If you’ve been doing some reading around the real estate world, chances are you’ve seen the word ‘AMC’ somewhere. But do you know what this means?
Whether you’re a commercial real estate agent or a residential one, you’re going to greatly benefit from utilizing an appraisal management company (AMC). But before signing off with an appraisal management company, it is essential you know why real estate brokers need them.
What Does ‘Appraisal Management Company’ (AMC) Mean?
There’s no way you will understand why an AMC is essential if you don’t even know what it means. So, first, let’s clear up some basic definitions.
An appraisal management company is an independent organization that helps mortgage lenders by appraising properties for which the lender is interested in extending a loan. A bonus of using an AMC is its coverage of administrative operations in all appraisal work. It takes the job of recruiting an expert appraiser, making a high-quality report to send off to the lender, and staying compliant off your shoulders.
What Are The Benefits Of Getting an AMC?
Now that we know what AMC refers to, let’s talk about its importance in the real estate world. These benefits include:
Stay On The Top Of Your Game
When it comes to managing your real estate business, you aren’t short of responsibilities. Plus, if you’re stepping into the world of real estate without any know-how, the huge ‘work wave’ Is likely to sweep you up.
That’s where appraisal management companies come into the picture. A real estate appraiser working with an AMC having years of experience will help you with various tasks. They include ordering, tracking, and handling all appraisal services necessary for your real estate business. They also cover all necessary reviews and revisions of the order, ensuring delivered products are of top-notch quality.
Waste Extra Money No More!
So, why should you use an AMC and not an independent appraiser?
With all the management, filing, and staying compliant with regulations like The Uniform Standards of Professional Appraisal Practice (USPAP), the charges for independent appraisers are shooting through the roof. That’s why you should choose an appraisal management company.
An AMC, like AmeriMac, offers you a dedicated team of experts, all at an affordable price! Your appraisal management company will find high-quality appraisers for you to get an accurate appraisal. Which brings us to:
Get Different Price Estimations
Your appraisal management company will select experienced appraisers that utilize different price evaluation methods for each situation to deliver the most accurate appraisal possible. These methods include:
Number 1: The Cost Approach To Value
Complying with USPAP means you need to write correct and accurate results of how you came up with a property’s market value.
The first approach, the cost approach to value, considers building a property similar to the one undergoing appraisal. Here, you get the estimated price of how much crafting the building would cost.
This approach is best for any newly constructed buildings, properties that are currently under renovation, those with functional depreciation, or are unique buildings. Since finding the perfect cost approach value relies on getting the right reproduction cost estimates, depreciation estimates, and valid site estimates, it’s hard for individuals to do it independently.
Your AMC, and their appraisers, accurately analyze all the important features and ensure they undergo a detailed review.
Number 2: The Sales Comparison Approach
The second approach includes comparing the chosen property with competitors or similar properties that have recently gone off the market.
It works well for anyone wanting to sell their property. This approach helps you get to a market value that is both reasonable and enticing to consumers. It is mostly in similar neighborhoods with houses and properties that are comparable.
Number 3: The Income Approach To Value
Lastly, the income approach to value uses the market rent or projected income to find your property’s market value. This method works best for those working in multi-family properties or places where the rental market is essential. However, if you’re working in an area where properties are mostly owner-occupied, this may not be the appropriate approach. An experienced appraiser will know the correct situation for each valuation method.
Work With Professionals
Working with an appraisal management company like AmeriMac means you are assured quality control. Appraisal management companies ensure every single one of their appraisers is well-versed in the field.
Firstly, they make sure their team is always complying with HVCC, FHA, OTS, OCC, and additional federal regulations. Moreover, all appraisal management companies have an expert quality control department that works behind the scenes to bring accurately collected data to you. It helps ensure you don’t end up with an inaccurate appraisal.
A trustworthy appraisal management company like AmeriMac handles all essential tasks; ordering, tracking, managing additional tasks and updates, to deliver an accurate, compliant appraisal report. By keeping communication on the top of their list of priorities, AmeriMac ensures you are always kept in the loop and are satisfied with the results.