This is why I got out of this profession

[George Hatch]

This very well may be true in the AMC world. Back in the mortgage broker days however, (yes, I know it's never going back to that) the fee amount was never the issue.....even when it was slow. It was can you produce the value needed to make the deal work. And, can I get it yesterday, which one could easily get another c note for without batting an eye.

Dealing with pushy mortgage brokers about the value was like dealing with a child seeing how far they could push the limits. If one had a handle on that, the empty threats of "I can't use you if you can't make it work" we're just that....empty.

With AMC's it's all about the fee and turn time. It's nothing to do with your expertise, geo competency, reliability, or letters after your name stating you took a lot of classes and you're an expert.

The AMC system is for profit and could give a rats a** about any of their appraisers, a well supported report, public trust or any other feel good statement on their website (Our market-value Appraisals are the most accurate approach to determine true market value.) Gag me with a spoon...

Everything you're referring to was real. Obvi.

The reason it can't go back now is because of technology. And the lack of govt prohibitions.

My sense of it is that the more urbanized a population is, the lower the percentage of home ownership.

 

[Surf Cat]

Everything you're referring to was real. Obvi.

The reason it can't go back now is because of technology. And the lack of govt prohibitions.

My sense of it is that the more urbanized a population is, the lower the percentage of home ownership.

You think so in regards to home ownership? The housing market is tied and a big factor to the economy. When home sales are up, so are jobs. I don't see a dystopian future where the government is the landlord and a large percentage of Americans are the tenant. There would be no vested interest in the surrounding communities if that happened. We need new builds and to incentivize home ownership.

You and others here have been in this a very long time. You know very well, what comes up, must go down and vice versa. This "shift" in the appraisal process is like nothing we've ever seen. So, that's the wild card. Waivers and AVM's only?

Interest rates will go down, home values will go down. Will this hybrid with PDC's / PAREA appraisers from the selected half dozen AMC's be ready for the next surge? Or, will it blow up in the gse's faces when things ramp up and stuff hits the fan? We shall see.

 

[Shawangunk RE]

Just have to take a ton of comp pix before seeing the property, many that are not going to be comparable, and charge extra for them making you do more work. Of course I doubt they are going to pay you more.

Tax records here are rarely correct or updated. We would have to take pix of 10's of sales we think might be comps. Not doing that. I think its ridiculous to make us take comp pix instead of using the MLS photos. As long as the appraiser is familiar with the subject neighborhood, with google earth and google maps, there is no need to take comp pix. After the pandemic when everything sold in a day or two, most times the house they bought looked nothing like the house after renovations. So, we would go and take the comp pix and have to add the MLS photo to show the condition at the time of its sale.

 

[Fernando]

Tax records here are rarely correct or updated. We would have to take pix of 10's of sales we think might be comps. Not doing that. I think its ridiculous to make us take comp pix instead of using the MLS photos. As long as the appraiser is familiar with the subject neighborhood, with google earth and google maps, there is no need to take comp pix. After the pandemic when everything sold in a day or two, most times the house they bought looked nothing like the house after renovations. So, we would go and take the comp pix and have to add the MLS photo to show the condition at the time of its sale.

Appraisers should make judgement calls whether to use own or MLS photos.
The problem is that some appraisers make bad judgement calls thus lenders require across board personal photos of comps.

 

[George Hatch]

You think so in regards to home ownership? The housing market is tied and a big factor to the economy. When home sales are up, so are jobs. I don't see a dystopian future where the government is the landlord and a large percentage of Americans are the tenant. There would be no vested interest in the surrounding communities if that happened. We need new builds and to incentivize home ownership.

You and others here have been in this a very long time. You know very well, what comes up, must go down and vice versa. This "shift" in the appraisal process is like nothing we've ever seen. So, that's the wild card. Waivers and AVM's only?

Interest rates will go down, home values will go down. Will this hybrid with PDC's / PAREA appraisers from the selected half dozen AMC's be ready for the next surge? Or, will it blow up in the gse's faces when things ramp up and stuff hits the fan? We shall see.

"Bad deals are made during good times."

