Purpose Of An Appraisal?

[VALU8]

Hi guys,
First post,
I've been taking the appraisers course through Allied Appraisal School, been going along with an appraiser to inspections and helping do his inputting (inputting, nothing to do with valuation based decisions).

I've come across some frustrations, that really have me questioning the very purpose of the work. Please tell me I'm looking at things in a wrong light.

So we look at a property and tell them what it's worth. They don't like the number and kick it back for revision. Okay. Revise, kicked back.
I'm seeing a pattern here. If we're not telling them what they want to hear, they don't give appraisers business... So...Why even hire one in the first place if they tell you exactly what to say?

Case in point. Middle of nowhere is a property being bought with an illegal addition. Called in on in, no permits. We told them it's not worth what the buyer is wanting to pay for it. AMC, Buyer, and seller are hounding the appraiser about it. Why even ask what its worth if they don't wanna hear the number?

That and when you DO give a value of opinion, their little machine says "nope" and they kick it back saying, hey our little machine didn't like it. Add another comp (Redo it, for the 3rd time) even though it's in contradiction to the guidelines we've originally asked you to do.... If their little machine is so good at these things, why even have an appraiser in the first place? Just ask the little machine.

 

[Deleted member 130081]

Delete

 

[VALU8]

Might I ask why?

 

[Deleted member 130081]

Hi guys,
First post,
I've been taking the appraisers course through Allied Appraisal School, been going along with an appraiser to inspections and helping do his inputting (inputting, nothing to do with valuation based decisions).

I've come across some frustrations, that really have me questioning the very purpose of the work. Please tell me I'm looking at things in a wrong light.

So we look at a property and tell them what it's worth. They don't like the number and kick it back for revision. Okay. Revise, kicked back.
I'm seeing a pattern here. If we're not telling them what they want to hear, they don't give appraisers business... So...Why even hire one in the first place if they tell you exactly what to say?

Case in point. Middle of nowhere is a property being bought with an illegal addition. Called in on in, no permits. We told them it's not worth what the buyer is wanting to pay for it. AMC, Buyer, and seller are hounding the appraiser about it. Why even ask what its worth if they don't wanna hear the number?

That and when you DO give a value of opinion, their little machine says "nope" and they kick it back saying, hey our little machine didn't like it. Add another comp (Redo it, for the 3rd time) even though it's in contradiction to the guidelines we've originally asked you to do.... If their little machine is so good at these things, why even have an appraiser in the first place? Just ask the little machine.

it seems to me you may very well have the lights turned on too bright for some parties taste. Newbies sometimes get stuff wrong, but sometimes they see plenty just fine. Sounds like your shop is busy?

 

[Michigan CG]

Case in point. Middle of nowhere is a property being bought with an illegal addition. Called in on in, no permits. We told them it's not worth what the buyer is wanting to pay for it. AMC, Buyer, and seller are hounding the appraiser about it.

Just because there are no permits doesn't mean it is illegal.

If the AMC is asking legitimate questions then you owe them answers, it they are not asking legitimate questions then why work for that AMC?

I have a problem (my own) with appraisers hiring trainees in this environment and am a little biased. In the current business environment for appraisers, especially residential appraisers, there is no reason or benefit to take on a trainee as it is not financially feasible in most parts of the country. Are fees high in your area?

 

[VALU8]

Yeah I won't rule out user error- It could just be the appraiser who hasn't been doing it for 20 years- He's done it on and off since 2006 or so. Am I just looking at the work with a bit too much cynicism?

 

[Michigan CG]

Yeah I won't rule out user error- It could just be the appraiser who hasn't been doing it for 20 years- He's done it on and off since 2006 or so. Am I just looking at the work with a bit too much cynicism?

I think you need to look at the requests of the AMC and see if they are reasonable. I don't like AMCs at all but can justify everything I do for almost any client.

On and off since 2006 does not give me much confidence in the guy who is training you.

What are the fees he is getting for a report?

 

[timd354]

Yeah I won't rule out user error- It could just be the appraiser who hasn't been doing it for 20 years- He's done it on and off since 2006 or so. Am I just looking at the work with a bit too much cynicism?

Going along on jobs with an appraiser who has been an appraiser "on and off" is not a good approach as there is a very good chance that he does not know what he is doing. Find a real, full-time appraiser to show you the ropes.

 

[VALU8]

He get's 150-400 depending on the AMC or if it's straight through a lender (150-350 through AMC depending on which). It's symbiotic in the sense that he's not awesome at tech and organization- So I name and organize photos, organize workfiles, and de-snag things when the computer is doing something it shouldn't be doing.
Most of the stuff that gets kicked back is reasonable I would say.
I'm just really looking at the profession and deciding if I want to commit to doing this- In the long run, are appraisers, and will appraisers continue to be useful? Of course I'm asking the barber if I should get a haircut, but, it seems to me with advancements in technology and things becoming more automated, this profession could be in decline in the long term (15 years from now)...Just worrying too much?
Before the popularity of the internet I would suppose the role of the appraiser would be paramount... Going and compiling neighborhood databases and talking to city planning and gathing maps and photos, which otherwise couldn't be done without great effort.

 

[bnmappraisal]

I've come across some frustrations, that really have me questioning the very purpose of the work. Please tell me I'm looking at things in a wrong light.

You're looking at things in a wrong light

So we look at a property and tell them what it's worth. They don't like the number and kick it back for revision. Okay. Revise, kicked back.

Welcome to the AMC world

That and when you DO give a value of opinion, their little machine says "nope" and they kick it back saying, hey our little machine didn't like it. Add another comp (Redo it, for the 3rd time) even though it's in contradiction to the guidelines we've originally asked you to do.... If their little machine is so good at these things, why even have an appraiser in the first place? Just ask the little machine.

Again ... welcome to the AMC world