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An AMC as a Partner to Appraisers and Lenders? Interview With Jessie Ruckel

by Isaac Peck, Publisher

Appraisal management companies (AMCs) have long been a point of contention in the valuation profession. Since gaining prominence after the 2008 financial crisis and the introduction of appraiser independence rules under HVCC and Dodd-Frank, AMCs have often been viewed with suspicion—and in many cases, outright hostility—by appraisers.

The reasons are well known. As AMCs rapidly grew their market share in the years following the crash, many leveraged their position to drive fees down. Appraisers who had built direct client relationships over decades suddenly found themselves offered assignments at less than half their former rates—sometimes under $200. The resentment was understandable and widespread.

Though appraisal fees eventually rebounded and even surged during the COVID-19 “boom years” of 2020–2022, today’s environment tells a different story. With interest rates at their highest levels in decades, appraisal volume has plummeted, leaving both appraisers and AMCs scrambling for business. Meanwhile, the AMC sector itself has consolidated, with the five largest firms controlling more market share than ever. In this climate, aggressive “low-fee” bidding strategies have resurfaced, evoking memories of the post-2008 downturn.

However, AMCs that take a different approach to their relationship with appraisers still exist—AMCs that see the value of high-quality appraisal work, diligently vet their appraiser panels on quality and service metrics, and firmly believe in the motto of “you get what you pay for” when it comes to real estate appraising.

A chief advocate of this perspective is Jessie Elizabeth Ruckel, SRA, CML, an appraiser herself since 1990 and the founder of Independent Appraisal Management Company (dba iappraisal), a regional AMC in Texas. What makes Ruckel’s firm unique is its commitment to redefining the AMC model: acting as a genuine partner to both appraisers and lenders by respecting the appraiser as the expert in their local market, paying fair fees, and delivering uncompromising quality.

Working RE: Tell us about your background and your company. How’d you get into appraising?

Jessie Ruckel: My background in real estate appraisal goes back to the late 1980s. I got into appraising by accident when I was in college in Ohio. I was a business finance student taking a class for extra credit, and it happened to be on real estate appraisal. I truly enjoyed the course and became interested in appraising as a career. My professor was a commercial appraiser seeking her MAI designation, and told me I had a knack for it. I went on to take all required real estate related classes, including law, finance, statistics, etc. I had the benefit of local professional appraisers (MAIs) teaching most of these classes. I began interning with a husband-and-wife team, an MAI and RM (now SRA) [Appraisal Institute expertise designations]. I was so fortunate to start from the ground up, learning from such knowledgeable appraisers sharing their expertise and experience with me and providing quality training. I interned from 1988-1990, doing everything from pulling data at the county courthouse, accompanying the residential staff on inspections, running camera rolls to the local photo store for development (this was a LONG time ago!) and delivering completed reports to the local lenders. I obtained my license post-graduation and took a job at a regional savings and loan bank.

Being on staff at a lending institution, writing and eventually reviewing appraisals, and serving as the eyes and ears for the bank was a great experience for me. The residential appraisers worked on the same floor as the loan officers. I never had the experience of having loan officers try to coerce me. I worked for that family-owned lending institution for nearly 15 years. Then in 2005, they sold out to a large bank: RBS Citizens National Bank. It became clear to me that change was coming and the focus on residential real estate would be diminished so I decided to create my own company, a sole appraiser practice. Many of the loan officers who left after the RBS/Citizens acquisition moved on to other lending institutions. Those lenders, local and regional banks became my client base.

My relationships with these lending institutions, rather than individual mortgage brokers, allowed me to escape much of the pain of lost business that many appraisers in the industry felt at that time in the post-Dodd-Frank era.

I successfully ran my sole practice for 8 years before taking an opportunity to move to Texas to join forces with a fellow SRA to assist in growing his firm into the largest in Central Texas. Our client base was comprised of local and regional lenders who benefited from processes and consistency afforded by the firm. Our clients received positive feedback from their local agent and builder referral partners who appreciated the relationship, professionalism and expertise.

