The death (suicide) of the appraisal industry

[Aokreal1]

If you have purchased anything in the past five years, you have noticed a large increase in the cost, even appraisals.
Unfortunately, the AMC's are the ones benefitting from the majority of our business. Appraisers are in demand, but we are getting paid less than we were five years ago. At least in South Florida, from what I read it is a nationwide issue. Why would anyone graduating from college choose to be an appraiser? The fees are poor, the stress is high and the job satisfaction is low. It is no wonder we have a shortage.
Even with the shortage, appraisers are still accepting these low offers.
I am pleading with fellow appraisers, stop accepting these low fee orders from the AMC's, you know the ones I refer to, which unfortunately is most of them.
I personally turn down 3-5 orders a day. I get offers with fees that are less than when I started my business in 1991, no other profession can say that.
If you guys dont wake up sooner than later, you will find yourself out of business and you will only have yourself to blame.
I started a web site that brings in more private work. I still do work for the AMC's when they pay a fair fee, which is rare.
These companies are taking advantage of slow appraisers, advertise, start a web site, stop selling yourself short.

 

[J Grant]

If you have purchased anything in the past five years, you have noticed a large increase in the cost, even appraisals.
Unfortunately, the AMC's are the ones benefitting from the majority of our business. Appraisers are in demand, but we are getting paid less than we were five years ago. At least in South Florida, from what I read it is a nationwide issue. Why would anyone graduating from college choose to be an appraiser? The fees are poor, the stress is high and the job satisfaction is low. It is no wonder we have a shortage.
Even with the shortage, appraisers are still accepting these low offers.
I am pleading with fellow appraisers, stop accepting these low fee orders from the AMC's, you know the ones I refer to, which unfortunately is most of them.
I personally turn down 3-5 orders a day. I get offers with fees that are less than when I started my business in 1991, no other profession can say that.
If you guys dont wake up sooner than later, you will find yourself out of business and you will only have yourself to blame.
I started a web site that brings in more private work. I still do work for the AMC's when they pay a fair fee, which is rare.
These companies are taking advantage of slow appraisers, advertise, start a web site, stop selling yourself short.

Even for the folks who do not graduate from college, why would ANYONE with any semblance of talent, ethics, or ability want to enter the residential side of appraising? And if they naively stumble into it, why would they stay? (unless they are lucky enough to get an assessor job or decide to go for a commercial license).
It is with a heavy heart that I say that since the field needs the next gen of talent, but word has gotten out - it is only attracting a trickle to the PAREA classes, which were supposed to solve the problem. I personally am AMC-free except for one captive order client, but what I see in fees on the AMC side is appalling.

Absolutely, appraisers should reject the low fees...whether the majority of those who work for AMC's can or will do so is another matter - the GSE;'s have made things exponentially worse by allowing PDC collection and hybrids, which will let the AMCs who have staff appraisers use them more "efficiently" to churn and burn more volume.

If you no longer accept AMC work but get 3-5 offers a day, I'd recomend take your name off their approval lists ( unless you are collecting intel on them, in which case save the crappy low fee or bid invites.

 

[Gobears81]

Even for the folks who do not graduate from college, why would ANYONE with any semblance of talent, ethics, or ability want to enter the residential side of appraising? And if they naively stumble into it, why would they stay? (unless they are lucky enough to get an assessor job or decide to go for a commercial license).

Surprisingly, the three most recent inquiries we've had from prospective trainees are primarily interested in becoming residential appraisers. We've mostly talked them out of it (or tried to), and they didn't have that much interest in the commercial side. I think most of them weren't aware of the changes taking place in the industry of late.

 

[Tim Hicks (Texas)]

Wow, wait until he hears about hybrid appraisals and the new 3.6.

 

[J Grant]

Surprisingly, the three most recent inquiries we've had from prospective trainees are primarily interested in becoming residential appraisers. We've mostly talked them out of it (or tried to), and they didn't have that much interest in the commercial side. I think most of them weren't aware of the changes taking place in the industry of late.

The res license is the easiest and quickest to obtain so it is not surprising.

 

[Alsie35]

Wow, wait until he hears about hybrid appraisals and the new 3.6.

 

[Fernando]

If you have purchased anything in the past five years, you have noticed a large increase in the cost, even appraisals.
Unfortunately, the AMC's are the ones benefitting from the majority of our business. Appraisers are in demand, but we are getting paid less than we were five years ago. At least in South Florida, from what I read it is a nationwide issue. Why would anyone graduating from college choose to be an appraiser? The fees are poor, the stress is high and the job satisfaction is low. It is no wonder we have a shortage.
Even with the shortage, appraisers are still accepting these low offers.
I am pleading with fellow appraisers, stop accepting these low fee orders from the AMC's, you know the ones I refer to, which unfortunately is most of them.
I personally turn down 3-5 orders a day. I get offers with fees that are less than when I started my business in 1991, no other profession can say that.
If you guys dont wake up sooner than later, you will find yourself out of business and you will only have yourself to blame.
I started a web site that brings in more private work. I still do work for the AMC's when they pay a fair fee, which is rare.
These companies are taking advantage of slow appraisers, advertise, start a web site, stop selling yourself short.

I see you been appraising when USPAP started. The old geezards know how "easier" it was back then to do appraisals and fees were good. Since then, more demands from clients and fees haven't kept up with inflation. Youngings don't have the experience to see how the current appraisal business is less profitable and unrewarding unlike the good ole days.