Residential Real Estate Appraising Today
Posted by admin under: real estate appraisal Jun 21One day, a couple of years ago, I was in a real estate office to pick up a key for an appraisal inspection when the real estate girls asked some kind of stupid question, and my response was, “well, what are they afraid of, appraisers going crazy”? Everybody kind of giggled, but there was some truth to my off the cuff comment. I’m not sure what it means, though. I guess it kind of describes the belief out there that the entire mortgage meltdown, and subsequent recession was all because of appraisers going out of control with values and misrepresentations.
I guess it just describes the trials, tribulations and triumphs of the residential real estate appraiser in the current market. There sure are not many triumphs these days, though. Not with HVCC, AMCs, inexperienced appraisers low balling fees, underwriters, mortgage brokers, bankers still pressuring for values so they can keep their customers, real estate agents, oh, and did I mention underwriters? It is just a crazy time to be an appraiser. I got in this business for the potential freedom it offered…after sufficient training and experience, I could work from home! Be in business for myself! Have freedom and income all at the same time!
Well, a funny thing happened on the way to Utopia. Uncle Cuomo stepped in, created the HVCC, and now all of the relationships I’d built (or at least most), over the past 8 years were worthless. This is the residential real estate appraisal profession of today. It is no longer about relationships with clients, excellent service, honest opinions of value.
No, today it is about winning the lottery every day with your name coming up for the AMC to order an appraisal from you. And, by gawd, that form (otherwise knows as the appraisal report) better be filled out correctly, and we need it back in 48 hours, and we are going to pay you $250 while we collect $450 from the borrower. This is the world of Appraisal Management Companies and the typical appraisal request of today.
Residential real estate appraisers are no longer rewarded for doing a professional job, and supporting adjustments and painting an accurate and supported opinion of value. We are only rewarded for getting the report back to some cubicle in Dallas in 48 hours. It’s crazy, I tell you.
Residential real estate appraising has gone from a profession with a solid foundation and excellent prospects of success, to one of extreme frustration for those of us on the front lines. Uptight underwriters, profit driven appraisal management companies, and new appraisers that don’t know any better are making it tough for the established, ethical appraiser to make a living. Keep up with the everyday trials and tribulations at Appraisers Gone Wild.
Monday, June 21st, 2010 at 1:01 pm and is filed under real estate appraisal. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.