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Working RE: What made you want to start an AMC?

Ruckel: Given our reputation in the Austin / central Texas market, many of our clients would come to us and say: “We love working with your team. We love everything you do, i.e. how you have relationships with the builders and real estate brokers, how you’re involved in the Mortgage Bankers Association, the homebuilders association, the local Realtor association and so on.” They were experiencing pain points when they placed an order for an appraisal that was outside of our footprint. They weren’t receiving the same level of service or the same quality of report.

Some of these clients were using larger AMCs or appraiser selection portals. They didn’t really know who they were working with when placing business outside of the Austin / central Texas market. They had lost the level of communication, service and quality they had become accustomed to.

Eventually, iappraisal was launched—focused solely on Texas, with a mission to provide excellent service, create meaningful relationships with expert appraisers in local markets, offer counseling and guidance to both client and appraiser, and deliver high-quality products.

Having traveled the state for several years attending local appraiser meetings and events, getting to know the local appraisers, and being involved in mortgage lending organizations, we built our appraisal panel organically, in relationship with like-minded appraisers having the skill set and local expertise understood and accepted by the local market participants.

We launched in December 2019, right before the COVID-19 pandemic. During the pandemic, we had several lenders come to us just looking for bodies to complete assignments. That was a lesson—we realized certain types of lenders perhaps weren’t a good fit for our model. Unlike our local and regional Texas focused clients who appreciated the benefits of our intentional appraisal management, those clients were simply looking for communication via a portal, not fully understanding and appreciating what was needed to procure a high-quality appraisal report. Issues such as not clearly conveying assignment conditions, understanding that the appraiser needs all relevant documents provided up front, and that without certain information, the appraiser can’t properly vet an assignment nor provide an appropriate bid. Part of our process is to ensure the appraiser is treated fairly so that they prioritize their relationship with us. This in turn benefits our client.

We successfully navigated the pandemic thanks to the loyalty and dedication of our panel of appraisers and our core clients. Our clients didn’t experience those stories about price gouging and inability to procure an appraiser because of the relationship we had with our appraisers. We cultivated loyalty by developing mutual respect.

Working RE: Tell us about your ideal clients and your ideal appraiser that you want on your appraiser panel?

Ruckel: Our ideal client has been local and regional lenders who appreciate a quality product and excellent communication. Lenders who value and appreciate having an AMC partner that is local and established in Texas.

We understand what our appraisers require to do their job well. Our clients are more interested in that intentional process rather than the speed of having a bid in two hours.

Our ideal appraiser has always been that individual with local geographic competency and the required skill set to complete a range of assignment types. Our appraisers are familiar with their local market participants, i.e., local agents, builders, etc. and are actively engaged in their respective markets. Many of our appraisers serve as educators in their markets, teaching classes at their local Realtor associations and leading educational offerings for local lenders. We look for appraisers that are willing to learn.

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Working RE: What makes you different from your competitors (other AMCs) that are operating in your markets?

Ruckel: Intentionality. We are intentional with everything we do. When an assignment comes into our AMC, we review all associated documents provided and if relevant documents are missing that are pertinent to the assignment, we procure those documents before reaching out to an appraiser and asking them to review. What is it we are asking the appraiser to do? Would I as an appraiser feel comfortable reviewing an assignment with missing documents or relevant information? I try to always put myself in the appraiser’s shoes and not put them in a position that I wouldn’t feel comfortable in. Our company prioritizes the appraiser, values their license and treats them with the respect they deserve.

We have real relationships with our appraisers. They don’t hesitate to speak up. They can easily get answers or discuss concerns by whatever form of communication they prefer! They often can’t do that with other, larger AMCs. Appraisers call in with questions or want to discuss a particular aspect of the assignment. We’re available and accessible in a way that many AMCs are not.

