Why Do Some Appraisers Believe, Fees And Fees Alone, Determine Ethics?

[Meandering]

Glad you're happy,

Now get your reading done,
you unethical old guy.



Then we can "discuss" your concerns.

 

[Mike Garrett RAA]

I know some very unethical appraisers who just happen to have very high fees and I also know some very ethical appraisers who charge less than I do. That said, I do believe there are appraisers out there who have discounted fees in order to be competitive who have to cut some corners in order to do the volume . So, are fees a really good basis for determining ethical operations? Typical appraiser answer...it depends!

 

[J Grant]

I concur that fee is not always commensurate with ethics on appraiser end. But it is client/ lender responsibility to screen for ethical results in an appraisal and competent appraisers. That said, some clients can dangle a high fee as a possible inducement to make a deal work .Others can use low fees to squeeze profit and overook faults in the appraisal, and not probe into how this miracle of high volume occurs (don't ask don't tell)

Paying a high fee or paying a low fee does not relieve a client of this responsibility (due diligence), and accepting a low fee or high fee on appraiser end does not relieve them of their due diligence.

I will say that overall trend of large scale lender /AMC when it is to lower fees and favor the cheapest, fastest, has the effect of choosing those that fulfill that over what may be more competent and experienced. And it induces those who get large volume in exchange for low fees to spend the least time possible on each report and get it done by any means necessary as fast as possible. This trend toward 48 hour or less deadline after inspection, with higher scoring of the fastest, is abominable.

I fail to see how the profit incentive to hire by cheap /fast leads to ethically produced reports or picking the better appraiser for job or any long term future of attracting, or retaining quality minded professionals to remain for the residential lending side of the business.

 

[bnmappraisal]

I knew this was going to be an interesting thread! (see post #2)

 

[residentialguy]

I fail to see how the profit incentive to hire by cheap /fast leads to ethically produced reports or picking the better appraiser for job or any long term future of attracting, or retaining quality minded professionals to remain for the residential lending side of the business.

that's because it's a breeding ground for unethical behavior.

 

[residentialguy]

I knew bnm would think this was going to be an interesting thread! see post #.... hey, someone deleted it. Dammit Hillary!

 

[bnmappraisal]

hahaha. Good one ResGuy

 

[Michigan CG]

I read a really bad report a couple years ago. Every page had DRAFT written on it. The fee was in the $15,000 range.