A Fast Turn Time is the New Appraisal Requirement [Ugly Trends]

by Bryan McDonald on February 19, 2010

The pressure for a quick turn time has always been present but has increased significantly in the past few months.

Real Estate Appraisal Turn Time is the time between when an appraisal order is received and the time the appraisal is turned in to the client.

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There are more Appraisal Management Companies than ever before as a result of the adoption of the HVCC. All of the AMCs are competing for the same business from the lenders. One measure of performance that an AMC can show a potential client is how quickly they can get an appraisal back to them.

If an Appraisal Management Company commits to a quick turn time, it is then the responsibility of the real estate appraiser to set an appointment date, perform the needed market research, inspect the subject, complete the report, and submit the appraisal back in to the AMC. A lot of the time, this has to be done regardless of the complexity of the appraisal.

The pressure for a fast turn time for real estate appraisers is going to cause appraisals to have more mistakes and potentially be inaccurate, all in the name of turn time. This should be a concern for everyone in the real estate industry. Completing an accurate real estate appraisal is a complex and time consuming process especially in the current housing market.

More information, more research, and more comparables are required from lenders while at the same time fees paid to appraisers are being lowered and turn time expectations are being increased.

If you are a real estate appraiser, what do you do about the pressure for an unrealistic turn time? Do you say No?

Clock photo above is by zoutedrop.

Article by Bryan McDonald

Bryan has written 177 blissful articles.

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{ 2 comments }

Tom Horn February 28, 2010 at 4:04 pm: Bryan,
As you well know, we are being asked to turn the job around quicker and for lower fee. It is getting crazy. I think there will be a shakedown in AMC’s. The ones that ask for unrealistic fees and turn times will not last long, whereas the others with more reasonable requests will probably get more business. It is definately a crazy time in our industry. Keep up the good posts.
Bryan McDonald March 1, 2010 at 8:31 am: Thanks for comment Tom. I think you are right about a shakedown for AMCs. It will be interesting to see how it all plays out.