Lenders and AMCs may be unsure of the best way to approach appraisers about completing hybrid appraisals.
How do I approach appraisers on my panel to complete hybrid appraisals?
Proprietary hybrid appraisals are used today in home equity. A hybrid appraisal panel will be 25-30% of the active traditional appraisal panel, with individual appraisers .
- Candidates - select 10-20 appraisers in your pilot markets who you want to form your hybrid appraisal panel, based on the analysis below
- Business proposition - present a proposal to provide 30-35 hybrid appraisals/month to these appraisers, with per report fees set at 66% of traditional appraisal (non-UAD 3.6)
- Geo competency - specify markets where appraisers should acquire competency in the next 1-3 months, to maximize coverage from individuals
Preparation for approaching appraisers:
Here are some of the key information to gather to target and speaking with appraisers:
- Business relationship - rank the total volume, net fees, turn times and distance traveled for appraisers, and identify those that earn significant income from your bank
- Performance - rank the quality, timeliness, and revision rate of these appraisers
- Compliance & disciplinary actions - ensure the there are no outstanding issues, and the appraiser is not on any investor ‘Do Not Use’ and exclusionary lists
- Business plan - build a projection of how many additional orders you can route to these top appraisers, and the estimated hybrid-only fees you wish to pay