Why Appraisers Say NO to Hybrids
Could this be another reason why so many real estate appraisers refuse to do bifurcated hybrid appraisals?
Recently, a Mueller Services ‘inspector’ posted a comment on the article titled “Mueller Sample Report. You Decide!“. Could this be another reason why so many real estate appraisers refuse to do bifurcated hybrid appraisals? It goes without saying that bifurcated hybrid appraisals are uniformly performed by very low paid, with third grade level writing skills, untrained property ‘inspectors’ using a checklist – but with no appraisal training and skill.
Tbhiitsch:
Ah yes, Ive worked for Mueller services. It’s an easy job kind of, especially if you have no bills. I got between 350 and 700 dollars a week generally trending lower rather than higher including millage expences and I never worked over 30 hours in a week unless someone local quit and I cared. I’m basically rich and young, so it was somthing too do, and I like meeting homeowners since many are in my socioeconomic class. “Appraisals” are a rare and comperably difficult but like 55 to 80% more valuable task for a field rep. Like 80 or 100ish dollars per that type of case. We must take photos of ever side and photos facing away from every side and measurements. The app outlines the required photos and we must include a unique photo for everything the app demands. We must take two pictures of every room (sometimes I get away with just one but generally only if nothing has been renovated) and make a detailed (within a foot) sketch of the proporty outline of each floor. I do the sketch of the main floor first before going in then carefully extrapolate it too every floor with aproximate subtractions and overhand additions as needed. Then I place a label for each interior room on each floor close to where it actually is in my sketch. I think it’s pretty fun but I tend to capture all the photos and talk to the owner for an hour or less about all these generalities in each room. Like any renovation to the walls floors scelling lights etc and when as I’m writing in each room I make a list by the sketch of the room speciffic improvements. As detailed as the owner provides QA loves the detail for each room. The age of everything major: roof, siding, and structural renovations and outbuilding age photos interior also and simple details of landscape exterior features. Then I’m supposed to fill all that plus some additional info into an app (that I only use for photos) and submit in from the location to QA. But in reality I would rather not hang out on a proporty for another hour and waste my phone battery so I submit the mess of data by saving it and work on it on the web until I am satisfied with it then its off to QA and with this complicated of a case probably back too me 45% of the time for an extra detail or another photo that I will 90% of the time have the owner text me. After all that a real appraiser looks it over like a lame virtual tour and does what they do or calls me and asks me questions. It’s money, that I don’t need, but do want, and it’s manageable under my unique circumstances.
Below is Mike Ford’s reply:
Respectfully Tbhiitsch, $350 to $700 a week is not being ‘rich’ by most metrics… unless you mean you are independently wealthy. If so congratulations. If not, then you’ve set your sights much too low.
What you describe doing is precisely why many or most real appraisers refuse to do bifurcated hybrid appraisals. I’ve reviewed completed Mueller Report appraisals prepared by a conscientious appraiser. They are still indefensible before a state board.
It may seem like a minor issue to you, not being an appraiser who has ever had to worry about being USPAP compliant, or complying with a state’s measuring requirement where ANSI may be required but rounding to a foot can produce significant errors.
While not all states (or USPAP) require ANSI to be followed, they do require factual accuracy. The estimates you indicate don’t meet any recognized standards. Checklists or ‘app’ prompts are better than nothing but unless you are an appraiser yourself it’s doubtful you or the app knows what questions are variably relevant from one unique situation to another.
For example, a shared driveway. What else do you inquire about?
Anyway, thank you for providing first-hand evidence of yet another reason licensed or certified appraisers should avoid doing bifurcated hybrids.
- Outrage Over Connect by ValueLink’s New Monthly “Junk Fee” - November 27, 2024
- ARCC Discussion Exposes GSEs Agenda to Reduce Appraisal “Friction” - November 22, 2024
- FHFA’s Appraisal Waivers Expansion - October 29, 2024
Love Mike Ford’s response, but seriously, was the original response to the blog post in fact “real”? Illiterate people don’t write that way, but people from other countries where English is not their first language do. Just a thought.
Don’t underestimate the failing educational system. The language is telling.
https://www.investopedia.com/terms/s/social-economics.asp
I made this one last year, seems fitting.
