The “Why?” Behind What We Do

We are all creatures of habit. We tend to eat the same foods, take the same way to work, and tie our shoes the same way every time. Often, we don’t even do things the way we do them because it’s the best way out there. Much of the time, we do things the way we do them because that is how we’ve always done them. To all my friends out there – but especially to my friends who use appraisal services – maybe it’s time to analyze the why behind the way we do things.

           There’s a policy followed by many lender clients that states that I can send my trainee out on an inspection without my being there. But the moment Tom becomes fully certified, I can no longer send him in my behalf to do an inspection. Further, some of the same clients are claiming a shortage of appraisers, long turnaround times, and big fees. But this policy really doesn’t change any of these things.

           I encourage these clients to reconsider this policy. What does it really help? Does it really accomplish what you claim to want it to? If I have a partner that I work with, whom I trust and who is a fully qualified appraiser, why is it that I can’t send him or her? What does this policy really accomplish? If this one policy were reconsidered, I believe it would help those on both ends – the appraisers who seek greater flexibility, and the clients who want a faster, and better-quality product. You might just find that, much like the way you eat your cereal, you’re keeping this policy simply because it’s the way things have always been done.

For more information on this subject, please download and listen to The Appraiser Coach Podcast Episode: 

7 Comments on “The “Why?” Behind What We Do”

  1. “Why” Dustin have you been selling a fantasy (your one office visit a week, churn 4 to 9 appraisals a day (from 3 states), 20 hour work weeks, just one more paid class and you’ll get there), while you in fact were losing your appraisal business? Perhaps you couldn’t stomach your on Kool-Aid?

    “Why”, considering your now employed by an AMC, would anyone take what you say serious?

    Question for you Dustin. Relating to those hybrid appraisals your new company is pushing (half of a half of a half of a fee), do you still think appraisers “Never had a raise in 20 years? BS”?

    I know, shut up and get in line and never question the great one.

    Seek the truth

  2. Coming from an AMC background, a big reason why lenders won’t let an appraiser use another appraiser to inspect, without first knowing who, is because they pretty much all sell the loan to an investor. If the appraiser you sent to do the inspection is on any of the potential investors’ exclusionary lists, they have to order a new appraisal and risk losing the deal due to the delay or have to scramble to sell it to another investor who does not have that appraiser on their exclude list.

    Just wanted to add that piece as I believe it to be the main driver in the reason why for this blog. Love the conversation and info. Keep it going.

  3. Yikes. I did not know you were/are an employee of an AMC? True? That muddies the waters just a tad…wouldn’t you say? I don’t know if Mr Johnson’s comment is true or not. It would be difficult to say you are one of us and have only our best interest at heart if you were anything other than just another appraiser on the rotation. From following and chatting with Dustin from time to time over the years his advice and opinions have alway seemed to me to be both solid and sincere.

    Carl

  4. Nick is correct. It has to do with internal order tracking, and who will ‘sign’ the report as the responsible appraiser.
    In the case of a trainee doing the inspection, the supervisor appraiser ‘signs’ the report, per the original engagement letter.
    But in the case of a multiple appraiser office, when the assignment comes into the primary appraiser, but is then re-assigned to the actual inspecting appraiser, the client often does not know who the resulting appraiser will be.
    It would be appropriate that the appraising office communicate in advance with clients about associate appraisers, and see if the clients are OK with office re-assignments. In other words, provide the names & license info of associate appraisers to the clients in advance so that clients can verify if any appraiser is on a ‘do not use’ list. Then obtain a letter authorizing such activity.

  5. I think most rules are put in place with intentions to fix something else. The problem is that old rules are rarely cleared out when things change and when you fix one thing, you often create other problems. The lender system is simply too large and has too many rules to change quickly or even to fine tune it.

    1. Good point. There’s also often a lack of consistency between lenders. For example, the 1004MC. Some lenders always want it, some want it in declining markets only, some don’t require it ever. In Dustin’s situation, some lenders allow for anyone in the appraisal office to complete, some allow another appraiser to inspect but the approved appraiser must sign on the right hand side and some only allow the approved to sign on the left, so they must inspect.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.