No College Degree for Cert Generals or Residential Appraisers

[J Grant]

Something is better than nothing.

Maybe appraisers should be further developing and marketing to the lenders the utility of statistical analyses. Doing what Bert is doing. Maybe that's the future of the 1-4 trade. If so, somebody has to be first. Somebody has to take the hit for their peers. Somebody has got to preach the word.

It's the users who decide how much SR1/SR2 they want to buy. How much they're willing to pay for. That's where the appraisers have the most potential for a positive return on their time/efforts.

Sorry, but I can not see the need. There is a slew of computer and software companies pedaling statistical analysis, and Fannie/Freddie are filled with a rich supply of data and can use any number of statistical programs. The problem is AMC fee predation still exists for the shrinking amount of mortgage work, and that is made worse with the more time-consuming and demanding UAD 3.6.

If appraisers could pioneer interactive AI with their experience to come out with a better product- maybe-, but imo that is more likely to emerge from the tech side.

 

[Joe Flacco]

I don't know if I can do it, but in five years, I would like 60%-75% of revenue to come from hourly billings instead of a fixed fee.

That is my goal for the next 5 years.

 

[George Hatch]

My point is that whatever comes next, someone has to be first. Someone has to stick their neck out to try and find another niche to work. The first few adventurers are going to get creamed but eventually one of them will find something that sticks. In my view, anyway.

 

[Surf Cat]

D Wiley tries to sell it that there are hundreds of active AMCs ( no monopoly) yet anybody who does AMC work finds that patently false. A very limited number of companies assigns the volume, and the small players might order a dozen at most a year. When I did AMC work, the small companies might order under 6 a year and the limited amount of large companies had hundreds of orders a year , if one bids low enough. ..

PCV Murcor was the Devil

 

[Alsie35]

Bert has no clients that want his product.

Nor appraisers who want to read his posts ...

 

[glenn walker]

PCV Murcor was the Devil

It's or was owned by a Black MAI and yes one of the most predatory on low fees.

 

[TC]

Lenders in my market maintained control of commercial assignments, apparently unwilling to turn over appraisal management to AMC's.

For now.

 

[Terrel L. Shields]

I countered the falsehood that low appraiser fees are due to too many trainees in the past.

The simple fact is that banks via AMCs are choosing appraisers ONLY ON TWO CRITERIA - PERIOD. Fee and turn time. Never mind that the federal law demands these BANKS (and it is the bank not the AMC responsible for this) choose appraisers on the basis of matching the appraiser's qualifications to the property in question. Since the bozos and bozoettes ordering appraisals have no clue WHAT the property complexity is, nor do they even know how to vet the qualifications of the appraiser.

To them all properties are the same. The 1500 SF starter home in a subdivision full of similar houses is no different than an estate of 10,000 SF with multiple outbuildings, ADUs, etc. on a 6-acre lot backing up to an industrial park. All the same to them. $290 less tech fees and 72 hours turn time.

Fees vary by locale, but even in different locales, AMC's pay a lower fee than direct lenders do in that locale.

If they paid the same, the difference is the direct lender bank is likely to require only you comply with USPAP and you don't have to deal with Fannie Mae rule books or FHA protocols. And if they are ordering direct for FNMA they are far more likely to listen when you explain the complexity of the property and why you need more money.

As pointed out by JG this isn't a negotiation, it's the AMC saying play ball with us or we cram the bat up your wazoo.

 

[Terrel L. Shields]

For now.

As CGs retire or return to room temperature, there will be so few CGs, the AMC model is going to face a headwind of pushback. So, they will be left either waiting weeks for a local appraiser who will set the fee or ordering from someone like Cushman & Wakefield who are an AMC in addition to having staff appraisers - so how is that going to work?

 

[J Grant]

AI Overview


The largest Appraisal Management Companies (AMCs) like Solidifi or those processing vast volumes (e.g., 18,000/month for TriServ in 2021) generate
tens to hundreds of millions in revenue, keeping healthy margins (22-28% of fees) after paying appraisers, but specific figures for the largest are elusive, though industry data suggests a few giants handle significant market share, with some earning over $50M+ annually while most AMCs are smaller businesses.
Revenue & Market Share

• Industry Estimates: One report suggested AMCs might charge consumers around $12.3 billion total in fees over some period, averaging $2.5 billion annually, with Solidifi potentially holding a large chunk.
• Company Examples: TriServ, a large player, processed 18,000 appraisals monthly in 2021, potentially generating tens of millions in annual revenue from fees.
• Profitability: AMCs retain significant portions of the fees charged to lenders (often passed to borrowers), sometimes 22% to 28% after appraiser payments and transaction costs, notes Business Insider.

AMC Size & Structure

• Majority Small: Most AMCs (86%) are smaller, with less than $10 million in revenue, but 13% have revenues over $50 million, indicating a few large operators exist, says AppraisersBlogs.

My comment: reinforces the fact that it is a small number of AMC's ( above states 13% ) that handle the significant volume.