Stand Your Ground!
Many states have laws in place that allow citizens to protect themselves and their property without prosecution. In the appraisal profession, you must also stand your ground to protect their business.
Social Media is a quick and easy way to communicate. Recently there have been numerous appraisers reaching out and sharing trouble getting paid from some Appraisal Management Companies. Some are claiming they are long time clients with no issues in the past.
This is wake up call for all appraisers to pay attention to the economic and financial side of your business.
Volume is slowing as school starts and the selling season ends. Volume is down for lenders and AMCs as well. Some AMCs do not have the financial resources to survive a seasonal slowdown and are attempting to overcome their bad business model at the appraisers’ expense.
Here are some things to watch for;
Late Payments: AMCs will withhold or delay payments to appraisers. Some will even send over revision requests just to delay payment. Virginia law requires the appraiser to be paid by the AMC within 30 days of the initial submission of the report. The AMC can send over revisions for months, but the appraisers must be paid within 30 days. Stand your ground on late payments to protect your business.
Low Fees: Out of nowhere good AMC clients will solicit assignments at lower fees than before. Just yesterday we heard of an appraiser receiving an order for a manufactured home in a rural area for $100 less than what this AMC was paying for a cookie cutter subdivision home. Just because the AMC has a bad business model, it does not mean appraisers do. Stand your ground of reasonable and customary fees.
The appraiser’s cost of producing an appraisal report may fluctuate as expenses change. Have any of the appraiser’s expenses been reduced? Just the opposite has occurred. The National Association of Realtors, which most appraisers are members of announced a membership fee increase. Portal and upload fees have increased, software fees have increased and health insurance costs continue to increase. Appraisers are now being taxed in some areas as well. If anything, appraisal fees should be increasing. Now is the time to re-evaluate your expenses and profit.
Stock Prices: Some companies are publicly traded. What trend does their stock represent? Have you looked at the financials of these companies? Are they in the red or black? Are factoring companies issuing credit to these companies? Stand your ground when choosing who to conduct business with.
Social Media: Yes, social media. Facebook, LinkedIn, Twitter, Instagram, blogs, etc. There are lots of sources concerning the appraisal profession. Join the groups, sign up for blogs and pay attention. Appraisers share lots of information and much of it is beneficial. Visit the Appraiser Resource Section on VaCAP’s website for links to many of these great sources. Stand your ground in protecting your business.
Perhaps the most beneficial thing appraisers can do to stand your ground is continue supporting VaCAP. Our collective voice is being heard by State and Federal Legislator, GSEs. and other interested parties. We work collectively in protecting the profession and public trust. To learn more about VaCAP visit our website.
THANK YOU FOR SUPPORTING VaCAP!