Sunday, December 6, 2009

1 More Reason to Regulate Appraisal Management Companies

Wouldn't you know it. As soon as I publish "7 Reasons to Regulate Appraisal Management Companies in Florida", I realized the title should have been "8 Reasons". Rather than rewriting the post as ideas come to me and are suggested by others, it seems like a better idea to add posts to the blog.

It seems as though everyone and their brother is jumping on the AMC bandwagon. This company may have been in business since 1991 or since the world was an onion, but their promo demonstrates another reason AMCs must be regulated. Here is the page of interest. Among the "advantages" cited:

  • 100% Loss Warranty - Protection from the liability of an appraisal coming back in the future that could result in a loss.

  • Will Match any Fee - We will insure competitive pricing and will match any quote provided in writing for any appraisal service.

  • How in the world can a company be an honest broker for an objective, unbiased, valuation service when the company has an interest in the outcome of the service? If the AMC warrants against loss, does it appear as though the company may have an interest in keeping the opinion of value on the low end? Might the AMC encourage the appraiser to keep the opinion of value close to the AVM estimate?

    Is it curious that one of the main "advantages" cited is matching the fee quoted by their competitors? Does this imply a commitment to quality?

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