Slowdown?

[J Grant]

Just got busy again -I was enjoying the slower pace

 

[JeffSH]

I think this is quite true with direct lenders. Larger AMCs, not so sure about. That's yet another reason to see out direct lenders whenever possible. My last market I covered a few years back was fairly small, and there were 20 lenders driving about 85% of the business, and 16 were using AMCs, even the smaller local lenders. So going all direct is of course not always possible, but great to have at least every one in your market.

I agree that since AMCs are larger there's going to be less individual focus, but you tend to communicate with the same people. I'm sure reputations are built. It's probably more about on-time delivery vs quality though.

 

[JeffSH]

Just got busy again -I was enjoying the slower pace

Me too. It seems that everytime I complain, there's another rush around the corner. Hopefully this continues another 30 years until I retire LMFAO

 

[Ariba]

Me too. It seems that everytime I complain, there's another rush around the corner. Hopefully this continues another 30 years until I retire LMFAO

I’ll try to break the news gently, appraiser’s never retire. They just die. You can’t live on SS alone and appraisers have no retirement plans or savings to rely on.

 

[Joe Flacco]

I’ll try to break the news gently, appraiser’s never retire. They just die. You can’t live on SS alone and appraisers have no retirement plans or savings to rely on.

It is one of the main issues this profession has. Appraisal fees are subsidized by social security, medicare, and housing costs locked in from the 90's or 2000's.

Makes it very difficult for new appraisers financially to compete with that.

 

[Joe Flacco]

Today, there are a lot of appraisers that live in the higher cost neighborhoods because they have been living there before prices got so high. Once they retire there won't be any more appraisers in those neighborhoods. Maybe you can if you have a high earning partner.

 

[Terrel L. Shields]

Makes it very difficult for new appraisers financially to compete with that.

Those 90s inputs to SS come back to bite with very low monthly checks... Failing to put the max in your IRA will hurt you much worse than your SS check helps you. And if you kick the bucket before 65 - no insurance. Men, in particular, have the habit of dying before they reach 65 meaning all the medicare paid in is for naught.

However, there are many of us lucky enough to get past 65 and work because we need something to do to keep our brain active. That's a real fright as you age - dementia and Alzheimer's. It got my college roommate. He lived beyond 65 a couple years but the last 10 years of his life was as an invalid that didn't know his own name nor recognized me or his own brother. Not much of a life after 60. But I don't work out of necessity as much as desire and I certainly don't undercut the market to do so. For one thing, people who really want to know what something is worth are not going to seek out the babes of the industry and hope for a technofix to their valuation. They seek experience. As one opposing attorney grouched at me when we left the courthouse, "If I'd know you existed, I'd hired you and you'd never seen the light of this courthouse."... and it was a light. He put me on the stand at 1 and I got off at 4 and by the time court was over, it was 7pm. Experience and expertise is spelled similarly for a reason.

But the lowballers are not the old heads, rather are the newbies fighting among themselves. But that's life. Always has been. The new kid on the block has to fight for themselves. No one else is going to do it for them. And when a new appraiser slashes fees to get work, they are ingraining the idea among their clients that "He may not be very good, but he's cheap." And with that is the problem of "Yeah, Joe. I use that new guy, zzz, who is cheap and fast." So his peers know you by reputation as a low-price leader. And forever you get pigeonholed as the low price player and find it takes decades to overcome the notion that you are worth more. Associate with an old head who gets premium fees and when you go out on your own, charge premium fees, even if it means a slower and lesser amount of work. It is ghastly to me to see so many claiming a dozen or more reports a week knowing that review and thorough research is out the window outside a very compact urban/suburban area with a huge surplus of data to work with....and those kinds of markets are, by their very nature, low priced in the first place.

because they have been living there before prices got so high.

Or perhaps the economy collapses and the prices fall.... Displacement is on-going, and often not justified by incomes alone. The ratio of home value to average income was widened dramatically. It literally forces those in the "high rent district" to seek housing in states where it is much more affordable even when they prefer to remain in their S. California, Denver, or Seattle homes. They seek a cheaper place to live because they have to. OTOH, a country boy never wanted to live in any of those places in the first place.

 

[glenn walker]

Just got busy again -I was enjoying the slower pace

I Gotta a Order -I Gotta Order - All orders flow in two days before a long weekend because order clerks-processors -loan officers all want to be able to tell the borrower the appraisal has been ordered. Those same people all take the long weekends off and expect those appraisals to be back when they get back from their 4 to 5 day vacations. Hope thats not the case but thats always been my experiencing. They were also normally my worst orders but godo luck grab all you can while you can. It may not be there next year.

 

[Damienvball]

Hello,
I am a newbie to this forum, thank you for having me. I'm a Certified appraiser in his 30's based in San Diego that has decided to commit 100% of my time to appraising as an independent contractor. Is anyone else experiencing an extreme slowdown in appraisal assignment requests and bids? I am registering with appraisal management companies every day from the BREA AMC list. I have a couple clients that throw me a bone every once and a while but it seems like I am trying really hard to expand my client base and I have been rarely receiving assignments. Any recommendations on how to obtain more work? Thank you for reading my post and I would really appreciate any constructive feedback. Thanks!

Expand your coverage area. I have seen the same thing hear this year since they raised the rates but i am in a place where I can add rural areas that are not covered so much and get more work.

 

[ZZGAMAZZ]

There are pockets across the US where there will continue to be appraiser shortages, despite the lack of refi work. Fees will remain strong and appraisers will be in high demand. If you're savvy enough to do the research, flexible enough to re-locate, and willing to do the hard work of gaining competency, there are still some great opportunities.

If you are location flexible you can find an appraiser who has a strong book of non-AMC business and is nearing retirement, it is possible to work out some mutually reciprocal deal. Many appraisers want to keep working part-time, but they don't want to run a business, they want to cut expenses, and they end up slowly taking on less and less volume. Even in retirement, they want to do 2-3 a week. Or maybe they want to move away for the winter, but their business doesn't have that flexibility without a partner.

Another avenue is to really "up" your game, get educated, and become the go-to expert in a niche. Increase your skillset, write quality reports, and find the users willing to pay for it. To me, this is the best business strategy if you want to be in the valuation business long term.

Wish I knew how to find that pocket, especially if the area has 4 seasons, a reasonably literate population, reasonabley-priced housing (and trees other than palm trees). In fact I've reaced out to my primary AMC for underserved appraisal areas, although nothing in Cali matches my criteria, but a new state license shouldn't be difficult. Probably back to the East Coast, possibly around Pittsburg...or maybe it's time to retire in Thailand, where a decent 3-bedroom house 1/2 mile from the beach is about $60K USD.