Realtors you have more control than you realize in this business or maybe you already know this....

With all the complaints about appraisals killing deals and coming in low and in turn keeping the real estate market depressed, here is ONE single thing you can do to try to make an impact in your business.

I know that many of you recommend mortgage brokers or Banks to your clients, well when you do, find out via the broker or directly from the BANK if they use AMC's (Appraisal Management Companies). There are still plenty of Lenders who do NOT use AMC's. A few of them are Guaranty Bank, Fairfield Mortgage, Fidelity Bank, Suntrust Bank, Shelter Mortgage and Guaranty Mortgage Services right here in Georgia and I believe these Banks originate loans in other states as well.

So do some checking around in your areas and see which Banks and Mortgage Brokers are NOT using AMC's. There are some good AMC's out there but most pit appraiser against appraiser and they will use the appraisers who charge the least amount of money, regardless of experience and quality reporting.

Remember even if these other large Banks like Bank of America and Wells Fargo who DO use AMC's have better rates for your clients, what difference does it make if the appraisal kills the deal for them. So they need to consider this fact when selecting a bank.

Realtors, you can have a huge impact on this problem by forcing the BANKS who DO use AMC's not to use them since you will not be sending your client their way any longer! 

By using BANKS who do not use AMC's, chances are far greater that you will be getting a quality appraisal report and the appraisers will know the AREA in which they appraise. WHY? Because the Banks who do not use AMC's pay the appraisers their market fee and because most of these banks have hand selected the appraisers that they have worked with for years and they do not want to lose that relationship.

The HVCC still provides a wall of independence so that there is no pressure involved to HIT a number, which is a good thing so that people do not pay more than the home is worth, but at least the banks know that these appraisers have been around for years and they know they produce quality reports and thus the reason for hand picking them. This is also the reason they DO NOT take their chances with AMC's. They use a non production work force to order the appraisals within the bank. HVCC does not require banks to use AMC's like so many people thought.

So use the CLOUT you have as REALTORS and do some research. Tell your clients that you go beyond the call of duty by making sure that when the property is appraised it is by someone who knows the area and who has the experience to get the job done and who is NOT being paid cut rate fees to perform the job at hand. Trust me when I tell you appraisers who get paid 1/2 their rate will CUT corners, I know because I have reviewed their reports and they are scarry to say the least.

I know being a Realtor these days is ONE TOUGH JOB...but you CAN make a difference by exerting pressure or diverting business where it needs to be and your clients will thank you for it!

I am a true believer in the "You get what you pay for" philosophy and in this case the poor appraisals many times are due to the cut rate fees the AMC's are paying the appraisers and sending appraisers to uncharted territories because they have the lowest rate for that county.