Low-Cost E&O Insurance from OREP Library/Previous Editions
Five Step Program for Honest Appraisers - read story
> I am an independent fee appraiser working four large, sparsely populated
counties in
> After working as an appraiser for more than 18 years, I’ve encountered all of
the changes in the industry from the days of hand-written reports to AVMs.
During all this time, I haven’t met a mortgage broker, originator or agent who
doesn’t want the deal to work. Being that an appraisal is one person’s opinion
based on the best facts available, it comes down to how stretched your conscious
has become as an appraiser. Do the years tend to break your resistance to: “I
have a qualified buyer, ready, willing and able to pay this amount?” “Who are
you to dictate a low value?” Or “Come on, you can’t find another $5,000 in there
somewhere?”
After enduring many years of this torture, I found going up a little in my prices taught my less than perfect price seekers to look elsewhere for a number. Doing first class work and the proper due diligence takes a bit longer than it used to, so when you have become comfortable with your own talents as an appraiser, you realize that your work is worth a bit more (just don’t price yourself out of job).
Get to know your
clients. Don’t be afraid to ask questions ahead of time. Be specific in what you
will and will not do and gently say what you can’t do, like guarantee a number.
If you pick your clients carefully and ask around about what others think of
them, you will stand a better chance of having a long-term and positive
relationship.
Lastly, give more
than your competitors do. One thing everyone wants now is great communication;
with email this is easier than ever. Beef up your report with better and more
up-to-date details and demonstrate your higher technical ability. Don’t forget
that you are in the service business and apply the golden rule. - Jim Thompson
> You would be surprised how much of this article fits the inspection industry.
Me? I'm too damn slow and thorough. I've lost a lot of agents but you know
what, I put out a damn good report and I'm not going to half ass it for anyone.
Thanks. I enjoy your articles and your attitude. - Gary Powell
> We at the American Guild of Appraisers OPEIU AFL-CIO contacted everyone that
we could regard the inflation of values and the pressure put on appraisers to
inflate. We spoke to Fannie Mae in direct meetings with them. We spoke to major
banks, Congressmen and Senators about inflated values and the ethics of agents,
mortgage bankers and banks. All turned a deaf ear to what we had to say. This
includes AFL-CIO pension fund administrators (who are bankers hired by AFL-CIO).
We also spoke to the FBI on a number of cases and they didn't want to hear about
it. Several turned into major scandals that could have been prevented if the FBI
would have done something. In a single family sale, the bottom line is that
greed prevails. Agents control the broker in the deal by threatening to take the
business somewhere else if the value doesn't come in. The broker who works on
commission also bows to the agent who works on commission and they both control
the appraiser’s living.
The honest appraiser doesn't receive anymore work and the appraiser who plays
ball gets the work. Thus, a pool of bad appraisers who come up with the value
that the agent, broker or banker wants are the only ones left. The broker/bank
sells the loan to one of the wholesale money people - Fannie, Freddie or a
private group. They have washed their hands and go about doing business as
usual. The American people are left holding the bag. (What’s new?)
- William Sentner, Past National President American
Guild of Appraisers OPEIU AFL-CIO