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1. Can anyone join the NRBA ?
No. We are very picky about whom we allow to join our organization. This is not a "send in your money and you're in" type of thing. A lot of us have six-figure incomes to protect, and we can't have our reputations damaged by affiliating with unqualified or incompetent individuals.
2. As an Appraiser Affiliate member do I have the same rights and receive the same benefits as the "broker" members?
No, but then again you aren't being asked to pay what the brokers pay either. Appraiser members receive about 90 % of the benefits that are offered to full "Broker" members. Yet they pay less than half of what a full broker member must pay to be a member. (See next question)
3. What's the difference then between being a full "broker" member and being an affiliate appraiser member?
As
an affiliate appraiser member, you will still have access to all of the materials, tools, and information on the NRBA web site, including: the monthly newsletter, the libraries, and the NRBA client database (which now has over 1100 contacts in it), as well as being listed in the online database, having a personal web page, and being allowed to participate in any and all NRBA functions that may be beneficial to you.
The only two exceptions are that you will not be able to access the "brokers" forum or access the forms libraries. Other than that you will basically be receiving the same benefits and access as all other members.
However, we have set up two brand new member forums. One will be for Appraisers and the other will be for Attorney affiliates. You will have access to both of these forums as will the full broker members. This will insure that there is plenty of good communication and networking for business between all of the members.
As to the Form Libraries, these would be of no value to an appraiser anyway, as they are primarily BPO forms that the brokers use. Appraisers had better not be doing BPOs, as in most states they would have a serious licensing issue anyway. So it's not something that you are going to miss.
4. What qualifications do I need to join?
We of course require and will verify your state Appraisal license, your E&O/malpractice insurance, and check your references.
In addition we would like to see some experience in appraising REO properties.
The final and probably the most important item that we are going to require are a recommendation and reference from a current NRBA member.
5. Why do you require that I have a recommendation from a current NRBA member?
For the simple reason that your qualifications may look great on paper, but that still doesn't mean that you are going to do a good job and/or behave with the level of professionalism that we require. Many of us make very good livings through our NRBA affiliations and we can't risk having the reputation of the NRBA damaged in anyway.
Therefore we require that you be sponsored by an existing NRBA member, who knows you and is willing to vouch for your good character.
6. Are there any other special skills or abilities that I need to appraise REO Properties?
Yes, actually there are:
First - you will need to improve your costing abilities and be able to call an accurate repair scope. (Many appraisers are extremely weak in this area)
Second - you will need to understand and calculate "entrepreneurial profit" and understand its relationship to current market value when assigning values to properties in an "as-is" state.
Third - you will need to have a good understanding of the various repairs and their correct effect on value, when determining an "as-repaired" value.
Fourth - you must be able to accurately distinguish between what is primarily a cosmetic repair and that which would be a "lender-required" repair when new financing is to be obtained. This includes understanding FHA and VA required items.
7. Is there anything else that is different about appraising REO properties?
The only other issue that tends to be a problem for some appraisers is understanding the types of values that a bank client wants on an REO property. Appraisals on REO properties are not for the purpose of obtaining new loans; they are for the purpose of determining a listing price and developing a marketing plan for the property. There is no "value" that you are expected to "bring it in for."
In addition to calling out R&I, and the accompanying "as is" and "as repaired" values, you will be asked to give expected values/sales prices based on marketing time. Most REO clients will ask you to name the normal marketing time for the area and the expected value/sales price for that time frame. Many will also ask you to give a value/sales price based on a 60-90 day marketing time. Often these values and time frames may very well be the same. However, sometimes they are not and you must understand the differences and what the client is looking for.
8. Will I get business if I join?
Probably the most important question you can ask and why not, you're here to make money the same as the rest of us.
We'll answer it this way:
First off, we are a trade and support group nothing more. We don't guarantee anybody that they will get business if they join. If you think about it, how can we? The NRBA cannot control your actions or your efforts.
That being said, the NRBA exists for the sole purpose of helping its members to make more money, we've never made any bones about it either.
That concept will extend to you as well.
9. So how will being an NRBA member help me to make more money?
First - our on-line members directory is searched on a daily basis by many bank and corporate clients. You will be listed there along with your coverage areas.
The database is searchable in many ways including location and name.
Second - the NRBA is all about networking. More often than not, one of our broker members is asked to recommend an appraiser to one of the clients. Furthermore, some clients will actually ask the broker to order the appraisal for them. (Probably shouldn't be this way, but it's surprising how often this happens)
So from that perspective, the more time and energy that you put in to meeting and interacting with the other NRBA members, the more business that you will most likely get.
Third - You will have full access to the NRBA Client Database and will be free to solicit for business at will.
