Editor’s Note: Here, one appraiser explains why he is better off post HVCC and shares the names of a few AMCs he says are worth working for. The individual profiled here has been appraising 21 years in a large metro area in Texas and wishes to remain anonymous.
Diary of a Happy (AMC) Appraiser
I’m not sure why so many other appraisers are having such a hard time with life after HVCC and I am not.ne day, my biggest client, a local Chase branch, called me in for a conference and announced that they were being forced to turn over all of their work to a third party management company. They were good enough to submit my name as one of their primary appraisal providers but they said they no longer had any control over how much work I got. Suddenly, nearly all of my work volume was coming from AMCs. I realized that my earlier dream of being autonomous was getting closer to becoming a reality.
In 2000 I left a mid-size appraisal office and began working as a solo independent appraiser out of my home. Although there were only a few AMCs at the time, I knew that this was the way of the future for me. I have always seen the AMC model as a way the fee-splitting appraiser could break free of the office environment. My experience of over ten years working in fee-split appraisal offices was mixed at best.
I was making really good money for several years at the office, however, the value pressure from local clients trickled down to become value pressure from the owner of the company. The owner assigned the work and could turn it on and off like a faucet, just like the local mortgage brokers who could use our company or not use our company for whatever reason. The idea of not having to drive to an office that reeked of burnt coffee, having to put up with constant phone ringing, overhearing conversations from the next cubicle, having to make small talk or teaching appraisal 101 to the newbies and trainees, having to split fees or putting up with anyone’s BS with respect to my opinion of value, seemed like a far off dream. And it was.
Breaking Free
I left that office and got my own local clients. The volume was less but I didn’t have to split the fee so I broke even on the money. The pressure to make value and difficulties collecting were still issues. In 2001-2002 I started seeing more activity from the AMCs. I signed up to get on every list I could and little by little the ratio of AMC work to local work began to change. I worked with numerous AMCs. Most of them are probably not in business anymore. Some of the big lenders like Wells Fargo and Bank of America started using their own management companies. These were primarily for convenience and management purposes and did not actually serve the purpose of separating loan officers from appraisers but they paid well and on time. There was little relief from the pressure to make value but the big advantage was that getting work no longer depended on taking donuts and coffee to a lender’s office or treating them all to lunch.
AMCs, Fees & Turn Times
As a solo appraiser working out of my home I do not need that much work to keep me busy. Also, as the years go by, I spend more and more time with each appraisal. More time on market research and analysis, more time on extracting appropriate adjustments from the market, more time on the Cost Approach, more time on trying to pin down land value, etc. Admittedly, I don’t make the kind of money I used to but that is mostly by choice. If I want to cut corners and become a “form filler,” I could probably get back up there again. But if an appraiser pays attention to USPAP, Fannie guidelines, FHA rules, etc., he or she will find that appraising a house takes some time. Now, it can be done very quickly by just filling out a form but appraising at a professional level takes a while.
For this reason my volume has to be lower, so I don’t need more than two or three AMCs to keep me busy. I turn down a lot of work, sometimes because I can’t get to it as soon as they need it and sometimes because of fees. The AMCs that I accept work from pay nearly full fee as far as I’m concerned: in the low $300s is near full fee in my area. They all say they want the report in two-three days but I just update them with status via email everyday and they get it when they get it. I pay very little attention to their turn time requirements but I do take the initiative to update them with status regularly. If an AMC is willing to pay $325 and does not hassle me about value, then we will get along just fine. The minute I get a whiff of value pressure from any AMC I will no longer deal with them.
I’ve seen fee lists for certain AMCs with 1004 appraisals paying $225 or $240 or $280. Appraisers need to understand that they can negotiate higher fees. Just talk to them and tell them you’d love to work for them but your fee is $325 or $350 or whatever it should be in your area. If they don’t agree to it then just move on to the next AMC.
