The Future of Residential Lender Appraisers
173 25 11
What if you don’t want to do desktop bifurcated appraisals or the very tough appraisals that don’t work for AVMs? Or, wait, once again, for the lender market to finally come back.
There are many forces trying to get field appraisers out of doing full valuations for mortgage loans. Automation and Artificial Intelligence will increase this trend, as it has done in other professions. For example, Quicken dramatically decreased demand for manual bookkeepers. Once lenders can determine which properties will work with an AVM, there will be fewer human appraisals.
Recently, several appraisers emailed and called me saying their non-lender work would go down due to fee competition from desperate lender appraisals. Yes, this does happen in downturns, especially when it first starts going down fast. Estate appraisals are easy, and this market is affected. Plus other non-lender markets.
What is the answer? The only answer I know is to do litigation support. In my area, there are very few residential appraisers who will testify in court. When they go up against an MAI who does 1-2, or fewer, residential appraisals per year, they win. Good demand, repeat business, fees much, much higher than any other type of appraisal business, respected as an expert. Almost the opposite of AMC appraisals.
Why are residential appraisers very reluctant to do Expert Witness court testimony? Fear of the unknown I guess. I did them in the past and had no problems with testifying as an expert in court or in a deposition.
Next month in my monthly paid newsletter, I will have an article on Litigation Support and Court Testimony. I have been writing a lot about doing non-lender work. There are lots of options, but this is by far the most profitable with very little competition.
NOTE: To subscribe to Appraisal Today monthly newsletter click here.