• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Study conducted last week of the what, where and when with appraisers and lenders.

Status
Not open for further replies.

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Study conducted last week of the what, where and when with appraisers and lenders.

Just finished up a staff meeting this morning, one thing I had done last week was a study or poll to see where the residential appraisal business is headed in the area I cover. So my staff contacted appraisers and pose as an LO looking to place an order, and call and talk to Banks, MBs and Los, telling them that we were trying to improve our service and wanted to ask them some questions. So here are the results of the study conducted last week by one of my employees at the ranch at my request.

Paula contacted 100 appraisers and 100 Mortgage Brokers and Bank Real Estate LO’s.

I know this is a small sampling of the state but it tells me something about the appraisal industry here in Wisconsin in the area I cover.

This what she found from appraisers:

1. The median fee accepted for the rural area is $225; the range is $125 to $600.

2. The median turn time offer said they could get it done in 3 days from time of order. One to ten days was the spread. Ten percent said 10 days to complete order from time order was received to sending.

3. Comp check, 95% would do a comp check for free, 2% offered a CMA of the area for free, 1% offered a desktop for a $25 fee, 2% refused the order.

4. Not charging for the appraisal if the value was not there 63% would not charge, 22% needed to get a trip fee. 10% said it was a violation of USPAP and they needed to get paid. Also 3% of that number went on to try and educate Paula about USPAP. Two percent had to get paid.


Paula asked the following questions after telling the lenders we were trying to improve our business model for them.

This what she found from MBs, LOs:

1. The median fee offered was $225. With a range $100 to $650 for 1004. This is on a 1004, Field Reviews were $100 to $400, Desktops $25 to $60, Small Muti-Family $150 to $500. Small Commercial was $250 to $2000.

2. The median time was wanted 3 days. Spread was two to 4 days from the time the order was placed till it was received back to the LO. They would like to have it in two days.

3. Ninety Eight percent wanted some type of comp check, desk top or CMA. Eighty percent felt the appraiser should guarantee the value they needed before placing the order.

4. Seventy Eight percent felt that the appraiser should not charge, if they could not get the value after accepting the order. Twelve percent felt that a trip of fee of $25 to $50 should be charged if the appraiser could not get the value needed. Eight percent said the appraiser should get something but not the full fee. Two percent felt the appraiser should be paid the full fee.

5. Eighty six percent would not sign a letter of engagement or fee agreement with the appraiser. Ninety three percent never receive a letter of engagement, scope of work or fee agreement from the appraiser.

6. Seventy eight percent were sending most of there work to FHA first, thirty two percent was sub-prime and conventional lending.

This is just a random sampling of the SW Corner of Wisconsin. Need to know this data because it tells us that we need to move out of the residential appraisal business and concentrate on other aspect of the business.

What really brings this to light is the fact that the rural appraiser is not even able to charge a trip fee that will cover the expense of buying, owning and maintaining a light truck to get around in the rural area. Not when I can charge $2.65 a mile for light commercial hauling, not when my vet charges a $150 trip fee, not where the plumber and septic company charge a $165 trip fee, not where the LP man adds a surcharge of $50 with a minimum amount of LP delivery on LP delivery, Those fees are half or more then the lenders are will to pay for a full appraisal with just are much or more travel time.

As stated last week I am spending last week and the next two weeks working on marketing and re-inventing the company in a profitable direction.
 
Joined
Mar 30, 2004
Professional Status
Certified Residential Appraiser
State
Arkansas
As stated last week I am spending last week and the next two weeks working on marketing and re-inventing the company in a profitable direction.

Looks like the only way to be profitable in you market is to become a Skippy. :icon_evil::icon_evil:
I hope you do not go down that road.
 

RustNeverSleeps

Junior Member
Joined
May 15, 2007
Professional Status
Certified Residential Appraiser
State
Texas
3. Ninety Eight percent wanted some type of comp check, desk top or CMA. Eighty percent felt the appraiser should guarantee the value they needed before placing the order.

