This is NOT GOOD

[bluechip]

GA Appraisers take a good look at this. This is not good for our profession: https://grec.state.ga.us/proposed-rule-change/

 

[sputnam]

I don't think it's a big deal. It will shift the responsibility for minimum fees from the law to the appraiser and there will always be appraisers who believe that working cheaper is beneficial. It's simply a return to the way it used to be.

 

[bluechip]

I don't think it's a big deal. It will shift the responsibility for minimum fees from the law to the appraiser and there will always be appraisers who believe that working cheaper is beneficial. It's simply a return to the way it used to be.

Regardless if you like AMC's or not. If Georgia does away with any sort of law that requires C&R (which you and I know doesn’t exist anyway) you will see these management companies in mass providing less and less fees because they can. We are complaining about $300 fees now. Get ready for them to push the limits to $200 and ignore our demand for C&R because they are now absolved of any wrong doing period. We need to have something in place to ensure we have the ability to continue to operate properly.

After all these years I truly don't want to perform a 1004 with MC for $200 - $300 - If you calculate real life expenses you will realize that you are making less than minimum wage. That is unacceptable at any level. Every GA appraiser needs to be vocal about this issue to the board.

I am not intimating price fixing but we as appraisers must be compensated at a level that we are accustom to. The only way to ensure that is C&R.

Let's not go to a gun fight without ammo. Then you just have a glorified hammer in your hand.

BC

 

[sputnam]

Used to work as a regional review appraiser for what was, at the time, the largest AMC/Appraisal company on the planet. At a time with appraisal fees were typically $300-$350, my manager remarked "If every appraiser demanded $500 per appraisal, we'd be paying $500." Appraisers need to quit relying on regulators to make sure they get better fees. Of course AMCs are going to press for lower fees. It's business. Lower costs means higher profits. That's what businesses are supposed to do.

 

[J Grant]

Used to work as a regional review appraiser for what was, at the time, the largest AMC/Appraisal company on the planet. At a time with appraisal fees were typically $300-$350, my manager remarked "If every appraiser demanded $500 per appraisal, we'd be paying $500." Appraisers need to quit relying on regulators to make sure they get better fees. Of course AMCs are going to press for lower fees. It's business. Lower costs means higher profits. That's what businesses are supposed to do.

But appraisers can not demand and get $500 from an AMC, because the AMC has tremendous leverage . Since appraisers are not under one unified block, it is not possible for every one of them to all demand the same fee. The reason C and R was included in the regulations was because unlike normal business where a customer hires the professional ( giving ree access to a professional to thousands of potential customers ), the customer as a client loan officer is not allowed to select the appraiser. That narrows the client effective demand side into a very limited channel. Which creates an extreme unbalance wrt how supply and demand plays out in res lending when an AMC is involved.

That is the reason appraisers had to "rely" on regulators, but when the regulations got corrupted wrt AMC's won the right to use their internal fee as C and R it was game over. With the exception of a busy volume spurt or a remote rural area, there is no possibility for residential appraisers to get decent fees for AMC work. That is a reality folks considering this as a career should think long and hard about. There is direct lender and private work that pays well on the res side, but not in enough volume to sustain every res license appraiser .

 

[KHS445]

And no one thought an unskilled employee at a fast-food restaurant or mega store would be making $18 per hour, but here we are. All it took was a bit of time and no one willing to do the job and all of a sudden wages and benefits were increased.

I have always said there are three types of appraisals, good/fast/cheap. You can select any two of the three and I will tell you the third one. With the exception of some pocket areas, I don't believe there is an appraiser shortage. I think it more of a shortage of appraisers willing to work for low ball prices and extremely short turn times. Now my pricing had always been on the low side, but I have increased my prices between 20% and 50% over the last year and I am still nearly a month out as a turn time.

A friend of mine who works a couple of Counties away is quoting multiple thousands of dollars for an appraisal of a 4,000 to 5,000 square foot home with frontage on Lake Michigan. Most of the sale prices are between $1,000,000 and $2,000,000, with the buyers agreeing to pay cash but just want to make sure they are not overpaying for the property.