Me thinks that the appraisal profession is under Cancel Culture attack using Racial Bias as the tool by institutions that benefit from alternatives to valuations and regulatory government bodies that are basically do nothing’s that have found a bogus purpose to exist. Of course a profession of predominately white males over 50 is inherently racist, not. Mueller Reports single handily destroyed a viable valuation service I used to perform regularly for $125 providing insurance replacement cost and driveby inspection using untrained anybody for $15 back in the 90’s
Reparations and wealth redistribution will likely come with a 15% handling fee, similar to EBT cards. Contracts are effectively awarded on a permanent basis, to singular corporations.
I’m Sorry, That cannot be real, If it is God help us all
Ya get what you pay for!
Exactly why I don’t do them, I keep getting emails from Amrock trying to persuade me ? no thanks
I didn’t know they measured the house and did a floor plan. No way!
Genius! Mike for something important in government, he’d do better than the people up there now.
https://www.indeed.com/cmp/Mueller-Reports/reviews
Let’s revisit their public employee grading site. That sounds fun.
(open review repost, dated 09/16/2021) This job seems like it will he so much fun! It’s such a shame that it’s not. At all. The trading is SO intense and quick and you are in the field before you are ready. Then you start to realize you are being paid by the minute, not the hour. Then you realize they are asking you to go farther and farther each week. Then they send back reports and you spend unpaid time correct mistakes. Then you throw in the weather, the mileage and the rising gas prices and you walk away and never look back.
LOL. Welcome to my world! And that’s why you need to be 1099, and not an employee, with a state license to make it worth your time. The dream of hybridization is a fools errand. FNMA is shooting themselves in the foot with forms redesign to pander to these methods. And those home owners are deceived into thinking these people are qualified in real estate, which they are not. I would not let a person like that into my house and would demand a real appraiser. If these programs ramp up to a larger scale they’ll be magnets for criminals and scam artists, easy ways for unlicensed people to gain trust and be in others homes. They’ll never see it coming. And how hard would it be to slip someone like that a twenty to totally ignore major foundation cracks or things of that nature. The article review was also telling, the mobile inspector service for appraisers ‘pay substantially more, 50-80% – 80 to 100 for that type of case’. Extract that; they’re driving all over town doing variety property inspection work for twenty dollars. Newsflash, amc’s are charging borrowers 70+ for that service. Appraisers used to get 150 for PIR’s. These are race to the bottom money making schemes by way of unnecessary outsourcing and counter productive automation. Idiots.
Man these AMC’s must be desperate. I get at least 8-10 emails a week asking me if I want to perform this junk.
With ployes like, An in-person interior or exterior inspection by an appraiser is not required. **** provides a comprehensive 3D scan of the interior and exterior of the subject property to allow a thorough virtual property inspection. You are not required to “drive” the comparables. MLS photos are permitted for inclusion in the appraisal report. Geocoding of the subject property and time stamps are included with the 3D scan to ensure accuracy. A detailed sketch including the floorplan, all dimensions, and GLA calculations is provided.
I just hit the spam button and away they go!
Be careful with how you use the spam though. If you press spam for anything that comes from a multi client provider such as mercury scope ap etc, you’ll also eventually get cut off of all valid order messages, even from completely different clients. That’s because all the emails are sent from one sending location, even if it’s from different companies with different email addresses. Email blocking is essentially by sending identifier not specific email address. I had a hell of a time getting the spam to stop with one of those systems but if an appraiser calls in, one can ask for specific companies to be blocked from sending you such bid request spam, and still remain active and visible for other clients. Another tech company unintended consequence appraisers are likely unaware of, if they’ve ever hit spam for those, now denied all contact from every valid non amc whom may also use those systems.
The tech companies don’t care, they purposefully deny appraisers useful simple tools like options to state accept communication from amc’s yes/no or limit bidding to specific clients. These companies consciously deny appraisers meaningful workflow and client management controls. More restraint of trade because like with Mercury you only have an option to accept bids yes/no across the board and can not parse that to a specific company or allow your non amc lenders to still send you bids if the need arises. With other ones like Scope appraisers may have been put on spam or even set to invisible where the appraisers company is no longer visible on the appraisers directory which lenders may assemble a panel from.
For anyone who’s dealt with this, probably a good idea to ring in to all of them to assure you’re still visible and active if you have not seen any orders in a while. By the time I had realized this activity a few years ago I had lost a few clients and lost thousands of dollars. Was like why don’t you send me any orders anymore? They were like we did keep sending you orders but one day you brushed us off and never responded to any of our emails. These tech companies, so helpful for the appraisal industry. Blind promotion of amc’s and they often even outsource the tech development to other companies. One big illusion.
