Agent Management Company, a Familiar Ring

Agent Management Company

We will call it “AGENT MANAGEMENT COMPANY”. We will ensure that the use of runners is prohibited… 

Public trust. It’s a real thing. It appears that this recent lawsuit that the NAR LOST has exposed antitrust, collusion and price fixing between agents.

I am thinking about creating a new AMC. We will call it an “AGENT MANAGEMENT COMPANY”.

We will create a buffer per say between the buyers agent and the sellers agent thereby protecting the buyer and seller. We will have a roster of approved agents nationwide. They will be thoroughly vetted. Routinely background checked. Ensure they are fully licensed. Ensure they are fully insured.

We will verify they have access to their own data. We will ensure that the use of runners is prohibited and that the licensed agent will be unlocking the door, showing the home, taking their own photos and performing the open house.

The agents will be provided a form where they can upload their fees and those fees will be collected at closing and distributed accordingly. No more with the percentage based off the value of the home.

Agents will be gauged on a metric system and those agents who perform better than their colleagues will be afforded more opportunities.

Agents will pay a technology fee when they upload the purchase contract and addendums.

Agents that receive revisions will have 2 hours to revise and re-upload.

We will have the representative speak to you in a manner that will make you as uncomfortable as possible but ensure you that your profile is up to date.

Agents that don’t comply will not receive orders. You are still on the panel though.

Agents will have to be geographically competent. The entire state is not your playground. You will have a radius placed from your primary office address and then a distance of 40 miles as the crow flies.

Any of this sound familiar? It should. That is how appraisers are treated.

Who wants to create the NEW “AGENT MANAGEMENT COMPANY” with me?

By Pro Appraiser, Certified Real Estate Appraiser
Image credit flickr - Travis Wise

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10 Responses

  1. Personally I am in favor of abolishing appraisal licensing altogether, the process has long abandoned the original intent and has now been hijacked by third-party entities to become nothing more than their money making playpen, these third-party entities could not care less about the integrity of the appraisal profession, despite their high claims otherwise. The real appraisal report should go back to just that, a means to transmit the Appraisers Opinion of Value. If you want a structural analysis hire an engineer, title search? well nobody closes without a title search so why is the Appraiser doing this research if the information is not considered to be relevant to the report, yes sometimes it is. I for one would rather spend my time researching and confirming the market data, calling the agents to discuss the sales, yes many still like to talk about their accomplishments, MLS, Zoning & Property Tax Records, etc., I caught another error in the property tax reported Lot Size this AM, errors are not common but do happen. The residential appraisal business, like this rant, has gone off the rails and still no organized response from the appraisal industry.

  2. I am in! Love the idea 🙂 Amen to commissions not being based on Sales Price. With values skyrocketing, the amount of work a Realtor has to do is the same no matter the price, unless you are marketing a multi million dollar property and it cost more to do so… and sometimes it takes longer to close but the actual process of listing, selling and closing is the same. The commissions are higher and higher and yet no additional hours of work is involved in many cases. Plus when the market was so strong with contracts in one day and closings in less than 30 days with nothing more than the Realtor placing the home in MLS and making huge commissions, the whole system needs a revamp for sure. Whenever your pay day is commission based who are you really working for? In our case Appraisers get paid regardless and have ZERO financial interest in the property closing, while all other parties to the transcation DO!

  3. Avatar Dave says:

    I stated years ago that they need to create an AMC or “Attorney Management Company” that would require lawyers to go through the same shit appraisers have to go through in order to obtain business. Afterall, it was an attorney who suggested lenders use AMC’s. Can you imagine AMC’s sending email blasts to lawyers asking for the cheapest and fastest turn times!

  4. Avatar Maria says:

    You are singing a note I am happy to join!

  5. Avatar Lindsey says:

    Love it and all the comments too!

  6. Avatar Pat Turner says:

    Freaking awesome and I hope it catches on fire.
    Every politician should be paying very close attention to this issue!

  7. Elizabeth Morse Rhodes on Facebook Elizabeth Morse Rhodes on Facebook says:

    OMG, that would be so funny!

  8. Mary Cummins on Facebook Mary Cummins on Facebook says:

    Appraisers had to be regulated by AMCs. Why not agents ? They can all receive a standard customary fee to prove they aren’t biased to the buyer or seller. Currently all agents are biased toward seller who pays the commission based on sales price. The current shakeout could really change things.

    • Baggins Baggins says:

      If you want to get a hold of agency bias do not allow agency commissions to be included in the mortgage loan package. Most consumers would be shocked to learn that when all is said and done, they paid substantially more for that agency representation than they thought, amortized on a 30 year loan.

      Per the image below, the GSE managers are hopelessly out of touch. Someone should tell them that if 1/2 of all appraisers do not complete gse work due to their longstanding boycott off the amc model, that if only 1/4 of appraisers work with amc’s, 80% of all gse work flows through amc’s, that the amc’s only routinely engage with 1/10th or less of available appraisers out there. Meaningless statistics, more like 0% to 5% of their stated figures for 90% of appraisers out there. Something about purposefully misleading data reporting comes to mind. Guidance standards, who needs those?

  9. Baggins Baggins says:

    When an appraiser accepts a slash rate amc assignment, the appraiser is proving their own bias, bias towards the lenders chosen amc agent. Saying I’ll work for less and do anything you say, that independence, the peer standard, the well being of their fellow appraisers, and fair compensation, that none of those matter.

    Agent management companies are out there already, they’re called brokerage firms like remax and coldwell, various; guilds. Some are better than others. The important difference is that the clients, the buyers or sellers, are not required to route their orders through those sales agent management companies. They can shop, research, and choose who will work best for them. Where as with home borrowers tied up with lenders whom use amc’s, they have no free market choices and neither do the professional appraisers if they want access to that work. If one of the major sales agent companies upsets a sales agent, that agent can lift up all their customers and take them along to another firm, where in the future they’ll voluntarily deal with a different over all agency instead. If any of the hundreds of people whom would want me or you the appraiser, requested us specifically in person, they would have no such options to procure our services specifically in mortgage lending. Appraisers; Americans whom are denied free market opportunities and customer references via GSE lenders whom sanction amc companies predatory monopolization and exploitation of the appraisal industry and American customers whom need appraisals. Equity!

    All your references belong to us. Your previous working contributions are meaningless. That’s how amc’s operate. Amc’s are predatory companies whom exploited the appraisal community to the tune of at least one hundred and fifty thousand lost appraisers careers, and likely that many professionally licensed careers which never materialized due to the amc’s presence. GSE’s assured the amc industries success by cutting more than half of the available workload off the table as well via waivers, pdc’s, desktops, elimination of PIR requests. And that’s how special favors trade hands in the quasi private quasi government sector. ANSI on top.

    It’s a sad day for the local park next to our home. The greenies at the city decided to tear out several acres of long standing quite spacious enjoyable lawn space and trails, to replace with xeriscaping and a hundred little kiosks so they can turn our previously peaceful local park into some big events venue. So much for the ducks in the small pond. Nothing says caring for the community like concrete and commercialization as far as the eye can see. Progress!


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Agent Management Company, a Familiar Ring

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