Why would an Appraiser even hire a Trainee?

[Mark K]

A Mark Twain quote comes to mind when the subject of trainees comes up...

"If you pick up a starving dog and make him prosperous, he will not bite you. This is the principal difference between a dog and a man."

I guess I'll have to hunt down that one principled appraiser (or person for that matter) in Las Vegas who actually cares about passing the torch, etc.

There are a lot of 'principled' appraisers in this business but they are often reluctant to train their future competition.

 

[Civic]

How much Amrock pays for 1004?

 

[Cob]

Stop you're rolling around and sit yourself up....
Maybe the others are the contrarians when it comes to Amrock....

Amrock....
Has an easy to use portal....
Has volume in my area....
Pays well....
Pays regularly/on time....
Will direct deposit....

If one follows the requirements on the engagement letter typically no stips (and it's not as if the requirements change for every assignment or often)....
Other AMCs who service multiple lenders have basic engagement letters with lender specific "add ons" so until one gets familiar with each individual lender's "add ons" one has to read the entire engagement letter....
Plus during the early stages of the pandemic they assigned alternative appraisal products-Desktop/Exterior, full fee & extended due dates....

My opinion could change next but this week, I like Amrock....

Shhhhhhhh!

 

[Terrel L. Shields]

There are a lot of 'principled' appraisers in this business but they are often reluctant to train their future competition.

I trained several when I was around 50. I had no issue with that. But at 70 they are not my future competition. But a trainee means my E & O is much more expensive, I am at far greater risk of a complaint, I have clients who want ME to do the job, not someone else, and in the end, the risk outweighs any benefit a trainee offers other than to "promote the profession" by creating another appraiser....which does what? I train someone into a regulatory nightmare of secondary market BS? I train them to avoid that nightmare? How? It will take a full 3 to 4 years to get a brand new trainee up to CG speed in my state. I am not likely to last that long. I figure the next license cycle will be my last. The banks don't want us and I am all for sunsetting the industry if the Feds will pass a law that banksters must do mandatory sentences for their defalcations and their bank be seized and sold in the event of mismanagement and fraud.

 

[glenn walker]

A Mark Twain quote comes to mind when the subject of trainees comes up...

"If you pick up a starving dog and make him prosperous, he will not bite you. This is the principal difference between a dog and a man."




There are a lot of 'principled' appraisers in this business but they are often reluctant to train their future competition.

The problem is most hire a trainee when the market is super hot when in reality they should do it in a slower market where they can take the time to train properly. Unfortunately the way we have been structured in most cases no longer allows us to justify taking on someone. We are like old guilds and artisans Typically the key "privilege" was that as guild members we used to work limited areas or practiced our skills within the city or county limits. Today lenders have all but made it impossible as they dont allow the trainees to inspect and they no longer accept supervisory signatures . Many AMCs and lenders will not even accept an appraisal from a fully licensed or certified appraiser unless they have been practicing for five years. its one heck of a F-Upped System.

 

[Cob]

****Today lenders have all but made it impossible as they dont allow the trainees to inspect and they no longer accept supervisory signatures . Many AMCs and lenders will not even accept an appraisal from a fully licensed or certified appraiser unless they have been practicing for five years. its one heck of a F-Upped System.*****

You are 100% correct on this Glenn, and this is the #1 problem I have ALWAYS had being an appraiser and the problem I have ALWAYS had is that residential appraisers do NOT control or even really have a say in ANYTHING in our industry, everyone one else, mainly banks and lenders, AMC's etc. make all the rules and are the only ones who constantly are trying to "make things easier" on us, when we all know when they do something to "make things easier" on us, it's usually just another way for anyone but the appraiser to make a quick buck, usually in the name of saving the borrower/home owner money and time.

 

[George Hatch]

What I find interesting is that in this RE cycle the appraisers learned from their mistakes from the previous RE cycle. During the last cycle the demand was high and it was profitable to take on multiple trainees,. That's how the number of residential appraisers doubled in my area between 2001-2007. The resulting oversupply of appraisers coupled with the decline in demand during the RE bust that followed was a contributing factor in the increased misery index for appraisers, and a lot of fully licensed/certified appraisers got starved out of the business.

That didn't happen during the current cycle. Leastwise, not yet. It appears the SFR appraisers finally learned their lesson and have refrained from chasing the short dollar.

The smarter business model for an individual fee appraiser is to spend most of their time out in the field performing inspections and comps, and hire part time clerical types to do diagrams and data entry and such. All the appraiser does from there is review the partially completed report and add in their original analyses and writing.

Then when the volumes drop the appraiser can lay off the clerks without having to carry them when the work is slow or worry about them scavenging a client base.

Scalable and will limit the appraiser's fixed overhead. 'Cause when business is down it is the overhead and the competition that hurts you.

 

[ucbruin]

Comparing this cycle and the 2001-2007 cycle is like comparing apples and toes nail....

 

[Terrel L. Shields]

Comparing this cycle and the 2001-2007 cycle

Here, it is hard to tell the difference. Huge building boom, you can't find an electrician, plumber, or repairmen to do anything. They are all "contractors". What surprises me the most is the number of young builders from 15 years ago who are now 40-60 years old and back to the exact business model before. Get as many houses started as the bank will allow and line up the "contractors" for set fees then bid 20% higher.

We had some roof damage and got 3 bids. Took the lowest one since I knew the guy personally - he had painted my barn roof and rebuilt my old barn, used to replace gaskets around vents and other odd jobs. But the highest bidder was the one who showed up...subcontracted by the bid winner to do the job??? And no, don't even ask for small jobs. He's strictly remodeling and roofing.

 

[George Hatch]

Comparing this cycle and the 2001-2007 cycle is like comparing apples and toes nail....

I just said that. Appraisers have behaved differently WRT trainees this time than they did last time.