4. Seventy Eight percent felt that the appraiser should not charge, if they could not get the value after accepting the order.

:( ...that is totally depressing
 

JonGalt

Junior Member
Joined
Aug 4, 2005
Professional Status
Certified Residential Appraiser
State
Illinois
3. Ninety Eight percent wanted some type of comp check, desk top or CMA. Eighty percent felt the appraiser should guarantee the value they needed before placing the order.

4. Seventy Eight percent felt that the appraiser should not charge, if they could not get the value after accepting the order.

Wow, that's lower than I expected.

I guess they were being honest with me when they said "all their appraisers" do a comp check and make sure the value is there" prior to doing the appraisal. How pathetic appraisers have become. Every comp search that does not become an order is an appraisal order that was never placed, and paid for reducing the work load for everyone.

Maybe at USPAP class they should just hand out donuts and comic books and set a timer for the 5:00 dismissal. Why bother with the CE anyway? I could call 90% of my competitors and they will do comp checks, garauntee value, and accept the assignment on predetermined value.

Nothing will change and we deserve it as almost nobody has any integrity in this field. Nobody cares except for a handfull on this board who have time to post here because the work is going to skip and the fraudsters.
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
So much for the theory that there are only a handful of bad appraisers that wreck it for the rest of us, eh?
 

Jason Cowan

Sophomore Member
Joined
Dec 12, 2002
Professional Status
Licensed Appraiser
State
Virginia
If only we had a national association of appraisers who could conduct similar studies of taped telephone conversations with mortgage brokers and then report thier findings to congress!
 

Stone

Elite Member
Joined
Feb 1, 2002
Professional Status
Certified General Appraiser
State
Wisconsin
How did you pick the 100 appraisers? It would take me a lot of work to get 100 appraisers' phone numbers.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Ray - you have performed - for free - an extremely valuable service for ALL readers.

Copy of that survey should be sent to the AF CHAIR, and EVERY Appraisal Board Chair, and to the Attorney General in your State.


Absolutely......... MORE CONTINUING EDUCATION AND MORE USPAP COURSES WILL SOLVE THE PROBLEM.

WE DON'T NEED TO REVOKE LICENSES, EVERYTHING IS FINE AND DANDY AS LONG AS THEY HAVE THEIR EDUCATION COURSES......... ITS' FINE....... REALLLLLLLLLLY !


and then there's



REALITY
 
Last edited:

BOBBYGINE

Sophomore Member
Joined
Nov 26, 2007
Professional Status
Licensed Appraiser
State
California
Nice Information.

Until we all have the same rules nothing will change. We need brokers, agents and appraisers all to have the same rules. One set of rules. Currently a RE agent(education to obtain this license is a joke) are allowed to do BPO's, but an appraiser supplying a comp check is in violation of USPAP. We need some common sense to get control of this industry in it's current state, everyone needs to get on the same page. Look at what is going on in RE right now, can it be anymore obvious that something is seriously WRONG with the current system.
 

GCJim

Senior Member
Joined
Dec 11, 2007
Professional Status
Certified General Appraiser
State
New Jersey
Great market study Ray! However small your sample, it still illustrates certain things clearly. Many have already beat me to it, but the results are extremely depressing for the appraisal industry. We have been successfully divided and very nearly conquered. It is 'every man and woman for themselves' out there. It is probably too late.
What is / (hopefully not 'was') desperately needed are 2 basic things:
1.) Laws (ala USPAP) that apply completely ACROSS THE BOARD as it applies to all US real estate appraisal, from brokers, attorneys, lenders, banks, and appraisal customers
2.) a SINGLE, UNITED national appraisal asssociation, whose SOLE function is to promote the best interests of US real estate appraisers and the profession.

We have NEITHER ONE of these at the moment. I can hardly wait until my next USPAP class......USPAP unfortunately, appears to be ineffective, largely ignored, ineffectively enforced, and is not accomplishing very much. (I wish it wasn't true...) I think I may just enroll early for a change.......
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks