signed up to 100 AMCs. Who knows.

There's no way you could pump out 20 appraisals a week for AMCs. Not by yourself anyway. Being approved with 100 of them is irrelevant. There's ALWAYS some issue when sending in an assignments to AMCs.....sending a report in and having it approved without some stupid stip is a rarity. 20 a month (by yourself) is one thing.....20 a week, no way. BS on the fees too....