Hybrid

[J Grant]

I'm old school gonna have page one of a URAR engraved on headstone...that will be different right ! Like people walking around cemetery will ask what is that?l

 

[Terrel L. Shields]

they have the same effect on appraisal fees

The desktops (residential) around here were always about $250 or more. I don't recall any for $100. The hybrid is touted as the El Cheapo Depot and future of origination starts at $65???

I do desktops for minerals they can run less than $1,000 depending upon available data. Whatever. What I can't do is one for $65.

 

[George Hatch]

good let the drones do desktops for the mini fees leave real work for real appraisers....when I get too old to drive I'll sit on a** and do desktops if any brain cells left at that point.

That same appraiser says he does direct engagement with Wells at $700/ea for loss mitigation. And he's on the VA panel. And he has a CG. He used to participate on this forum, too.

 

[Evincere]

Edited to remove Denis quote.

Reading between the lines and all the harping regarding the client imposed SOW, release from liability BS because of the new certifications supposedly releasing us from liability - what’s really being said is Appraisers shouldn’t give a damm ethically.

That none of this - the potentially predestined repurposing of hybrids (new mtg loan origination) should NOT concern us because fingers can be pointed elsewhere.

Message. Don’t worry or fret about it... just do them

This...coming from people who in all probability wont themselves be doing them.

 

[Doug in NC]

The desktops (residential) around here were always about $250 or more. I don't recall any for $100. The hybrid is touted as the El Cheapo Depot and future of origination starts at $65???

I do desktops for minerals they can run less than $1,000 depending upon available data. Whatever. What I can't do is one for $65.

I totally agree. IMO the hybrid appraisals don't become viable unless the fee is at a minimum of $200 for a non-complex appraisal assignment, assuming all the appropriate disclosures, disclaimers, and SOW are attached to doing this work (I saw one of the early "hybrid" products several years ago and that was not an option). Doing 5 hybrids a week at $200/each you've got a nice source of income (added to your regular business). There is no chance that any client is going to guarantee the appraiser 5 or more desktops a day at $60 a piece (so a wise appraiser couldn't justify doing them even if it only took 20 minutes to complete one). Rex is right, hybrids will get a foothold in the appraisal business only if enough desperate appraisers are willing to perform them.

A similar "hybrid" scenario occurred back around 1995 when the 2055 short form was introduced. Fees for that new product were at $225 when full 1004 fees were at $400. The end result was that 1004 fees dropped back to $350 due to lower demand and it has taken 20+ years for fees to recover just to the $400 level again. I realize these hybrids will only be used (at least initially) for low risk borrower situations, but sadly that could easily affect 1/3 of the total lending appraisal market.

 

[Evincere]

I totally agree. IMO the hybrid appraisals don't become viable unless the fee is at a minimum of $200 for a non-complex appraisal assignment, assuming all the appropriate disclosures, disclaimers, and SOW are attached to doing this work (I saw one of the early "hybrid" products several years ago and that was not an option). Doing 5 hybrids a week at $200/each you've got a nice source of income (added to your regular business). There is no chance that any client is going to guarantee the appraiser 5 or more desktops a day at $60 a piece (so a wise appraiser couldn't justify doing them even if it only took 20 minutes to complete one). Rex is right, hybrids will get a foothold in the appraisal business only if enough desperate appraisers are willing to perform them.

A similar "hybrid" scenario occurred back around 1995 when the 2055 short form was introduced. Fees for that new product were at $225 when full 1004 fees were at $400. The end result was that 1004 fees dropped back to $350 due to lower demand and it has taken 20+ years for fees to recover just to the $400 level again. I realize these hybrids will only be used (at least initially) for low risk borrower situations, but sadly that could easily affect 1/3 of the total lending appraisal market.

Well said. While there will be a plentiful supply of a dime a dozen $60 inspectors, ultimately they Will or will not take foot hold via the path of least resistance. And Last I heard there were claims that Appraisers are supposedly in short supply?.

