• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

I'm Starting an AMC...Any advice

Status
Not open for further replies.
And that's just the beginning. You'll need to establish written policies and procedures for all aspects of the business, train your client's employees in regards to appraisal procedures, establish compliant levels of security (kiss yahoo and gmail bye-bye), levels of review, establish authorization levels for your clients (who may order/cancel/place on hold, dispute value, request corrections, request updates, ETAs, etc.), payment procedures, procedures to grade and track turn times, who will pull SSRs, who will handle FHA numbers and VA ordering, track appraiser performance and appraisal report quality in a way that can be audited, and you will likely have to hire a CPA to keep your financials in order. After all of that (and more) don't assume that secondary market and other investors will just accept AIR certifications, etc. from a random startup AMC, you will likely have to qualify with them. And last but not least, you may have a good relationship with the mortgage brokerage now, but when it's crunch time and the fingers start pointing you're the guy that will be in the middle of it all with them yelling at you to get that late report in now, handle "low" values, get silly stips/corrections in, have that impossible property appraised, deal with corrupted XML files, deal with non-responsive appraisers, deal with buybacks, etc.

Edit, forgot to add: What will you do when an appraiser complains about undue influence, AIR violations, etc? Or when a LO demands you kick an appraiser off of the panel? What products will you handle (VCs, Evals, PCRs, field reviews, etc.) along with pricing.

Or you can just wing it and hope for the best (not suggesting that you would but more than a few are).
And, let us not forget C&R. One would need to develop a methodology, with supporting data, to be able to demonstrate that the fees paid on each and every assignment met the C&R requirements. :)

In social media it is common for appraisers to complain that AMCs get a big chunk and they don't have to do very much to get it. The reality is that there is far more to an AMC operation than most appraisers realize, and AMCs actually make pretty small chunks, but survive on volume (or, frankly, by not complying with the rules and hoping they don't get caught).
 
AMCs actually make pretty small chunks, but survive on volume (or, frankly, by not complying with the rules and hoping they don't get caught).
Very similar to the fee shops of old who threw wide loops while lecturing their lone wolf competition on ethics. Funny thing about AMCs is that while no one actually loves them, except the AMC and their owners.........those who hate AMCs the most are those former fee shop owners who ran micro AMCs in the fashion you just mentioned and their anger is more out of envy because their volume wasn’t on a scale that they could put on another hat. There is nothing more satisfying than to run into one who used to be on a high horse with a pack of trainees and is now back to a home office and pulling a tape again like the rest of us mere mortals. :)
 
I think it would be easier to use portals like Mercury or Appraisalport over any type of AMC.

They are looking into this. It might be the better option. Thanks.
 
Duplicate deleted
 
And, let us not forget C&R. One would need to develop a methodology, with supporting data, to be able to demonstrate that the fees paid on each and every assignment met the C&R requirements. :)

In social media it is common for appraisers to complain that AMCs get a big chunk and they don't have to do very much to get it. The reality is that there is far more to an AMC operation than most appraisers realize, and AMCs actually make pretty small chunks, but survive on volume (or, frankly, by not complying with the rules and hoping they don't get caught).

"And, let us not forget C&R. One would need to develop a methodology, with supporting data, to be able to demonstrate that the fees paid on each and every assignment met the C&R requirements. :)"

I realize it's just me....
But I find this an interesting reminder....

Considering that "appraisers set their fees".... :peace:
 
"And, let us not forget C&R. One would need to develop a methodology, with supporting data, to be able to demonstrate that the fees paid on each and every assignment met the C&R requirements. :)"

I realize it's just me....
But I find this an interesting reminder....

Considering that "appraisers set their fees".... :peace:
The fact that appraisers set the fees is in no way conflicting with the requirement for AMCs to be able to support, with data, that those fees are at a C&R level.
 
The fact that appraisers set the fees is in no way conflicting with the requirement for AMCs to be able to support, with data, that those fees are at a C&R level.

1. Does your company have a "minimum" fee for each state?
2. Is your company allowed to pay less than any state's C&R if the appraiser decides to set his/her fee below C&R?
 
Until it goes in front of a state board, C&R methodologies can’t really be questioned. And most state boards are waiting to see what happens with the Revaa v La lawsuit....I mean FTC v La.

That was a small price for them to pay their lobbyists to get the FTC to look into things. All these years of pillaging appraisal fees, it was worth every penny.
 
1. Does your company have a "minimum" fee for each state?
2. Is your company allowed to pay less than any state's C&R if the appraiser decides to set his/her fee below C&R?

SL's appraisal fees to the lenders have been published on line and on AF. Do a little math, its only basic subtraction to get where u want to be... :)
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Back
Top