The Appraiser Shortage Myth Part 43

[Deleted member 130081]

Teacher unions would never let any of this happen.

Police unions know who butters their bread.

I know union enforcers. They mean business.

Know some union guys? Let them know they are missing a golden opportunity in the appraisal industry.

 

[djd09]

Yeah, they are big grizzly ohio corn fed country tree choppers.

 

[DWiley]

Yea...I know you're a nice guy and everything D, but that snap-crack about market forces is BS. We do know about market forces and as an appraiser, so do you. The AMC surge in the industry was not born out of free-market forces, rather government regulation. That regulation was imposed on a group of people who had dedicated their entire lives to building up their business, including specific education, apprenticeship and years of sales, only to have it wiped away over-night - from regulation, not free-market forces. Appraisers had a choice to make, accept lower fees or find a new profession - starting over from nothing in many cases. That decision had to be made the day the HVCC was passed. That aint free market and you know it. I struggle to think of another industry that pools a work force against each other the way it is for us. I know you're biased so keep on keepin' on, but I aint buying that bull and will call it out every time.

Despite what many think, there is no rule or regulation requiring AMC use. What the rules do require is separation, and many lenders have decided that the easiest way to show compliance with the requirement is to use an AMC.

What the proliferation of AMCs did was expose the market data related to appraisal fees. While local lenders delay with a handful of appraisers, AMCs deal with thousands. That goes them a LOT of data about appraiser fees, and they use that data (just like appraisers use MLS data) to see what the "comps" say about market level fees. If appraisers want higher fees, all that has to happen is for the appraisers in an area to raise their fees. The problem is that there are a lot of appraisers who only know how to market for business based on fees.

Fees are very high in the COW states right now, but few are complaining about that now. Lenders know it is just the market rate. AMCs have just raised their lender fees. Appraisers love 4 digit fees. The complaints in those states is about turn times more than fees.

JG lives in one of the states with a huge supply of appraisers, yet seems to think that that huge supply should have no effect on her fees. That is no more realistic that a builder in 2009 thinking that he/she should still be able to sell houses at the "old" prices despite the fact that the housing market was flooded with inventory. Supply and demand just does not work that way.

 

[Michigan CG]

Give it a rest about me personally...48 hour turn time is prevalent in the business. You think AMC's care if 48 hour turn time reduces appraiser income? (or sanity lol)

Why aren't appraisers in the COW states hiring trainees... they realize if they hire trainees it will result in an increased supply of appraisers, and AMC's will revert to the fee pressure down tactics they use elsewhere

I think I have brought up a good topic about the COW states and want to know if they are hiring trainees considering they are making more money now than most could dream of. YOU derail with the same talking points we see from you. Concentrate on the topic of the thread as we could learn something. This is SUPPLY AND DEMAND (that you deny) but could it be that the people in these states are or are not hiring trainees as they are ignoring supply and demand? Is there a reason they are or are not hiring trainees? We don't know the answers to the questions and changing the subject to the same things you have said for years does nothing to help us learn about what is happening in those states.

 

[Overimprovement]

In an ideal world of paired sales?

 

[Michigan CG]

As I have said before, that is a goal, not a requirement.

But does an appraiser get a lower grade on their monthly "report card"?

 

[Michigan CG]

) It omits that that $250 -280 is not C and R,

C and R is a JOKE that idiots wrote into a law that is not enforceable to appease someone. Low fees are paid in Florida and other places because of an oversupply of appraisers.

) .......... and VA is paying $485 THAT is the measure of C and R,.

The VA is a government agency that spends other people's money. The VA has a goal to service veterans (good for them) but they are spending other people's money when they set fees above the market.

) ......... I can't /won't work for peanuts.

Then compete in the market with skills that other appraisers don't have. If your skills are average and are similar to other people's skills then you will have to compete with them.

 

[Michigan CG]

As I have said before, that is a goal, not a requirement.

Danny, let us be seriously honest here. You cannot deny that the "goal" of 48-hour turn times is a requirement for many AMCs and while it is stated as a "goal" many AMCs will "grade" the appraiser on the turn time after inspection. You cannot honestly say that the 48-hour turn time does not take money out of the appraiser's pocket as it reduces productivity and scheduling.

How many AMCs use the term "partner" or "appraiser partner"? When an AMC is so clueless to want this requirement and they "grade" people on this 48-hour turn time they are saying the opposite in that they do not care about the bottom line of the appraiser's business and the term "partner" is an insult. Partnerships work both ways, you make money, I make money but the 48-hour thing costs me money. You know this, you were an independent appraiser.

There is a shortage in the COW states. But how bad is the shortage? It is not like it was last year, but significant enough that those appraisers have very good fees. Do they get daily phone calls asking for 48-hour delivery? Do they get sent "report cards" or are the AMCs backing down on them? Are those appraisers turning down work because of the 48-hour turn time "goal"?

We all know that the regulations to become an appraiser are not going to change any time soon. How does the AMC model deal with this? Is it holding on to their previous practices including a "goal" of 48-hour turn time? The AMC model can send out cute e-mails about charity work and their appraiser partners till the cows come home but it remains a fact that the number of appraisers who want to work for AMCs continues to decline and the number of appraisers who want to work with AMCs that have a "goal" of 48-hour turn times will be even less.

So my original question remains, are the COW state appraisers hiring new trainees? Are they hiring their children to continue the family business working for AMCs? OR and they acting like the rest of the country and not hiring, and if so, why?

Are the COW state appraisers taking Mercury Network orders for $500 instead of AMC orders for $600?

If the AMC model does not change considering the COW states they have no one to blame when the "shortage" expands to other states other than themselves. If the COW state appraisers are not hiring their kids to be appraisers that says they are not confident about the profession.

 

[Meandering]

C and R is a JOKE that idiots wrote into a law that is not enforceable to appease someone. Low fees are paid in Florida and other places because of an oversupply of appraisers..

C&R is the market price. And you are correct, the market price is not enforceable. What is enforceable it the manipulation of the market price in violation of anti-trust laws,

but hey,

what's a little comprehension when there are more than three paragraphs.

The problem is,




And who said quotes were free?????

Oh yeah,

a bunch of lemmings.

And,

How can you "Accept" without a fee agreement????

So with sufficient other work in COW states,

why would anyone stop what they are doing to answer to companies like this, that they never heard of either, or, never heard good things about them.

The AMC model does not work for appriaisers, and appraisers are finally getting around realizing that.

.
.

 

[Eli]

C&R is the market price. And you are correct, the market price is not enforceable. What is enforceable it the manipulation of the market price in violation of anti-trust laws,

but hey,

what's a little comprehension when there are more than three paragraphs.

The problem is,

View attachment 32867


And who said quotes were free?????

Oh yeah,

a bunch of lemmings.

And,

How can you "Accept" without a fee agreement????

So with sufficient other work in COW states,

why would anyone stop what they are doing to answer to companies like this, that they never heard of either, or, never heard good things about them.

The AMC model does not work for appriaisers, and appraisers are finally getting around realizing that.

.
.

When is that hearing in LA? Some things will be brought to light then.