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| Home Appraisers: Is It Time To Exit The Appraisal Business? OR Listen To Jim Rohn’s Message?Appraisers are saying "are they insane!?” however, as has been shown in the past 2 years, home appraisers don’t have the lobby or organizational representation to stop this change being shoved down their throats, which is partially why lower fees
By: Bill Cobb, CREA I recently reported on the passing of Jim Rohn. Jim Rohn was a popular American motivational and business coach that gave seminars to large companies and indivuals for more than 46 years. He was a published author of many books that cover leadership, business skills, self development, dealing with customers, and motivation. Jim was kind of an in your face kind of guy, but very polite and subtle. I attended the 2004 Jim Rohn event in Anaheim, CA. I am friends with a local Real Estate Broker, used to be a former school teacher just making ends meet, that listened to Jim Rohn’s philosophy, applied it and today is in the top 5% of income earners in my local market. That is what you call “CHANGE”! I recently received this from a home appraiser located somewhere in the U.S.: “Allow me to speak freely… Well, I recently obtained my license AFTER the HVCC took effect. I make about 800 a month right now. The real estate industry sucks here right now. The only way I’m staying afloat is my girlfriend is holding down the financial fort. My locale is saturated with appraisers so the competition is cut-throat. since there are so many, fees are ridiculously low. there are appraisers out there that are doing 1004MC’s for 135 to 175. So, if I don’t play ball, I don’t get any work. I’m doing what I can to try and encourage higher fees before we all go broke. (more broke than we are already). I max out the fees and just provide better service than the rest. Hopefully, over the next 5 years or so, this will encourage everyone (that has found a way to stay in the industry) to raise their fees as well. I can’t get my girlfriend to relocate though because this is home. She knows that if we stick it out for a while, things will get better. ( A lot of the appraisers in my area are 10 years or so away from retirement. I’m 31, so that will put me in the prime of my career.) I’m FHA approved and I’m STILL not getting any work. I hustle my butt off, too. If you have tips that can get me out of this mess, I’ll be sending you a gift-basket. haha. Happy Thanksgiving to you as well.” APPRAISERS ARE SAYING….”ARE THEY INSANE!?” HOWEVER, AS HAS BEEN SHOWN IN THE PAST 2 YEARS, HOME APPRAISERS DON’T HAVE THE LOBBY OR ORGANIZATIONAL REPRESENTATION TO STOP THIS “CHANGE” BEING SHOVED DOWN THEIR THROATS, WHICH IS PARTIALLY WHY $300 TO $350 TRADITIONAL FEES ARE NOW LOWER. ANOTHER REASON IS THAT THE PERCEIVED VALUE OF THE PROFESSIONAL SERVICES WE BRING TO THE MARKETPLACE HAS DIMINISHED! REALITY IS….YES, HOME APPRAISERS FACE BIG CHANGES! In 2008/2009, I have received more than a few notes like this one above from appraisers across this Great Country. And, I do sympathize with them. Let me be frank with you, just as Jim Rohn would be frank as well. The Mortgage meltdown did occur issuing in HVCC, which took away our mortgage broker clients and the relationships we had spent years, if not decades building. Even if HVCC is repealed in later 2010, most of the guidelines are now set in place that will not be altered after HVCC is repealed. In other words, most of the changes within the lending industry and how appraisals are ordered are not going back to the way things used to be. 2010 POSSIBLY MEANS LESS WORK AND LOWER FEES! Fannie Mae, Freddie Mac and FHA are all now raising loan qualifications standards for 2010, which will mean that quite possibly LESS APPRAISALS WILL BE ORDERED IN 2010. IF YOUR HOME APPRAISAL BUSINESS IS STRICTLY MORTAGE LENDING FOCUSED, YOU COULD BE HEADED FOR TROUBLE! IF THERE IS LESS WORK IN 2010 AND 117,000+ APPRAISERS BIDDING FOR LESS WORK, THEN FEES COULD POSSIBLY BE BID DOWN. AND, WITH THE FEDERAL TAX CREDIT SET TO EXPIRE IN 2010, WHICH HAS FUELED AS MUCH AS 46% OF HOME SALES IN 2009, THIS ALSO INDICATES POSSIBLY FEWER HOME SALES IN 2010, FEWER APPRAISALS BEING ORDERED FOR LENDING PURPOSES. What About FHA And HVCC And FHA Reserve Fund of 0.535? As we’ve been reading in the appraiser news, FHA could be in trouble and could need a federal bailout. I recently read where FHA was dealing with as much as 456,000 foreclosures as of September 2009. FHA can’t be used by Mortgage Brokers to replace “Sub-Prime” If Jim Rohn were speaking to a group of Real Estate Appraisers in 2009, or any group of any profession, his message would be: “You Get Paid For Bringing Value To The MarketPlace!” So, where is the perceived value of Residential Appraisal Services regarded most highly now? Three Places right now: 1.) REO Assignments, which are not HVCC Compliant! 2.) Local Individuals needing Pre-Listing or Pre-Purchase Appraisals! 2.) Within the Professional non-lending community of Attorneys and CPAs for settlement of Estates / Successions, Divorce, Litigation, Trusts and Tax Appeal. If Jim Rohn were alive today and speaking to a group of Residential Real Estate Appraisers, he would tell them that the past is the past and it’s time to move on to solving the valuation problems that have more of a perceived value in the marketplace. Either that or exit the appraisal business into a profession where the perceived value to the marketplace is rewarded more highly and where that value delivered to that marketplace will last years if not decades. IF JIM ROHN WERE ALIVE TODAY, HE’D TELL HOME APPRAISERS “IT’S TIME TO TURN ON YOUR MARKETING MACHINES AND GET BUSY RECRUITING THE CLIENTS THAT STILL VALUE YOUR PROFESSIONAL SERVICES! # # # http://www.realestateappraisertips.info/ End
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