Hybrid Appraisals

[Justinjla]

Why is your agency pushing speed and "efficiency" in a loan for collateral worth hundreds of thousands of dollars, and where most closings are not out 30 days or more anyway? It is not a McDonald's franchise, Happy Meal. Traditional appraisals are plenty fast these days since most clients want a 48-hour turn time after the inspection.

I do not see how the information captured at a listing is suitable for a PDC appraisal use. - unless the entity wants to pay a PDC collector every time a property is listed.

Whether we embrace it or not, we’re living through an efficiency revolution. Set aside mortgages and appraisals for a moment—every facet of our lives has already shifted, and AI will drive even bigger transformations in the years ahead.

In the mortgage world, getting value certainty early is crucial. The process is complex, with a lengthy sequence of steps that don’t all fire at once—they’re chained together by dependencies. The faster lenders and borrowers lock in that value certainty, the sooner the rest of the dominoes (underwriting, title checks, closing, etc.) can fall into place. As you noted, in today’s market, a traditional appraisal can deliver that certainty swiftly, keeping things on track. But in a high-volume period, when appraisals can stretch out over weeks, it can throw a wrench into everything, creating delays
and headaches downstream.

To your point, there are challenges with getting a full PDC captured at the point of listing. Someone would have to figure out the logistics and economics of it. I'm not saying it will happen, but conceptually, it makes some sense to me and someone in the primary market might come up with a way to do it.

 

[Joe Flacco]

See we are appraisers.

Is it legally permissible? Yes.
Is it physically possible? Yes.
Is it maximally productive? Yes.
Is it financially feasible? No.

And it is not feasible because the AMC has to charge their fee twice.

 

[Joe Flacco]

If efficiency is the goal then it might make sense to order desktops without an inspection on sales with photos and floorplans in the listing. With an appraisal fee that make sense to appraisers.

That would work if the investors are okay with the reduction in reliability. That's basically the same as PDC anyway.

It is the PDC part and the AMC having to charge their fee twice that makes it not work.

 

[Joe Flacco]

The only party that really benefits from the hybrid model is the AMC who get to charge their fee twice.

Nobody else benefits. Users and investors get less reliability, borrowers pay the same, appraisers get half the pay.

 

[Tom D]

If efficiency is the goal then it might make sense to order desktops without an inspection on sales with photos and floorplans in the listing. With an appraisal fee that make sense to appraisers.

Those were the best of covid times, and recent appraising. And there was no inner city traffic, driving became fun again. And got paid the same amount, Took at least the exterior photo of the subject and street. Typically were sales, with plenty of interior photos of the subject. Faster yes, better pay for less work yes, accurate because i have done so many for soo long yes. Don't need no stinking inspectors.

Efficiency doesn't always make it better. You may have to give up some accuracy to be more efficient. Like not seeing the interior of the house.

 

[Joe Flacco]

Those were the best of covid times, and recent appraising. And there was no inner city traffic, driving became fun again. And got paid the same amount, Took at least the exterior photo of the subject and street. Typically were sales, with plenty of interior photos of the subject. Faster yes, better pay for less work yes, accurate because i have done so many for soo long yes. Don't need no stinking inspectors.

Efficiency doesn't always make it better. You may have to give up some accuracy to be more efficient. Like not seeing the interior of the house.

I didn't find doing exteriors to be any faster than doing interiors. I just went ahead and did interiors whenever possible.

 

[chad hampton]

Perhaps instead of speeding up, it would be wise to slow down? Maybe it should take a min of 30-45 days for the average American who’s making the largest purchase of their life?

 

[Overimprovement]

See we are appraisers.

Is it legally permissible? Yes.
Is it physically possible? Yes.
Is it maximally productive? Yes.
Is it financially feasible? No.

And it is not feasible because the AMC has to charge their fee twice.

Apparently it IS feasible because so many appraisers are willing to shop vac the floor for peanut shells that spill from the master's table.

This thread would not exist if even half of the appraisers out there were shooting these down at the prices posted. Just because WE turn down $150 net for a desktop or hybrid form, does not mean staff appraisers are.

Like my good friend BMAC has said--its all about the fee. If the fee were comparable on a per hour basis to what we have all gotten accustomed to, most of these threads would not exist either. Would I do the PDC's for $200? Probably. Would I do the appraiser portion of a hybrid for $300 or more? Probably. But the volume simply will never be there for most appraisers to make a living doing them. That is why realtors (not top producers either) do the PDCs for $50 and staff appraisers are forced to churn out 20 reports a week or more to get their 'salary'--which is a joke as it is totally dependent upon output. Salary is fixed. Staff appraisers totally work on commission, the AMC's just don't call it that.

Let's all be honest with each other--it's really just the fees, but APPRAISERS have perpetuated this with every low-priced assignment they accept. We have dug this hole. Don't look up.

Here's dirt in your eyes.

 

[Joe Flacco]

Apparently it IS feasible because so many appraisers are willing to shop vac the floor for peanut shells that spill from the master's table.

This thread would not exist if even half of the appraisers out there were shooting these down at the prices posted. Just because WE turn down $150 net for a desktop or hybrid form, does not mean staff appraisers are.

Like my good friend BMAC has said--its all about the fee. If the fee were comparable on a per hour basis to what we have all gotten accustomed to, most of these threads would not exist either. Would I do the PDC's for $200? Probably. Would I do the appraiser portion of a hybrid for $300 or more? Probably. But the volume simply will never be there for most appraisers to make a living doing them. That is why realtors (not top producers either) do the PDCs for $50 and staff appraisers are forced to churn out 20 reports a week or more to get their 'salary'--which is a joke as it is totally dependent upon output. Salary is fixed. Staff appraisers totally work on commission, the AMC's just don't call it that.

Let's all be honest with each other--it's really just the fees, but APPRAISERS have perpetuated this with every low-priced assignment they accept. We have dug this hole. Don't look up.

Here's dirt in your eyes.

Dirt in your eyes buddy. Dirt in your eyes.

 

[Joe Flacco]

Whatever that means.