More than 60% of appraisers participating in a recent national survey say they charge the same amount for an appraisal regardless of whether they are contacted through an appraisal management company (AMC) or directly by a lender.
The survey, an annual study performed by the Coester Appraisal Group, an AMC, covered 1,559 licensed and certified appraisers, the majority of whom are licensed in one state and some in as many as seven. Appraisers in all 50 states are represented in the survey. Survey data was collected directly from appraisers via SurveyMonkey, various Web sites, press releases and e-mail, Coester says.
Total fees on conventional and Federal Housing Administration (FHA) 1004/1073 appraisals ranged between $350 and $450, the survey says.
"One of the more popular misconceptions in the industry is that AMCs earn a huge margin by paying appraisers $150 to $200 while charging the borrower $450 to $500," a Coester statement say. "Our data proves this wrong, showing that although appraisers quote lenders $350 to $450 for appraisals, they net $250 to $300 for a conventional appraisal and $300 to $350 for an FHA report when ordered through an AMC. This translates into appraisers' receiving over 70 percent of their original quoted fee and the AMC retaining the other 30 percent."
Coester goes on to note that while many may not agree with the changes that the Home Valuation Code of Conduct (HVCC) has brought to the industry, including the proliferation of AMCs, 71.1% of appraisers work for one or more AMCs.
The top AMCs noted in the survey results were 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%).
Consistent with a recent survey from the Title Appraisal Vendor Management Association (TAVMA), results of the Coester survey indicate that one-third of respondents traveled an average of 15 to 20 miles from the appraiser's place of business to an assignment, with an additional 31.4% traveling 10 to 15 miles. The TAVMA survey concluded that the average travel distance for an appraiser is 13 miles.
The survey also found an average turnaround time of two to three days from assignment for a conventional 1004/1073 and of four to five 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.
SOURCE: Coester Appraisal Group