Price fixing by AMC's

[Doug Wegener]

Definetely price fixing going on by AMC's.

Appraisal fees for non-AMC work is significantly higher
than AMC work.

AMC all have virutally identical fees.

What can that be called but price fixing?

 

[Randolph Kinney]

I wonder who will file a complaint for restraint of trade? Not the lenders, not other AMCs, not homeowners, etc.

 

[Pamela Crowley (Florida)]

Agreed!!!

www.tavma.com

List of perps???

 

[Tim Vining]

FMV Management will file suit regarding restraint of trade, unfair trade competion, copyright infringement, price fixing, and RESPA Violations

 

[hastalavista]

Definetely price fixing going on by AMC's.

Appraisal fees for non-AMC work is significantly higher
than AMC work.

AMC all have virutally identical fees.

What can that be called but price fixing?

Doug-

My appraisal fees are slightly higher than most in my market, but within the typical range. There is no price-fixing between me and my competitors. My fee is based on a number of factors, but a significant factor is what the market will bear.
Could not the same dynamic be in play with the AMCs?
In fact, given the limited number of AMCs that compete for the number of clients, pricing would probably be a significant factor (all other things being equal).

My point is that price-fixing could be occurring, but there certainly are other plausible (and perhaps more likely) circumstances.

 

[Randolph Kinney]

FMV Management will file suit regarding restraint of trade, unfair trade competion, copyright infringement, price fixing, and RESPA Violations

Hi Tim,

I sure hope you keep us all posted on what is going on and how specifically we can help ourselves.

 

[c w d]

You'd have a hard time proving it. There are significant disparities among AMC's. The low range is $195 that I'm aware of. Another AMC pays $245. How could a such a disparity be attributed to price fixing. Surely, one AMC is not going to agree to pay a higher price than its competitors.

I'm not agreeing or disagreeing with you here. I'm just stating what I know. Certainly, there is a trend to suppress fees since some lenders offer "no fee" mortgages. Obviously, they will want an appraisal for as cheaply as possible since they're footing the bill.

 

[Doug Wegener]

I dont think so. There is a significant amount of work that is "locked up" by
AMC's due to the regulations ( I cant cite verse and chapter maybe someone
will help me out here) that mandate the ordering process be done by a "neutral" party.

Because appraisers cannot bid on that work any other way, the AMC have control.

They have colluded to make the fees low, ridiculously low, in order to line their own pockets.

Your fees are not set by you Denis if you do AMC work for the most part ( and based on your opininon I would venture to guess that you do little AMC work).

You might ask yourself why they all have the same low fee or similar low fee, and the market place is paying something different and much more.

If that is not price fixing, then I dont know what is.

And here is an interesting point, APPRAISERS GIVE AMC's THE POWER TO DO
IT.

I think a reasonable case could be made to a Jury that price fixing is going on.

Where is the Appraisal Institute, NAIFA, et al. on this issue?

If the appraisal organizations co-operated together on this, it would end
in short order.

As Pam has pointed out the Management companies have banded together.

If organizations that represent appraisers dont do anything, what good are they?

 

[Doug Wegener]

example of price fixing

You'd have a hard time proving it. There are significant disparities among AMC's. The low range is $195 that I'm aware of. Another AMC pays $245. How could a such a disparity be attributed to price fixing. Surely, one AMC is not going to agree to pay a higher price than its competitors.

I'm not agreeing or disagreeing with you here. I'm just stating what I know. Certainly, there is a trend to suppress fees since some lenders offer "no fee" mortgages. Obviously, they will want an appraisal for as cheaply as possible since they're footing the bill.

Yes, they are fixing the price between $195-$245. Market rate is more like $350.

 

[Elliott]

Price Fixing? I'd have to agree to the price for there
to be price fixing. Probably 30% of the AMC requests
I bid, I don't get. But I'd never call it price fixing.
Price fixing (back when the US Justice Dept
use to care) was horizontal & vertical and was about
milk prices and boxcars. When the US had to re-invent
themselves (right after Japan bought NYC icon buildings),
they told Justice to look the other way since other countries
all do it.

The AMCs with the big long list of fees by zip code,
I just say, 'not interested.' I still believe in the addage,
"You get what you pay for."