What do Appraisal Management Companies Really Pay?
Do you often wonder why some appraisers enjoy getting work from appraisal management companies and others wont go anywhere near them? There are several factors involved in the pay scales of each appraisal management company. This article will discuss the factors involved and give you some tips on how to bring in more work for your company.
If you have been to any appraiser forums or discussion groups, you will often hear conflicting opinions on appraisal management companies. Some appraiser love them and others wont go near them, either because of their own experience or horror stories they have heard.
There are several factors involved in what a management company will pay an appraiser. These include:
• Numbers of appraisers on their approved list -
Some appraisal management companies have no restrictions on the number of appraisers it accepts from a given area, city, county or state. The more appraisers they have listed the less they have to pay. For example, a large firm with thousands of appraisers may only pay an appraiser $250 for an appraisal. They know that someone on their list will accept the fee and do the work in the allotted time.
• Where you are located geographically -
If you are located in a large metropolitan area, competition is fierce and management companies will pay less due to the number of appraisers in the area. If you are located in a smaller town, especially when all the appraisers agreee on minimum fees, the management companies are forced to pay full rate for the appraisal.
• Whether they operate on a bid system -
Regardless of where you are located, some companies work on a bid system. Basically, whoever responds in the quickest amount of time with the lowest bid, wins.
What type of appraisals you perform -
This takes into account your license level and complex appraisal issues. For complex appraisals many appraisers are contacted personally to see if they will accept the job and, often, are asked to bid on the job.
• Rush Orders -
Most companies will pay extra for rush jobs, although not significantly more unless the rush is requested to be completed in 24 hours or less.
How to Bring in More Work for Your Business
Based on the information above, you may be tempted to disregard working for appraisal management companies all together. Here are some tips to bring in more appraisal work without giving your services away.
• Sign up for as many AMCs as possible -
There are hundreds of appraisal management companies available that you can sign up with. While some focus on a specific geographical area, most are national. There are dozens of smaller AMCs (and some larger networks) that dont work on a bidding system, offer great compensation and decent turn times.
• Accept more complex appraisals -
If you sign up for an AMC that works on a system that you are not happy with, just let them know that you specialize in complex appraisals and price your fees accordingly. You may not get as much work from them, but if you sign up with many management companies, it will bring in a consistant income.
• Accept rush orders, as long as it doesnt compromise your quality of work -
Depending on you and your knowledge of your market area, you may be able to accept rush jobs that wont compromise your work.
• Upgrade your license -
Some management companies are only accepting appraisers that are certified or they pay more for appraisers that have an upgraded license. If you are not already certified, this is a great way to promote yourself and gain more business.
• Become an expert in another area -
By expanding your borders you may be able to bring in more work for yourself, especially if you are willing to travel someplace that others are unwilling to go.
• Look for work outside of AMCs -
While it may take some effort to generate business outside appraisal management companies, it is well worth the effort. Market yourself to attorneys, CPAs and local banks that fund their own loans.
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