Million $$$ Appraisal for $250.....

[Kevin Mc]

One question Brad......

Touche'
_______________________________________
But, don't you think that over the past 5-10 years, some aspects of our business has gotten easier and more efficient.

On some level, sure it has...do you have more free time as a result of it?....I certainly don't. Discount fees typically mean discount work. I have done enough reviews to know that those who churn and burn and turn things around in 24 hours typically aren't performing their due diligence to the standard it should be; but it doesn't matter, apparently few care about it.

 

[jay trotta]

perhaps some folks don't value their "time" equally to yours

complex ? I know of and have done "complex properties" under $200k....never knew there was a Dollar Value attached to a "complex" issue

bottom line, making money - different people apply different factors as to what they consider, in making money.

AVM's in general pay a specific Fee, if you elect to provide some work to them, it's your decision at the time.

Just did a Waterfront property, 3rd in after two others, 1 of them came in @ 1.2M - the other @ 2.2M, both missed an important fact; No Zoning approval OR C.of O. for the 2nd unit....both collected their Fee....mine was definitely higher, but we saved the Lender from a potential lawsuit. Buyer completed the transaction, with ALL the approvals necessary and required.
During the "High Point" in this transaction my computer was on a spitting rage from the Sellers side....and yes it felt Good, really, really good.

Am still of the concept this is not an "Industry", but a trade; and those who practice their Trade well, will be sought after....we can do cheap and fast; we can also do fast and expensive; we do work for the courts; attorneys; private parties; builders; police both municipal & State; and various municipalities. And as of today, you cannot find my office phone number in any telephone book locally or nationally, unless someone else put it there.
Go figur

 

[Jeffery Hall]

You are SPOT ON!!!

Touche'
_______________________________________
In addition to teh supply and demand issue, I have th efollowing thoughts.

but first, I do not charge extraordinarily low fees, and feel I am worth what I charge and I understand we have other costs and liabilities associated with our work. Please stick to my point below (no bashing).

But, don't you think that over the past 5-10 years, some aspects of our business has gotten easier and more efficient. At least in a lot of areas. In my area, I can get a ton of information before I ever leave the house, and typically within a few minutes, with available online databases.

My point is, technology continues to make the typical lender-based appraiser job more efficient, and I believe this trend will only continue. While, in years past, data had to be obtained directly from the courthouse (still does in some areas), or in MLS books, or other paper data sources, cdroms, or microfiche, today most data is readily available in minutes and seconds. I can pull data on many Subject properties and even find and map comps with specific parameters literally in about a minute. Some software will even populate the forms for us. Pretty soon, we will be automated out of some of these processes. The other day, I heard that about 70% of appraisals are now AVM's! Meaning, we are left to scrounge around for our piece of 30%. Well, with the influx of many new appraisers in the past few years and the diminishing work volume, it gets more difficult to find quality work.

It seems, our value as researchers and form fillers has and will continue to be diminished leaving us to reevaluate our value and expertise. I think it would do most of us good, to look at what our real value is.

As far as lender appraising goes, the Lender's purpose is to make the loan, while hopefully, relying on a reasonable value assessment. They don't have a use for all of our expertise, mainly the part that gets them the number. That is only part of what we do. If you are trying to command higher fees, than, IMO, one way to do it is to think about ways to make yourself more valuable. Think out of the box about how to utilize your expertise, knowledge and ability, more efficiently. Maybe there are other markets that appreciate more of what we have to offer, maybe we can package products that meet other industry needs, or whatever, expand your mind.

But, I am not sure how much good it is to think that our fees should remain at a constant level when our value seems to be diminishing. We should find ways of making ourselves more valuable again.

Please don't misunderstand me, I am not lowering my fees, but it seems obvious to me, our industry is changing and some of those changes are not temporary. We might need to tweak our paradigm somewhat.

OK, since I know it's coming anyway, .... let the bashing begin.....

What bashing? You are Spot ON!!

At the turn of the 19th to 20th Century there were no cars. Horses reigned supreme. Who would know that thousands of buggy whip makers would be thrown out in the streets. The paradigm shifted.

Our paradigm is shifting.

Another example of paradigm shift at that time was what happened to Studebaker. You remember the Studebaker Automobile? Last one came off the line about 1964. Great cars. But their cars were not what the car buying public wanted. Hence, no more Studebakers.

But that is not the only paradigm shift I want to make you aware of with Studebaker. 60 or so years earlier Studebaker was an extremely successful wagon maker. In fact, Studebaker started out making wheel barrows in California during the "California Gold Rush". Studebaker then went on to make wagons. He could have ignored the paradigm shift and continued making wagons, lowering his price chasing a diminishing market. But Studebaker correctly saw the shift from horses to engines. Studebaker went from wagons to automobiles and stayed viable as a business for years.

What does this have to do with appraising? What do YOU think this has to do with appraising?

The paradigm is shifted. The moto should read: "Change, or Be Changed."

 

[Ryan Bailey]

What bashing? You are Spot ON!!

At the turn of the 19th to 20th Century there were no cars. Horses reigned supreme. Who would know that thousands of buggy whip makers would be thrown out in the streets. The paradigm shifted.

Our paradigm is shifting.

Another example of paradigm shift at that time was what happened to Studebaker. You remember the Studebaker Automobile? Last one came off the line about 1964. Great cars. But their cars were not what the car buying public wanted. Hence, no more Studebakers.

