AMCs
352) AMC Test
06/21/08
Dear Henry,
I recently filled out an application with an AMC that included an appraisal test/quiz at the end. The Q & A was very shoddy. Here's a sample question:
"Across the board adjustments:
A) should never be made when possible.
B) can be acceptable in some cases such as REO properties when no similar condition homes exist.
C) should be evident to the client when they were needed. That is why they are in the report.
D) Both a & b
Do these multiple choice answers make any sense to you? The other 10 questions are equally faulty. I know a company can choose their own criteria for determining whether they will provide assignments to an appraiser, but this quiz was far from appropriate in my opinion. Does an AMC have any business quizzing licensed appraisers this way and for this purpose?
Name withheld by request
Dear Friend,
Using the answer "both a & b" or "all of the above" in a multiple choice question is no longer considered to be good test question construction. The State of Florida Real Estate Commission will not approve any question with such answers. Frankly, I think it is very unprofessional for an AMC to have a test like this as part of their approval process.
H2
I recently filled out an application with an AMC that included an appraisal test/quiz at the end. The Q & A was very shoddy. Here's a sample question:
"Across the board adjustments:
A) should never be made when possible.
B) can be acceptable in some cases such as REO properties when no similar condition homes exist.
C) should be evident to the client when they were needed. That is why they are in the report.
D) Both a & b
Do these multiple choice answers make any sense to you? The other 10 questions are equally faulty. I know a company can choose their own criteria for determining whether they will provide assignments to an appraiser, but this quiz was far from appropriate in my opinion. Does an AMC have any business quizzing licensed appraisers this way and for this purpose?
Name withheld by request
Dear Friend,
Using the answer "both a & b" or "all of the above" in a multiple choice question is no longer considered to be good test question construction. The State of Florida Real Estate Commission will not approve any question with such answers. Frankly, I think it is very unprofessional for an AMC to have a test like this as part of their approval process.
H2
268) Appraisal Management Companies (AMCs)
03/12/08
Dear Henry,
I am an appraiser in New Jersey. I have just been informed by another appraiser that he is joining an AMC (appraisal management company). This was the first that I have heard of AMCs. As I researched more about it on the Internet, it was brought to my attention that most appraisers don't care for AMCs. (This is putting it nicely.) In reading further I learned that appraiser fees are drastically lowered by AMCs, with more work going to the lowest bidder.
Is this true?
What are you feelings about AMCs and the affect they are having or will have in the appraisal industry?
After my research on the Internet, I am quite upset with appraisers that are chosing to become AMC members. I wanted to know if you can verify that what I have read is correct along with pros and cons of AMCs regarding appraisal industry. The only pro I can see is that the Loan Officers have absolutely no contact with the appraisers.
I don't recommend posting this message as I do not want to give them any more awareness then they already have.
Name Withheld by Request
P.S. I have read your book "House" and found it was very informative. I agree with someone else's posting that you will never really understand how much your Q&A's have helped us. I wanted to take the time to thank you for answering our questions, THANK YOU VERY MUCH!!!
Dear Friend,
You can't group all AMCs together. You have to make a judgment based on your own business whether it is worth their cost to get the business they provide. You should also ask them for the names of other appraisers who are involved with them. Talk to these appraisers to see how they like the relationship. It is possible that an AMC in your local area might be a good source of new business for you.
H2
I am an appraiser in New Jersey. I have just been informed by another appraiser that he is joining an AMC (appraisal management company). This was the first that I have heard of AMCs. As I researched more about it on the Internet, it was brought to my attention that most appraisers don't care for AMCs. (This is putting it nicely.) In reading further I learned that appraiser fees are drastically lowered by AMCs, with more work going to the lowest bidder.
Is this true?
What are you feelings about AMCs and the affect they are having or will have in the appraisal industry?
After my research on the Internet, I am quite upset with appraisers that are chosing to become AMC members. I wanted to know if you can verify that what I have read is correct along with pros and cons of AMCs regarding appraisal industry. The only pro I can see is that the Loan Officers have absolutely no contact with the appraisers.
I don't recommend posting this message as I do not want to give them any more awareness then they already have.
Name Withheld by Request
P.S. I have read your book "House" and found it was very informative. I agree with someone else's posting that you will never really understand how much your Q&A's have helped us. I wanted to take the time to thank you for answering our questions, THANK YOU VERY MUCH!!!
Dear Friend,
You can't group all AMCs together. You have to make a judgment based on your own business whether it is worth their cost to get the business they provide. You should also ask them for the names of other appraisers who are involved with them. Talk to these appraisers to see how they like the relationship. It is possible that an AMC in your local area might be a good source of new business for you.
H2