Rels Valuation National Review Department Quality Control Advisory Report – June 2016

[J Grant]

A rhetorical question, but why can't appraisers stop accepting low fees and refuse to go on staff unless they get paid a decent salary?

 

[Flakey]

A rhetorical question, but why can't appraisers stop accepting low fees and refuse to go on staff unless they get paid a decent salary?

Some of us do.

 

[jay trotta]

It has become a self monitoring system; as the Banking Community notes, "Time Is Money" - Time is fair game, but Unnecessary stips require Fee Increases to cover the Cost of Time.
Set your business structure up accordingly, eventually they will be paying the Cost of Services, as they are meant to be for your area.

I read recently that Virginia has establish a Customary & Reasonable Fee structure based on VA data and Other Indicators; Louisiana also, there should be a push for State Legislators to gain the knowledge to improve the existing (State) Statutes, along with reasonable Turn Times and 2 week time lines for Payment of Services.

 

[Deleted member 80407]

Worst ever. Fired them twice and continue to decline their orders. Too many requests for changes, additions, deletions 3-4 days apart for 2-3 weeks. I can easily finish 2-3 other orders.in the time spent on there stuff. The $450-$550 fees look OK until you figure out the hassle factor.

Wow, fees must be much higher in North Carolina. They tried to recruit me about 1.5 years ago. Their custom & reasonable fees were insulting for the area I work. No wonder, they are coming with all the revisions. IF THEY WOULD JUST UNDERSTAND, YOU GET WHAT YOU PAY FOR. The better appraiser's have better clients and less revision request.

 

[Tom D]

rels bought an AMC where i had known the original people. fees of $450 went to $300.
i've noticed landmark seems to have increased some of their fees to be more reasonable. if you do landmark the AMC review is done by a computer program, easy to learn how that wheel spins.

too long in this business which i once loved, but i see no positive reason for anyone becoming an appraiser.

 

[Terrel L. Shields]

This is particularly important when they are located in close proximity to the subject, exhibit similar characteristics and where it would be reasonable for the reader of the report to question their absence.

It would be interesting to see if these additional comparables requested, on average, were higher, lower, or near the mean of the sales used. I mean are they spoon feeding you comparables that are deliberately higher values or not? I suspect the average one will be substantially higher...I am guessing, but I bet it is.

 

[J Grant]

The last few borrowers I've spoken to have said wells fargo changes them $550 for an appraisal. Rels keeps over 50% of the fee. Not a bad profit center. Wells fargo makes $300 on every potential loan before they start too much paperwok.

They make even more on their staff appraisers, I did the math and the salary including benefits and bonus, in real $ earned it comes to about $180 an appraisal report. Why do appraisers who go on staff agree to such low compensation...a chicken and egg when fee appraisers get so desperate taking a low paid staff job looks good since at least it is steady and offers benefits. Still, at least a portion of fee appraisers can get clients who pay better and can manage to refuse to work for peanuts. Thus the stakeholders successfully lobbied the AF and got AQB to scrap 4 year degree and the trainee period to keep an influx coming in willing to work cheap since a newbie will have little other alternative.

 

[Eli]

These companies dont' care if a number of appraisers won't work for them including the better qualified, they just need a body with a license to work for them at the highly profitable low fee split. A position supported here by appraisers who claim that if an appraisal meets minimum standards, why should a client pay more. As the saying goes, with friends like that who needs enemies.

It is like a double edge sword. As govt oversight increases, the govt will become some's nightmare and others knight in shining armor.

 

[J Grant]

By their actions, govt agencies are aligned with corporate profit rather than public trust as a priority relating to appraiser issues. Wish I shared your optimism, unless there is true change we are alone in this and that is why appraisers remain as a potential group, fragmented and vulnerable .

 

[J Grant]

A shout out and appreciation to the good clients who pay decent fees so some of us at least can avoid working for the low fee predators. I see these companies as predators because their actions are all about starving local appraisers for work unless the appraisers accept low fees or goes on staff for low pay.

The better paying remaining clients which include national level lenders must frustrate Core Logic owned entities to no end, perhaps at some sad future point in time CL will buy nearly every entity out and become the only game in town.