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This is what the lenders and management companies require nowadays with all the changes that were made. Also, in order to create a competent appraisal in today's market, you have to piece the report together to have it make sense, and it often requires a lot of research and thought. Unless you are just slapping together an appraisal. And don't forget, these management companies want next day or 2 day turnaround time. You can be all high and mighty and submit what you want, but you won't get any work. I do things appraisers should stand their ground on the fees and not accept the lowball appraisal fees.
You are right. I am high and mighty and submit what I want. Which is what I have always submitted: a well written, well supported, USPAP compliant report.
I only have full fee clients who let ME determine how long it takes to produce such report.
You are right. I am high and mighty and submit what I want. Which is what I have always submitted: a well written, well supported, USPAP compliant report.
I only have full fee clients who let ME determine how long it takes to produce such report.
And I am plenty busy.
A true professional stands on reputation and credibility, and will always be busy in good times or bad.
The appraisals used to just require 3 sales within 12 months of the appraisal date. You had to have at least 1 sale with 6 months. When the market was hot, there were many comparables to choose from.
I have a problem with completing a report in 1.5 hours, because it simply isn't enough time to produce a credible Appraisal in my opinion, before and after the HVCC. Maybe this is true about typing up just the form itself, but like you said there is preliminaries, verification, researching, analyzing, and so on. I like to take my time and worry about quality.
You didn't mention the 1004MC. I just want to give you a hard time for not mentioning it, really quick. We already performed this type of analysis before Fannie and Freddie published the form -- however; we always summarized it. Now, we have to do a little more typing and add another page to the report. No big deal, in my opinion. I like the fact that they want it, because they will be more knowledgeable. The form really isn't all that, but at least it something the lender can hold its hat on. Overall, in my opinion, it is a social concept. The only added work I see is the 1004MC.
If a client is being ridiculous about additional sales and so forth, I would drop the client, even if it means losing monies for some time while scoping out new clients. The best out there will eventually have bad times, in good and bad markets. No one is perfect and no one is superman. Anyone who thinks reputable, great Appraisers or professionals in general, will always have plenty of business in good or bad times, is just fooling themselves or just ignorant. I just would not put up with clients who are way out of line with 'requirements of their own,' especially when the Appraiser is ultimately responsible for the scope of work -- the Appraiser decides what they accept and what not to accept. It is true that Appraisers need to work with clients to instill confidence and credibility or they will not have that much work, but bending over is not a solution, especially for a fee that is not economical for your area and your worth.
I think the problems are the manipulation, crookedness, Skippy influence, and the abuse associated -- not necessarily the extra work some may consider, as well as the fee and turn around time. I think there are more adverse conditions that influence a demanding fee and turn around time.
I agree with you overall, Kevin, it is not a good time to get into Residential (mortgage lending) Appraising. I think there are some positives going around that makes it more attractive than the past. I think the education requirements are a good reason to start studying. I would recommend picking up a book and listening to other Appraisers who will call it like it is, for about three to five years, and then go to Real Estate Appraisal School. In reality, Residential Appraisal for mortgage lending isn't attractive. In contrast, I would recommend that anyone who is interested, should get involved by supporting Appraiser Independence. This way, they can be involved in the progress of the profession as a whole.
Quote:
Originally Posted by QuilterChick
A true professional stands on reputation and credibility, and will always be busy in good times or bad.
BOLD: This is simply not true, especially in Real Estate Appraisal.
Real Estate is a crooked market. There is supply and demand to account for, too. There are droughts to account for, skippy taking assignments, other professionals and entities manipulating the process, unethical behavior, specialized areas that may not be doing well, and so on.
Life isn't perfect, even for the ones who were reputable at being credible professionals. The word, "Always" just don't fit the picture frame.
Example: During the "fake booms," many reputable and credible Appraisers lost their business, because they were reputable at being credible, and some just lost many clients/business and gained better clients in the long run. If an Appraiser specialized in mortgage lending, and had a reputation of not hitting numbers, then that Appraiser may not get many assignments, because they were "credible." If that Appraiser didn't hit the number during mortgage lending assignments, then the majority of MB/LOs just didn't like to use them and other 'professionals' persuaded others not to use them: this is fact -- this is not make believe.
Last edited by Marka; 04-28-2011 at 01:13 AM..
