Real Estate Investors Daily: HVCC, AMCs and the Appraisal Industry; a view from the inside

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This is a reblog of an article written by North Carolina Appraiser, Paul Collins with McSkittle Appraisals, Inc. His firm provides services in 128 counties across North Carolina, South Carolina, Georgia and Florida. Paul is asking some very important questions, and shares his frustration with the state of the industry and the impact of lenders and legislation on his industry. Tips is sharing two paragraphs here and be sure to read the remaining article on REID’s link below.

“The good ole days of direct communication and the new day we are “living” both have the same problem. Appraisers are not a valued part of the process because there are no consequences for bad lending decisions. The last time a bank valued a competent appraiser was when the local bank kept the paper and was responsible for collecting and foreclosing if that loan went bad. A real and legitimate understanding of the actual value of a property played a part in a thoughtful consideration of the overall loan application. (It even included the capacity and willingness of the borrower to repay the loan! What a concept!)

A question for some of my fellow appraisers, how many times have you had reports kicked back because the adjustments failed to fit the 10%-15%-25% guideline? Did it matter to the “reviewer” that these adjustments were necessary to account for the differences in the actual marketing conditions related to the comparable sales? Wouldn’t it have been easier to just cave and reduce the adjustment? Would the fact that the new adjustment was inaccurate and lead to the generation of a misleading report have made any difference at all? How many “reviewers” at the clients-AMC or otherwise-actually know enough to understand the comments explaining the logic and math based analysis of market data you include in the addendum? How many of them READ the addendum? ”

Read the entire article here, “HVCC, AMC’s and the Appraisal Industry; a view from the inside“

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Tags: Real Estate Appraisers, Real Estate Appraisals, HVCC, AMCs, Appraisal Industry

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