Fee Splitters and AMCs
If an appraiser is making a 70 percent split (which is a very good split in my area) and the fee for an appraisal is $350, then the appraiser gets $245. If that appraiser signs up with a bunch of management companies and starts working at home he or she can do better even if they accept the low fee assignments from some of the AMCs. I mean $275 from an AMC is better than a $245 fee split, right. No more driving to the office, no more burnt coffee, no more being subject to the whims and moods of the owner or reviewer who assigns work. Some appraisers complain about the guy who’s out there working for these low fees. Well, if they are making more than they used to, how can they be blamed?
Here’s where things may be going wrong. Suppose Jenny, a 65 percent fee-split field appraiser for a local appraisal shop, leaves and starts working on her own for various AMCs. She’s offered assignments that pay $275, which she accepts because it’s more than she’s used to getting. The AMCs then view that market as $275 and start sending work at that rate. The field appraisers at fee-split offices now have to split the $275. So some appraisers leave the split fee environment to start working on their own to make more money and the appraisers who stay in the fee split offices start making less.(Editor’s Note: Post HVCC, the vast majority of appraisers working with AMCs report continued pressure- for value, low fees and for quick turn times, as well as a general disregard for quality on the part of AMCs. And most are not split fee appraisers. See Postscript from the Editor below for more.)One of the top producing loan officers tried to get me taken off their list as a result but that didn’t work. Then she tried to get my status changed to “inactive.” Nice try. For some of them it was a rough transition. They were used to having total control over appraisers. It really took a couple of years before they started to understand that I was not theirs to push around anymore.
Another thing is that certain appraisal companies have spent years “building profitable relationships” with high volume local clients. I can assure you that some have spent many thousands of dollars paying kickbacks in one form or another so they can continue to get the lion’s share of that office’s origination production. For them, HVCC is a threat. But for me, I am happy with the two, sometimes three AMCs that keep me busy. I’ll never make $100,000 a year again because I had to cut corners in order to do that and I just won’t do it anymore. Today, I am a much different and much better appraiser.
AMCs and Pressure
One thing that I really like about AMCs, the good ones at least, is their policy on undue influence and restricted communication. For example, one AMC that I use actually has a separate department with its own phone number. It’s called the Undue Influence Department. Now how bad do things have to be before a company has to set up an entire department to deal with undue influence on appraisers? Anyway, I’ll admit I’ve had to call that number a few times.
When Chase transitioned to third-party appraisal management, some of the loan officers and processors didn’t get the concept right away. When they would call and want to discuss value, which is strictly prohibited by the AMC, I would tell them to send me an email about their concerns. I would just forward the email to the Undue Influence Department and they would counsel the loan officer or processor. I had to do this on a few occasions with certain brokers, that I was use to dealing with on a daily basis before the change over, until they got the picture that I was not going to put up with their pressure tactics any longer.
One AMC that I’m working with now has the following verbiage in each appraisal engagement letter: “Attention Appraisers - Warning and Reminder” USPAP and HVCC severely restricts appraiser communication. The only communication allowed is the scheduling and completion of inspections with a borrower. Do not communicate with the Loan Officer on any issue regarding the assignment and do not communicate with the borrower for any reason other than the inspection. Additionally, your violation of this warning is a breach of your agreement with (XYZ Appraisal Management) and will result in your removal from our approved appraiser panel and may be referred to the proper authorities.” I like this verbiage a lot. I am prohibited from arguing about the appraisal with a homeowner, lender, processor, agent or anyone. By contrast, local mortgage brokers and lenders used to insist that we go over the comps with the agents involved before coming in below sales price. Also, when local clients used to order appraisals for refinance they would always put the homeowner’s “estimate of value” on the order. Amazingly, the owner’s value estimate usually worked out to be exactly the loan amount divided by 80 percent. These days I never see a loan amount, value estimate or target value anywhere on a refinance assignment. This makes me happy.
Summary
In conclusion, my experience is probably different because I had already been working with AMCs for some time. I prefer them for the reasons stated above. For me HVCC is not a momentous change. It actually opens up more potential clients for me. If I can work out of my house with complete autonomy and make $70,000 per year, well, what’s not to like?
