We Pay the Least & Get the Least Qualified Appraisers

In 2013, Brian Coester of the Coester VMS AMC tweets “we pay the least and get the least qualified appraisers.”

The graphic below was sent to me so I looked for it on twitter and the conversation is still there.

A long dormant appraiser twitter account @insidevalues engaged in a conversation with AMC founder Brian Coester back in 2013. Brian responded 4 days after the question and then explained the “elite gold club” set up where appraisers would get more volume at a lower price point. I kept trying to apply sarcasm to Brian’s (he has blocked me even though I don’t recall ever engaging with him?) responses to explain the context, but he would subsequently prove me wrong or he simply is clueless about social media nuances like sarcasm. After Brian engaged with this appraiser, the appraiser continued to tweet at him lulled into the false assumption that Brian would see the error of his ways and change his business model to fairly compensate appraiser to maintain a higher quality level.

This is a cavalier conversion about how an AMC can view an appraiser yet the industry doesn’t talk like this in public. We’re the widgets in their factory and the lenders are either clueless or don’t care because of the federal backstop. It’s incredibly insane that most of the mortgage lending food chain doesn’t get that this is the norm.
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Coester - We Pay the Least & Get the Least Qualified Appraisers

Jonathan Miller

Jonathan Miller

President & CEO at Miller Samuel Inc.
Jonathan Miller is President and CEO of Miller Samuel Inc., a real estate appraisal and consulting firm he co-founded in 1986. He is a state-certified real estate appraiser in New York and Connecticut, performing court testimony as an expert witness in various local, state and federal courts.
Jonathan Miller
Jonathan Miller

Jonathan Miller

Jonathan Miller is President and CEO of Miller Samuel Inc., a real estate appraisal and consulting firm he co-founded in 1986. He is a state-certified real estate appraiser in New York and Connecticut, performing court testimony as an expert witness in various local, state and federal courts.

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20 Responses

  1. B says:

    WHEN ARE THEY GOING TO GET RID OF THOSE WHO MAKE THE INDUSTRY LOOK LIKE FOOLS?

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  2. Ron - No, The Other One says:

    No one makes us undercut each other; that is our sole decision. As I believe Nancy was in charge of this nation during the last few years of his presidency, I never did cotton to her, but she had it right.

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  3. Baggins Baggins says:

    So, when are state or federal authorities going to audit the amc’s? Well, it’s expensive to give a lot of money to charity, support social justice efforts, have socials and mixers with fine cuisine and fancy cigars, giving away food, education and clothing, hiring your family members.  Those things don’t come cheap.  It’s a free market and if appraisers feel like just giving it away to strangers so the amc’s can in turn give it away to other strangers, that’s their own personal business decision to make.  Me I’m more of a 100%’er type of guy.

    http://www.briancoester.com/coestervms/tag/john-coester/

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  4. Is there a New York appraiser much more familiar with your state’s Dept. of State layout than I, that can also verify an AMC license or registration?

    Just received ad from Working RE with info linked to the following: Mueller Staff Appraising”

    “Staff” appraiser position at $50 an hour (sure it is!). Desk appraisals or reconciliations from descriptions on their site. Nice buzz words to sucker in inexperienced appraisers but no reference to a state license or registration unless I simply missed it.

    One obvious question; how does one comply with all aspects of USPAP-other than by disclosing that no actual or credible market data was obtained by the appraiser for any aspect of the ‘appraisal’? is it possible? Certainly. Is it probable? Not likely. The hourly rate and common knowledge of reconciliation companies volume to achieve those numbers has proven for years that you can either do enough volume to make those rates; OR you can follow sound appraisal practices and USPAP…but not both.

    The New York State ‘Department of State does show an AMC law (other than the draft). What I cannot find is where one verifies AMC licenses. Can anyone help? Company name is MUELLER out of Tonawonda, NY

    It would also be nice if working RE would stop taking ads from folks that are trying to put us out of business. Are they a publication for their business of selling E&O insurance, or an ad revenue generator and consequences be damned?

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    • Baggins Baggins says:

      listing quote; “Based on changing policies and service level expectations, the appraiser of the future will rely upon a qualified independent third-party to complete the physical inspection, while the appraiser focuses their energy on analysis and report” / Um, no. And who is more qualified to inspect properties than appraisers? What a joke. This ‘legacy’ appraiser rules the day and the brave new world tech nerds can keep all of it, I don’t need any of what they offer. If they want to restructure a business, they should start with demoting themselves instead. When appraisers cease inspecting properties in person they will no longer be appraisers, but mere statistical analysts which are already a dime a dozen.

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We Pay the Least & Get the Least Qualified Appraisers

by Jonathan Miller time to read: 1 min
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