Appraisal Management Company Survey Sheds Light on Industry Propaganda

GAITHERSBURG, Md., March 8 /PRNewswire/ -- Coester Appraisal Group, a nationwide appraisal management company, releases its annual appraisal industry survey.  Over 1,559 licensed and certified appraisers completed the survey with the majority of appraisers licensed in one state and some as many as seven.  Appraisers in all 50 states are represented in the survey. The data from the survey sheds some insight into the appraisal industry and what is really happening in the appraisal industry.  The data was collected directly from appraisers via SurveyMonkey, various websites, press releases and e-mail. After further analysis of the data from the Annual Coester Appraisal Group Vendor Survey, it seems like many of the implications made regarding the state of the mortgage industry as a whole have been debunked.

Distance – One-third of respondents traveled an average of 15-20 miles from the appraiser's place of business to an assignment with an additional 31.4% traveling 10-15 miles.  This is consistent with the TAVMA recent survey that indicated the average travel distance for an appraiser  is 13 miles (TAVMA Survey which can be found on their website http://www.tavma.org).

Response Time – The average turnaround time of 2-3 days from assignment for a Conventional 1004/1073 and 4-5 days from receipt of the order for an FHA 1004/1073. The turnaround time was indicated as the same regardless of if the appraisal was ordered through a third-party or directly.

Fees – Contrary to mainstream data reports, 64.65% of appraisers charge the same amount whether contacted through an AMC or directly by the lender.  Total Fees on Conventional and FHA 1004/1073 appraisals ranged $350-$450.  One of the more popular misconceptions in the industry is that AMC's earn a huge margin by paying appraisers $150-$200 while charging the borrower $450-$500.  Our data proves this wrong, showing that although appraisers quote lenders $350-$450 for appraisals, they net $250-$300 for a Conventional appraisal and $300-$350 for an FHA report when ordered through an AMC.  This translates into appraisers receiving over 70% of their original quoted fee and the AMC retaining the other 30% or 30 cents on the dollar.

Though many may not agree with the changes that the Home Valuation Code of Conduct ("HVCC")  has brought to the industry including the proliferation of AMC's,  71.1% of appraisers work for one or more appraisal management companies.  This appears to be a necessary "evil" in order to continue their career and livelihood.  The top AMC's noted in the survey results are LSI (22.8%), Landsafe (19%), RELS Valuation (27.59%), Quantrix (16.1%), Solidifi (6.9%), Appraisal Port (11.5%) and Coester Appraisal Group (5.2%).

Overall, appraisers rate their AMC experience as simply "average."  The demand of quick turn times coupled with reduced fees were prominently cited for the average rating.  Another reason was the abundance of report stipulations.  The currently lending environment can, of course, be the counter argument to the last point.  

Payment – A considerable number of comments regarding slow pay from AMC's and lenders alike were a revealed where 36.9% of appraisers would like to be compensated on a net 15 payment schedule and 35.4% of appraisers preferring a direct deposit method of payment.  As a result of this survey, while Coester Appraisal Group currently pays on a net 30 basis, we are currently making improvements to offer direct deposit to our vendors.

This is just a snapshot of the data collected from the survey which Coester Appraisal Group intends to use to better its service for its clients and vendors. CEO Brian Coester was quoted as saying, "We value our vendors just as much as our clients and we want to make sure that they have everything they need and that their voice is heard. We are truly an appraisal company and the better we manage the relationships between our vendors, staff and clients the better we will be for the industry." The survey which is the results of the hard work of Coester's director of client relations Crystal Witherspoon is valuable information to apply to this year's goal in being the best appraisal management company for clients and vendors. Crystal was quoted as saying, "We want to know what's going on in the communities we serve and what our vendors are experiencing. The information we obtained from the survey enables just that. We are excited about the year and look forward to getting better for our clients and vendors." A copy of the survey can be found on the company's website www.coesterappraisals.com

About Coester Appraisal Group Headquartered in Gaithersburg, Maryland, Coester Appraisal Group has been providing quality real estate appraisals since 1970. Clients that depend on Coester's appraisals, BPO's, AVM's and property valuation tools include banks, credit unions, mortgage companies, hedge funds, attorneys and government agencies. Their experienced staff provides a quality valuation completed in a timely manner with a correct estimation of market value. Each appraisal is manually reviewed by a staff appraiser for quality and compliance with lender's underwriter guidelines and is certified HVCC and USPAP compliant. For additional information about the company and its services, please visit their website at www.coesterappraisals.com.

To download a copy of the vendor survey, please visit: http://appraisalnewscast.files.wordpress.com/2010/03/vendor-survey1.pdf

SOURCE Coester Appraisal Group