This is the second post in my series on metro Atlanta appraisals in 2011. Please click here to see the first post on: market stabilization in Atlanta. More posts coming soon: low appraisals on arm’s length purchases, and consultation appraisals.
Appraisal regulations are easing a bit as we transition from HVCC rules to the Dodd Frank Act. Appraisers will be more fairly treated and receive “reasonable compensation”.
One of the challenges for the appraisal business was the rise of the Appraisal Management Companies (AMC’s) which sought the appraiser who would do the job the fastest and the cheapest. This was most often not in the best interest of the real estate market.
Appraisers were rushing through assignments and justifying it based on the extremely low fees they were paid. This led to sloppy work and inaccurate appraisals. With the help of this recent legislation, appraisers are now given the time to accurately analyze the market and complete a competent appraisal.
The problem still remains however, that too many appraisal management companies do not have sophisticated assigning software to get the job to the appraiser with the most “geographical competence”.