Poll: Will you trade fee for volume in a slow market?

[Mile High Trout]

I don't know how much more direct I could ask the question. AMC#1 isn't being compared to any other AMC and is referring to the appraiser's base fee. Not all fees for all possible variations such as you are fretting above.

It's a simple question and I am not attempting to steer or influence your opinion. I'm just interested in what that opinion is other than you don't want to work for splits.

Work is slow, there's not enough to go around and you're already a couple months behind in your bills. AMC#1 says the prevailing fee for a 1004 is $400 right now, but you can get more work if you bid $375. Which choice will you make:​

It's an impossible theoretical. Does 'AMC#1' rip off their customers, drive their appraisers around, distribute disproportionately, have cost plus billing, etc?

There is a big difference between taking less to remain on a stable panel, then taking less to capture work ahead of other appraisers, knowing the consumer still pays the same amount.

 

[J Grant]

The freedom of being an independant appraiser is awesome. To make your own schedule is an amazing benefit. That said, if you are already giving up a part of that freedom to a part time retail job of some kind just to stay alive, it might not seem quite as appealing. The question then becomes how long will one have to work that part time job. A few months? A year? How about if life going forward is a split between appraising and that other part time job forever? There is not enough private work for everyone, so I think we will see a lot of appraisers eventually move on to other things. I hope things do turn around on the lending side. Only time will tell.

Why is there always a comparison to some low-end part-time or retail jobs?

Any appraiser still healthy enough to work, assuming there are enough years left to make it count, can re-train for another career in a field where there is need an demand and that has a future - whether the better future be higher earnings or more intrinsic reward - unless they are okay with part time are, near retirement, or have a niche market or personal contacts wrt the client pipeline ( applies to res license only)

 

[J Grant]

For AMC work, Making the choice between $400 and $375 is not the problem. The problem is when you bid $375, the next appraiser bids $350, and the AMC keeps sending the assignment out or waiting for more bids and assigns it at $300. There is no bottom to it unless things are so busy or it is a niche market /area. And when times are slow, and th efees are low - well do the math.

Lenders who do not use an AMC ( or own a cost-plus AMC model) , they do not pay less on regular orders when times get slow. And in return, their appraisers don't raise the rate when things get busy- - through some good clients offer a bonus during a busy time

 

[Ariba]

With my regular clients I don't have to worry about cutting fees. But as it has been said volume is low. So if a secondary client says I can have it for $25 less. IMO in todays environment. I would be a fool not to. As far as getting a second job. At age 70 not many prospects out there that would be worth my time. I still pick up a concert lighting gig now and then. But that is about it.

That's the problem. To make room for the next generation, appraisers should retire at 60. Fewer appraisers, higher fees.

 

[TerryRohrer]

That's the problem. To make room for the next generation, appraisers should retire at 60. Fewer appraisers, higher fees.

Can't compete?

 

[Dublin ohio]

That's the problem. To make room for the next generation, appraisers should retire at 60. Fewer appraisers, higher fees.

Maybe everybody should retire at 60 no matter what their job. I happen to enjoy appraising whether you believe it or not. I have no intention of "retiring" in the conventional sense of the word. Slowing down yes. Have always said I will stop appraising when I can't.

 

[Terrel L. Shields]

View attachment 93618

Oh snap...I remember pushing one of those things as a kid. Mowing the whole lawn at grandpa's was exhausting. Then Uncle bought a Yazoo and dad bought an aluminum body Montgomery Ward mower - maybe 20" wide. What a dream they were.

 

[Terrel L. Shields]

Maybe everybody should retire at 60 no matter what their job.

Obviously only the idiot who said that isn't 60. Few people have the option to retire at 60. Further, since I don't do secondary market, my retirement will help no one. In fact, the bank I do a lot of work for is already anticipating they will have problems getting a CG to appraise farmland and large commercial properties. And the available CGs are going to be driving from either Tulsa, OK or Fayetteville/Rogers, AR and obviously will have to charge a huge premium for mileage and time alone.

 

[Tom D]

Lenders who do not use an AMC ( or own a cost-plus AMC model) , they do not pay less on regular orders when times get slow. And in return, their appraisers don't raise the rate when things get busy- - through some good clients offer a bonus during a busy time

My non AMC lenders don't lower fees, always got a fee increase rate when it was busy. The last increase was a lot of crying on my part, lucky for me market then crashed. My lenders didn't lower the fees, they just get rid of a lot of appraisers who they considered poor quality. Nice fee cut. Less competition for me. Like many here, no want full time anyway. Have phased back to my old rehab flip days.

 

[George Hatch]

It's an impossible theoretical. Does 'AMC#1' rip off their customers, drive their appraisers around, distribute disproportionately, have cost plus billing, etc?

There is a big difference between taking less to remain on a stable panel, then taking less to capture work ahead of other appraisers, knowing the consumer still pays the same amount.

And exactly what would that difference be to the appraiser? If the manner in which "to remain on a stable panel" consists of competing by fee then the individual's only competitors are the other appraisers on that panel.

It's a simple question: regardless of the fairness, morality or rationale of the AMCs actions, what will the individual appraiser do in this situation and when faced with this particular choice?