Many Massachusetts valuation clients choose to work with appraisal management companies (AMCs) due to the fear of compliance issues with Dodd-Frank and the Consumer Protection Act. It’s a common misconception that to avoid bias issues, and maintain transparency, that you have to use an AMC. For a brief period after the financial crisis of the late 2000s, it was the case that some parties in the real estate business were required to use management companies as intermediaries, but those limitations expired when the Home Valuation Code of Conduct restrictions went out of effect. You now have the option to hire the most experienced, dedicated, and professional appraisers in the subject property’s local market.
Long-term Savings, Reduced Risk, Less Wasted Time, and Local Expertise
Choosing to work with an expert local appraisal firm in Massachusetts, and the greater Boston community, will allow you to cut out the middleman. Appraisal management firms have taken advantage of limitations created by legislation to build their market share. Independent firms have to go the extra mile in everything they do to build their competitive advantage and provide the greatest value to clients. AMCs aren’t compelled to provide excellent service or strict quality control, as they rely on industry fears and misconceptions.
Independent firms offer greater value by eliminating the excess fees and costs incurred by management companies that do little to merit the additional costs. The typical AMC quality assurance process takes 1-3 weeks, after inspection, before you receive your completed valuation report. When errors slip through, you’ll typically be left waiting another week or two before your revised report is ready; whereas, a reputable independent team of appraisers will deliver a more reliable and detailed report the first time, with prompt turnaround (48hrs), and rarely-needed revisions ready in hours or a day, rather than weeks.
When you’re working with third-parties that will rely on the content of your reports, it’s especially critical that valuations be accurate the first time. Every time a report is rejected, it incrementally diminishes your credibility and can lead to lost business opportunities, financial loss, and damage to your reputation. Impersonal management firms don’t place much emphasis on customer service and will often discourage and scorn you for suggesting that their reports contain errors.
A major advantage of selecting an independent appraiser is the greater level of local market expertise and the ease of communications. Dedicated local professionals take extra time to understand and research their markets. Appraisers that rely on orders from AMCs can become complacent in their research and diligence, and will take reports in any market, regardless of their actual knowledge of regional market factors.
Reduce your risk, expense, and improve your customer experience by selecting and working directly with a local, family-owned firm that genuinely cares about your business and its success. If you’re accustomed to the AMC model, you will be astonished with how efficient and positive your experience is when you work with a team of Massachusetts specialist appraisers that put quality and customer service first.