Sure I have complaints about the “profession” and the fees could be higher but I’m not blaming everything on HVCC. The only thing about HVCC that really worries me is the possibility of loopholes. I am afraid the HVCC as written is not going far enough to protect the autonomy of fee appraisers. I am afraid that they will water it down so much that it will be back to business as usual. That’s not the same as complaining about the concept of severing the appraiser/loan officer/mortgage broker relationship. As far as I’m concerned, that systemic conflict of interest had to be dealt with and it should have been done decades ago.
It may seem like I am promoting, supporting or otherwise trying to “sell” the HVCC but I am not. What I am advocating and supporting is putting an end to the systemic conflict of interest that has all but ruined what could have been a true and respectable profession. Obviously, the HVCC is not a panacea but most of the complaints I’ve been hearing from appraisers should be directed toward unscrupulous AMCs and unprofessional appraisers rather than toward HVCC itself.?
Here are just a few of the satisfactory AMCs that I have worked for, in alphabetical order: Alliance AMC, Amerisave, eAppraiseIT, HomeFocus, JVI, NationStar Mortgage, Primary Residential Mortgage, ProValUSA. Quantrix.
Postscript from the Editor
Make no mistake: of the 1,000 plus comments from appraisers generated by the OREP/Working RE Appraiser Talkback Survey and Blog, a mere handful have anything positive to say about life after HVCC or working with AMCs. In fact, 92 percent of the nearly 3,000 survey takers to date answer that they are not in favor of HVCC as written. Eighty-three percent say they do not consider the AMC model to be a legitimate business model. Many say they refuse to work for half fees or in half the time. Many, who were busy before May 1, say they can’t get any work at all from AMCs, even though they’ve tried. Over half report value pressure from AMCs; 52 percent say appraiser selection is always based on the lowest fee. Twenty-four percent say personnel at the AMCs they work with are never knowledgeable and competent! To the question: Would you say that working with AMCs is worth the “trade offs”? (For example, earning lower fees in exchange for no pressure for value, a steady flow of work, no time/resources spent on collection, etc.) – 86 percent say “no.”
Still others, too many others, report that they are closing down their offices, laying off staff and seeking a new way to make a living as a result of HVCC after years of hard work building a business.
18 responses so far ↓
1 Tyler Campbell // Sep 16, 2009 at 6:53 am
It sounds like this “anonymous” appraiser is either not very bright or on the payroll of one the recommended AMC’s.
This letter actually encourages leaving larger firms and accepting lower fee’s, explaining that a large firm is the same as an AMC.
I am an independent appraiser that works out of a home office, but like most appraisers, I began my career in a large firm. At that firm, my fee split went towards items that I now have to pay for or do myself: data subscription services, phone bills, website expenses, E & O insurance, utilities, marketing, receptionists, processors, etc… Now that I am on my own, I have overhead and can not afford to “split fee’s” with an AMC.
The author makes a great point when he/she explains where things can go wrong with these wonderful AMCs. Foolish appraisers become content with the low fee’s they are offered because (to quote) “Well, if they are making more than they used to, how can they be blamed?” It is this mentality that is ruining this business and helping the AMC’s flourish.
As long as stupid appraisers like the author think they are doing fine (not having to deal with that dreaded burnt coffee), the AMC’s will keep putting downward pressure on fee’s until we are all making the same as McDonalds shift workers. Hey, there’s an idea, no pressure and fresh coffee - maybe the author would be even happier in the fast food industry.
2 J snell // Sep 16, 2009 at 1:09 pm
First of all why should we take a split to begin with. I am thinking that i am doing all of the work why should someone else get paid for it. In my opinion thats the biggest issue with AMC as well as the fact that they say they want quality Appraisals, however they actually want the cheapest ( more profit for them ).
3 Jack Deuce // Sep 18, 2009 at 5:56 pm
The overwhelming collective squeal coming from appraisers regarding HVCC makes me think that maybe most of these folks really ought to find something else to do. How can those mandated to be unbiased actually cry foul for removing the corrupt process of having commissioned sales people in charge of the appraisal process - shame on them. Like the author I realized years ago I had a choice - work for full fee, collect my bribe, and hit the value - or work for a reduced fee via AMC and maintain objectivity and an honest process. Not one AMC order in 4 years from mulitple AMC’s has included any value pressure, predetermined value, or comp check requirement.
