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The Decline of the Appraisal Industry: An Unsustainable Future

There seems to be no lobbying group, no effective government representation, and no standardization of fees.
In the 90s when the de minimus was raised from $50k to $100k then $250k, societies saw this as an attack where basically half the country could be valued using an evaluator instead of an appraiser. In reality, it's not been a big deal, but AI and NAIFA (RIP) both spent MILLIONS lobbying to roll back the de minimus. First, they didn't know how to lobby, and hirelings were not great. Secondly, the associations almost bankrupted themselves. NAIFA, in particular, was flush with money. And spent it all. Then mortgaged their unburdened office in St. Louis. Then they sold the building and slowly imploded until merging with ASA. AI likewise blew the money. A- the ABA has 20x more members and can outspend you. B - the NAR has more than 20x members and can outspend you. We have no lobby power and never will. And the banks never wanted us anyway.

As for "standardizing" fees, when I started there was basically only one fee plus minus 10%. And since you got easy ones, and you got hard ones, the easy ones offset the hard ones. Today, the easy ones get hybrids, waivers, etc. The only ones left are more difficult (not to mention homes today are far more complex than they were 30 years ago.) And with the HVCC and AMCs - well, suddenly take a pay cut or get no work. And that's on us, but at the same time you understand why people bend under the cruel pinch of want.

Prior to 1991 few appraisers were really full time unless salaried. The future is that appraisers will be part-timers again. Welcome to reality.
 
I began investing in property back in 2000 and have continued to do so up to the present day. Appraisal serves mainly as a supplementary or secondary source of income for me. Although I enjoy doing a couple of appraisals each week, I am consistently disappointed by the lack of organization within the profession. There seems to be no lobbying group, no effective government representation, and no standardization of fees. As one of the pivotal aspects of obtaining a loan, the industry is woefully underrepresented. As surfcat stated earlier, Starbucks employees and hotel cleaners can organize themselves better than appraisers. The Appraisal Institute is inept, and I've not heard a strong public stance from them regarding appraisal fees. I feel their representation is weak. They charge a lot for courses and memberships, and I don't see what you get for it.

And if anyone wonders how broken this industry is. How many appraisers tell their kids to go into the residential appraisal profession.
I just saw on the news that the ski patrol workers in Park City went on strike.....causing Havoc, long lines, and ruining visiting skiers vacations.

If real estate appraisers pulled a full stop on AMC's nationwide, it'd be frontline news.
 
We are not that concentrated. We are not that flush with money to hold out long. That's an issue.
And Starbucks baristas, hotel cleaners, ski patrol workers are?

Actually appraisers are in a better position than the above. We don't have to work just for AMCs. Direct lenders, estate appraisals, hard money.

On top of that, don't you think that if everybody hits the brakes, Nationwide, that people in the middle of buying a house or refinancing won't switch to a direct lender where they can get an appraisal?

Even if it's just for a few days, it would be light to what's going on (with AMCs) to the general public. It's going to take some sacrifice to make things better.

How come appraisers think so little of themselves?
 
And Starbucks baristas, hotel cleaners, ski patrol workers are?

Actually appraisers are in a better position than the above. We don't have to work just for AMCs. Direct lenders, estate appraisals, hard money.

On top of that, don't you think that if everybody hits the brakes, Nationwide, that people in the middle of buying a house or refinancing won't switch to a direct lender where they can get an appraisal?

Even if it's just for a few days, it would be light to what's going on (with AMCs) to the general public. It's going to take some sacrifice to make things better.

How come appraisers think so little of themselves?
It's the geographic concentration and/or already formed union that allows most the ability to strike. I've said it here many times. This can be done but has to be at a local level. And in a market without hundreds of appraisers. I quit my last AMC 18 months ago so it would be easy for someone like me to participate. Even most indys. But getting the full time staff appraiser to essentially quit is another thing again.
 
And Starbucks baristas, hotel cleaners, ski patrol workers are?
They are 20-year-olds or have few assets to lose like immigrants. The average appraiser is bumping retirement age. Most of us came into the business scrounging for an occupation that would hire us. We had homes to try to save. And losing a job was eating into savings.
Nationwide, that people in the middle of buying a house or refinancing won't switch to a direct lender where they can get an appraisal?
Banks and Fannie would declare an emergency and close the loans anyway.
 
And Starbucks baristas, hotel cleaners, ski patrol workers are?
There is a Starbucks on every other corner and they are not all unionized so just a minor inconvenience for customers. According to some on this forum hotel cleaners are all illegal immigrants so they won't go on strike
 
More tinkering from the DC crowd (see below) without addressing the real problems appraisers face: THE PAY SUCKS!

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It befuddles me why appraisers nationwide absolutely refuse to slam on the brakes working for AMC's. Starbuck baristas went on strike again before Christmas......they were in the news. Hotel workers (many of whom are not even citizens) went on strike and got media coverage. Appraisers just bend over and grab their ankles.
Because there is always "that guy" out there who won't do it, and use it as an opportunity to obtain clients. I know a guy who does work for a large AMC who consistently does work 30+ miles from his house in an urban area, because he does them for $300. This company will tout quality and superiority to other AMCs but they are bottom of the barrel, sacrificing any sort of integrity for an additional $50.
 
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