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AMC Reaches Goal, Drives Down Turnaround Times

Coester Appraisal Group, an appraisal management company (AMC) based in Gaithersburg, MD surpassed its goal of averaging less than 4 days total turnaround on appraisals nationally for two consecutive months. According to reports the firm averaged 3 days,19 hours, 48 minutes and 47 seconds.

This is part of a larger goal to remain below the 4 day mark for a full calendar year. Frank Novak, Coester Operations Manager said “we are extremely excited about all the hard work and dedication our team put into the goal. We consider this a stepping stone in the right direction of achieving our ultimate goal of 4 total days turnaround or less for a year and ultimately continually.” Each appraisal is manually reviewed by Coester staff to ensure compliance with HVCC and USPAP.

Coester has been providing appraisal services since 1970 and also offers BPOs, AVMs, and other valuation services.

Comments
  1. Susan Holmes

    They should be so proud – faster turn around has ALWAYS been the sign of a REALLY good appraiser ! Hey Coester – complying with USPAP does not guaranty an accurate and fair report.

  2. fred vander wal

    Exactly Susan.
    It’s all hurry, hurry and give us the appraised value we want and need……else….hit the road.
    When the FHA fiasco hits in a few months we will be blamed again……even though I as a state licensed appraiser can’t do FHA appraisals anymore. They found a skippy who just graduated and got his certified license to do them. Skippy likes the work, he doesn’t mind being given a figure to hit. Skippy thinks he’s doing the right thing.
    And so does the lending industry, The NAR and the Government.
    God help all of them.

  3. Tim

    Pretty easy actually, provide the AVM with the appraisal request (this is the number don’t deviate above), take the first three sales within a mile and 90 days regardless of comnparability. Make up some adjustments and fire that baby off ! Collect your check for $200 in a couple weeks. Those who do not follow this business model and want to do something crazy like research, put a work file together, verify comps and conditions, actually go look at comps and take your own pictures…well we can’t have that.

    Every AMC counts date of request as day one and date of delivery the last day. So if 4 days is your number that means research, inspection, writing, verifications, analysis, proofreading, ect is actually 48 hrs ! You don’t get a “appraisal” with that metric, you get a report with a number that was provided by the AMC in the first place.

    Wasn’t this exactly the business model from 2004 – 2007 ? How did that work out ?

    Sad but every AMC is competing with each other based soley on this metric. They have priced fixed the fees to 50%, weeded out the oldest and more experienced appraisers in favor of those who appraisers who became trained and certified during the “boom” years. Sure they can download sales data to excel spreadsheet and auto populate the statistically “perfect” sales into a report. But there is no analysis. This work could be done in New Delhi for $5 a day and just have someone take the photos of the subject property. Oh thats right, I forgot thats what they are doing now. Perhaps soon we can go do “on site valuations” for $75. Now thats quality !!

    Good to know residential floorplans, interior photos, upgrades (like security systems) are floating around in the middle east. Not to mention the credit side of processing. All that intellectual data on millions of borrowers floating around.

    Turnover time is great metrics for the McDonalds business model. If you screw up a cheeseburger you can always get it replaced quickly with minimal cost. Screw up an appraisal report and somebody is on the hook for thousands of dollars. (I guess us tax payers and homeowners actually).

    Good Job Corestar……You want fries with that ??

  4. Sal

    Notice they offer BPO’s, which, by the way, are illegal in Pennsylvania and can have your broker license revoked if you are not also a certified appraiser. But, hey, mislead the client- it’s Turn Time that all that counts. Coester ‘s part of the problem, not the solution.

  5. Rob

    Do lenders really expect a quality appraisal in 4 days ? You would think a reputable lender ( LO ) would want a professional experienced appraiser who represents the bank to visit the home of their client not someone new to the industry. Over the past 12 years appraising I would strive for a 5 day turn around max. after inspection and usually completed within 48hrs after inspection anyway. Why is everyone in a hurry? Once the AMC burn out the appraisers they will hire Realtors to do BPO’s for $50.

  6. Appraiser Inactive

    Hey Tim…thanks for the great Tim. You’ve helped me to find a way to profit from HVCC. I’ve hired out the inspection process to three retired appraisers (one 75, one 78, & one 80 years old) who in turn fax their notes to typists in China. Analysis is no longer a concern for appraisers to worry about. I pay the retirees $50 per inspection and the typists $2 per day. We can generate around 4 appraisals per day @ $150 each. I’m now bringing in around $900 per day and pay out only $312. It’s working out great. The only complaint that we’ve had from the lender is that they have to take their reports to the local Chinese restaurant every day at lunch for translation.

  7. Everyone is concerned about appraiser turn around time.

    WHY?

    Once the appraisal is turned in it takes 30 to 90 days to close a loan. It sits on someone’s desk or on their computer for days, if not for weeks, because they are slammed with so much work because middle management meatheads think the work can be done by half the staff required. I have had “RUSH” appraisals come back two or three weeks later for stips. That’s why there are so many appraiser stips, they need a reason to put the loan down for a while, so they put it back on the appraiser!!!

    “Hey, it’s not my fault, call the appraiser, I’m waiting for response!”

    So, if it used to take 1 or 2 weeks, now it takes FOREVER to close a loan . . . Why do they think appraisers should be able to turn an appraisal around in less time, than it took before? Why (again) is pressure being put on the appraiser – now for time? You need now two or three grids of comp’s (sales and listings) . . . A ridiculous 1004MC sheet for market value that everyone knows is down and flat because the lenders got bailed out and now the lenders aren’t lending, or IF they ARE lending you better have 740 FICO, an obscene Debt to Income Ratio, etc., . . .

    Well my answer is IF IT’S NOT USPAP COMPLIANT, and I feel there is incomplete or contradictory information, I am not turning it in yet, until I get it finished to my satisfaction!!!

    My license – My Butt!!!

  8. Peter

    check out http://www.naihp.org. and see what they are doing to fight the hvcc.

  9. craig

    Could you imagine if REALTORS were judged solely on how quickly they sold a home. “Lets get that home sold fast as possible” with disregard for selling price or ethics?

  10. Yep, turn time is the most important thing Coester.

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