Sounds worth researching.

Thanks, Matt

Carl,

What happens if the Bank doesn’t pay? At that point I would have you as the prime contractor and a rather awkward situation when trying to go through collections. For all the side agreements, you are the one who hired me and I believe that, ultimately, the legal system would end up telling me to collect from the person who hired me in the first place.

This has nothing to do with the 90% of the time when there is no problem getting paid. It has to do with what actions need to take place when you don’t get paid and how all that plumbing works. Do the Banks sign a special separate enforceable agreement with us, the appraisers, and does your firm get involved in and facilitate that process?

Because of that we changed the model. We decided that appraisers we work with would rather get paid by the bank. So that is what we do. When an appraiser works with us the bank pays them directly an pays us a management/review fee totally separated from the order.

No more “checks in the mail” from your AMC this way. And no more combining of your fee with an AMC.

Check out our other best practices at appraisalblog.mountainseedamc.com.

1. No one but no one is going to tell you they are on the verge of bankruptcy. No matter how you cut it there is always a greater possibility of not getting paid with an AMC.

2. If you want to get all emotionally involved with the problem (see litany of tears above) you will eventually end up getting burned no matter what you do.

3. Many business base their billing (not collection) models in consideration of the frailty of their human customers. They never have collection problems!! Go to a buffet and you will pay on your way in. Go through an escrow and you will pay 50/50. Get you car repaired and you don’t get the keys till your credit card payment is approved.

Here is a fool proof business model solution in the form of a response to a lengthy invitation from an AMC to “join up”.

Dear AMC:

Before I take any valuable time or waste any of yours there are a few things you should be made aware of:

Due to the many additional details and requirements typically placed on appraisals by AMCs our company has a policy of adding a $XXX.00 fee over and above our base fees as an AMC surcharge.

Additionally, as so many AMCs have declared bankruptcy and left substantial amounts owing their appraisers, all of our AMC fees are collected up front. When the fee deposit for the appraisal clears the issuing institution, the applicant will be contacted to make an on site visit for a property inspection. You may wish to make arrangements for direct deposit as this will eliminate the typical five to eight days time for mailing and clearing paper checks.

We have been in business for in excess of thirty nine years in this area and take pride in complete comprehensive reports. I have included a copy of my resume.

Thank You

Tough? Absolutely, but it doesn’t take stones — it takes self respect!!