Many appraisers are completely against using appraisal management companies. But there are a number of great reasons to use them to your advantage. This article will discuss the three main reasons to use AMC’s.
It has been almost a year since the appraisal industry instituted the new HVCC rules which required most real estate appraisal transactions to be handled through appraisal management companies. Many appraisers have been reluctant to use AMC’s because of the bad reputation that many of them garnered for various reasons. While there are many reasons to stay away from appraisal management companies, there are more reasons why you should use their services.
The first and most obvious reason to sign up for appraisal management companies is to bring in more work. While it is possible to bring in local work from attorneys, CPA’s and independent banks, the quantity of work is so minimal that it would probably not sustain you in the lifestyle that you desire. Obviously, during economic downturns, we all expect a loss of work, but without the use of AMC’s, you are most definitely setting yourself up for trouble.
The second reason to sign up with appraisal management companies is because the marketplace seems to be setting itself up for more regulations, not less, as we all hope. Despite all the petitions of appraisers and opposition, regulatory organizations do not appear to be backing down. While amendments may be conceded to in the future, the complete HVCC rulings will probably not be thrown out.
Third, there has been a drop in the number of appraisers due to bankruptcy and also a dip in the number of new appraisers because of more stringent rules for new trainees. Many appraisers have closed their doors due to lack of work, with their numbers reaching into the thousands. Pair this together with more education requirements for new incoming appraisers and it leaves a big gap that needs to be filled by current appraisers. There are still many appraisal management companies searching for more appraisers to fill their needs.
With FHA implementing their new rules at the beginning of 2010, it appears well over 90% of all jobs are flowing through AMC’s. The work is available to those who are looking for it.