Working RE: Tell us about how you build your appraiser panels?

Ruckel: Our panel has been built organically through my own travels around the state of Texas. I’ve known many appraisers across the state for years, and peer recommendations are one of the most valuable ways we build our panel. We also receive referrals from lenders, real estate brokerages, and even top agents who know and understand who the local appraisal experts are in their markets.

I’m passionate about working with appraisers who are willing to learn— those who are willing to engage with their appraiser peers, and local market participants. We don’t just add an appraiser because they have a license in the county; we want to know and understand their skill set and how they communicate. Our expectation is that appraisers engage with us and with their markets, and we’ll support them with whatever information they need in return.

At the end of the day, it’s an organic referral network—appraisers who not only do solid work themselves but can recommend trusted peers when needed—that makes our panels strong.

Working RE: Appraisers’ fees are a very hot topic. How do you compensate your appraisers and how does that affect quality?

Ruckel: We pay the appraiser the appropriate fee for the complexity of the assignment and then we add the fee for our service on top [of that]. We do not broadcast assignments to the lowest bidder. We do not look for the lowest priced appraiser. We go to the most reliable appraiser, with the appropriate competency and offer a fair fee. If the appraiser sees additional complexity which we were not aware, they tell us their fee, and we present the total fee to the lender. It’s that simple. Our lenders trust us. Sometimes we might have a market participant who is fee-sensitive, in which case often our appraiser partners will make a concession. Fees are not really an issue for us. Our clients demand reliability, consistency, communication and high-quality reports. They pay for a good appraiser, and they pay for good management.

Working RE: What is the value-add and distinction between iAppraisal (niche, local AMC) versus a larger, national AMC?

Ruckel: It’s about the respect and understanding of the appraiser, and of what they’re being asked to do. It’s about being mindful of our clients and their needs and requirements as well. Both sides have guidelines, rules and regulations they need to be mindful of. We consider ourselves to be educators and partners with a model that is built on relationships and trust. Versus a transactional approach that says: you’ve got a license, we have an order, what’s the lowest fee that you will take to get the assignment? In this case, neither the appraiser nor the lender is ultimately treated well.

Working RE: What do your clients appreciate about you?

Ruckel: Our service and communication. The quality product we deliver. Our relationship, guidance and expertise in appraisal management. We also offer a variety of custom management options and value-add services such as CE classes, education, custom panels, and in-depth appraisal consulting.

Our clients know that we interpret and facilitate quick, compliant, and effective communication with the appraisers. We know which appraisers to assign specific assignment types, for complexity and geographic competency. They are aware that iappraisal offers support and guidance to industry organizations like TMBA (I chair the local affiliates committee), the various local MBAs (I sit on the Austin MBA Board), HBA, Appraisal Institute, and Association of Texas Appraisers.

Working RE: Any final thoughts?

Ruckel: I think it’s so important for appraisers to be proactive and be educators out in their marketplace. That would be my hope and wish, really. I understand the frustration many appraisers have when they feel as though they don’t have a channel for meaningful communication with their clients. Be proactive. Help to educate those that you have relationships with in your market. Inform agents, lenders, homebuilders about options like iappraisal. Offer a solution, be a problem-solver.

There’s not just one AMC model. Educating lenders and agents about the distinction between different models of AMCs is important. Often, clients are not always aware of the options available to them. Explain why they might want to pick a local AMC to bring them a more intentional experience.

About the Author
Isaac Peck is the Publisher of Working RE magazine and the President of OREP Insurance, a leading provider of E&O insurance for real estate professionals. OREP serves over 10,000 appraisers with comprehensive E&O coverage, competitive rates, and 14 hours of CE at no charge for OREP Members (CE not approved in IL, AK). Visit OREP.org to learn more. Reach Isaac at isaac@orep.org or (888) 347-5273. CA License #4116465.

OREP Insurance Services, LLC. Calif. License #0K99465