HVCC No Fix for Coercion or Poor Quality Appraisals
by http://realestateappraisertips.info/ on July 8, 2009
http://www.realestateappraisertips.info/ – Working RE Releases Survey Results: HVCC No Fix for Coercion or Poor Quality Appraisals
In this morning’s email, Working RE Magazine published the Survey Results About How HVCC Implementation and THE FORCED USE OF AMCs IS NOT curing the problem of “Coercion” or appraiser pressure.
The most important point of the article to me is this paragraph about HVCC and AMCs Ruining Appraisers and Appraisal Profession…..in my opinion, there is such a thing as a “living wage”, especially when one considers that Realtors make 6% Commission for selling a home. 6% of the average home in the US at $200,000 is a whopping $12,000 with no real Realtor liability involved! And the AMCs only way to pay $225 for the appraisal (only 2% of what the Realtor earns), require 24 hour turn-times after the inspection and our State Appraisal Boards stick us with a 5 year liability on our reports. What about the rising cost of E&O Insurance and rising cost of operating an appraisal business? All of these issues have me fuming…..!!!! Yes, it does take me almost twice as long now to complete an appraisal than it did prior to 4/1/2009.
“Ruinous for Appraisers and Appraising
Another way to measure the effect of HVCC on the profession is that while 74 percent (74%) of survey takers say they are “generally satisfied with appraising,” 51 percent (51%) say they “don’t expect to be appraising fulltime five years from now.” They say many AMCs now take up to half an appraiser’s fee and if the trend continues, they will find more lucrative work. Many predict the future of the profession is threatened if the competent and the qualified can not make a reasonable living appraising given the associated costs of the profession. Over and over, many say that to be done with integrity, appraisals take more time and expertise than AMCs are now willing to pay for. Rather than lowering their standards, these appraisers say they will find other work.”
The link to the article is at:
www.workingre.com/workingre/hvcc-no-fix-for-coercion.html
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HVCC No Fix for Coercion or Poor Quality Appraisals
by http://realestateappraisertips.info/ on July 8, 2009
http://www.realestateappraisertips.info/ – Working RE Releases Survey Results: HVCC No Fix for Coercion or Poor Quality Appraisals
In this morning’s email, Working RE Magazine published the Survey Results About How HVCC Implementation and THE FORCED USE OF AMCs IS NOT curing the problem of “Coercion” or appraiser pressure.
The most important point of the article to me is this paragraph about HVCC and AMCs Ruining Appraisers and Appraisal Profession…..in my opinion, there is such a thing as a “living wage”, especially when one considers that Realtors make 6% Commission for selling a home. 6% of the average home in the US at $200,000 is a whopping $12,000 with no real Realtor liability involved! And the AMCs only way to pay $225 for the appraisal (only 2% of what the Realtor earns), require 24 hour turn-times after the inspection and our State Appraisal Boards stick us with a 5 year liability on our reports. What about the rising cost of E&O Insurance and rising cost of operating an appraisal business? All of these issues have me fuming…..!!!! Yes, it does take me almost twice as long now to complete an appraisal than it did prior to 4/1/2009.
“Ruinous for Appraisers and Appraising
Another way to measure the effect of HVCC on the profession is that while 74 percent (74%) of survey takers say they are “generally satisfied with appraising,” 51 percent (51%) say they “don’t expect to be appraising fulltime five years from now.” They say many AMCs now take up to half an appraiser’s fee and if the trend continues, they will find more lucrative work. Many predict the future of the profession is threatened if the competent and the qualified can not make a reasonable living appraising given the associated costs of the profession. Over and over, many say that to be done with integrity, appraisals take more time and expertise than AMCs are now willing to pay for. Rather than lowering their standards, these appraisers say they will find other work.”
The link to the article is at:
www.workingre.com/workingre/hvcc-no-fix-for-coercion.html
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