Voice of Appraisal

[alebrewer]

It is a mistake to make appraisal into a speed race - as if shaving 20 minutes off the time is the goal rather than producing credible results

The loans are for 15 - 30 years and the property values in the hundreds of thousands of dollars.

Yeah, a competitive disadvantage for low-hanging AMC fruit only - we deliver in plenty of quick time, typically 48 hours after inspection for clients that want good work -

I mean - for those who embrace the philosophy of ludditism - I'm sure there is no relation between income and efficiency.

for the real world, though:
If I can do 10 appraisals a month at $500 per appraisal, I make $5,000/month.
If I can do 20 appraisals a month at $500 per appraisal, I make $10,000/month.

So, we see then that increasing efficiency DOES, in fact, increase income as well (ceteris paribus). No one ever said anything about using the tools to produce un-credible results. Who would want to do that?

 

[alebrewer]

I trust the supervisor more than the fella from India or any AI program

Depends on the supervisor...

 

[J Grant]

I mean - for those who embrace the philosophy of ludditism - I'm sure there is no relation between income and efficiency.

for the real world, though:
If I can do 10 appraisals a month at $500 per appraisal, I make $5,000/month.
If I can do 20 appraisals a month at $500 per appraisal, I make $10,000/month.

So, we see then that increasing efficiency DOES, in fact, increase income as well (ceteris paribus). No one ever said anything about using the tools to produce un-credible results. Who would want to do that?

DOH I know faster leading to more productivity can increase income
However, when everyone has access to the same tools that edge disappears - there is only so much volume to be had

Another way to increase income is to become a better appraiser which gets one better lcienrts and fees.

 

[alebrewer]

Another way to increase income is to become a better appraiser which gets one better lcienrts and fees.

Its been my experience that potential clients don't necessarily want better. They want faster. It seems to me that most users in the residential lending space are concerned that an appraisal meet minimum GSE standards, but could care less if it exceeds those standards. They care deeply, however, about turn times.

 

[Bobby Bucks]

Its been my experience that potential clients don't necessarily want better. They want faster. It seems to me that most users in the residential lending space are concerned that an appraisal meet minimum GSE standards, but could care less if it exceeds those standards. They care deeply, however, about turn times.

Actually the only reason speed matters is because the loan officer and his company don't want to lose their client/borrower/commission to a competitor, Or even worse, have them cancel the deal. It's why some offer premium fees for fast turn times.

 

[alebrewer]

Actually the only reason speed matters is because the loan officer and his company don't want to lose their client/borrower/commission to a competitor, Or even worse, have them cancel the deal. It's why some offer premium fees for fast turn times.

yep. The faster the appraiser is, the quicker everyone gets what they want.

 

[Surf Cat]

Its been my experience that potential clients don't necessarily want better. They want faster. It seems to me that most users in the residential lending space are concerned that an appraisal meet minimum GSE standards, but could care less if it exceeds those standards. They care deeply, however, about turn times.

I never understood the "they want it yesterday" mentality when it comes to appraisals.

On a purchase for instance, the home enters escrow and it needs to go through several checkpoints. Loan processing, Termite, home inspection, maybe a couple repairs agreed upon by the seller and the buyer. Escrow is typically 30 days give or take.

The appraiser gets the screws turned on them to produce a USPAP compliant report in sometimes 24 hours to help gauge the risk of making a sound lending decision.....

It never made sense to me.

 

[Bobby Bucks]

I never understood the "they want it yesterday" mentality when it comes to appraisals.

On a purchase for instance, the home enters escrow and it needs to go through several checkpoints. Loan processing, Termite, home inspection, maybe a couple repairs agreed upon by the seller and the buyer. Escrow is typically 30 days give or take.

The appraiser gets the screws turned on them to produce a USPAP compliant report in sometimes 24 hours to help gauge the risk of making a sound lending decision.....

It never made sense to me.

What's especially amusing is the higher the loan amount and the higher the LTV, the faster they want it and USPAP be damned because it's just another commission obstacle.

 

[Terrel L. Shields]

there is only so much volume to be had

Bingo... One or the other has to give - more jobs or fewer appraisers and I don't see more assignments in the future short-term. Maybe if prices come down and interest rates do not go up.

 

[glenn walker]

I never understood the "they want it yesterday" mentality when it comes to appraisals.

On a purchase for instance, the home enters escrow and it needs to go through several checkpoints. Loan processing, Termite, home inspection, maybe a couple repairs agreed upon by the seller and the buyer. Escrow is typically 30 days give or take.

The appraiser gets the screws turned on them to produce a USPAP compliant report in sometimes 24 hours to help gauge the risk of making a sound lending decision.....

It never made sense to me.

Because once the loan officer has the appraisal if it's not FHA he can hold the borrower hostage by telling them if they switch lenders the new lender is going to have to get a new appraisal and may have to pay them a new fee. More money and time lost.

Then if the existing one came in on target the loan officer says we got a good appraiser, but your new lenders appraisal may come in low. Now the borrowers loan is in underwriting and approved. Most buyer's will say yeah, let's get this closed before the seller finds a better offer.