It is with a good deal of lament that I am writing this post. I opened my email this morning to see an announcement from Appraisal Advisor (AA) stating that they that would be ceasing operation as of February 1, 2014. For those that did not know about them, they were, to my knowledge, the only source for appraisers to post reviews about working with Appraisal Management Companies (AMCs). AA also developed credit ratings based on appraiser reviews of working with each rated AMC. Appraisal Advisor was truly a tool that was of great use to me and many other appraisers that worked with the AMCs.
This tale is common in the appraisal profession. Appraisers can be a testy lot to deal with, even more so when they are asked to pay for anything. I am an appraiser, and I get that money is tight in the profession. My comment is not an admonishment to appraisers, but rather a fact. In this case, I see where the thousands of appraisers have signed up but have failed to participate. Matthew Biggers, Co-Founder of AA, wrote in his announcement of the forthcoming shut down:
“Unfortunately, the lifeblood of Appraisal Advisor – appraisers submitting client reviews – fell prey to the age-old “80/20” rule. Over 79% of our many thousands of ASC-verified appraiser members submitted zero reviews, while only 3% submitted more than five reviews.
That was far below what we needed to support a revenue model of non-appraisers paying to access and advertise on the site. And since appraisers had already spoken loudly that they wouldn’t pay directly for it either, that cut off the only two sources of funding for Appraisal Advisor (Biggers, 2014).”
I wish it were not so, but we must bid adieu to yet another concept that is designed to help the profession at large; mostly, as a group, we cannot see the forest for the trees. The AMCs won out here at the expense of residential appraisers. Matt did share some interesting information about a yet unnamed AMC that was very pleased to know that AA was going off line. If I ever get a chance to update this blog with that information, I will share the relevant information pertaining to it. I am sure many AMCs will be happy to see that as well because the less transparency between independent professionals means more fracturing. More fracturing means more leverage for the AMCs.
Thanks for Trying Mr. Biggers!!
Biggers, M. (2014, January 21). Important announcement about Appraisal Advisor; Email. Atlanta, GA, USA.