WalshStreet Blog

To all the AMC's, Banks, Homeowners, Realtors and Appraisers, yes Appraisers, "appraising real estate is not simply about collecting data, transferring data to a form and submitting a report with a value"! Unfortunately this message has to be conveyed to some appraisers who were supposed to get adequate training, from an already higher level licensed appraiser, but their work exhibits otherwise. Their lack of knowledge and know how pushes them to accept lower fees, unreasonable turn-times and have no confidence in representing the valuation process. These small few give the Banks, AMC's, BPO performing Realtors and others, reason to pay us data processing wages and have no respect for our profession. 

My real world experience as an appraiser puts me in a daily situation of having to be the person that comes in and makes the final decision -determine a value,  on a property that has been represented by at least two different parties, who's value estimates often vary between several thousand, to a few hundred thousand in value. Ultimately I am the one who has to provide all the data and analysis to support his conclusion, while everyone else involved in the transaction sticks to their value solely on lip service and getting paid! The liability I incur on a daily basis is transformed into pressure on me and the high errors and omissions insurance I pay. The licensing renewal fees and ongoing continuing education fees I pay exceed comparable fees paid by some medical doctors. In addition to uniform standard guidelines, the bank guidelines and requirements for the appraisal vary from bank to bank (1-8 legal pages of instruction). Now I have to learn and implement a new coding system (UAD) to report the appraisal along with additional written explanation. And to top it all off, banks are collecting what are my reasonable and customary fees -evidence of what an appraisal is worth, and offering to pay me half of that fee. ($200 - $250).

I can't think of any other job where someone is determining weather several thousand or a few hundred thousand of dollars is to be lost or gained and the compensation for that is $12 - $20 dollars an hour!

So no, appraising real estate is much, much more than data processing!

Lawrence A. Walsh

Chief Appraiser