What are your thoughts on Wikipedia, is it a valid reference or is it people’s perceptions? Now most of us know that Wikipedia is not considered a valid source for a research citation. But I always check there when writing on a topic just to see what the perception is ….valid or not. It is someone’s opinion. If you check the Home Valuation Code of Conduct (HVCC) under Wikipedia it explains briefly about the code and how it became effective in 2009. The funny part is the last part (which has been disputed – and not by me), it goes on to say that this had not been well accepted by most appraisers because it eliminated the constructive working relationship the appraiser’s had with a lender. The kicker is the opinion presented stated that appraisers when working for Appraisal Management Companies are generally only paid 50% of the fee.
If this is true….you NEED to quit working for that AMC!! The only shopping of an order that we consider acceptable is for a due date or a complex fee assignment. We have had lender’s request that we reassign based on extended due dates or a complex assignment which usually covers both due date and fee quotes.
Our policy is to have a standard fee for the appraiser unless we are researching a new area. Offer that fee, the appraiser then accepts or accepts with conditions (if they need a higher complex fee or an extended turn time). Our fees and the appraiser’s fees are also split out on the invoice provided to the lender. They never have to guess what the appraiser is being paid for their assignments. Some states require full disclosure of fees from AMC’s on invoices and some do not.
My thoughts and advice to lenders are to ask for a detailed invoice. My thoughts and advice to the appraisers, do not work for below normal fees! I have heard of fees being offered for a standard 1004 URAR for $ 225.00- $ 250.00 range ….that is unacceptable. Find a company that appreciates working with you, AND THAT PAYS FAIRLY. SAMCO appraisers are paid typically within a 2-week timeframe.
Several of our clients have come to us from an appraiser recommendation (how awesome is that!!!) or a lender recommendation (even better). I gotta say that I still like Wikipedia for a source of opinion. If nothing else it gives me something to think about.
Source: Home Valuation Code of Conduct https://en.wikipedia.org/wiki/Home_valuation_code_of_conduct
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