I feel like telling AMCs, "I did the appraisal, I've gone on to do other work, an appraisal isn't a maintenance agreement where I agreed to update the report for the next month or two because the lender wants to jerk the borrower or the AMC around." We all know the AMCs that are the worse and they should be quoted higher fees from $50 to $100.
I would agree that in general fees need to be more realistic. But much of what the lender is dealing with are the regulators on the other end. They have to sell that loan to Fannie or Freddie that are driving much of what the lenders are doing and as the say, "crap rolls downhill." We happen to be the bottom of the hill.
So as a business decision you have to decide to raise fees to deal with stipulations. Remember the lender and AMC will charge as little as possible to get a product. This is called capitalism. However the AMC model has taken away much of the free market aspect by limiting the number of clients vs. vendors. This makes appraisers afraid to raise fees.
Before the HVCC came into affect I had scores of clients. After the HVCC came into affect it went down to about eight. So before the HVCC I could easily choose what to charge or if I wanted the job. Now not so much.
The regulatory environment we now live in is so egregious compared to the past that I have decided to basically leave the profession. I have decided to stop being at the bottom of the hill. Thankfully I'm at that point in my life.
However before I became an appraiser I was in a different profession. I didn't like what I was doing. I made a change when I was 40. It was hard, but it can be done.
So my advice to younger appraisers is to ask, "Can I do this for another 20 years knowing that the regulatory environment will not get better but more likely worse?" I've seldom seen the regulatory aspect become less! I can't imagine what they will be asking appraisers to do in the future. For example in an FHA it is now expected to test appliances that are not even real property! It's ridiculous.
Just think about how the scope of work as changed? Just think about CU and how they are beginning to expand the flagged fields? Just think about how many more stipulations we are now getting vs say 5 years ago? Just think about how fees are pretty much stagnant or are barely keeping up with inflation? Just think about how much longer it takes to do one report now because of things like the UAD etc?
When I think back about how things have changed I don't think the accuracy of the opinions of value have changed. My ability to value a property are not better now. The only reason we now have more oversight is because of the regulators and the idea that the financial crisis was caused by appraisers over inflating values. Again "crap rolls downhill." Ironically those people that made the least in the transaction are being blamed for inflating the values in the transaction! I find that pretty stupid logic.
