Low-Cost E&O Insurance from OREP Working RE Home Library/Previous Editions
Making AMCs Work for you
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read
story
While it is Mr. Verrett's
right to pursue his business as he sees fit, I was stunned over his obvious
pride in "outsourcing" work to a firm in India!!! Did he make a real
effort to find local or national companies or individuals to do the same work?
Will he brag about "outsourcing" when Mortgage companies and banks "outsource"
all of his (and our) business to India? Creation of jobs is what built this
country, "outsourcing" weakens our economy and for what - to put a few bucks on
an appraisal in his pocket? Shame, shame, shame on your Mr. Verrett. Shame on
you as an appraiser and an American.
- Clay Allen, Real Estate Appraiser and Consultant, Marshall Tx
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What a great article "Making AMC's Work for You." I have to say that it is not all gloom and doom, which your article successfully illustrated. But your article left a little to be desired. Ken Verrett, in the article, pointed to becoming more efficient and cutting costs in doing business (ie do more appraisals to make the same amount of money). But, no where in the article did he address the claims that quality has diminished because of AMC's.
I am a reviewer for a large AMC and I see the quality of appraisals that are being completed. The majority of the bad appraisals that I see, are because of the lack of taking the time to do the job right. It appears that most appraisers are trying to send out the appraisal to meet a deadline. Some of the most common errors that I see are: 1) Not properly checking zoning 2) Giving value to un-permitted structures 3) The square footage is different from public records, so they use their selected comparables anyway 4) Poor comparable selection 5) Using bank repossessions as closed sales comparables 6) Overlooking the subjects external obsolescence.
These are the majority of the problems that I see. But that is what you get when you pay $200.00 per appraisal. I understand you write this magazine in conjunction with OREP. If I were an insurer, I would be concerned about this development, as speed and efficiency is more important than quality. I can guarantee that insurance firms will be paying out more in claims, as the quality of the appraisals continue to diminish as AMC's take over the appraisal ordering.
I agree that something needs to change, but a cut in the appraisal fee to pay for the management company is not the answer.
- Greg Owens
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Having read "Making AMCs Work for You," I fully understand the appraiser's decision to work for an AMC. If he has the volume and can be profitable then I think it's great. In our coverage areas, having volume from an AMC just does not happen.
I had one issue with this article that hit me like a ton of bricks. The paragraph regarding "outsourcing." I understand the appraiser's need to eliminate dollar spending to be profitable, BUT to do as many large corporations and companies have done so often and outsource to another country???!!!!! This is a major cause of job lose in this country. I realize this is only 1 position but, to me, this gentleman is telling the full-time clerical staff person he let go that they are only worth $3.25 per hour. Isn't he also, in essence, telling the individual in India that they are worth a meager wage also???!!!
- Julie Shockley, Dickson, TN