AMCs…Some Statistics
Some stats on Appraisal Management Companies (AMCs)
- Most AMCs are small companies. 86% have annual gross revenue less than $10 million. Conversely, 13% have annual gross revenues of over $50 million.
- AMCs are more frequently adopting a “cost plus” pricing model for their services. This means they charge a separate fee for their service and are transparent about their fees paid to an appraiser. (Note: Arizona Appraisal Statute requires appraisers to disclose the fees they have been paid by an AMC in the Scope of Work section of the appraisal).
- 35% of the AMCs surveyed are headquartered in the western part of the country (6% are headquartered in AZ; 28% are in CA).
- 54% of the AMCS surveyed were started in the year 2009 or later. 6% were in operation prior to 2000.
- 14% of the AMCs surveyed are in all 50 states; 40% operate in less than 5 states (24% operate in only 1 state)
- 8% of the AMCs manage over 50,000 appraisals per year; 50% manage less than 5,000 orders per year. The number of appraisal services managed annually varies from a few 100 to over 500,000.
- There are currently over 500 Appraisal Management Companies known to be operating in the country. (As of June, 2014 there are 167 registered Appraisal Management Companies in Arizona).
Coalition of Appraisers in Virginia at Virginia Coalition of Appraiser Professionals
Coalition of individual appraisers working together to unite, promote and protect the collective interests of all appraisal professionals in Virginia; to promote needed changes in laws, rules, regulations, policies and standards affecting all appraisers in Virginia; to observe and report the actions of regulatory, legislative, oversight, and standards-setting entities of the Commonwealth.
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Image credit flickr - kleuske
…and 73% of the AMCs owner’s surveyed stated that this is the most profitable scam…er…business they’ve been involved with during their professional careers. The remaining 27% chose to ignore the question on the grounds that it may lead to self incrimination.
Appraisal Management Companies serve no purpose and are only parasites to appraisers working in this occupation. I have watched a dog or cat try to scratch off a tick knowing they are harmful. However, appraisers actually “apply” to have these blood sucking AMCs latch on! Many of these same clowns will soon be doing the “FHA crawl”. They will slither with the snakes under a house with no clue what they are looking for. Oh well…..some of us do see the humor!
1% of amc’s have adopted a cost plus model, and soon that will be a whole 2%. LOL! I’ll believe it when I see it.
OK, I agree that most AMCs are not worth working for. My perspective as a California based appraiser may be different from other places in the US but, I can’t blame the AMCs for all the ills that affect us as an industry. Some time ago, I decided that I wouldn’t work for AMCs unless they pay me a reasonable fee. This means I got on the web, pulled down lists of direct lenders and wholesale lenders, and started making calls. I asked if I could get onto their panels. With any cold-calling effort, the percentage of success is very low (-5%). Bottom line, you have to put in the effort and stop taking the easy approach (AMCs). Get on the phone, spend the time, and take charge of your business. Unless you change what you’re doing, you’ll get what you already have. I now have about 6-7 clients and have to decline orders (good paying ones >$400). I was working 70-80 hours/week and have since, scaled that back. So, it CAN be done but it takes a little time and effort on the appraiser’s side. If people don’t like working for AMCs, I have to ask, “What have you done lately, to change it?”. Maybe in some areas AMCs are the only option but, think outside the box. There are LENDERS OUTSIDE YOUR STATE making loans in your area. So, call them!! Do the work. You may be surprised.