Bravo to the author. Whiners go learn how to be a crook doing something else - you will not be missed. Looks like FHA finally got the message too. Just announced today - starting 01/01/2010 no more mortgage broker control over the appraiser, good for them. The crooked system is being broken down and it is hilarious reading all of the moaning coming from the crooks who’s ill gotten rewards are being dismantled piece by piece.
4 Telicia Hodges // Sep 19, 2009 at 11:15 am
I disagree with the anonymous appraiser. If you want to split your fees and/or work a comfy job, I imagine there are plenty of cozy positions you could find at the assessor’s office in your community making 30-40k a year. But for most of us who enjoy having our own company with an income made from our own skillsets and from the sweat from our own brow, this is not good! Most of us did not devote several years of our lives to this business to let someone else be in controll of our own destiny. I had NSV contact me the other day in hopes of paying me $75 for a full blown appraisal. $75!!!! I don’t even know 1/2 these strange companies who claim they found my information somewhere else, yet I get so desperate that I send my precious license and other info to this strange person on the phone and pray that they don’t do anything fraudelent with my license. For most of us true entreprenuers/honest appraisers, we feel cheated. And worried that are reputations could be ruined if this “AMC” tries something slick with our license, and that we may not get the orders/workload that we deserve from these low-paying AMCs who tell us they are full and not excepting new appraisers! I, like many other appraisers, feel there were better solutions out there other than the HVCC and if appraiser’s understood that the management law prevents us from doing comp checks, why, and if their were a way to help safegaurd appraiser’s from lenders who ask for comp checks by put FBI agents/secret shoppers out there to keep everyone compliant, I think everyone could have been happy. Instead, its some major fraud that seems to be going on with the HVCC and it seems that everyone is going along with it. Were appraiser’s in too much control? Did the lenders see a way that they could earn some of they’re losses back by stealing from appraiser’s via AMC’s. Who knows? But as an appraiser, I feel cheated. Better yet, Why didn’t they just provide us with someone that appraisers could make a report to (anonymous or otherwise) whenever there was a request for an appraisal with an “estimate of value?” Didn’t they used to do this to realtors back in the past to make sure they were compliant? When I explain to my clients that I do not do “comp checks” and explain why, they understand! And they still send the appraiser order to me! When I grow old and gray, yeah it would be nice to be able to lie around and have someone else make the decisions for my future but not against my will.
5 Baron // Sep 19, 2009 at 7:39 pm
This article reveals how too many appraisers have such low expectations. When I entered this business the appraisers, at that time, typically thought of themselves as white collar professionals. Since then licensing occurred allowing anyone off the streets to apply for a license and some banks hired throngs of tellers, filing clerks and burger flippers, gave them a crash course in real estate and appraisal terminology, and, of course, signed bogus time sheets (for work experience credit). The field ( in California) became saturated with low income, in- house appraisers with limited knowledge of real estate, financing, construction, zoning, etc., and research skills. The inevitable layoffs turned them loose to society. Now the average newbies display a common mentality of blue-collar clerks and their expectations reveal this. So, we have an army of fee-cutters, with limited skills, running amuck and reducing the image of appraisers to something not unlike that of pizza deliverymen.
