Appraisers Getting Shut Down
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Appraisal Issues, COVID-19, iBuyers, Real Estate News
Appraisers Getting Shut Down
admin - Friday April 10, 2020
Appraisal Issues, COVID-19, iBuyers, Real Estate News
admin - Friday April 10, 2020
Hey Brian. Thought you were going to get with me so that I could explain this to you more. Wrong info is being put out there.
As an appraiser I have suspended all interior inspections of occupied properties. While I can meet the 6 foot distancing between people, I can’t distance myself from the air inside these houses where people have been cooped up for the last month. It is a respiratory virus after all. Their loan is not worth my health or that of my family. And, if I’m going to see a couple of houses in a day, I am potentially putting a home owners family at risk. Its not worth it.
Unfortunately, all these lenders still want full interiors even if they meet the new criteria for an exterior. And those few that will take an exterior only are only offering 20-50% of the fee as they figure its less work. Which its not, and the liability is much higher. So frankly, they can go pound sand. I can hold out until the repo work kicks in sometime in 2021.
Great information as always! Many appraisals are being subject to desk review with lenders and then failing, AMC’s scrambling to getting enhanced reviews and taking too long. Many purchase appraisals have been coming in 1-3% below, not sure if this is a lender overlay to the AMC’s…Have a great Easter Weekend!
IS IT TRUE? Is Forbearance risking damaging credit report scores and not qualifying? This could NEGATIVELY effect EVERYONE seeking a loan in the future, so that Everyone who does forbearance cannot refi or purchase for years, so PLEASE get the facts correct, not just one or a few isolated stories. Please clarify and confirm what is the truth.
Interior inspections are absolutely necessary to obtain a comprehensive evaluation of the property. I just stopped due to the risk involved. We Appraisers need to be careful that this doesn’t create a solid reason for the lenders or GSEs to finally eliminate us. We are the VCR repairmen
2009 did not make us appraisers unite thus making a time like this making our industry vulnerable for elimination.
Im a 27 yr appraiser who was doing well in 2005-2008, on the Titanic in 2008-2010 and have not recovered since. I went down with the ship. I stayed in the industry thinking it would come back. It did, with a new set of rules that put AMC model in charge of lender assignments. We were told it would be a round robin type assignment format, allowing new appraisers to get work most of the seasoned appraisers had worked so hard to obtain in prior years. It was supposed to level the playing field. Fees dropped considerably as homeowners paid more, but the AMC took the fee, then put out bids & chose the lowest or fastest appraiser, hence, the newer appraisers without proper mentoring, cut corners and produced a half arce appraisal with lack of content to meet stringent turn times, taking the lower fee as they could not get but a handfull of assignments prior. Seasoned appraisers left the industry, it was a brain drain of some of the top appraisers who went onto to do legal or non lender work. I myself, lost nearly everything as it came back, fewer assignments, lower fees, faster turn times, it was heart attack pace. Now, 10 yrs later, fees are still being offered from 10-15 yrs ago, the AMC takes a bigger piece of the fee, appraisers are not to mention to anyone the fee(yes, because it is one of the biggest scams out there), and myself, after a very successful 12 yrs with a retirement acct building, a new wife, house & car acquired just before the recession, employing 5 trainees, 2 office assistants, another full time workhorse with me, i lost everything. It all went. I kept the car, got 360,000 miles on it, still drive a 14 yr old car. When it came back, HVCC & Dodd Frank changed the playing field. Now, 10 yrs later, have not saved a dime, work alone because i cant pay employee being paid by AMC’s 30-45 days out, never caught up & work 14-18 hrs a day, or longer. My beef is now they want interior inspections, i have no problem wearing mask, gloves and sanitizer, am in good health at 63 yrs old, yet when I bid for assignments, I explain the higher fee is Hazardous Duty, going out in Virus World in someones home, I should be paid a premium or bonus, yet many still offering same fee. Some below reasonable and customary. I am even quoting higher drive by, as all we save is the sketch, but still have to spend same time asking homeowner whats on the inside to fill out the report. We know many do not provide accurate information, they have an interest in the home we do not have. I only wish there was a lobby or coalition for appraisers to unite and go on a work stoppage or strike, we are supposed to be in Quarantine also, yet risk our health and lives to go into anothers home that could lead to death of us. We appraisers lost everything, as much as or more then most in any industry, we came back to wolfs running the hen house, we never recovered financially if we stayed doing lender work, then when the opportunity to go above & beyond the call of duty, to venture into strangers homes during a pandemic, we are treated like business as usual. They still want 48 hr turn times, still want to pay the same fees. If enough appraisers do a work stoppage, the wheel stops turning for lenders, RE agents, mortgage & banks. The borrower wins, the bank wins, the AMC wins, the appraiser again loses the opportunity to get ahead again. Where is this story?? Im getting more bid offers & hearing from clients have not heard from in over 10 yrs, because other Appraisers refuse to do interiors, yet the ones who do, its business as usual with the AMC, they dont care about the boots on the ground workers, only their clients who provide them the opportunity to take advantage of the workers to their gain and their clients satisfaction to send more loans their way for their appraiser roster. We can only do so many a day, so many a week. if the fees are not increasing with inflation, we take more assignments, work 20 hour days, get behind on due dates, get burnt out, make errors in judgement, it all equals disaster. Appraisers who risk life need Hazardous duty pay, longer turn times and appreciation for what we do, so a homeowner can reduce their payment saving or pull money out. They dont realize it is the appraiser who is the biggest loser in the equation, the AMC & bank that controls them the winner. Its a bigger story then many realize as we are not allowed by the AMC to discuss fees, why, they take a bigger portion then they should, no one cares, the appraiser cannot save for a retirement chasing the carrot. Now this is a story that needs to be put out there. Hope you all are safe!!
Sounds like if you don’t do a loan, or turn someone down, based on speculation of them getting laid off or furloughed, you might be barking up a discrimination law suit! Just saying.
I’m in south Atlanta, Georgia just had an appraisal come back on a home where the appraiser did not go on the inside of the home and it was an unusual home but it did appraise full price so I’m thrilled but still scratching my head on how that worked. Maybe he use the inside pictures posted on the MLS to help with the appraisal.
I’m a Certified Appraiser. I’m still doing and will continue to do interior inspections. I will NOT do D/B’s on any basement home. Cannot tell the finished square footage nor the room count. That’s looking for trouble. I trust me more than anyone. I also refuse to do D/B’s on anything waterfront. Too many unknowns. Bank (high, low, no) height, bulkhead type (none, logs, wood, boulders, concrete, pilings)if any. Access: walk out, stairs, trams. Under cutting, erosion, slide activity. There are a lot of such properties in the Pacific Northwest. I do wear masks, gloves, take off my shoes upon entry. I’m over 61, careful and respectful of the owners, borrowers, tenants. 98% chance of survival. This seems to be well blown out of proportion. But that’s my take. Be careful driving, there are appraisers out there.