Hybrid Appraisals

[alebrewer]

I believe that - at least initially - the push for members of the public ASIDE from appraisers to do the PDC was the result of (some) appraisers abusing their position (much like the AMC's do now). Back during the boom, we saw appraisal fees go from $500 to over $1,000 (depending on the market) in a year. That's an almost 100% cost increase - even more in some markets - in a year +/-. And we saw turn times grow by way more than 100%. Solution: find someone besides an appraiser to do the PDC since the appraisers are going to take forever and charge an arm and a leg.

 

[J Grant]

I believe that - at least initially - the push for members of the public ASIDE from appraisers to do the PDC was the result of (some) appraisers abusing their position (much like the AMC's do now). Back during the boom, we saw appraisal fees go from $500 to over $1,000 (depending on the market) in a year. That's an almost 100% cost increase - even more in some markets. And we saw turn times grow by way more than 100%. Solution: find someone besides an appraiser to do the PDC since the appraisers are going to take forever and charge an arm and a leg.

BS . Appraisers did not abuse their position during the boom; very few were charging 1k, and nobody forced an AMC to pay it - everybody was making $ hand over fist during the boom, so why not the appraisers for a rare change?

There is a limited supply of apprisers and an unlimited supply of RE agents and UBER drivers, so the stakeholders profiteers can simply get a lower fee for the PDC collection. That's all it is, about $ for third parties -

 

[Joe Flacco]

What is wrong with $1000 appraisal fees? That fee would allow make it feasible for new appraisers. That's how markets work. Prices go up from demand and the demand and higher price makes it feasible to increase appraisal capacity. $500 appraisal fee is indicative of a depressed market for appraisal.

It's like home prices. $500,000 might not be feasible to build new construction but if there is so much demand that prices go up significantly, then homes will be built left and right.

 

[alebrewer]

What is wrong with $1000 appraisal fees? That fee would allow make it feasible for new appraisers. That's how markets work. Prices go up from demand and the demand and higher price makes it feasible to increase appraisal capacity. $500 appraisal fee is indicative of a depressed market for appraisal.

It's like home prices. $500,000 might not be feasible to build new construction but if there is so much demand that prices go up significantly, then homes will be built left and right.

I'm not defending the use of non-appraisers, I'm offering a hypothesis RE why they went that direction. There's absolutely nothing wrong with a $1,000 appraisal. The market is the market. That's a double edged sword, though. If $1,000 is ok given market pressure, $100 is also ok given lack of market pressure.

 

[alebrewer]

BS . Appraisers did not abuse their position during the boom; very few were charging 1k, and nobody forced an AMC to pay it - everybody was making $ hand over fist during the boom, so why not the appraisers for a rare change?

There is a limited supply of apprisers and an unlimited supply of RE agents and UBER drivers, so the stakeholders profiteers can simply get a lower fee for the PDC collection. That's all it is, about $ for third parties -

They most absolutely did - the operative word being 'some'. I lived through it. I know it happened.

 

[J Grant]

They most absolutely did - the operative word being 'some'. I lived through it. I know it happened.

Again, so what? Houses were selling for soujble, RE agents and Loan offices were making bank triple what any appraiser made anyway during that time.

Yet you are upset that once in a decade, appraisers could charge more.. It was worth it for the borrowers to pay 1k for an appraisal to get a loan at 3.5 % interest.

 

[alebrewer]

Again, so what? Houses were selling for soujble, RE agents and Loan offices were making bank triple what any appraiser made anyway during that time.

Yet you are upset that once in a decade, appraisers could charge more.. It was worth it for the borrowers to pay 1k for an appraisal to get a loan at 3.5 % interest.

You conflate stating facts with being upset. Just because you disagree with someone doesn't mean they're upset, J. It might mean that you're upset they're correct. First you say they didn't take advantage of the system. Then you say, 'so what if they did'. Make up your mind.

 

[J Grant]

You conflate stating facts with being upset. Just because you disagree with someone doesn't mean they're upset, J. It might mean that you're upset they're correct. First you say they didn't take advantage of the system. Then you say, 'so what if they did'. Make up your mind.

your usual word games. I did not agree that they took advantage of the system. I said, so what , if along with everyone else in the RE food chain, they were able to charge more and get it for an appraisal during an extreme high volume time-

And I bet, mainly the AMC appraisers were teh ones charging more, after years of being exploited to lower their fees. Good for them''

The appraisers such as myself who work for lenders who do not use an AMC did not raise our fees; however, these good clients, knowing how busy it was , offered us an extra $ to complete a report faster.

 

[alebrewer]

your usual word games. I did not agree that they took advantage of the system. I said, so what , if along with everyone else in the RE food chain, they were able to charge more and get it for an appraisal during an extreme high volume time-

And I bet, mainly the AMC appraisers were teh ones charging more, after years of being exploited to lower their fees. Good for them''

The appraisers such as myself who work for lenders who do not use an AMC did not raise our fees; however, these good clients, knowing how busy it was , offered us an extra $ to complete a report faster.

Creating an imaginary world may work for fighting stress, but it vastly distorts real life. What's important is being able to understand the difference.

 

[djd09]

View attachment 98376

making their way the only way they know how...that's just a little bit more then the law allows