6 Victor // Sep 21, 2009 at 8:56 pm
That is the dumbest article I have ever read. It is saturated with inacuracies, probably like his reports are. First off more and more AMC’s want you to do 1004’s with am MC for $200 or less. I charge $350 to $450 in my area. “Happy (AMC) Appraiser” that will buy a lot of “coffee and donuts” and unless your an introvert, having a business relationship with your clients is fun and healthy. I have learned a lot about the industry from communicating with lenders. Information that you cant get in a con-ed class. Now back to amc’s, If you tell amcs that you will do it for xxx price then they will simply say ok, go and find the cheapest bidder to do the appraisal on that 1.5 million dollar home, and not call you back to tell you they found someone else. Yea right I would love to know that my 1.5 mil home was appraised by the lowest bidding appraiser, and not the most qualified. Also if you keep declining jobs for amc’s because of the low fees they quit calling you and do not use you any longer,,,,which is fine. That too is a hastle of having to play the telephone bid war game with amc’s, which by the way is mostly incorrect as well, they mostly email you and have a spot in the email to accept or decline the order,,,usually there is no verbaige with the amc, just on rare occasions when they cant find anyone else to do it and they think they can trick you into taking the assignment, and then only give you minimum info about the home so you will accept the assignment and then find out that it is 5 stories, waterfront, on 30 acres, and 6 out buildings. Thats Much worse than smelling burnt coffee. I have very few hours in a “fee split” office. I have had a home office to begin with so that is a lame comparison. Thats like comparing a lame attorney that has to work for the states appraisal board because he is to incompetent to have his own office, so he stays there and prosecutes inocent appraisers with merely typo errors on their reports, to a very competent attorney that is sharp and does very well because of it. I cant believe that WorkingRE even bothered to print such a stupid article. It just shows the lame thinking of some appraisers. I have had a small amount of pressure from mortgage companies, but when they see your not going to budge or cave in to them they quit,,,and even respect you. So it is up to the appraiser to keep the industry on the up and up. Just like a few bad policemen dont make the whole industry crooked. I had an amc that had the audicity to ask me to do a desktop appraisal on a highend beach front condo in a very luxourious area with similar sales in the .75 mil range, for $38. Oh yea and the BS about taking the assignment and not making the 1, 2 or 3 day turn time is retarded too. If you do that the amc will eventually quit sending you work and give it to the lowest bidder that will do it in lightening speed, because hes got nothing else to do. I dont think “HAPPY AMC APPRAISER” is even an appraiser, but a writer paid by HVCC and/or AMC’s. And any other person posting something positive about this article is in colusion with AMC’S OR HVCC. I hope WRE doesent actually print this rediculas article and mail it to appraisers.
7 David // Sep 24, 2009 at 7:08 am
The article had to be written by an AMC associate. No appraiser can be this stupid (no matter how new they are).
First of all they fail to take into account that they now incur all of the fees that their employer paid.
Secondly they have done a brilliant job of proving our point concerning HVCC and AMCs. The majority of the appraisers taking on AMC work are newbys who have yet to figure out that they will actually be losing money by doing the work. In due time…even the local bankrupcty courts will hand them a hard earned education.
Good Luck Newby
8 David // Sep 24, 2009 at 7:12 am
I urge appraisers with guts to consider the use of a national appraisers strike. Although Congress is considering HR 3044 to stop HVCC it’s only a pipe dream. The resolution will die in committee because of banking influence.
Now that FHA is jumping onto the HVCC band wagon it’s completely up to appraisers to say no to the insanity. Join the wave…and reclaim your profession! http://www.investsmart.com
9 David // Sep 24, 2009 at 7:24 am
Message To Jack Deuce
Jack…I think all you have is a 2 of clubs. Your letter seems to indicate that appraisers who work for full fees are on the payroll of the lender and therefore MUST hit any number that they ask for. You also seem to be saying that only those who accept split fee work are honest appraisers.
One question? Are you an idiot or what? Show us evidence that indicates the actual fee impacts the level of the appraiser’s honesty.
Any appraiser who takes split fee work from an AMC is part of the problem…as much as Mr. Cuomo himself. They have absolutely no concept of their own worth. Cuomo knows this…and banks know it. This is why HVCC was set up to exploit appraisers. This is how banks (who own AMCs) are creating billion dollar empires off the backs of appraisers.
Unfotunately, appraisers have absolutely no representation. The nearest thing they have is the appraisal institute. A group that looks down upon the residential appraiser. The simple fact is that the AI continues to support HVCC.
10 Edd Gillespie // Oct 4, 2009 at 4:44 pm
It is serendipitous that this thread is next to the one that discusses the value an appraiser places on himself.
