Scope Creep!!!
Seems like everyone hates AMC’s and scope creep.
Scope Creep!! I ordered a sub at a sub shop. I love tomatoes! So I asked for extra tomatoes. I was charged. I took my car in for inspection. I told the mechanic since my car was up in the air and the tires were off to rotate the tires. I was charged. BUT, the tires were off. The cook’s hand was in the tomatoes. WHAT’s up?
I was asked for two listings. I wanted to charge. I did a restricted report on an office building (sales comp approach only). The client called and wanted a cap rate, then an expense ratio. They refused to pay more. No other appraiser charges. I would love to work for free but my creditors hate it and my kids need to eat. Business is up, it’s time to limit scope creep. Remember this when a client asks for your work file.
Pat Turner, SRPA returned from the ARRO conference with a lot of good information. I am waiting on his report to post it on the VACAP website. Go to http://vacaponline.com. Seems like everyone hates AMC’s and scope creep. Pat is also teaching CE in northern virginia.
VCCAI has moved its meeting due to scheduling conflict from the Blue Mountain Brewery to the Wild Wolf Brewery about 2 miles down the road. This is another awesome place. The ladies will love the gardens. All can come, just register via the attached flyer below. Plan on attending.
VACAP elections will be coming up very soon. All positions are filled. Brian Woody and Don Sledd have formed a meeting group that will meet the first Tuesday of every other month in the Richmond Area. All are invited to attend. Roger Easterling has volunteered to help form a VACAP meeting this September in Woodbridge. I will keep you posted as we push that along.
Finally, John Hillard, an appraiser in Richmond died of a heart attack back in March. I just found out about this. I did not know John, but many of you did. I am sure he will be missed. My condolences.
Go Fight Win
By Alex Uminski, VaCAP Treasurer
- It’s Just Responsible Journalism! - February 21, 2024
- Limitations for Damages Against Appraisers - January 9, 2024
- AMC Engagement Letter: Appraisers Do Not Include Your Invoice - July 28, 2023
Four words come to mind: “Good Luck With That”.
Scope Creep + Fee Recession = Professional Extinction
Think of it as the Appraisers Ice Age.
Lately I’m on about scope creep and order assignment methods. Amc’s are absolutely ruining efficiency in assignment, with their renewed efforts to micro manage and fee quote and time quote absolutely everything that comes across their desk. This month alone, is looking like the mid 2000’s all over again. Hearing about 10 orders, and landing 1. Teaser orders is probably the best way to describe these renewed amc assignment efforts. This fee and time quoting amc nonsense is worse than comp searching. These amc’s are not being professional what so ever, when they call down the appraisers list endlessly, wasting everyones time, to try and save a dollar and a day. So that’s scope creep as well, but on the front end. All amc’s who operate this way get at least $100 higher fee quote, if not $200. Then I return the favor and call back over and over asking them if the fee has been approved or not. What else can I do? They’re so elusive and tricky these days, they make sure to conceal the lenders name from the appraiser unless you actually land the order, to limit the inevitable back lash with these absolutely poor order distribution methods.
i wouldnt mind the work creep as long as we were getting paid for it, and unfortunately, we certainly are not. i am willing to do whatever it takes to make my reports better and clearer, but like the article said – you ask ANY OTHER profession to do more work, and they are going to bill you for that extra time, and that includes every lawyer and attorney who has helped create this whole mess.
we are constantly asked to do more, and it takes much longer to do a report than it ever has. our expenses keep going up, the days are getting longer, and our pay is the stuck at the same rate that it was about 10 years ago. nobody is dumb enough to stick around very long for that, because such a formula will only eventually bankrupt a business financially. nobody can afford to work for free, but thats the direction our businesses have been going in for a very long time. appraising is getting barely worth doing financially as it is, but if things dont improve quickly, it wont soon be worth it at all. appraisers are already bailing for various reasons, but when it gets to the point where a business like ours isnt allowed to make at least decent money like any other professional business should, then thats when we will see an even bigger exodus of people, and we are getting very close to that. we are in a very critical time when everyone involved in this profession needs to stop thinking short term, and instead start thinking long term. and until that happens . . . . .
the bleeding continues . . . . .
Don’t forget to read this awesome page. http://appraisersblogs.com/appraisal/amc-dangers/