It’s like ameture hour with some of the upstarts. ValueLink is confusing with the central dashboard and all the lender controls. Mercury at least did the appraiser side & MercuryVMP for lenders, like two different interface platforms. Assurant did not even have an option to propose different conditions like extend time or negotiate fee until years after the platform was launched. Regorra dreams of making appraisal delivery as fast as a pizza (literally it’s on their front page), with real time appraiser progress tracking. AP tried the most ridiculous .env file nonsense. Some charge appraiser fees, others do not. It’s so stupid, we used to simply get orders by way of a mortgage banker choosing to work with us, and filling out a 1 page order request. There were no need for tech fees, bid requests, reduced fees, or any of that. All appraisers received the same fee if they were on that particular approval panel, direct assignment every last time, reliable volume control.
And now in a remarkable ongoing series of events, the amc industry blatantly engages in restraint of trade and nobody does anything about it. Full service full fee 1004’s direct assignment or bust. Appraisers never asked for remote inspections 3d mapping or any of that junk. If lenders want such additional service tools, that’s fine, it’s their dollar spent for the service. Appraisers accept complete liability with the signature. Those whom think extra ordinary assumptions and limiting conditions are a shield against having made substantial valuation and analysis errors based on remote inspections, are just setting themselves up for civil suits state complaints and just generally poor service tied to reduced income. Amc’s are predatory companies who’s sole focus is exploiting appraisers regardless of consequences to the appraiser, or harm to the general public.
“I get 8-10 emails a week (from amc’s).” I have identified your primary appraisal problem. Demand to be removed from their panel. I’ve spent more time asking amc’s to stop contacting me then I ever spent soliciting them or working with them in the first place. They’re like telemarketers with a limited list set to infinite recycle. CAN SPAM act is there for appraisers, as the amc’s are sending ‘commercialized solicitations’. The amc industry also believes it does not have to comply with internet spam rules like every other business on this planet has to comply with. So if it comes down to it, appraisers can also file FCC complaints under CAN SPAM rules against amc’s, if they refuse to stop soliciting to you. When appraisers work with amc’s, the appraiser is the customer. These companies could not earn a single dollar if we did not subscribe to their services.
https://en.wikipedia.org/wiki/Restraint_of_trade
For example, even if a restraint is necessary and ancillary, within the meaning of the Mitchel and Addyston Pipe cases, it may still be an unreasonable restraint of trade if its anticompetitive effects and consequent harm to the public interest outweigh its benefits. Thus, Judge Ginsburg opined in the Polygram case:
If the only way a new product can be profitably introduced is to restrain the legitimate competition of older products, then one must seriously wonder whether consumers are genuinely benefited by the new product.[15]
https://www.fcc.gov/general/can-spam
https://www.ftc.gov/business-guidance/resources/can-spam-act-compliance-guide-business
Meant to also fit this in: Where is the UNSUBSCRIBE button on amc emails? Has anyone every seen even a single instance of an amc offering an appraiser an unsubscribe option? They are supposed to have unsubscribe options on ALL emails, as these are commercialized solicitations. Just because there are two businesses involved does not relieve the amc of it’s legal requirement to offer opt outs on unwanted email messaging campaigns. And every single order generates an email campaign, amc’s are known to send 50+ emails or more, consistently, to place single orders. Companies like mercury and scope absolutely refuse to disclose to appraisers how many other appraisers may have received the same email.
These tech companies could choose to assist appraisers and shield us from predatory practices, but they choose to advocate for amc’s predatory practices instead. There has been near total staff change over through the years too. Coupled with new corporate management, the employees of these tech data relay companies do not even understand how the systems were initially set up as a safe haven and means for appraisers to escape the amc industry. Corelogic must have done a number on the other side too, probably just threw away all the initial concept and training materials. Appraisal Scope was supposed to be an appraisers co op and Mercury was Biggers project from Alamode, built specifically as HVCC came through, so appraisers could retain their lender clients and not lose them along with half their fee to the amc model.
The destructive force of the amc industry can not be understated, the harm they have caused and how many appraisers were looted or subsequently never materialized later as the incentive to train, the income, the workflow reliability, all gone for most appraisers. Now they’re trying to sub us out completely, relieving us of important duties and instead of cutting the fee in half, cutting it down to a fifth or less for these type of remote hybrid products. Even to this day 14 something years later, roughly 3 out of 4 appraisers still refuse to work with amc companies. Their claims of adequate vendor supply are false. These amc’s spend more time soliciting then they do ‘managing’ anything.