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POLL: When will AMC Zaio be profitable for zone owners?

When will AMC Zaio be profitable for all zone owners?

  • Already is

    Votes: 3 3.1%
  • Sometime 2008

    Votes: 1 1.0%
  • Mid 2009

    Votes: 3 3.1%
  • End of 2009

    Votes: 3 3.1%
  • Mid 2010

    Votes: 4 4.1%
  • Never

    Votes: 83 85.6%

  • Total voters
    97
  • Poll closed .
Status
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Squareitup

Thread Starter
Member
Joined
Aug 9, 2007
Professional Status
IT Professional-Appraisal Related
State
District of Columbia
Zaio seems to be gaining as some new kind of AMC. When do you think that Zaio, through this AMC activity will become profitable for Zaio and all the zone owners? This presumes that Zaio persists with the database activities, so profitability will have to include fairly substantial dollar totals per zone from traditional appraisal work, but never the less this is just the simple question of when.
 

GordiaA

Freshman Member
Joined
Feb 6, 2002
Professional Status
Certified General Appraiser
State
Georgia
according to their website, the zone owners are hiring lay people to take photos of the properties in thier areas.
 

Kevin Mc

Elite Member
Joined
Jun 7, 2004
Professional Status
Certified Residential Appraiser
State
New York
When one considers.

man hours and the amount time spent (on top of the intial investment) if at least half the homes in a zone don't require the Zone Owners services I don't see how it could ever be profitable.
 

444nutman

Senior Member
Joined
Jun 20, 2007
Professional Status
Certified Residential Appraiser
State
Florida
When they get the homeowner to take a picture of their house and send it to them for free. The man/woman hours to maintain a zone is not economical feasbile any other way unless you get every appraisal in your zone.
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
It's difficult to define and calculate the breakeven point. If you pay 9 for a zone and get 10 in gross revenues during the next year, that is not "profitable" year.

There are the fixed hours per year on maintaining the database. I don't know how many. Then there are the variable, revenue-producing hours that go into the paying assignments.

Take $50/hr, for example, as threshold of "profit." That is, if you have a zone that generates about 20k/year, you would be "happy" if it took 400 hours or less to earn it. That's one day per week. That also would be 100 assignments, averaging $200 each, taking 3 hours each (or two assignments per week) - leaving 100 hours per year for the database.

Sounds almost worthwhile, if you didn't have to pay the money up front and hope they don't go out of business in the meantime. :) Like if you could buy the zone out of the profit, and zero out much of the risk.

Is that possible? Is the $200/each too high? Is the 100 fixed hours per year on the database too low?
 
Last edited:

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Zoners who also bought stock will possibly recoup their "buy-in" when the Golden Parachute Gang ........packages and sells out to FNC or another Conglomerate then heads for a South Sea Island.
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
Ummm, When the GSEs agreed to not take appraisals from "settlement services providers" I think they kinda cut that particular riser in the Golden Parachute harness.

I wonder what would happen if the GSEs also agreed not to buy AVMs from lenders or settlement services providers?
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
I predict Zaio's profitability will suffer when they no longer are paid by a zone owner for the purchase of a zone, when the zone owner resigns his ownership in the zone, or when Zaio has to pay for a data source to achieve nationwide coverage.

It is that cheap labor and cost structure of the zone owner that gives the allusion that Zaio has any chance at profitability.
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
The 9K zone fee, do you then own that zone for "life", or are there yearly fees to keep the ownership current? Also, from what I hear, few zone owners are doing the work themselves, so not only do the pay for the zone upfront, but have labor costs as well, the only people I see making out is Zaio themselves.
 

Joyce Potts

Elite Member
Supporting Member
Joined
Feb 6, 2005
Professional Status
Certified Residential Appraiser
State
Florida
When they sell out?
 
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