The Home Valuation Code of Conduct (HVCC) has raised some challenges for all parties involved with the real estate appraisal process. Appraisers in particular have some difficult decisions to make and it usually starts with selecting a reliable, client-generating appraisal management company (AMC). Generally, if an AMC is publicizing that they have the fastest growing network of appraisers, it is up to the appraiser to validate that claim, as well as become part of their network if it is proven legitimate to enhance business.
If an AMC has a large pool of qualified appraisers, then chances are they are very easy to work with and they generate many leads. One of the best ways to determine if an AMC has a sizeable network is to ask, “Would I want to be a part of it?”
To help make a decision, consider the following aspects that a bona fide AMC would have:
- Streamlined or Automated System: As an appraiser, you would want to have a working relationship with an AMC that has developed their own system for processing appraisals. If you are able to cut down on turnaround time and enhance accuracy, you will obviously be able to handle more leads and increase revenue.
- Qualification Process: It isn’t wise to join an AMC that doesn’t have a precise prerequisite checklist for appraisers, as it can potentially damage your company’s reputation by being associated with less than adequate appraisers. Also, if the AMC isn’t concerned with the appraisers within their network, it wouldn’t instill much confidence with the types of lenders they do business with either.
- HVCC Non-influence Compliancy: Most respectable AMCs pronounce that they adhere to a strict non-influence policy. Some even go as far as providing a customized certificate of non-influence for each appraisal order. Having the AMC certify that all of their appraisal reports are in compliance with the HVCC and aforementioned policy should promote faith in their business practices.
- Membership Fees: The majority of AMCs do not require any membership fees just to be in their network and only require a percentage of completed appraisals. Be cautious of AMCs that ask for a monthly or yearly membership, as that could be a sign of a small or new network (i.e., the AMC cannot make substantial profits from the number of appraisals only; hence, they require a fee).
As an appraiser, it is beneficial to be selective when choosing an AMC that declares to have the fastest growing network of appraisers. However, if they incorporate the characteristics mentioned above – if not more – then you should feel comfortable about an association.
Eamon Arnett is writer and CEO of 48HN.com (http://www.48hn.com), a website featuring Appraisal Management Company.
[tags]national appraisal mangement company[/tags]
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