The problems associated with real estate valuation seem to be many in number. Appraisers are being offered expensive workshops that promise effective small business management tools. One company CEO says they do not. Appraisers are being offered a solution that is not likely to meet their needs nor is it the solution to meet industry needs.
“Telling a hard-working residential or commercial appraiser that they can get more done if they learn to manage their business is insulting, condescending and potentially harmful to their business,” Appraisal Logistics CEO Frank Danna said in the company’s news release. “The problems facing appraisers today are very real, but they are not the result of their business management practices. Serving up a set of management fads that encourage them to cut corners and deliver lower quality reports serves no one.”
Appraisal Logistics is a leading provider of high quality, compliant appraisal management solutions for the residential and commercial mortgage industry. Danna says that the problems many are currently experiencing with appraisal costs and turn times are the result of problems related to the industry and the professional fee appraisers working in the industry.
Additionally, because these problems impact their business operations, it often seems that the appraiser is the root of the problem, the release said. The real problems include:
- Lenders’ unwillingness to adjust fees and turn times with loan volume;
- High educational requirements that put a damper on new entrants;
- Supervisory requirements that limit what a good appraiser can accomplish; and
- Increasing regulatory pressure that reduces the appraiser’s net fees.
“A quick fix management course will not improve the appraiser’s situation, but some improvement is desperately needed,” Danna said. “It would benefit an appraiser far more to choose a good partner that can smooth their relationship with the lenders they serve, help them meet regulatory requirements easily and ultimately help them earn more money for their businesses. It would also help to have industry oversight that encouraged new entrants into the business rather than discouraged them.”