Louisiana Appraisal Board

[FalconfanKen]

Look what I found. The Louisiana Appraisers Board commissioned Southeastern Louisiana University to do a fee study. The link is below. The letter is dated May of this year. It states in the letter that AMCs are not part of the study. You will see the fees on page 21 and in later pages.

IMO, this is the best news I've heard in a long time! What should follow is that state coalitions should be pushing their states to do the same thing. Start contacting regulators and demanding that AMCs abide by current Dodd Frank regulations based on independent C&R fee studies conducted in their states.

I have to believe that Southeastern Louisiana University would be considered an impartial judge. This would be an important part of the argument to be made. If for some reason the link doesn't work, then google Louisiana Appraisal Board.

http://www.reab.state.la.us/AMC.html

 

[stripes]

Look what I found. The Louisiana Appraisers Board commissioned Southeastern Louisiana University to do a fee study. The link is below. The letter is dated May of this year. It states in the letter that AMCs are not part of the study. You will see the fees on page 21 and in later pages.

IMO, this is the best news I've heard in a long time! What should follow is that state coalitions should be pushing their states to do the same thing. Start contacting regulators and demanding that AMCs abide by current Dodd Frank regulations based on independent C&R fee studies conducted in their states.

I have to believe that Southeastern Louisiana University would be considered an impartial judge. This would be an important part of the argument to be made. If for some reason the link doesn't work, then google Louisiana Appraisal Board.

http://www.reab.state.la.us/AMC.html

You'll find a discussion on that study done in Utah, that you mentioned in another thread, over in Improving the Profession. Both very detailed studies.

 

[Terrel L. Shields]

Very detailed. Surprising number of appraisers doing 400 reports a year.

 

[JSmith43]

That was a fun read. Notice how the lenders that went the 100% AMC route were the losers? Lower production.

I assume they are correspondents with Chase, etc & part of the deal is they have to order through a specified AMC. If appraisers keep reminding RE agents to avoid lenders that go the AMC route, these high AMC use lenders will eventually fail. Post as an appraiser on Active Rain (now a part of Trulia) whenever a vaguely related topic is broached.:laugh:

 

[KenAZ]

VA does a national study and bases their fees on that study. As I have said before, VA fees should be standard for all appraisal fees.

 

[Roy Courtney]

VA does a national study and bases their fees on that study. As I have said before, VA fees should be standard for all appraisal fees.

Personally I do not believe that ANY government agency, AMC or other client should be setting the fees for appraisers. Those of us that operate our own appraisal company should be allowed to set fees just the same as other professions. What is the C&R fee for a plumber? What about an electrician, HVAC technician, Barber, Accountant, Dog groomer, Golf pro, Fishing guide, etc. etc!

As far as the VA is concerned I can understand their noble concern as far as helping veterans. However the $400.00 fee in our area is $50.00 below the typical fee now being charged and will most likely be $100.00 below the fees expected to be quoted after January 1, 2015.

Tell me again why an independent business such as an appraisal firm cannot operate their business as the owner/investor wishes? If we do it THEIR way will they bail us out if we fail? I somehow doubt it!

 

[Rick Stillman]

Aw, come on Roy. Can you lighten up a little bit?

First of all, in Texas you don't have snow and most of your homes don't have basements. How many complex 3,400 SF two story homes have you done in the last six months? What - none? People love em here - and they all have basements too, by the way...

I'll take assignments all day long for $400 NET, with more for the really ugly ones.

But here, for some unknown reason, I compete with yahoos doing jobs for $300.

Common sense is often times not enough. The market is only as strong as its weakest link, and we have a lot of weak links here...

Being that I hate snow and traffic jams, could you put me up for a month or so until I learn the ropes in sunny warm Texas? I'm ready for some warm weather, country dancing, and ice cold beer.

 

[Roy Courtney]

Aw, come on Roy. Can you lighten up a little bit?

First of all, in Texas you don't have snow and most of your homes don't have basements. How many complex 3,400 SF two story homes have you done in the last six months? What - none? People love em here - and they all have basements too, by the way...

I'll take assignments all day long for $400 NET, with more for the really ugly ones.

But here, for some unknown reason, I compete with yahoos doing jobs for $300.

Common sense is often times not enough. The market is only as strong as its weakest link, and we have a lot of weak links here...

Being that I hate snow and traffic jams, could you put me up for a month or so until I learn the ropes in sunny warm Texas? I'm ready for some warm weather, country dancing, and ice cold beer.

Hey Rick, you are correct about the snow in my area of TX. One inch of snow closes schools, government offices, etc. I have had my share of complex properties. We have learned that before an assignment is accepted always check to see what you are being asked to appraise!

One county that I work in is about the size of the country of Jamaica. The population is about 43,000. As an example let me describe Jed. He (like many others) lived on 300 or so acres of family land that has been passed down forever. He worked at Lone Star Steel or Eastman Chemical. Mrs. Jed worked as an RN at the local hospital. The land was covered in timber because Jed had no time to farm or raise cattle. One day the mining company folks came by. They did not want the timber but to only mine the lignite. So Jed sold the timber, gravel, sand and clay and then leased the land to be mined.(several thousand dollars per acre) Several years later the land had been reclaimed and was in beautiful pasture and lakes. Now comes the oil company. They wanted to drill for gas. A lease with several thousand dollars per acre plus royalty. A long story short...Mr. & Mrs. Jed are having a home built. Do you think it will be a complex assignment?

My lending clients do not see much difference in what they think they should pay for an appraisal. I am offered $450. to do the 1,200 sq. ft. frame home on a small lot. I am offered $450. to do Mr. and Mrs. Jed's home. I bet you can figure out which assignment I will choose. It reminds me of the story about the old bull and the young bull!

 

[Michigander]

I am against anyone setting a fee other than the appraiser in discussion with their client. It commoditizes the appraisers work product very quickly.

If there was a set fee, everyone would gravitate to the simple assignment and decline complex work, which would not benefit the owners/buyers/clients who have a need on something unusual.

 

[FalconfanKen]

Personally I do not believe that ANY government agency, AMC or other client should be setting the fees for appraisers. Those of us that operate our own appraisal company should be allowed to set fees just the same as other professions. What is the C&R fee for a plumber? What about an electrician, HVAC technician, Barber, Accountant, Dog groomer, Golf pro, Fishing guide, etc. etc!

As far as the VA is concerned I can understand their noble concern as far as helping veterans. However the $400.00 fee in our area is $50.00 below the typical fee now being charged and will most likely be $100.00 below the fees expected to be quoted after January 1, 2015.

Tell me again why an independent business such as an appraisal firm cannot operate their business as the owner/investor wishes? If we do it THEIR way will they bail us out if we fail? I somehow doubt it!

Roy, in theory, I completely agree with you. I think the difference is that middlemen were forced into our lives. I think if the electricians, HVAC technicians, fishing guides, etc. were forced into all registering with Angie's List for instance, then things would be different for them as well. When the majority of the work is controlled by fewer hands you have less options available. I wish I could just go out and sell to local banks, but I can't because almost all of the work runs through an AMC somewhere, many times a company out of state. And yes, if appraisers as a whole said no to the low fees, then things would be different, but unfortunately those willing to accept the lower fees make it harder for those who don't. It is a tough market and I believe it will eventually get better when our numbers have dropped and those left in the game are better at both satisfying AMC requirements and demanding a higher fee.