Is The Appraisal Market Slowing?

[Stephen J. Vertin MAI]

I have been inundated with work for the last month and see light at the end of the tunnel by mid-next week. However, the phones have stopped ringing for about two weeks. I do not have the back log I usually have (it is kind of nice). Typically, I get at least one call a day for an appraisal of a single family home (which I do not do very often anymore). However, I always try calling back and make recommendations for the area. But, I have not been getting any of those calls as of late. As I said, the phones have been dead.

Today, I was on the phone confirming some data and someone left a message stating they needed an appraisal of a single family by this Friday (two days from now). I called the guy back (within a half hour), to tell him I did not know anyone who could do that quick of a turn, but before I could speak he said he found someone. He said he called three places (besides mine) and two said they could do it. The one he ended up taking is charging $250.00 for a URAR forum. What is going on out there? Is the market that soft?. I know each market is different but it seems to me if large metro areas such as Chicagoland are slowing, it has got to be effecting other areas.

Steve Vertin

 

[Joe Birrell (NY)]

The overall market here is slowing down. Current volume and pace is sporadic - light to steady (as compared to hectic/overwhelming). Most activity is on lower end of value scale, almost no activity in mid to higher ranges. Most is refi work. Seems they have simply priced themselves out of reach of most buyers. Prices are so high that sellers cannot afford to become buyers if they are staying in the area. Cost to upgrade to larger home is out of reach. The so-called "volume" that RE agents are reporting
is "smoke and mirrors", when deed conveyances are checked there are
few sales to justify their claims of high activity. In spite of this, they are still boosting list prices by 20% without regard to such things as size, condition, location, and comps. The "greed factor" is back-firing on them. The buyers and sellers are so uninformed, it's scary.

As to the $250 URAR guys with short turn-arounds, they are ever present.

I believe the complete market will come to a grinding halt soon.

Looking forward to the rest.

Regards,

Ranting Joe

 

[Mountain Man]

In my area, the work from lenders started slowing a couple of weeks ago. This week, I am waiting on the calls.... haven't gotten one yet. But according to my good lenders, the LO's are waiting too. I am using the break to catch up on a large probate job for an attorney and two govm't jobs that I was wondering how in the world am I going to squeeze them in? 8O No problem now. 8)

 

[Charlotte Dixon]

I've not slowed down any here. Maybe it will trickle down, but I could use 8 hours of sleep and a couple days off. The phones haven't slowed down and lenders are more demanding than ever!

 

[liznindy]

My volume for the month of May was about half what it has been since last October. However, the work load is relatively equal to last year around this time.

I have been enjoying the break while biting my nails wondering if I will have any future business.

But....this week have received 8 orders in the past 3 days, 7 of which are REO properties. About half of my appraisal workload is typically reviews and reos.

As to the market here, it seems like homes are selling quickly (at least the ones my husband and I are interested in...we are looking to purchase). I would have to agree the list prices have increased in my immediate area but it appears the buyers are willing to pay the price with interest rates below 7%. (That would be all of the buyers but ME!!).

 

[Austin]

The wife and I usually go to Disney World in May. This year I ain’t getting on anything that flies over this country so we decided to drive to Charleston SC for a few days and spend the remainder of time at home. Last week on my second vacation week I did 7 emergency appraisals in three days and finally Friday I got a day off. I was in the back yard in the middle of a 120-acre farm piddling with my chain saw and a strange van pulls into my drive. I walk around the house and this old client says, “Where the hell have been, I have been calling you for two days.” He is getting a divorce and needs a fast appraisal on an 18-unit apartment complex and two houses. I left town Monday and Tuesday this week and when I got home I bet I had 30 calls on the machine. About 10 of then wanted me to go into NC. I don’t know who is doing that local NC work but boy do I get the calls. Ain’t my problem. I use to be the only local appraiser licensed in NC and so I still get all of the calls. I haven’t answered my phone in three years; I just use it for calling out and screening calls. I am getting to the age where I just don’t give a damn anymore. I have had all of the regulations, CE, and government crap I can take. Got a call Friday from the local Federal government housing authority wanting me to bid a government job. Don’t do business with the Federal, state, or local government. I use to go to church with the head of the regional FHMA and he once tried to get me to do their work. Sent me a 25-page list of government instructions on whom to hire with all of my quota and employment requirements and I threw it in file 513. The hell with them! Don't like Realtors either. Got a call from one of them today too. Don't do FNMA work either. To much crap.

 

[Ross (CO)]

Austin, There isn't a chance......that....you, maybe......Nahhh!, well, o.k. maybe, ......are getting burned out on this appraising stuff,.....is there ? Nah, nah, nah, no way, ...not Austin

 

[Charlotte Dixon]

Austin...If any Realtors or others you mentioned read your post, then check out your Emoticon, you won't have to worry about anybody bothering you! I admire your spirit, Austin! :lol:

 

[Mountain Man]

Easy fella, go back to Charleston for a few more days err..... weeks. I got back Monday from vacation there myself. Sat inside with the A/C through the middle of the day, record high on Sunday 8O . Sure felt like it too. Enjoyed the beach, but glad to be home at a higher and cooler elevation.

 

[Bemis Pownall]

May was a pretty good month seemed slow compared w/last year.
Im actually caught up, havent been caught up for 2 years+/-!
It must be getting slow.
Go figure rates as low as ever..guess people are spoiled with the lo rates and want lower rates, or is the economy actully in a recession. Our biz has been pretty recession proof so far...
At least I will have time to mow the lawn this summer