Here’s another letter excerpted from the new issue: “It is so busy during the first four months of 2012 you do not have to accept low fee work. I have successfully raised my price with the couple of AMCs that allow you to set your own and I have aligned myself with two new AMCs that pay higher. You appraisers who are complaining about low fee work and are setting the fee at $225, are you kidding me? Leaving $100 on the table for every appraisal is stupidity. You're not going to undercut anyone but yourself. I am happy to report that life is good, I will make over $100k this year and I ride my bicycle a minimum of three-four days a week to my assignments. I’m going green. We are fortunate to have enough requests to focus on the local work and turn down the more distant orders. I have denied more than five appraisals this week alone. Good luck out there and love what you do.”

How’s Business? Survey Results- Business is Good!
According to the OREP/Working RE survey How’s Business?, most appraisers are as busy or busier than last year. There is lingering discontent to be sure but the silent majority of appraisers seem to be back to work and busy. We talk to many appraisers every day at OREP, to place their insurance, and many say they are scrambling to keep up with orders- though things do slow down this time of year.  We hear that AMC fees are rising in general, especially for those who ask for more/refuse to work for less. Many are diversifying into non-lender work that is more satisfying and provides greater security and stability (webinar: Other than Lender Work). The transition is slow but progress is being made. Many of you are becoming more comfortable firing clients who are more trouble than they’re worth or who refuse to pay you what you’re worth. AMC ranks are thinning, and as appraisers become more savvy and sure-footed in dealing with these middlemen, the more that AMCs will have to compete for the best appraisers.

What You Can Do
Many are learning their rights and responsibilities under new state and federal regulation. It is a double-edged sword: appraisers have more protections and rights than they may realize but also are under closer scrutiny to do creditable work- one mistake can end a career. It’s important that everyone knows what is expected of them because the consequences are severe: for lenders, AMCs and appraisers who run afoul of the rules. How do I know? We host the webinar, How to Limit Liability, Maintain Independence, & Fight Influence (three part series), presented by Richard Hagar, SRA as part of the OREP/Working RE webinar series, and they are an eye opener.

Many appraisers are reorganizing, hiring help or increasing their know-how of technology. Many are becoming more “mobile” and exploring other ways to increase productivity and their bottom line (learn more from these webinars: Mobile Appraising and Can you Increase your Appraisal Volume and the Quality of your Work?). While it’s well documented that fees have not risen over the years, all small businesses have enjoyed significant increases in productivity and hourly compensation made possible in leaps and bounds by technology advances. If you’re not using these tools to the fullest to speed up your processes, you are not as profitable as you could be. In a recent OREP/Working RE webinar, 39 percent of the attendees surveyed did not have a website!  How much good business are these appraisers forfeiting? This webinar offers valuable (and simple) techniques to increase the flow of local non-lender work (Webinar: Building Your Business and Gaining Clients).  Kudos to those who attend this webinar and to everyone who is taking steps to improve their business. 

In our current print magazine, now in the mail to most of you, and to every OREP insured, we take up these topics in the hope that you will explore a new idea, understand new protections to fight illegal pressure/harassment, learn how to avoid liability or pursue a new opportunity to make a change in your practice that may make all the difference to your bottom line. This is what you’ll find in the new issue of Working RE, in our online stories and in our webinars. And there is no time like the present to begin.      

Moving Ahead
The profession has suffered an unprecedented assault; most appraisers lost something, some lost everything.  But today we can report that many are still standing- a few are stronger than ever.  As the ranks thin, fees and opportunities are growing for those who remain.  No matter what happens with customary and reasonable fees or any other regulatory issue which may or may not restore fairness to the profession, it feels like we’ve turned some kind of corner and are moving ahead. Appropriate for this Independence Day.

If you’re not as busy as you’d like or not making as much as you want, consider these resources and others to take back control of your business.

Typist services offered: Retired Certified Licensed Appraiser after 22 years: relapprais@aol.com.

About the Author
David Brauner is Editor of Working RE magazine and Senior Broker at OREP.org, a leading provider of E&O Insurance for appraisers, inspectors and other real estate professionals in 49 states. He has covered the appraisal profession for over 20 years. He can be contacted at dbrauner@orep.org or (888) 347-5273. Calif. Insurance Lic. #0C89873.