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MI Realtors Purchase AMC

The Michigan Association of REALTORS® (MIR) announced last week that the organization purchased an appraisal management company (AMC).  The state association acquired Midwest AMG, which will serve as a wholly owned, for-profit subsidiary.  According to MIR, “[t]his means in addition to industry “best practices,” those doing appraisals will be held to the higher standards dictated by REALTOR membership. It is through this melding of standards that Midwest AMG and the Michigan Association of REALTORS® intend to create the “Gold Standard” for appraisal services.“  Read the full release here.

Thanks to Appraisal Scoop for the tip.

Comments
  1. Chet T

    More Kool Aid Please!

  2. I really wonder h how the Appraisal Companies will deal witth this. Will they actually adhear to the Realtor Code of Ethics? And by that I mean not being from out of the area, higher durty to the actual client (the buyer) and not leaning to pressure from the lenders?

  3. John

    Will the appraisers engaged by this AMC be required to be Realtors? Does this association not smell funny and feel slanted?
    While I am a Realtor but not a sales agent, this arrangement seems questionable at best as far as who is controling the appraiser roster for this AMC. There are so many questions about the nature of this association that the only hope is that the roster appraisers can maintain a spine when taking assignments from the organization that lives on the results of the transactions that the appraisals directly impact. My hope is the ethics question works in both directions but it should be noted that USPAP is much more stringent regarding conduct of appraisers than NAR will ever be regarding Realtors.

  4. Chris Nap

    It will be interesting to see if the local Michigan affiliate will adhere to the pleadings of all appraisers nation-wide in dealing with proper appraisal fees for our profession. Franlikn-Dodd states “reasonable and customary fees” for our work product–not the “trolling” for profit many AMC’s currently employ as tactics–The lowest fee gets the job. If MIR wants the “gold standard” they should pay the gold standard for our work. That doesn’t mean $225-$250 for a URAR report….

  5. Robert Steffens

    What is MAR doing buying a for profit business? What is MAR’s exposure if the business fails? How much did they pay for it? Are MAR members now shareholders who should expect a dividend or profit sharing check?

    While I 100% agree that the appraisal sector needs improvement, is it MAR’s place to do so in such a direct manner?

  6. A. J. Ortiz

    As a Realtor and a Certified General Appraiser, this development doesn’t shock me at all. It’s just one more unintended absurdity caused by the ill-concieved HVCC. You see, HVCC was supposed to “shield” appraisers from undue influence by creating a “firewall” between commission earners and the valuation process. Now, with the intermediary fully owned and controlled by the commission earners, I wonder how long an appraiser will last on the “approved” roster of this AMC if they fail to “hit the number” to make these deals fly?

    Don’t get me wrong, I completely understand why they are doing this, the frustrations caused by HVCC are enough to drive any sane Realtor, L.O. and end user insane. Unfortunately, the appraisers and the appraisal profession continue to suffer unfairly in all of this, when they were not the ones who caused the problem in the first place.

    Unless and until the Appraisers can get together and advocate effectively for themselves, these kinds of absurities will continue to spiral the appraisal profession downward.

    My hope is that the MI Realtors will serve as an enlightened intermediary, pay the appraisers a fair fee for thier services, allow a fair turnaround time and allow for fair peer review. I can only hope. Unfortunately, experience shows that it is a futile hope. I can only hope I’m wrong.

  7. Johnny

    Is it not putting the FOX in the Chicken House. It defies the code of ethics for realtors and is not USPAP worthy. These guys should be expelled from NAR membership.

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