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Proof, We have a over supply of appraisers, we need PAREA

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There are plenty of appraisers. There has never been a real shortage. There may have been a shortage, when we were busy, of appraisers willing to provide ridiculous turn times and low fees.
 
The most depressing aspect of that story is that they didn't even make an effort to negotiate with him for a lower fee. Not even a "we have appraisers who will do these assignments for $200. If you can do them for less then we'll entertain it". If he had been motivated to approach them with that offer to work for less then that would have been an example of him trying to undercut the market, not of the AMC going out and "shopping by fee".

If an AMC has appraisers approaching them with offers to work for less then they don't need to make an effort to get what they want. I would guess that the same is happening with the lenders; if there are two AMCs competing for the same contract and one is offering to deliver for less then the lender doesn't need to make any effort to solicit competing bids. Those competitors have two choices - either meet the new-lowest bid or not meet the new lowest-bid.
Since a lender can not benefit from a fee split, why would they care which AMC supposedly delivers for less ? I don't think any the AMC's pass along a lower fee to the lender. The lender quotes borrowers set fees for a region. The lender passes along the fee to the AMC and leaves the AMC fee split between the AMC and the appraiser.

In the cases where a lender owns the AMC as a division, often there is a cost plus uniformity of fees to the appraiser. Otherwise, it is the horrific system we see, with lower-fee appraisers getting most of the work. This punishes the appraiser and is a redistribution of wealth to the AMC taken out of the appraiser -in your lingo -by the government perk of the HUD split fee.

Idk how lenders pick an AMC. None of them charge a dime to the lender in cost, a govt perk making in unfair competition to the appraiser. Is none of them charge a cost to the lender when what does that leave? Turn time and quality control. If the AMC is returning any portion of a fee split back to the lender that is illegal. Which may not stop it from happening if well concealed. I have no idea if it happens or not. But lenders do not reduce the appraisal fee (typically ) to a borrower just because an AMC negotiated a better fee split out of an appraiser.
 
There are plenty of appraisers. There has never been a real shortage. There may have been a shortage, when we were busy, of appraisers willing to provide ridiculous turn times and low fees.
The problem has always been a finite number of appraisers, and for res RE the cycles vary between slow and busy - so in a busy volume time there is a relative shortage of appraisers and in a slow cycle there is a relative oversupply of appraisers.

With the FF changes to more WAIVERS, and in some cases, the use of hybrids and desk tops will create an oversupply that is more than we've experienced and economically it will see over the next few years a number of appraisers leave or scale back to part-time.
 
Current interest rate climate and lack of supply of houses for sale = lower demand for appraisals, both refis and purchases
Waivers, hybrids, AVMS, etc for houses that are offered for sale = much lower demand for decently paying appraisals
PAREA coming on board, generally lower experience and education reqs and imminent bias-related programs = higher supply of appraisers

Drawing those appraisal/appraiser supply/demand curves on a graph is very discouraging, the price they are going to meet at is far less than most of us are willing to take. The downward price pressure seems likely to continue for quite a while.

So happy to be out of it full time, I wish the rest of you well, with all sincerity.
 
That was what I was thinking. Never been to Cali, but what I have seen the traffic is horrendous. The drive time......I would just cover one county. How can anyone truly know all of those sub-markets?

los angeles county population 9.83 million people.......and there is a OVER supply of appraisers. Puts things into perspective.
The combined Counties that appraiser listed in his resume is over 20 Million People. Could he cover portions of each County ? Yes- but even that can be difficult, The problem is at his $350.00 a report and with gasoline in CALI say at $4.50 a gallon there is no profit to be made. Imagine when he has to go back to do a 1004-D or a re-inspection ? The business model is a complete failure.
 
I have heard exactly what Glen said: That there is a MASSIVE number of appraisers in LA County, hence there is little competition and fees will be low. NorCal Sacramento county, OTOH, and nearby counties towards the coast (Solano, Yolo and Napa) are not overpopulated with appraisers, are growing, and (I am told) appraiser work is still plentiful there.

Edit: Just searched on BREA and came up with 2567 appraisers in Los Angeles County (out of about 14,000 state wide). I am guessing if you throw in the counties to the North and South you'd pad that number quite a bit.

LA County has 25% of the state's population, but only 18% of the state's appraisers. Doesn't seem like too many appraisers here.
 
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