Let the Bids Begin!
Bid assignments are more often than not awarded to lowest bidders…
For the past couple of days, we have been hearing rumors about Corelogic beta testing a “Residential Bidding” system for Mercury Network. It is no longer a rumor. It will be launched in late August.
It did not take Corelogic long, after it acquired Mercury Network, to implement some changes. The bidding system will allow their customers to request bids from multiple appraisers. They claim that this feature will help their clients find an appraiser faster. Yet, will this be the primary reason it will be used?
Based on what we have experienced and seen in the past, bid assignments are more often than not awarded to lowest bidders and not to the most qualified. Appraisers who bid the lowest usually get the majority of the work. Most established and experienced appraisers usually decline or ignore bid assignments.
In our opinion, bidding systems are nothing more than a big auction of appraisal service. Low bid almost always wins!
Excerpt from Residential bidding: Vendor FAQ
Is this a broadcasting or mass-blast system?
This is not a way for your clients to mass-blast an email to appraisers whether or not they’re qualified to complete the order. This system helps your clients reduce assignment times and make sure they’re choosing the right appraiser for their residential orders – particularly for complex, rural, or similarly difficult-to-assign orders. Your clients can use an extensive set of criteria and weighting factors to select a group of appraisers who are highly qualified to service the order, so if you’re receiving a bid request, you can be sure it’s because your location, professional qualifications and performance are right for the job.
Will clients be sending bid requests looking for the first response?
Not really — our bidding system works differently. Your client can send a bid request to select appraisers who have been pre-qualified based on the client’s custom selection criteria. Then, when your client has the bids they requested, they’ll select the appraiser who best fits their needs for the job. In short, the focus of our residential bidding system is for your clients to quickly select the best appraiser for the job based on the appraiser’s availability, not the cheapest one or the first one to respond… Read more »