HVCC and Appraisal Management Company (AMC)

By
Real Estate Appraiser with Real Estate Valuation Group

I have a general question to all appraisers out there trying to get approvals with AMC's.  Since the threat of the HVCC I have been collectively attempting to get approved with as many AMC'S as possible.  The problem is nearly all of the companies I have contacted, Landsafe, AppraisalPort, Valueit are not accepting new appraisers on the approved list.  So if the Ludicrous HVCC comes into law, not only will appraisers be paid much less, lose the ability to manage our own clients, be expected to turn out reports faster than possible (if you're actually doing an appraisal properly), we wont even be able to get assignments as the AMC's are not accepting new appraisers on the approval list.  Do any of you have tips for actually getting on the approval lists?  and what are some of the different AMC's that you are approved with?  Your help is greatly appreciated!

Comments (6)

John Queenan
CDPE, Nicholas H. Fingelly Real Estate - Sandy Hook, CT

Adam,

Although this is an older post of yours, it is becoming more important as the time nears for residential appraisers to address this question.

I decided when this first came out to stop taking ALL lender work that wasn't FHA or review work. I chose to dedicate 3 hours a week to identifying new opportunities/new income sources, identifying the top players in those spaces, and networking my way into some new income streams. Of course, this was partly forced on me as most of my then mortgage clients have vanished, and others we had to fire.

Alternatives for appraisers that I've found to be more profitable time on task than AMC based mortgage work, and even direct lender work:

- Use your contacts with the top producing local Realtors to generate pre-listing appraisal orders and market overviews for their CMAs. Another area the top agents are always looking for is help with floorplans, photography and virtual tours. Here is one example I did for one of our local top producers: http://tinyurl.com/c4doj4
Funny how once the Realtors sees you on their side the referrals start coming quickly.

- Hunt down the attorneys doing the brunt of the pre-foreclosure work in your area. In many areas they have lots of work and their appraisers are typically overloaded.

- Go meet the Probate Judges and give them something of value, other than your business card. Be an information source for them and you will be top of mind when the attorneys before them need appraisals. The probate judges I've spoken with were grateful for even the simplest market update.

- Get every probate, bankruptcy, and divorce lawyer in your area on your newsletter or monthly email list. Give them something of value that they will hang onto, remember to have your contact info on it. Monthly or quarterly market reports are pretty easy, and your doing the research anyway for your appraisals.

- Get ahold of all the local credit unions and small banks for review work on all the shoddy appraisals coming and about to come their way.

- Get a copy of all the local assessor's reval schedules, and time some simple postcard mailers, letters to the editors, and even guest columns in the local papers to arrive with the new assessments. This isn't one I've acted on yet, this idea is from Brian at www.appraisalscoop.com

- Get your real estate salespersons license so when your friends and family ask you who they should call, you can at least get a referral fee from the agent you were going to refer them to anyway. For many appraisers, this could work out to a large number. And forget about the conflict of interest question here, you weren't going to do the appraisal on your family & friend's mortgages anyway.

- And most importantly, if you are in a comfortable financial position and you have a choice between an unprofitable appraisal order and not having anything to do that day, pass on the order and invest the time to find profitable work. 4 to 6 hours of time spent focused on generating non-lending business is more than many appraisers I know invest in a whole year.

John Queenan

Feb 13, 2009 05:54 AM
Jeffrey Worden
Tradition Roofing and Exteriors - Saint Paul, MN

Adam

If we all stick together, and not do appraisals for less, then the AMCs will have to pay a decent, fee for the work we do. Sadly there are those, usually less experienced accepting low ball fees

I will continue to stay in contact with my best AMc clients that understand my fee scale,

I'm sure i'm not getting some work,

I have partnered up with some good guys and we are buying, renovating and selling or managing forclosed 2-4 units in my area

 

Jeffrey

Feb 13, 2009 12:23 PM
Rita Bradley
Laguna Hills, CA
Valuation Consultant in Orange County California 949-916-3263

That's a lot of good info John.  Also a very timely blog post.

Mar 03, 2009 04:05 PM
Anonymous
Dmitri Isaev

Hi John,

 

Thank you for new ideas, you make my day.

I will try to change the way I run my business , got sick and tired from AMC as well.

Dmitri.

 

May 04, 2010 09:31 AM
#5
Anonymous
Adam Wise

I left this profession in 2005, it is dead!!!!  I wish you all the best

Jan 05, 2011 12:52 PM
#6