The appraisal system is under constant scrutiny, with both sides of the equation having strong opinions.
We found this broadcast by CNBC asking, “Is the appraisal system broken?”
For one, the experience and competency of appraisers being utilized by many lenders (via AMCs) is lacking. Also, that competency in appraisals is sometimes an issue.
There is a middle ground somewhere along the bridge. Appraiser independence is a regulation, and AMCs can and will provide the service you need. You don’t have to struggle with working with an AMC.
At Valuation Management Group (VMG), we pride ourselves on making the appraisal process as smooth as possible from beginning to end.
We would like to share a few of our own practices, and things you should look for in an appraisal management company that will take care of lurking issues and pesky problems.
Use a client-approved panel of appraisers
Many clients have had years of positive experience working with appraisers on their preferred panel. By having the client select appraisers for their panel, we can be sure that we utilize the appraisers you trust.
We research and review appraisers being added to a client’s approved appraiser panel, and we may suggest additional appraisers from our own panel for further coverage and expertise. Our due diligence of appraisers adds to our confidence in their abilities. Appraisers are assigned work within markets in which they are geographically competent.
VMG also scores appraisers on each work product, and we monitor state and national disciplinary action notices for appraisers.
Provide human reason on assignments
While it is easy to submit all orders to a central unit, and have a computer randomly select and assign an order, it is more important to have a human element involved when choosing an appraiser for an assignment–one that involves logic and reason.
VMG does not robo-assign. A client specialist is designated to assign an appraiser based on proximity to the property, history and score of the appraiser, and the appraiser’s current work load. We take into account that this is not the appraisers only priority. We are human, too.
Keep communication lines open
AMCs should have an open relationship with clients. Keeping open and constant communication is extremely important in maintaining strong partnerships.
While technology drives much of how our industry operates and communicates in today’s workplace, VMG believes that people appreciate doing business with people they know and trust.
For that reason, each of our clients are provided dedicated points of contact to consult.
If we flag an issue with an appraiser’s service or quality of work, we will advise a client and make recommendations. When we note that a client’s panel is weak with appraisers that are geographically proximate to an area, we will consult with our clients on that as well.
We get to know you, your preferences, your markets and the appraisers on your panel. This arrangement is a win/win.
Provide frequent input on fee expectations
Part of an AMC’s job is to stay current on fees and market trends. We attempt to provide clients with frequent input regarding fee expectations of appraisers in their markets. We want to keep quality appraisers actively engaged in the industry and draw seasoned appraisers back to the lending market by paying reasonable, customary and competitive fees.
Utilize experienced appraisers for review
You should expect that competent appraisers will be reviewing the submitted appraisal assignments, in order to achieve the highest quality reports. At VMG, our reviewers have an average experience of 18+ years in the appraisal industry.
Working with an AMC should not be a hassle
The purpose is to keep appraiser independence. Companies like VMG can aid your overall appraisal process, so that you get top results with the best turnaround. To learn more, find out the benefits of working with Valuation Management Group.
We would like your thoughts. What is the single most important quality that you look for in an AMC?