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What's Your Beef About Your Work?

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1963jag

Thread Starter
Freshman Member
Joined
Dec 9, 2015
Professional Status
General Public
State
Canada
As an outsider trying to understand the valuation industry, I would like to know what issues are really bothering appraisers.
Yesterday I got an email from an appraiser in Phoenix who handles commercial properties throughout the state, and his major complaint was the lack of a good software work flow within his 9 person office.

Another appraiser I spoke with is bothered by the length of time it takes to complete all the verification details required for his reports.

I am learning so much that I may have to write an article to share with the community. It would seem that the appraisal industry is rife with problems, both large and small.

Would anybody here care to chime in with any of the issues that are making your day more cloudy than sunny?
 
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DTB

Elite Member
Joined
Jun 11, 2004
Professional Status
Certified Residential Appraiser
State
Illinois
As an outsider trying to understand the valuation industry, I really would like to know what issues are really bothering appraisers.
Yesterday I got an email from an appraiser in Phoenix who handles commercial properties throughout the state, and his major complaint was the lack of a good software work flow within his 9 person office.

Another appraiser I spoke with is bothered by the length of time it takes to complete all the verification details required for his reports.

I am learning so much that I may have to write an article to share with the community. It would seem that the appraisal industry is rife with problems, both large and small.

Would anybody here care to chime in with any of the issues that are making your day more cloudy than sunny?
Non appraiser clerks are running the residential side of the industry.

That impacts the desire for incessant updates, unnecessarily short turn times and ridiculously low fees.

When they don't get what they want, they have the big stick of State Boards as a fallback to raise holy hell.
 

1963jag

Thread Starter
Freshman Member
Joined
Dec 9, 2015
Professional Status
General Public
State
Canada
Question directed at residential or commercial appraisers, or both? They are two very different worlds!
Excellent question, I should have stated that I am looking for commercial appraisers to offer their input.
 

Michael S

Senior Member
Joined
Mar 18, 2009
Professional Status
Certified General Appraiser
State
New Mexico
The standard turn time is decreasing with more clients wanting 2-3 weeks where 3-4 weeks used to be the norm.
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
The standard turn time is decreasing with more clients wanting 2-3 weeks where 3-4 weeks used to be the norm.
(my bold) Welcome to the RES world!
 

Michigan CG

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Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
I do commercial, residential and farm work. When I take it all into consideration I wouldn't trade my job for 90% of the jobs out there.
 

NachoPerito

Senior Member
Joined
Jul 25, 2012
Professional Status
Certified General Appraiser
State
Washington
Lack of quality software that incorporates a database with report building software. There are a few companies that do it, but they are far from efficient.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
The biggest concern is wasting time with bidding systems. For smaller shops this can consume an awful lot of time. Several reasons.

One - there are folks who are using "runners" (for lack of a better term) that are doing the grunt work for el cheapo and so they do undercut the typical fee structure some of us built up over the years.
Two - the bid system creates "issues" of wasting time bidding on losing bids.
Three - in the bidding system, there is rarely sufficient information about the property to make a thoughtful bid. I cannot determine a scope of work until I understand the property appraised. Bidding results in too often underbidding things that are more complex than first appearances. Since I don't actually accept an assignment until I am comfortable that I can do it, and the terms are acceptable, this means you may have to call several times pre-bid, or have post-bid issues.
Four - Pressure for faster turn times is often difficult to resist.
Five - Cranking out cookie cutter reports where the appraiser does not really take the time to properly vet the report, leaves two issues of inadequacy that only will show up if the property has a future default. Otherwise it gets mostly ignored. Facts are facts and we report same. But analysis and conclusions, including adjustments, etc. by their very nature need some justification and some explanation from the appraiser. Thoughtful explanation of those judgments of the appraiser are needed.

Further, everything from the letter of transmittal to the certifications to the limiting conditions, to the text, everything...needs to be vetted to avoid meaningless broiler plate etc. You do not need 4 pages explaining what the sales approach consists of if in the end of that section you say, "Oh, by the way, we didn't use the sales comparison approach because there was insufficient sales of red dirt quarries (or whatever) to make a meaningful judgment by that approach." "Skippy" - the rapid reload and go again appraiser would have added tons of boilerplate and as such ignored the inappropriateness of same.

Six- The regulators (Dodd-Frank directed) have not fully implemented the rules. Small banks, in particular, don't know how to even start to adequately choose and vet the appraisers they need. Turned over to a new hireling often, the "credit department" starts passing out assignments without the knowledge about the specifics of each appraisers qualifications that the loan officers used to have. They knew who was right for the job. These new hires don't understand either lending nor appraising, and just email blast them all to get assignments passed out and off their own desks.

It's not a good system. But the pressure is on the banks to comply. I think banks will be hiring older appraisers to take over the function of assignments and compensation as time wears on and they realize they don't have the right people in the right job.

To point, today I've had 3 potential assignments. 1 - a bank is totally unable to find a rural appraiser to value 80 acres. They know I refuse to bid, so they called me direct and accepted the fee I quoted. 2 - another banker was looking for an appraiser for SW Missouri. There are only a few NW Arkansas appraisers with dual licenses (CG) for farm work. I recommended a MO appraiser out of Joplin, some 50 miles away. A forumites who doesn't post often. I don't have a MO license anymore. Too much trouble for very little work. 3rd one was another vacant tract. Finding a truly independent and competent rural appraiser in our area is difficult and most of the suburban appraisers have so much work they are not willing to make the extra effort to meet the competency provisions.

For me, the range of assignments means a sophisticated database has little use, and most of my assignments are fairly unique. My templates are pretty fast and I don't miss form software. I simply save sales as files and import them as needed. My tables, however, do calculate as needed.
 

PL1957

Senior Member
Joined
Jul 19, 2004
Professional Status
Certified General Appraiser
State
Illinois
The increasing commoditization of the business. Banks that think appraisal independence rules require them to put three blind bids in front of the borrower with no consideration toward specific expertise.
 
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