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First time posting here, but I was wondering how lenders choose their appraisers. If you were to never have gotten an appraiser before, how would you go about seeking one? What are key factors that weight into who you chose, and why are those important? If you're an appraiser, then how do you find mortgage lenders to hire you. What would make the connection process easier? I would love to hear any and all feedback. I don't know much about lending/appraising, so if I framed my question incorrectly feel free to let me know! Thanks in advance everyone!
First time posting here, but I was wondering how lenders choose their appraisers. If you were to never have gotten an appraiser before, how would you go about seeking one? What are key factors that weight into who you chose, and why are those important? If you're an appraiser, then how do you find mortgage lenders to hire you. What would make the connection process easier? I would love to hear any and all feedback. I don't know much about lending/appraising, so if I framed my question incorrectly feel free to let me know! Thanks in advance everyone!
You are planning to borrow?
You will not select the appraiser. The lender will select, either from a roster or from an AMC, "Appraisal Management Company."
The purpose of an AMC is to separate the appraisers from the lenders and clients, to help keep the appraiser independent of people with a vested interest in the outcome.
Your lender should be able to explain all of this better than I can.
That makes sense. It would definitely be unfair to have either party select. I am interested in the process the lender uses to pick the appraiser. Seems like with a lot of independent appraisers it might be fragmented and there is room to make the selection process more efficient and centralized. So while that makes sense, my question goes more into the area of appraiser selection of the lenders end, or how an appraiser creates exposure for themselves, if that makes sense.
That makes sense. It would definitely be unfair to have either party select. I am interested in the process the lender uses to pick the appraiser. Seems like with a lot of independent appraisers it might be fragmented and there is room to make the selection process more efficient and centralized. So while that makes sense, my question goes more into the area of appraiser selection of the lenders end, or how an appraiser creates exposure for themselves, if that makes sense.
Appraisers affiliate themselves with an AMC. The lender does not select the appraiser, generally speaking. The AMC does. Most AMC's have some kind of software system that sends out jobs and then the appraiser can "pick up" a job in that system. So lenders pick the AMC they want to use, rather than the individual appraiser. So that is generally how it works.
Lenders don't have to use an AMC, but many do. For those that don't, they have a roster, which MJ was talking about where they can add individual appraisers. I have had lenders ask me which appraisers have "come across my desk" that do good quality work. I have given out names of good quality appraisers to lenders and then they approach them about being on their roster.
So if you want to create exposure for yourself, you need to become affiliated with a respected, preferably local AMC, do appraisals only in your area (15-mile radius), and do good high-quality appraisals with rare mistakes.
Appraisers affiliate themselves with an AMC. The lender does not select the appraiser, generally speaking. The AMC does. Most AMC's have some kind of software system that sends out jobs and then the appraiser can "pick up" a job in that system. So lenders pick the AMC they want to use, rather than the individual appraiser. So that is generally how it works.
Lenders don't have to use an AMC, but many do. For those that don't, they have a roster, which MJ was talking about where they can add individual appraisers. I have had lenders ask me which appraisers have "come across my desk" that do good quality work. I have given out names of good quality appraisers to lenders and then they approach them about being on their roster.
So if you want to create exposure for yourself, you need to become affiliated with a respected, preferably local AMC, do appraisals only in your area (15-mile radius), and do good high-quality appraisals with rare mistakes.
There are a few ways that lenders chose appraisers.
1. Assignment direct from the lender. The lender has people, separate from the loan team, that assigns job directly to appraisers, based on a number of criteria, such as complexity, location, price, availability, turn time, etc. These lenders tend to have panels with a limited number of approved appraisers in each area. The appraisers on these panels typically have a working relationship going back decades.
2. Appraisal Management Companies (AMC) - The lender contracts with the AMCs to assign the jobs to their panel of appraisers. Similar to above, but is a separate company (usually) instead of a separate department.
3. AMCs who shop fast and cheap. These companies will broadcast an order to 100s of appraisers within a 200+/- mile range to see who will do it cheapest and fastest. Any appraiser can sign up and get work, if they can accept the terms.
Even though loan officers can no longer directly order the appraisals, they can control who is on their panel of approved appraisers.
FYI, if we only did appraisals within 15 mile of our homes, we wouldn't make enough to pay for our gas!
FYI, if we only did appraisals within 15 mile of our homes, we wouldn't make enough to pay for our gas!
I probably should have qualified that for my area. In city-ish appraisers are expected here. Appraisers make $800-$1000 for a typical appraisal here though, and I think we have some of the more difficult state standards for appraisers so we don't have a whole slew of them. The complex ones are $1500 and up.
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