I tried to figure out how much Anonymous believes he is worth from what little information he gives us in among his opinions. As near as I can figure it is about $16.00/ hr if you use the amount of $70,000.00 per year and 12 hours per day every day with no time off. On the other hand if you use his area average AMC fee of $275.00 per assignment and he works 8 hours per day for $70,000.00 he makes about $35.00/ hr., that’s a little more than one assignment per day of work.
Since the lending/AMC coalition has apparently decided that $35.00/hr and 8 hours per assignment is enough, I guess Anonymous agrees.
I do not. Given the investment in education and experience it takes just to become and remain certified I think I need at least $60.00/hr. just to break even. And I learned long ago that most appraisals (even simple SFRs) take a lot longer than 8 hours of work to complete thoroughly. The verification of comparable sales alone can easily require twice that.
I’m glad anonymous has a positive attitude since revanchism runs rampant among us right now, but if he thinks he isn’t part of the problem in the appraisal industry he is in denial.
Appraising does not pay well enough right now, and it is bad time for AMCs to be offering lower fees. Unless of course the objective is to weed out appraisers who think they should be paid a professional fee ($60.00/hr is about what plumber makes here) for their difficult and diligent work and expert advice.
Oh, I forgot to that Anonymous is the darling of TAVMA. Jeff makes the comment over there that appraisers are supportive of AMCs and cite only Anonymous as their source.
It is unfortunate, but not surprising that at the same time the profession is working to improve quality that HVCC came along. Appraisers must never forget that in many if not most mortgage transactions that their opinion is viewed as necessary inconvenience and certainly not something the other actors consider valuable.
You are simply headed in the wrong direction, anonymous, the entirely wrong direction. What you are saying and doing is bad for the profession and is not sustainable, and it is not good for you in the long haul.
11 Appraiser Inactive // Jan 7, 2010 at 5:18 pm
HVCC is a little like a cow with two udders…a cash cow if you will. AMCs feed off of one udder while banks feed off the other. Borrowers and appraisers are forced to feed the cow and shovel it’s [beep] around the clock. Any leftover milk is sent to the cheese manufacturer [Andrew Cuomo] who in turn sells it for political gain. The cash cow had it’s day but it’s time to shove a stick of dynamite up it’s [beep]. AMCs and banks are bloated, appraisers are tired, and the cheeseman needs a new job shoveling [beep] for a change.
Any appraisers out there that would be willing to join an AMC boycott for 30 days or more? April 1st (1004MC day) or May 1st (HVCC hell day would be a fitting start dates.
12 Ed Connor // Jan 7, 2010 at 5:56 pm
I’ll tell you what - these appraisers that entered into an “independent” profession to become dependent on AMC’s disgust me - and then they try to tell us how great it is to not be independent. Bleeeech. Scum of the earth just like their ho AMC’s. They’d sell you out with a smile. Turn them all in if you’re doing reviews. Let’s clean it up ourselves since no one else will. What I’m kind of looking forward to is Andy Cuomo running for Gov. I’m going to protest in NY against this criminal crony of the big banks. That’ll get some headlines and educate the public on this scam being run by the bankster cartels. HAAA!!
13 Rene // Jan 16, 2010 at 7:38 pm
Did anyone try Google searching the AMC’s listed on Happy Appraiser’s list? Two are mortgage companies, some go no where, JVI and Alliance are the kind of AMC that you only get work from if your name is already on an approved list from the lender.
My experience with boycotts is that they have little effect but vacation in March or April in Palm Springs looks good to me.
14 Texas Appraiser // Jan 17, 2010 at 11:30 pm
Anyone out there working for an AMC currently? I’m looking to find the going rate for a 1004 and an FHA order in a major city like Dallas/Houston, anyone willing to reveal? I’m seeing $200, $225 and for fha, $200 and 1 amc pays $260 at most…am very curious to see what averages are. Please post city/state/fee avg w/AMC(and AMC name if you’re brave enough).
15 admin // Jan 18, 2010 at 1:49 pm
The interview with this appraiser was conducted in early summer 2009 and first published in our online edition at that time. A few appraisers have contacted us recently saying that a number of the “AMCs” on his “good” list are no longer in business or have merged into other entities. This is true now. We apologize for any inconvenience.
