• 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.

Is Uber The AMC Model ? Mit Study Says Uber Drivers Make Less Than Min. Wage

Status
Not open for further replies.
What level of quality is and isn't acceptable for a lender's use is determined by the lender, their regulators and their investors. As demonstrated by the their actions over time.

The reason you can't pivot to Uber in this exchange is because it was a dumb comparison to make in the first place and has no bearing on any of the responses to any of the questions I'm using to march your argument straight into the corner.
 
Criminals make a lot of money using the three cup and a ball trick.

Funny how technology is not reducing the cost of the USPAP book, MLS, or appraisal forms.

Just got notice today Mercury fees are increasing to $15.50 a pop. For those of us that can do math, that's just about 5% on a $300 fee. I suppose counting all that money is taking more time than they expected.
 
$300 fee? For what? A cookie cutter 2055 around the corner from your office? You gotta be kidding me. In any case I can do the math and add what ever fee they charge to mine so its inconsequential to me. A non issue, pass through expense. You might want to charge a few extra bucks for keeping up with the fees for tax purposes...
 
Do these trolls ever come up with an original thought. All they do is leech off of other posts for the purpose to cut. Sad indeed.
 
All this hubbub on a post that asks a question if Uber has any similarities to the AMC dynamic.
I guess some people don't believe it is worthwhile to take a few steps back and look at bigger pictures for similarities (rather than just excluding them altogether because one sells an apple and the other an orange). :cool:

It's not just that one sells an apple and one an orange, the entire business model is different, though it is fun to make an off the cuff paralell.

The OP introduced a paralell- that the worker gets paid less To help rectify that, UBER allows tipping now . Still, it's a lower paid gig ( unless they are in a hot area ) and most people do it part time for extra cash. It's low paid because it's low skill, anybody with a driver licence can sign up and work, no commitment, drive only on Sundays whatever they want. . Appraising is a high skill set hard to get licensed thus there is a limited pool of appraisers . The AMC "innovation", if there is one, is to treat high skill professionals as if they are interchangeable dolts with the only differential their fee to AMC or scrambling to get it in faster, thus putting constant pressure on fees and turn times lower to get an order. UBER does not solicit a lower driver fee to get a passenger , nor, it does not award a volume of passengers to the lowest charging driver. (they get same regional/time rate) ,and it does not pressure them to drive faster.

UBER operates in the open/free market, the app enables an unlimited number of passengers and a large pool of drivers find each other. AMC's operates as a gate keeper between a limited number of clients and limited # of appraisers .

Uber innovated a new business, ride sharing service, and thus displaced a big chunk of the taxi business with a new offering to consumers. AMC's did not innovate a new business , there already was management services in place; AMC's simply emerged on a larger scale post HVCC . It was the regulation prohibiting direct order from loan personnel and increased compliance burden that allowed AMC's to thrive, not any innovation they offered. They use the same technology direct order customers use.
 
Last edited:
GH-So when I ask you how you think AMCs will compete with each other for business at the lenders, you are capable of envisioning them competing on the basis of appraisal quality and turn times, but not on fee?

AMC#1 - I can deliver appraisal fees of $500, 1-week turn and a minimum quality rating of x

AMC#2 - I can deliver appraisal fees of $495, 1-week turn and a minimum quality rating of x

AMC#3 - I can deliver appraisal fees of $395, 1-week turn and a minimum quality rating of x
If both are capable of delivering the same (from the bank's perspective) widgets in the same time frame, then how does the Principle of Substitution not come into play?

Just getting back to this now- if an AMC offers a lower appraisal fee in play to get business, it would work as above. However, AMC #3 would have to assemble their panel offering a low fee honestly, by assembling enough appraisers to work for an agreed fee of $395. Because the lender pays a service rate, ( say $75 per order ) and the fee to appraiser is $395, the AMC has no incentive to solicit cheaper rates or award by cheaper fee among the panel, the AMC only gets the same $75 an order.

There are some AMC models with lender paying a flat rate now working in this manner. With all appraisers agreeing to same fee in a region, orders can be assigned by quality or service rating or dispersed in rotation-, instead of pitting appraisers against each in bids or assigning bulk to a lower fee tier of the appraisal panel .
 
Last edited:
All this hubbub on a post that asks a question if Uber has any similarities to the AMC dynamic.
I guess some people don't believe it is worthwhile to take a few steps back and look at bigger pictures for similarities (rather than just excluding them altogether because one sells an apple and the other an orange). :cool:
I think i've forgotten what the H*!! this thread was about after reading through pages 2-5 ... :shrug: :mad2:
 
I think i've forgotten what the H*!! this thread was about after reading through pages 2-5 ... :shrug: :mad2:


The analogies of appraisals to WalMart or UBER is preposterous, but comes up in conjunction with an AMC model., which speaks for itself.
When alternate computeri products such as an AVM replace appraisals, the AVM is a widget and can be sold as such . Though the ironic part is that AVM 's are so easy to run they are available free on the internet ( or a lender run their own). So how can an AMC sell an AVM a customer can get free?

Thus the AMC's are offering a hybrid product, an AVM with a desktop analysis done by appraiser and signed by the appraiser..

A bifurcated appraisal is a cut up of a traditional appraisal into piece meal product along the lines of turning an appraisal into a widget to provide a profit stream to others.
 
Last edited:
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