Reason: don't produce walls of text by just quoting and stop writing one post under another, please
BOLD: This is simply not true, especially in Real Estate Appraisal.
Real Estate is a crooked market. There is supply and demand to account for, too. There are droughts to account for, skippy taking assignments, other professionals and entities manipulating the process, unethical behavior, specialized areas that may not be doing well, and so on.
Life isn't perfect, even for the ones who were reputable at being credible professionals. The word, "Always" just don't fit the picture frame.
Example: During the "fake booms," many reputable and credible Appraisers lost their business, because they were reputable at being credible, and some just lost many clients/business and gained better clients in the long run. If an Appraiser specialized in mortgage lending, and had a reputation of not hitting numbers, then that Appraiser may not get many assignments, because they were "credible." If that Appraiser didn't hit the number during mortgage lending assignments, then the majority of MB/LOs just didn't like to use them and other 'professionals' persuaded others not to use them: this is fact -- this is not make believe.
There is more to real estate appraising than for mortgage purposes. For some appraisers, mortgage work is just a very small part of their business.
There is more to real estate appraising than for mortgage purposes. For some appraisers, mortgage work is just a very small part of their business.
Very true. Back when I owned a fairly large appraisal firm, I had 3 full time residential appraisers and mortgage business was maybe 10-15% of what we did. Mostly, we did Freddie Mac and relo appraisals.
There is more to real estate appraising than for mortgage purposes. For some appraisers, mortgage work is just a very small part of their business.
"....Many Appraisers do not work with lenders and AMCs, for mortgage purposes. There is a whole host of assignments and cases beyond mortgage lending. A Residential Appraiser just has to apply him or herself. I say all this because too many believe that the Appraiser is only needed for a mortgage and that an Appraiser only supplies a Certified Estimate of Value."
The above is what I wrote in post #17. I am fully aware of this, A. Roell. I have said this more than several times in this forum, and I learned this 12/13 years ago when I started studying. Perhaps you breezed over these comments and the others that were made. In my prior posting, I also mention specialization.
Like you said, "For some appraisers..."
There is more to Appraising than a number, as well, in which I have commented on more than several times in this forum.
and other important information necessary for appraisers.
Please, if you have knowledge on the subject give me your input. Thanks
For What It's Worth (http://www.livevalmag.com/articles/may-2011/414-for-what-its-worth?utm_source=twitterfeed&utm_medium=twitter&sm s_ss=twitter&at_xt=4dc405f369824021,0 - broken link)
Hi Metrix,
I would like to follow up on the politics of and the importance of, the Residential Independent Appraiser to the Real Estate Market. The above article hits on several key issues that are necessary to acknowledge, as well as information being important for the general public to read and to consider. Below I speak about an article -- a great article -- I hope you and anyone else that reads this thread will take the opportunity to read through the entire piece I am posting.
This article is written by an Independent Appraiser. The sub-title of the article: Appraiser Independence Is Key to a Vibrant Real Estate Marketplace. Appraiser Independence is the most revealing and informative interest for the Real Estate Appraiser (residential and general certified). The following are a few (para graphical) excerpts:
"...The volatile real estate and mortgage marketplace of the past few years has hit the real estate industry hard – and appraisers have felt the pain along with almost everyone else in the business. As a profession, appraisers will survive these difficult times because their role has never been more important to a smooth-running, stable real estate market."
"...Few people would dispute that one factor in the difficulties many banks have faced over the past few years is that the collateral in their portfolios was not accurately valued. That’s because they were established for a different purpose: to ensure that a real estate transaction would close. Moreover, they were frequently not independent valuations. Appraisers were pressured to make deals work by real estate agents, lenders, and others – or they risked losing business."
"..The time of the appraiser as a rubber stamp for a deal, to serve as mere “transaction enablers,” is over."
Appraiser Independence is now considered a market standard, and is fought for everyday -- however, it is fought against everyday -- it is the top priority. A signature, License/certification, and saying, "in my many years of experience" will not cut it for Skippy, and any newbies trained under them in the future. Being serious about the occupation/profession, the competency and ethics in the face of the general public, Respecting the knowledge/education/experience of what the profession can and will give, all must be understood and eventually executed.
I really appreciate the author's ability to express itself very well, and portray the issues at hand in a clear and concise manner, as well as showcasing the importance of the Independent Real Estate Appraiser to the health and future of the Real Estate Market and Economy.
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