16 LETS BE HONEST - NO B.S.! // Feb 2, 2010 at 1:42 pm
My whole family has been in the Appraisal and Mortgage business for the past 18 years. The HONEST, best kept secret is how much money appraisers were making for the time spent on completing the appraisal. A real good, experienced appraiser should average 5 hrs per assignment @ $350.00 per appraisal (prior to
AMC’s) this would pay $70.00 per hour!!! Shhh…dont tell anyone that the orders can also be done in 2 to 3 days as the appraiser just may have to apply himself and work 8 hours, all day 5 days of the week….We certainly can’t bring ourselves to be made to have someone making demands on us or be accountable to an AMC now could we? And absolutely we cant admit that due to AMC’s we now are allowed to give an honest, accurate valuation of the properties are really worth - without the Loan Officer holding a gun to our backs or threatning our business! Lets also not let anyone know how nice it is to not have to deal with the continuous phone calls from un-educated Loan Officers complaining, arguing and whining - sending stupid comps over for us to use, that aren’t even close to the subject properties like. For sure lets not let on how horrible it is to just receive a check from the AMC’s - Wow actually getting paid within a couple of week of completing the appraisal assignment…Not having to make 15 to 20 calls checking to see if the loan ever even closed, let alone asking if we can pick up a check? Hopelessly depending/expecting income that never came in? I pitty you 86% of fellow appraisers that are doing all the complaining and downplaying the AMC’s value - the other 24% of us, will keep our supportive, positive attitudes towards the AMC’s and we will see which percentage of appraisers will be forced to change careers!!! Come on now as Appraisers LETS JUST BE HONEST!!!
17 Texas Taylor // Feb 8, 2010 at 11:45 am
RE: lets just be honest.
I wish I could work in an easy market where most appraisals can be completed in 5 hours. Much of my appraisal experience is in rural and unincorporated areas, not cookie cutter subdivisions. Driving time to the subject, and for rounding up comps alone can run 5 hours. Then research for each comp and the subject prior to griding it can easily run 10 hours.
I have 20 years in the business and had learned to duck the pressure for price rather well. I tried contracting to a large shop last year that worked with AMC’s and discovered they regularly sent trainees to the job and did not inspect their work. The appraisers and trainees alike recieved a split, of a split, of a fee that is less than 1/2% of the typical sales price. Yet appraisers have more and higher education requirements than virtually everyone else in the real estate food chain. ( Don’t you enjoy the AMC clerks that call and want an explaination?) There are some companies that paid slow some that didn’t pay, but I lost less to them on a percentage basis than to the AMC’s.
AMC’s can be a good idea, but they are a value added commodity and should charge the bank for doing their jobs for them not the appraiser. Big business and big banks make the largest political contributions and leave us little fish unprotected. Mortgage bankers and mortgage brokers are next. I think vacation time is a good idea.
P.S. Texas Appraiser needs to understand discussing specific fees can be construed as price setting.
18 NY Appraiser // Jul 30, 2010 at 4:22 am
I was assigned an appraisal via an AMC. Contacted the owner for info and to set an appointment. The owner offered to send me a recently completed appraisal (about d months earlier. As I viewed the old appraisal I noticed that the invoice sheet displayed the same AMC that gave me the current order. And the lender was the very same as well. This turned out to be a NŸC condo worth about 4 million. The AMC was paying 275 fee. The old appraisal invoice however, displayed a fee that they charged the lender. Are you ready? $1700.00 plus a $200.00 management info fee.
If you’ve ever wondered why the AMC requires that no invoice’s be included in submitted appraisal reports, now you know. AMC’ steal from appraisers. They are making fortunes and appraisers have to now work twice as hard for half the money. Congress should at the very least create a minimum fee of 300 for a standard (under 1,000,000) SFR home and go up from there. We can’t have appraisers undercutting each other to survive. If congress does not remove the HVCC, then at least impose minimum associated fee regulations. I dropped the AMC btw. - hope all appraisers do boycott. I am.
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