Most appraisal management companies handle only residential appraisals. Because SAMCO Appraisal Management Company has a community bank background, we understand the wide range of customers that a local lender has in their community. SAMCO is experienced in commercial and agricultural appraisal/evaluation order management and review. We have designed a very competitive program that works with your current appraisers. An example of how this works is easy. You send SAMCO Appraisal Management Company a commercial or agricultural appraisal request. SAMCO sends a bid request out to a minimum of three appraisers, if that many are available in the given area. Within three days, the appraisers send us their formal bids encompassing date of completion and fee. These are then submitted to the bank client for their review and selection. ONLY the bids are submitted, not the name of the appraisers, keeping that additional separation of the lender from the appraiser. Each commercial/agricultural project is different. A competitive bid may be needed to keep the closing costs low to win the account, so a longer completion time may be more than acceptable for a lower fee. Conversely, if the completion time is very critical, a higher fee may be acceptable to meet the borrower's needs. This decision is up to the lender. The lender selects which bid is preferable to them and SAMCO awards the contract to the appraiser selected by the lender. Your commercial/agricultural closing costs have become very competitive overnight.
Why Is It so Important to Separate the Lender From the Appraiser?
You will notice that one of our functions as a commercial AMC is to keep the lender separate from the appraiser. Why is this so important? Having additional layers of separation looks better to examiners. However, the loan officers that work with SAMCO still have access to all the information they need -- they just don't know specifically who the appraiser is.
In addition, SAMCO has a three-tier option for commercial/agricultural appraisals. Tier I is for low risk, low dollar amount loans. Tier II is a complete USPAP review for higher dollar investments. And for higher risk/investment loans Tier III is a full desk review by a Certified General Appraiser, affirming not just USPAP compliance but the value estimate. If you're in need of a commercial or agricultural AMC, we're ready to assist you today. Call us for a complete full description of the options we have available for the commercial banker.
How Do the Three Tiers Work?
- Tier 1 we recommend for loans of $200,000 or less. This is a brief administrative audit for loans with a low-risk factor.
- Tier 2 is for loans more than $200,000 but less than $1 million. These extended administrative audits consist of 42 more detailed USPAP and appraisal standard questions.
- Tier 3 is for loans over a million dollars. This is a full desk review and provides an opinion of the 'correctness' of the Value Estimate, in addition to a USPAP and Appraisal Standard Review. A good tier 3 review is your most powerful weapon with examiners.