Appraisal Trainee

[Daniel Murphy]

Ladies & Gentlemen,

I'm wondering if you could provide guidance, I recently completed the requisite 150 hours of schooling required by WI, but I'm having a difficult time finding an Appraiser willing to take on a trainee. I realize the reluctance because many Appraisers view this as training the future competition, while there may be merit to this argument, not every one is manipulative & truly would like to learn from a veteran. Or is the market so slow that there isn't enough work to consider hiring new staff.
Thanks for your feedback.
Dan Murphy

[Joe The Appraiser]

Dan
Its more then just training your competition.
Many lenders will not take reports done by a trainee.
The future is grim for this buiness I hate to tell you.

[Daniel Murphy]

Even though the trainee's report is reviewed & signed off by the supervising appraiser?

[Joe The Appraiser]

in bold many orders state
'NO TRAINEES ARE TO COMPLETE ASSIGNMENT'
many state
'ONLY CERTIFIED WITH 5+ YEARS EXPERIENCE MAY COMPLETE ASSIGNMENT'

I dont know how a trainee is going to get started in this business at this rate.
Good Luck

[Daniel Murphy]

Thanks for the feedback

[B Houghton]

I don't think that future competition comes in to play too much in regards to reluctance to take you on. Somebody has to take over when we get put out to pasture. I believe the reluctance comes from lower volumes. Personally, my business has dropped 95% (yup, that's ninety five percent) since the inception of the HVCC. Those of us who have had our own business for years are now fairly close to closing the doors. We just don't get enough orders to pay the bills. I've had 2 trainees over the last couple of years and both have had to go get jobs that actually pay the bills. It's sad really.

So let's bring AMC's into the picture. Most AMC's I've seen will not accept reports from trainees. Even if it's been reviewed and signed off by the supervising appraiser. The ones that do, well, look at it like this. Whoever take you on is most likely going to give you a portion of the fee. So bring in the AMC. They are taking a portion of the fee. They aren't paying market rates for appraisals. Some AMC's in some areas are paying as little as 40% of the total fee charged for the report to the appraiser. So let's say, for example, that the AMC is getting $450. The appraiser is getting paid $300. If you, the trainee, are the appraiser, then you'll only get a portion of that - depending on your split with your supervisory appraiser. Maybe $100 - $150 if your lucky. Multiply that times the 5 orders you'll get a month and there you go, poverty level.

So you have to ask yourself, is it really worth it? Used to be, but with so many seasoned appraisers being forced out of the business and with the market the way it is now, lowered fees and lowered volumes, I'd have to say no. It's not. Sorry.

Certificaiton level is required for FHA transactions so that's a maket that you can't even touch for quite awhile. I hope you can find somebody to take you on. Best of luck to you!

[Daniel Murphy]

Thanks for your time, as to HVCC I see that there may be action in DC towards modifying.

[B Houghton]

I believe that the HVCC is firmly in place. Even if it's "sunsetted" fairly soon, the damage has been done to small business owners and independant appraisers. Lenders now have a system in place to manage and order their appraisals that is a result of the HVCC. I can't see lenders changing their policies now that they've been put into action, even if the HVCC is sunsetted. Top that off with most large lenders now having a stake in an AMC, if not owning it outright, well, they're making more money so the only way that is going to change is literally an act of congress doing something like, I don't know, maybe making it illegal for a bank to have any stake at all in an AMC. I know, crazy thinking. But the fact that this whole thing was brought on by the actions of an AMC, and now we're all practically forced to go through AMC's is outrageous.

Here's the real kicker. The HVCC has put into place the rules that govern the ordering of appraisals, which places a hardship on small business and independant appraisers. So, as a result, these independant apraisers, like me, are in financial hardship. How is this handled? Ready for this? The fed was offering zero interest loans to small business owners to help get through the financial tough times, if your not behind on your bills???? Ok, gooney. But if your behind on your bills, then your not eligible for this program, however, you are eligible for the Making Home Affordable program put into place by the fed to help homeowner's keep from losing their homes to foreclosure.

So, the fed giveth, and the fed taketh away. Wouldn't it be a lot easier if they just minded their own business? The damage has been done and to take it out on appraisers that are still in business after the housing crisis fallout that actually were doing a good job, not pushing values and not being coerced is ludicrous. We are still in business because we didn't accept the shady deals. Didn't push the values. Didn't hit the mark.

Sorry - went a bit off topic. If I see a soapbox - I tend to jump on it and start hollering.

[Gerald Campisi]

There are some appraisers who take on trainee's and you have to ask around. Check the Appraisal Forum. I found one there. I am working as a trainee with two different supervising appraisers working different areas. It's slow going as starting out is just hanging out with them as they go on appraisals and learning what software they use, how to derive and intrepret market data, and learning what's happening on the URAR etc, and how they do things. There is little or no money in this part of your life so get used to it. learn as much as you can. I have downsized my life to do this and it's not about getting hours for me, It's about a long term career path I'm passionate about. I expect to sacrafice a great deal over the next few years.

Good luck...

[Daniel Murphy]

Gerald,

In what area of the country do you work?

Thanks