Note: I have been a subscriber of Valuation Review and it’s predecessor for years. It provides a wide perspective on the appraisal industry and I’ve always got something out of it. Over the past few years, I’ve noticed that the voices in the magazine seemed to be skewing more and more towards national level AMC executives. I suspect the PR departments of these firms make their top executives readily accessible washing out the voices of individual appraisers. So I sent the editor a note offering another perspective with links to my content. He was immediately interested in getting another voice so he interviewed me.
From the Wednesday, March 22, 2017, Valuation Review Article: CEO suggests appraisal industry comprised of ‘lone wolves’.
CEO suggests appraisal industry comprised of ‘lone wolves’
Reasonable compensation, lender and AMC issues are constantly on the mind of the appraiser. When things aren’t falling into place, the process of assigning blame kicks into high gear with appraisers continuing to look for guidance.
“That’s the problem in that there really isn’t any leadership for appraisers to follow. The false narrative of an appraisal shortage continues to be pushed by AMCs, unfairly tarnishing the image of individual appraisers,” Miller Samuel Inc. President and CEO Jonathan Miller told Valuation Review. “When an industry takes a 50 percent pay cut overnight, good people leave or struggle to hang on and weaker players are attracted-which equals problems. But is it the fault of the remaining individual appraisers?
“AMCs are at a seminal moment,” Miller added. “In what other industry does the company managing the talent get about the same compensation as the talent them? An agent representing a Hollywood actor isn’t going to get $1 million if their client is receiving that same amount for a movie role. It is a broken model.”
Like many in the appraisal profession, Miller strongly believes that there is not a shortage of appraisers. In fact, he more than challenges one reason for such a shortage is that too many burdensome regulations are being placed upon appraisers.
“There is a shortage of appraisers willing to work for 50 cents on the dollar,” Miller said. “The AMC model has hit a wall. AMCs have run out of new people willing to work for 50 cents on the dollar. Sadly, consumers think appraisers are getting the appraisal fee stated in their mortgage documents. They aren’t and typically the appraiser receives as little as 50 percent of it.
“The Appraisal Institute says there is a shortage of appraisers and seem to be championing the AMC concept but appraisers don’t understand why,” Miller added. “I’m not against AMCs; rather, I’m against the execution of business by the AMCs. They treat appraisers as a commodity rather than a professional service.”
For the rest of the story, visit here.
Tags: Valuation Review, Fannie Mae, Appraisal Management Companies, Appraisal Institute, AMC, trainee
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Thank you Jonathan. I appreciate your thoughts. Let’s keep actual appraisers as the voice of our industry and not think AMCs get to set the tone. I really like how you asked, “In what other industry does the company managing the talent get about the same compensation as the talent them?”
Sorry, but I can’t read the rest of your article as I’m not a subscriber so I don’t know what the rest of your thoughts and comments on the topic were. I can’t justify spending $300 a year to subscribe. As you pointed out, most of the articles seem skewed and with the current appraisal economics a subscription to a “news” journal is just not justifiable for a one-person shop.
Well, that’s one way to rationalize it. Definitely understand your point.
Thank you Mother Mary, for a guy like Jonathan who gives of his time to speak up for many of us, and shares sincere professional perspectives with the rest of the Real Estate industry.
Without reading any more than the brief above, but based on your previous thoughtful, considerate, and trustworthy viewpoints, I want you to know that I, and many others, support you.
Now let get that price per square foot element fixed!
LOL, thx!