The Business is Driving Good Appraisers Away

By
Real Estate Agent with Platinum Properties TN Broker: 208698

Another Appraiser Plans Early Exit

Appraisers are leaving the businessThere are several long time appraisers in my area that are highly respected and do a good job for all the parties concerned. The system has changed and their pay has been cut and the hassle and paperwork has more than doubled. Some appraisers say they can't make a living anymore.

I was speaking with one of my favorite appraisers the other day. She called to gain access to one of my listings and I knew the appraisal would be done correctly and that her knowledge of the area and the comps would be accurate. She had been a Broker/Realtor for years and decided to focus solely on her appraisal business several years ago so her background was sound. Now she feels the business isn't for her any longer. 

She spoke about how hard it was to get any report completely finished because the lenders/underwriters feel like they had to challenge her opinions of value and choice of comps rather than relying on her experience and credentials and knowledge of the market. She said that most appraisals take reworking just to please the lender's underwriting.  

 

One underwriter told her to change her comps and told her which comps she wanted her to use. To me that was interference to the highest level and should be prohibited and reported. My appraisal friend stuck to her guns and refused to change her appraisal by adding she had done the job and expected to be paid.

All of the changes and the reduction in pay as a result of ordering through third party companies (they now get a piece of the pie) have made her decide to hang it up. It just isn't the same business it used to be, she told me.

 

She plans to start her own business of selling a high-end skin care line of products instead. I sure hate to see her and other quality appraisers leave the business. Will the quality of appraisals suffer? Will prices spike? Why has it come to this?

 

Posted by

 Centruy 21 Platinum Properties2130 Wilma Rudolph Blvd.

Clarksville, TN 37040

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Gabe Sanders 06/04/2016 04:23 PM
Topic:
Real Estate Industry
Groups:
Crap-Tacular
Old Farts Club
Tags:
clarksville
appraisers
underwriters

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Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Debbie.  It is all about Dodd-Frank and the useless regulations.  I have stopped doing bank appraisals.

May 27, 2016 07:13 AM #18
Rainmaker
3,097,917
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

A couple of my favorites have retired too Debbie Reynolds and we are stuck with out of town and even out of state appraisals that dont know the market, the neighborhood or teh trends. 

May 27, 2016 08:46 AM #19
Rainmaker
1,132,594
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Debbie Reynolds - Our market is experiencing the same issues - we're headed for some serious problems as experienced appraisers leave the market.  Great post!

May 27, 2016 08:47 AM #20
Rainmaker
1,315,327
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Debbie Reynolds - I have heard the dissatisfaction as well.  My concern is that we are heading for an the realm of the appraisal algorithm.  The handwriting is on the wall. It is just a matter of time.  

May 27, 2016 09:26 AM #21
Ambassador
3,909,090
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Debbie if the Underwriter tried to dictate the comps to be used, that Lender could find themselves in deep do-do if a complaint was filed with the CFPB. 

May 27, 2016 11:07 AM #22
Rainmaker
3,249,620
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Debbie

The business (appraiser manage companies) have put them self into  the middle of the appraisal process. They have them self into the appraisal coordination business and collect a fee for assigning an appraiser to the file to do the appraisal. It now costs more for an the appraisers and the appraiser makes less . . . . so when it comes right down to the banks own the appraisal management company and make more money without providing a service the consumer need. 

Good luck and success.

Lou Ludwig

May 27, 2016 11:50 AM #23
Rainmaker
3,277,190
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Debbie I am seeing the same thing here, sort of kind of reminds me of 2004, but what do I know, I am just an old Beverly Hills Realtor, Endre

May 27, 2016 04:12 PM #24
Rainmaker
5,615,689
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is a very important topic and it needs leadership attention.

My scheduled blog and reblogs were not posted this morning. If you have scheduled blogs, you may need to check on them.

May 27, 2016 08:33 PM #25
Rainmaker
4,798,070
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Debbie.  I've seen and heard similar stories.  The way some underwriters work needs to be challenged.  They have ultimate authority and have no repercussions for bad decisions.

May 27, 2016 08:44 PM #26
Rainmaker
2,706,951
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

It is happening all over and as Conrad Allen points out, all due to Dodd-Frank and government interference (and grabbing a piece of the appraisal pie). 

May 28, 2016 09:51 AM #27
Rainmaker
200,839
KAREN SANCHEZ
Hamilton Landon Real Estate - Apple Valley, CA
...Marketing your home like no one else will.

Wow, (not the good kind) seriously? Change your comps? Seriously, who has the license here. I'm floored.

May 28, 2016 09:59 AM #28
Rainmaker
508,195
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Amazing! When we even suggest some comps, people get concerned with interference.  For the lender to insist is wrong!

May 28, 2016 12:04 PM #29
Rainmaker
472,786
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Just another problem caused by "I'm from the government and I'm here to help you ". Clearly there were problems with the appraisal process before the crash, but the cure is almost worse than the disease. 

May 28, 2016 02:02 PM #30
Rainmaker
1,504,491
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

We just had an appraisal take over three weeks to get completed. I'm betting part of the reason was overwork from appraisers leaving the business.

May 28, 2016 08:22 PM #31
Rainmaker
864,428
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Hmm, appraisers - we could use a few extra good ones for sure - thanks for sharing

May 28, 2016 10:30 PM #32
Ambassador
3,685,897
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Debbie, I included this post in today's Last Week's Favorites!

Enjoy your long weekend!

May 28, 2016 11:35 PM #33
Ambassador
1,042,681
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Debbie, isn't it most amazing that the lenders are doing this kind of stuff again? And to think, we have this third party now in order to prevent this kind of thing. Sad, sad sad indeed. 

May 29, 2016 12:28 AM #34
Ambassador
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

At a GREEA (Georgia Real Estate Educators Association) meeting I was at a few months back they said NO ONE is getting in the business in our state and they are quitting left and right.  So yes, we are seeing it here and I can't blame them. Time and time again I hear of them having to re-do, change, explain... it's ridiculous. 

May 29, 2016 04:29 AM #35
Rainmaker
1,054,509
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

In fact, lenders are not requiring heloc, short sale closing, reo, refin, or PMI removal with a full blown appraisal for sometime.  Old Republic, Fidelity pays $30 or $35 for a drive by BPO or $10 more on inside with adjustment. It is cheaper to order a couple to reduce the cost (30+30=$60).  That is all they are willing to pay.  The $15/hr reviewer wants you to change comps or justify why you do not use same complex solds from last 2 years!  They say they have no problem finding hungry brokers to do it.

May 30, 2016 03:11 AM #37
Rainmaker
810,127
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Debbie:

Appraisers in my area are also calling it quits.  The appraisers who are assigned to appraise my listings have not been local and they, too, disregard applicable comps.  What a mess all the changes have created.

May 31, 2016 06:37 AM #38
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