As far the use of AVMs, waivers and hybrids vs conventional 1004s, whether the additional risks involved in using these alternatives are acceptable or not will be demonstrated by whatever losses can be directly attributed to the use of these alternatives instead of the 1004s.

We assume that the low-fee appraisals and the lesser valuation alternatives will lead to increased losses during a downturn. That sloppy invariably leads to grossly overvalued; that not making market adjustments during an increasing market somehow poses a threat to safe/sound lending; that the precision of adjustment factors significantly alters the lender's mortgage interest. But what if some of those assumptions are in error? It's possible for the appraisals to still considered substandard AND at the same time be considered by their users to be sufficient to their usage.

What if the lenders' ideas of "good enough" actually do turn out to be good enough? Have we been giving adequate consideration to would happen in the market for appraisal services in the event that occurred? Because I'm not seeing any indication of that consideration. And indeed, maybe that won't be necessary. Maybe every one of those assumptions do pan out and any doubt that they might have failed would have just been an exercise in wasted time/effort.

2025 and 2030 are going to come to pass whether we've figured out how to operated in those environments or not. The only thing I'm reasonably confident in is that there's nothing we can say or do in any discussion with these lenders that are going to make a dent on their decision process.

 

[Alsie35]

*SNIP*

My sense of it is that the more urbanized a population is, the lower the percentage of home ownership.

And the more willing the people who have little stake in society are to give up more and more of their freedoms. (Thereby giving up their own chances to ever gain a stake in that society. Jefferson was right to fear an over-urbanized society, but at the same time, its a phase that all large nations/empires eventually evolve to.)

Property ownership as a prerequisite for being able to exercise the franchise looks like a pretty good idea in retrospect, doesn't it? Not only would that type of system keep "legalized gov't theft" at bay, but it would also create an incentive for people to work hard to succeed so that they could gain that right.

 

[Damienvball]

One of the largest AMCs in the country. It will be picked up within seconds.

View attachment 78334View attachment 78335

I get emails like this, I respond telling them what my fee is and half the time they increase it an send me the order.

 

[shrubberyvaluation]

"Bad deals are made during good times."

As far the use of AVMs, waivers and hybrids vs conventional 1004s, whether the additional risks involved in using these alternatives are acceptable or not will be demonstrated by whatever losses can be directly attributed to the use of these alternatives instead of the 1004s.

We assume that the low-fee appraisals and the lesser valuation alternatives will lead to increased losses during a downturn. That sloppy invariably leads to grossly overvalued; that not making market adjustments during an increasing market somehow poses a threat to safe/sound lending; that the precision of adjustment factors significantly alters the lender's mortgage interest. But what if some of those assumptions are in error? It's possible for the appraisals to still considered substandard AND at the same time be considered by their users to be sufficient to their usage.

What if the lenders' ideas of "good enough" actually do turn out to be good enough? Have we been giving adequate consideration to would happen in the market for appraisal services in the event that occurred? Because I'm not seeing any indication of that consideration. And indeed, maybe that won't be necessary. Maybe every one of those assumptions do pan out and any doubt that they might have failed would have just been an exercise in wasted time/effort.

2025 and 2030 are going to come to pass whether we've figured out how to operated in those environments or not. The only thing I'm reasonably confident in is that there's nothing we can say or do in any discussion with these lenders that are going to make a dent on their decision process.

I also assume when a company profits when things go well and passes losses to taxpayers when things go bad is not going to do their due diligence.

 

[shrubberyvaluation]

Tax records here are rarely correct or updated. We would have to take pix of 10's of sales we think might be comps. Not doing that. I think its ridiculous to make us take comp pix instead of using the MLS photos. As long as the appraiser is familiar with the subject neighborhood, with google earth and google maps, there is no need to take comp pix. After the pandemic when everything sold in a day or two, most times the house they bought looked nothing like the house after renovations. So, we would go and take the comp pix and have to add the MLS photo to show the condition at the time of its sale.

I'll do it if they add $1000 to the fee. Of course this is why I never get orders from them. Not going to give a crappy product and Im more than willing to complete their SOW of 24 hr after inspection if compensated for the added time to make sure I can complete it 24 hr after inspection.

 

[Digger88]

Send it my way