Working with Appraisal Management Companies
It is true that more than 5,000 appraisers have closed their businesses down due to the lack of financial opportunity available to them. When the new HVCC rules were approved, most appraisers lost over half their income. It is also true that most appraisers, as an average, will sign up for between ten to 12 appraisal management companies, or AMCs. Other appraisers do not think they have the time, while others do not know where to find the AMC's.
While there are a great number of appraisers that do not want to work with an appraisal management company, there are appraisers that would work with them to enhance their incomes. The good news for appraisers that are looking for appraisal management companies is that there are more than 300 AMC's across the nation. This number is growing at a rapid rate.
Appraisers that do sign up with appraisal management companies gain benefits, such as additional income, but they can be hard to find. An appraisal management company is not listed like other businesses, so it might take some digging and effort. The good news is that there are lists available online, some are free while there is a minimal fee for others. With an AMC list, an appraiser can expand his or her business. An appraiser can do this by signing up with several appraisal management companies at one time. This can be done in addition to signing up with banks that do not accept federal funding, CPA's, divorce lawyers, and other businesses that need appraisers.
These lists can help bolster business, giving appraisers options that help support their families or maintain their preferred lifestyles. AMC's offer added income, even for the appraiser that just wants more money. If an appraiser works as an independent agent, he or she could make an average of $4000.00 a month. However, if he or she were to work with appraisal management companies, the benefit could add up to an additional $2000.00, boosting the total income to $6000.00 a month.
Another benefit of working with appraisal management companies is that it puts an appraiser in line to comply with the FHA rules that are set to change in the near future.
While AMC's are a good source of income under the new HVCC and coming FHA rules, an appraiser should be careful to stay away from the AMC companies that want to take enormous upfront commissions or fees. Other AMCs will require the appraiser to do the job in 24 hours, after bidding on them, possibly leading to poor quality work. Many appraisers feel that working on a 24-hour period can be irresponsible and would prefer to take the time necessary for a good job.
While the rules from HVCC and FHA have changed the face of the industry for appraisers, it has not completely eradicated it. There are still many opportunities for the active appraiser that does not mind putting effort into the search.
Courtesy of T. Bledsoe
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