Stop Accepting Unreasonable Fees

[Zoe]

I'm likely going to come in under on contract price on single family I am working on for VA. I hate it for the seller. The veteran buying will be happy if seller agrees.

I focus on subject property and real property rights and market value definition. Those terms on my end are rock solid. Always focus on real property rights.

 

[Surf Cat]

The problem is the clients--banks, GSEs, and ultimately investors in the paper who are basically saying we don't care--we just want a number that supports the sales price.

This is the crux of the matter.....if the laws weren't in the books that an appraisal is required for a federally related transaction, the "profession" would be gone already.....Yes, I know....specific exemptions and thresholds have been in flux under current regulations allowing waivers, desktops, PDC's instead of an old school valuation as we all know it.

It's like sinking in a quicksand.... the appraiser thankfully was able to reach a Vine and started pulling himself out.... but the vine snapped and now they're sinking again.....it's a slow death.

 

[John Hassler]

‘Show me a lender who uses an AMC and I’ll show you a lender who doesn’t care much about the competency of the appraiser.’ That truism is as relevant today as it was in the late 1980s when I first noticed the appearance of stand alone appraisal ordering firms (they weren’t called AMCs back then). The lenders who use AMCs have created high-demand for low-competency appraisers, and that’s okay.

If you don’t believe me, if it was your own money on the line (say you inherited a property a few states away) and needed an appraisal would you: 1) personally research/interview appraisers; 2) use the Appraisal Institute’s directory; or, contact an AMC?

 

[Dublin ohio]

‘Show me a lender who uses an AMC and I’ll show you a lender who doesn’t care much about the competency of the appraiser.’

So, any appraiser that takes an assignment from an AMC is not competent?

 

[DWiley]

‘Show me a lender who uses an AMC and I’ll show you a lender who doesn’t care much about the competency of the appraiser.’ That truism is as relevant today as it was in the late 1980s when I first noticed the appearance of stand alone appraisal ordering firms (they weren’t called AMCs back then). The lenders who use AMCs have created high-demand for low-competency appraisers, and that’s okay.

If you don’t believe me, if it was your own money on the line (say you inherited a property a few states away) and needed an appraisal would you: 1) personally research/interview appraisers; 2) use the Appraisal Institute’s directory; or, contact an AMC?

And what would you do if you inherited 1,000 properties a day, spread all over the country? I mean, if you want to do an analogy, make it realistic

 

[John Hassler]

And what would you do if you inherited 1,000 properties a day, spread all over the country? I mean, if you want to do an analogy, make it realistic

So you are saying AMCs are unable to manage at scale. My response to that is they are therefore unfit for their role of managing appraisers.

Thankfully, airlines are able to manage pilots at scale with the 1,000s of flights they have spread all over the world. I mean, if you want a realistic analogy.