 

[Non Sequitur]

Will you no longer be a "real appraiser" if you get to the age where you want/need to work but find it better for your situation to work from home and at the desk vs. driving to inspect the property (drive-by or interior)?

Still a "real appraiser", just internet shamed to a point that they will not participate in any social media or interact with other appraisers-they will just keep to themselves and chug along.

I totally agree. IMO the hybrid appraisals don't become viable unless the fee is at a minimum of $200 for a non-complex appraisal assignment, assuming all the appropriate disclosures, disclaimers, and SOW are attached to doing this work (I saw one of the early "hybrid" products several years ago and that was not an option). Doing 5 hybrids a week at $200/each you've got a nice source of income (added to your regular business). There is no chance that any client is going to guarantee the appraiser 5 or more desktops a day at $60 a piece (so a wise appraiser couldn't justify doing them even if it only took 20 minutes to complete one). Rex is right, hybrids will get a foothold in the appraisal business only if enough desperate appraisers are willing to perform them.

A similar "hybrid" scenario occurred back around 1995 when the 2055 short form was introduced. Fees for that new product were at $225 when full 1004 fees were at $400. The end result was that 1004 fees dropped back to $350 due to lower demand and it has taken 20+ years for fees to recover just to the $400 level again. I realize these hybrids will only be used (at least initially) for low risk borrower situations, but sadly that could easily affect 1/3 of the total lending appraisal market.

I agree about the fee, and here's my view of not only hybrids but the residential industry going forward: It's about consolidation and efficiency more than any particular appraisal "product". And right now AMCs are only sending emails and recruiting to get started, eventually they will staff up to meet the demand.

Let's face it, our industry profile is changing just as it did during the last boom, and that's the real issue not "hybrids". The much hated loan officer and mortgage broker controlled ordering of appraisals allowed appraisers to leave firms and flourish as indie appraisers from their homes; that was a big change from the firm dominated profile that existed before. Now that ordering is becoming more consolidated due to the AMC model the indie appraiser industry profile is coming to an end and will all but disappear during the next slow down/bust. AMCs with staff will feed their staff before they throw anything (IF anything) to their panel, indie appraisers will drop like flies. Part timers and semi-retired will make up most if not all indie appraisers, full timers will be staff.

 

[Carnivore]

Really? So, you don't think that 7 acres versus 4.5 changed the value? It certainly did



Now THAT is a strawman. There is plenty of abuse in the current system (i.e. runners inspecting rather than the appraiser). And, most ironically, the very "abuse" you cite for "hybrids" exists with 1004s today. It is very common for appraisers to do 1004s in areas where they have no prior experience, and then falsely sign a certification saying that they did. In fact, I just reviewed a bog post on that very topic - and it was not a blog about "hybrids."

Keep swingin'

I believe this to be very true because i have examples of it in the NC Appraisal Board Newsletter where appraisers were caught and sanctioned for that fraudulent activity.

Which brings me to one of the points I have been sounding off about on a regular basis: Many Appraisers who complete a Desktop or BIFUR will not complete the requirements of Standard One completely, nor will they adhere to the Record Keeping Rule. What that means to me is simple, even if I were to complete any of these I would not be able to compete because those Clowns would be completing three for every one I could complete. They would be rock Stars and i would be like the Buffaloe Bills(4 time losers) :-(

 

[gregb]

 

[Evincere]

Really? So, you don't think that 7 acres versus 4.5 changed the value? It certainly did



Now THAT is a strawman. There is plenty of abuse in the current system (i.e. runners inspecting rather than the appraiser). And, most ironically, the very "abuse" you cite for "hybrids" exists with 1004s today. It is very common for appraisers to do 1004s in areas where they have no prior experience, and then falsely sign a certification saying that they did. In fact, I just reviewed a bog post on that very topic - and it was not a blog about "hybrids."

Keep swingin'

Big difference. The potential for abuse and misrepresentation increases exponentially if an inspector has no reporting liability.