Appraisers are feeling overworked and underpaid these days. Probably shouldn’t be too much of a concern as now Freddie Mac is offering no appraisal purchase deals.
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Appraisal prices are getting ridiculous with the AMC’s. Yesterday ordered one through Flagstar Bank and it was 570.00 for a FHA appraisal. Come on seriously here. Yes 570. Someone is getting rich here and its not the appraisers.
Yep, $300 for the appraiser, $270 for the AMC. $570 for the home owner.
$570 for an FHA?…thats cheap. I won’t walk out the door for less than $610 on an FHA in town/Metro. Rural/outlying properties/towns? Starts at $650 and goes up. Hour each way? Inspection, Hour driving comps? That fee is $750.
Aging in place here. I have 25 years in the industry, am 55 now, and planning to appraise until at least 70. Not that I’m happy with the state of affairs, just that I want to eat and pay bills. Which is all most of us are doing out here. My mother is going to turn 80 this year and is still working in the field. So yes, the industry is aging. And we are not taking on trainees. Not because were all conspiring to limit the number of appraisers so we can get fatter fees. Its hard enough to make a VERY modest living as it is and there just isn’t enough meat left on the bone for another mouth to feed. And the fact that anybody you train will immediately sign up with all the AMC’s you work with once they get licensed and directly compete against you in your market doesn’t give any of us that warm and fuzzy feeling. Been there, got the T-shirt……..Never again.
To the comment that it takes 3 weeks to hear from the appraiser, lets look at that.
O.k., 1 week to get the paperwork in order, sounds good, 2 weeks for the AMC to shop the appraisal around for the lowest fee and then you hear from the appraiser. Sounds like a typical deal. If they would have accepted the first quote on day one, it would have been a week and a day until you heard from one of us. I see orders come back 2 weeks after I sent in my bid finally come back as accepted, once they couldn’t get anybody to work for free. But that’s our fault?
And, we are taking three times longer, no doubt about it. The current appraisal requirements and idiot stipulations and constant revision requests for things that have no bearing on value, or anything else for that matter, takes a lot of time. However, we are not able to charge double, really about a third more than when I started in 1993, though costs to keep an office open have tripled in that time frame. Three times the work, triple the costs and 1 1/3 times the pay. You do the math.
Appraisers are the bitch boys of this industry. AMC;s in general are a blood sucking slime balls. Dodd frank is a joke as are all of the bureaucratic agencies associated with this profession. lack of appraisers – you betcha. I wouldn’t train anyone to be in this profession. I’ll try to keep this short but i’m sure many of you have been crucified in this industry for the sake of the amcs boo fooing us all. Its not only them and their uneducated, inexperienced staffs, but the rampant bigotry, racism, back stabbing cut throat tactics designed to put us all out of business. Last year i was turned in to those absolute morons at FHA by (blank) and other unnamed amcs because i refuse to misrepresent any aspect of an appraisal. I do not alter or crop photos nor do I look the other way. I refuse to tell homeowners to take down their menorahs, photos, Christmas trees, baby buggies, African art etc. I wont open their drawers and sure as hell arent going to check theri appliances – im not and inspector. all this so some racist person representing FHA can force you out by not doing according to their edicts. As a result I am uncooperative. – thus reported to FHA whereas some stoned out moron punishes me with their phony reviews year after year after year. eventually i told them so stuff it. I refuse FHA work. NO contesting no nothing to them they are omnipotent – THIS INST AMERICA ANYMORE!! half of my business down the toilet. but none of them care they are just smoking dope (denver office) and could care less about anything other than their paychecks.
How about that amc here in Plano, Texas who owes me $10,000 for five years. he sued a mortgage co who burned him and now hes burning me, he collected but since I turned him over to the state hes mad – POOR BABY and refuses to pay me. Im being raked over the coals. fing lawyers!!!! . The state of Texas – what a joke. Democrat lawyers holding up a desk and grabbing a paycheck. nothing more. They given him extensions, pandering to him, “oh we cant make him pay you” oh we have no power – HORSE HOCKEY!!!!! They just don’t want egg on their face with another failed AMC. Did the work, and of course it was all FHA – got same run around from them. everyone got paid but me. There are a few AMCs that are good and pay well. mercury is good but letting core logic in was like letting the fox in the hen house. AS i recall
Lets face it, Appraisals are going away. I have been getting a ton of Appraisal waivers on Purchase deals and I did last year too. The writing is on the wall, there will be no appraisals required on any deals very soon. We are less than 5 years away from never needing an appraisal again.
They have been collecting data ever since the C-1 C-2,etc changes started years ago. I get appraisal waivers on just about any purchase deal with 20% down and on refi’s the guidelines say if the home was appraised in the last 10 years you have a very good chance of obtaining a waiver.
In less than 5 years APPRAISALS will be a thing of the past for FNMA/FHLMC
So will loan officers and real estate agents
From an appraiser.
The biggest hurdle to training new appraisers is that LENDERS WONT LET US USE TRAINEES. I can’t assign the vast majority of orders to even a licensed associate. They will only approve appraisers on an individual basis. These are lender overlays – NOT FANNIE guidelines.
This (or similar) appears on nearly every order: “This order is not transferable to another appraiser. If this appraisal is completed by another appraiser ACME Mtg will not be liable for any appraisal related fee”
Trainees/associates would cut turn times DRAMATICALLY.
AR hasn’t lowered the bar on appraiser requirements: BA (4 years of college) + apprenticeship (2-3 yrs.) = 6-7 years before the appraiser is really out on their own. We can’t get anybody to train and the existing appraisers really don’t want to train anyone…not that I blame them. This is going to become a crisis before long. Lenders and Realtors are banning together to try to get the appraisal board to see the light on this issue. In the meantime, their fees have been cut, the turn times are horrendous and they have constant issues they need to go back and fix. Honestly, I don’t know if I’d want that job.
Amen brother, as an appraiser, I have been screwed for the last 10 years by the AMCs. The best part is having the loan close- Realtors paid, loan officer paid, title officer paid, all inspectors paid and even the seller paid. But I, as an appraiser, have to wait up to 60 days to get maybe 2/3rds of my former fee. AND THEY DO NOTHING!
The buyers and sellers set the fees in LocalBitcoins.