Fourth - You will have access to and receive the NRBA newsletters and updates. One of our main priorities is tracking who has what among the clients and where the business actually is. So from that perspective, you'll be kept "In the Know".
10. Is there any special equipment or tools that I need?
In addition to what you should already have which had better be a decent computer and a good appraisal forms program you must be capable of doing business completely electronically.
That means a good email account with a decent Internet connection, as well as a digital camera and the skills and abilities to transmit both your appraisal and photos to the clients via email and/or Internet upload.
11. Is there any other special knowledge or training that will come with my membership?
Yes, actually there is.
In addition to all of the other features that you will have access to via the NRBA website - you will also be able to download and read all of the NRBA training materials including; "The Insider's Guide to REO" the most comprehensive book ever written about the REO process, from both a technical and a marketing viewpoint.
Although initially written for brokers, this manual will give you invaluable insights into the REO process and valuation techniques used with REO. Furthermore, there are extensive sections on marketing for and capturing more business that apply equally to appraisers.
12. Are the fees any different or will I have to discount for REO clients?
Most of the time if you are dealing directly with an REO client, they will pay the going market rate for an appraisal in your area.
The only time that you may have to accept a discounted fee or possibly pay back a referral fee is if you accept assignments from one of the national Appraisal outsourcing companies.
13. What are the advantages to working for REO clients?
There are several!
First and foremost - this is on-going and continuous business one good client can easily be good for ten or more appraisal orders a month. Just by picking up a couple of good REO clients, you've developed a stable and completely renewable income source.
Another major benefit of doing REO appraisals is the fact that these properties will almost always be vacant and have lockboxes on them (usually mechanical and the contact can just give you the code). This means that you can schedule your inspections at your convenience, and let's face it, time-management is everything is this business.
14. This all sounds too good to be true - what's the catch?
The catch is that you are going to be expected to perform in a timely and professional manner.
Delays are totally unacceptable. The normal window will be 3-5 days to turn the appraisal. If you can't do that for a client that may be giving you ten or more appraisals per month - than you shouldn't bother to go after this type of business.
REO clients are different they don't like headaches or problems. As long as you can meet their time lines, they will typically just keep giving you business, the minute you start running late or causing them delays, they will find someone else to give their business to.
15. What does it cost to join the NRBA and to be listed in the NRBA Member's Database?
The cost to be an NRBA Appraisal Affiliate member is $395 per year. Let's face it, one or two appraisal orders covers the cost of your membership for an entire year. This is a bargain.
To make matters even easier, you can pay monthly via your credit card at $32.92 per month.
16. What happens if I try this for a few months and then find out that this isn't for me? Can I cancel?
Any member is free to cancel at any time. We neither need, nor want, anyone in the organization that is not going to be a successful and productive member. We are looking to establish long-term relationships and build a quality network, and expect to have our members for many years to come. For these reasons, we chose to offer a "pay-as-you-go" billing system. Even though our membership fee is based on an annual rate, if you are on monthly billing and after a few months, you find that REO is not for you, you simply have to notify us of your desire to cancel. At which time, you will be removed as a member and no further fees will be charged to you. For those members that elect to pay in full for the year, upon cancellation we will refund the unused portion of your membership fee on a pro-rata basis.
17. How many other appraisers will be in my area? Can't I be the only one?
Exactly how many NRBA members/agents will be in each area will depend on the size of the local market, and even then they only come in if we feel they are qualified.
18. Wouldn't I want to be the only NRBA Appraiser member in my area?
NO. Let's explain another "secret" about REO and banks.
Most banks will maintain a list of several appraisers in each area that they have foreclosures inthey don't believe in "putting all of their eggs in one basket." Most of them also don't want to overload a single appraiser. For those reasons, the majority of the banks will only allow an individual appraiser to have a few of their assignments at any one time; hence, they have several appraisers in each area and divide the assignments up among them. So the way to get 20 or 30 assignments a month is to be on 10 or 15 different banks' lists and get several a month from each.
19. Are there any other charges or referral fees that I have to pay to the NRBA?
No. We are strictly a membership-based organization and all you will never be charged anything except the membership fee. We neither permit nor charge any referral fees (it's actually even against our charter).
20. Are there any reporting requirements or any other information I will have to supply about my business or how much money I make?
No, your business is your business we stay out of it. The only time that you may hear from us about what you have been doing is if we receive a complaint about you or your services from one of the clients. At which point you will definitely not have to worry about us interfering in your business because you most likely will no longer be a member anyway. (See next question)
21. Can a member be terminated from the NRBA?
Yes, at any time and at the sole discretion of the NRBA. (See NRBA Code of Ethics and Guidelines)
Attorney Application
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