AMCs Bidding Game
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An appraiser’s response to AMCs bidding system.
Recently, we came across an interesting story and thought it’s something fruitful that needs to be shared. If you receive “appraisal orders by email-blast”, you may find the below “template” useful. This was inspired by another appraiser. We encourage appraisers to copy this defacto response or adapt your content to suit your context/circumstances. We need to work together as a group in our efforts to fight AMCs’ bidding system and put an end on low bid appraisal ordering.
If your company consistently calls for bid quotes and is unable to assign the order directly right there, that’s more trouble than anything.
When you’re ready to assign me orders directly, with trust, commitment, and work at developing a professional connection, I’ll be around.
If you’re shopping for best fee and turn, among several appraisers at once, I’m definitely not interested.
There are entirely too many clients out there who do assign orders directly at set fees of at least $450 minimum, that it’s just an unwise decision to try and work with anyone else.
Even among those sets of clients, they still utilize bidding processes now and then. I’ll accept some time drain for those, because I know they are good clients who do pay consistent C&R minimums, and I can count on a continued work stream from them, regardless if I play the bidding game or not.
The notion of having an appraiser take the time to log in and compete in a bid war, and answer phones and make comp searches and quick bids right on the spot, that sounds like a real time drainer. I’m in business to develop reliable connections, not chase ghosts.
When you are ready to provide equivalent or better appraisal handling, and present with equivalent or better reliability factors when it comes to minimum fees consistently, and some measure of consistent volume, regardless, then I’ll be around.
I leave building their business and predicting workflow around a giant question mark, I leave that to the new guys and the appraisers who can’t qualify for the great clients I’ve been landing lately.
I find it remarkable that AMCs still are unable to take strong positions with lenders and get the appropriate management authority to manage the process. It does not take this much effort, and this much time drain on a multiple set of appraisers, to place singular orders. I’m too busy appraising, to worry about competing. Too many demands from the ever increasing regulatory body, and ever expanding specific compliance developmental rules, to bother trying to be cheaper or faster.
It is not the appraisers, or the AMCs’ responsibility to save the borrowing consumer a dollar or a day. It is in fact, counter productive to both of our interests to do so. If the lender was competing on quality terms, they’d have a base $550 consumer charge for the appraisal, as a standard minimum, and all borrowers would expect that. The handler gets the $100 for clerk duties. The appraiser gets standard $450. Things run like dang clockwork.
You should try it. It works. I’m not interested in taking time to log in to race to the bottom. AMCs don’t have the same perspective appraisers have. I bounce so many calls and emails like that every day. If I took the time to answer every call and bid every quote, I would never get any work done. In fact, that’s what happened to me last years. Although I drove premium fees of $550 average or better, the time commitment to land those orders was not worth it. Some days I spent 4 hours on calls and email bids, before I ever even started my work. I literally worked 6 months straight without a day off.
This year is different. I give each client one shot. They make it or break it. Don’t waste my time with bidding. Please do renegotiate terms with lenders to get to a $450 minimum standard. And you’ll find I’m not the only appraiser willing to give you priority service.
Anything less than that, I’ll pass.