But that is not the only paradigm shift I want to make you aware of with Studebaker. 60 or so years earlier Studebaker was an extremely successful wagon maker. In fact, Studebaker started out making wheel barrows in California during the "California Gold Rush". Studebaker then went on to make wagons. He could have ignored the paradigm shift and continued making wagons, lowering his price chasing a diminishing market. But Studebaker correctly saw the shift from horses to engines. Studebaker went from wagons to automobiles and stayed viable as a business for years.

What does this have to do with appraising? What do YOU think this has to do with appraising?

The paradigm is shifted. The moto should read: "Change, or Be Changed."

So what are you saying???

 

[michaelmoran]

A competitor in my market is faster than anyone. But report quality can suffer that way. A recent appraisal they did couldn't be underwritten. They needed it to go FHA. They weren't FHA approved. They told their lender call this guy. He wanted me to copy their report so they could close in a couple days and sent me their report. I didn't ask him to. I researched the property and saw the property was listed 09/2006 for $210,000 and is listed now for $169,900. They have it priced to sell now. They had a contract for $185,000. Presumably paying for Buyers closing costs. I think the value is in $160,000's. The appraisal value the other guys did was $200,000. The order was cancelled by the lender, because they didn't want to pay for the report without a guarantee. But I have the other appraisal. Any recommendations?

 

[jay trotta]

what did your "Order" say ?

Appraisal OR Appraisal Review ?

Why would You have another person's appraisal if your Not the Lender ?

You - "PEEKED" - yer bad, oh boy, go stand in the corner, until yer asked to come out and play again.....ROFL

 

[Pamela Crowley (Florida)]

A competitor in my market is faster than anyone. But report quality can suffer that way. A recent appraisal they did couldn't be underwritten. They needed it to go FHA. They weren't FHA approved. They told their lender call this guy. He wanted me to copy their report so they could close in a couple days and sent me their report. I didn't ask him to. I researched the property and saw the property was listed 09/2006 for $210,000 and is listed now for $169,900. They have it priced to sell now. They had a contract for $185,000. Presumably paying for Buyers closing costs. I think the value is in $160,000's. The appraisal value the other guys did was $200,000. The order was cancelled by the lender, because they didn't want to pay for the report without a guarantee. But I have the other appraisal. Any recommendations?

FHA? Oh please do report that one at: www.MortgageFraudWatchList.org !!!

 

[Jeffery Hall]

Perhaps I could have been clearer...

So what are you saying???

First, let's revisit some of what Brad Sand wrote...

In addition to teh supply and demand issue, I have th efollowing thoughts...

But, don't you think that over the past 5-10 years, some aspects of our business has gotten easier and more efficient[?]

...[T]echnology continues to make the typical lender-based appraiser job more efficient, and I believe this trend will only continue...

...Pretty soon, we will be automated out of some of these processes. The other day, I heard that about 70% of appraisals are now AVM's! Meaning, we are left to scrounge around for our piece of 30%. Well, with the influx of many new appraisers in the past few years and the diminishing work volume, it gets more difficult to find quality work.

It seems, our value as researchers and form fillers has and will continue to be diminished leaving us to reevaluate our value and expertise. I think it would do most of us good, to look at what our real value is.

As far as lender appraising goes, the Lender's purpose is to make the loan, while hopefully, relying on a reasonable value assessment. They don't have a use for all of our expertise, mainly the part that gets them the number. That is only part of what we do. If you are trying to command higher fees, than, IMO, one way to do it is to think about ways to make yourself more valuable. Think out of the box about how to utilize your expertise, knowledge and ability, more efficiently. Maybe there are other markets that appreciate more of what we have to offer, maybe we can package products that meet other industry needs, or whatever, expand your mind.

But, I am not sure how much good it is to think that our fees should remain at a constant level when our value seems to be diminishing. We should find ways of making ourselves more valuable again.

...t seems obvious to me, our industry is changing and some of those changes are not temporary. We might need to tweak our paradigm somewhat.

My response to the above...

What bashing? You are Spot ON!!

At the turn of the 19th to 20th Century there were no cars. Horses reigned supreme. Who would know that thousands of buggy whip makers would be thrown out in the streets. The paradigm shifted.

Our paradigm is shifting.

Another example of paradigm shift at that time was what happened to Studebaker. You remember the Studebaker Automobile? Last one came off the line about 1964. Great cars. But their cars were not what the car buying public wanted. Hence, no more Studebakers. ​

But that is not the only paradigm shift I want to make you aware of with Studebaker. 60 or so years earlier Studebaker was an extremely successful wagon maker. In fact, Studebaker started out making wheel barrows in California during the "California Gold Rush". Studebaker then went on to make wagons. He could have ignored the paradigm shift and continued making wagons, lowering his price chasing a diminishing market. But Studebaker correctly saw the shift from horses to engines. Studebaker went from wagons to automobiles and stayed viable as a business for years.​

What does this have to do with appraising? What do YOU think this has to do with appraising?​

The paradigm is shifted. The moto should read: "Change, or Be Changed."​

Perhaps I could have been clearer.

If we, individually and collectively as appraisers, do not change the way we do business, we will land in the dust bin of history, in which most buggy whip makers landed.

(O.K., so there are a few buggy whip makers, but they are few and far between. Maybe Ray Miller will buy a buggy whip now and then, but NOT the typical traveller.)

The buggy whip makers at the turn of the Century either changed on their own or were changed by circumstance.

Not quite the same for Studebaker. He saw the writing on the wall and changed at least twice. First he went from making wheel barrows to wagons. Then from wagons to automobiles. But something happened that was unforseen and Studebaker is also in the dustbin of history.

Question:

So what are you saying???

Like buggy whip makers and Studebaker: If appraisers do not see the writing on the wall and change the way they do business and/or find a better way to do business, they will find themseves out of work. Plain and simple.