Lenders can have a stable and thriving relationship with their Appraisal Management Companies if the right questions are discussed by both parties on the front-end, if clear channels of communication are established and maintained, and if there is a full understanding of the AMC’s process. When lenders and AMCs keep these areas of focus in mind, they will be better prepared to work together while also exceling in their own areas of expertise.
Have Necessary Discussions
In order to have appropriate expectations about an AMC partnership, it is important for lenders and AMCs to be on the same page from the outset of the partnership. Some questions that can be discussed include:
- What type of review does the AMC perform on the appraisal?
- Are the individuals reviewing the appraisals licensed or certified?
- Do employees at the AMC have any commercial real estate experience?
- What types of fees are charged by the AMC?
- Do lenders have a single point of contact with the AMC or will they be speaking to multiple representatives throughout the appraisal process?
- What types of reports does the AMC provide?
- What quality control standards does the AMC maintain?
Communication is Key
As with every relationship, it’s crucial for all parties involved to have clear communication. If the lenders and AMCs ask the right questions up front and know what to expect, there will be a solid foundation established for good communication. In addition, effective communication skills that apply in any setting can be helpful during the appraisal process. Some of those include:
- Engaged Listening. If the lender and AMC focus on listening to each other during all conversations and give proper attention to all written communications, there will be fewer opportunities for misunderstanding.
- Stay Cool Under Stress. It is important for all parties to maintain their composure and a professional demeanor if and when an appraisal runs into a problem or delay. Knowing problems and delays are possible—even when everyone is doing their part to avoid them—can help everyone better handle any obstacle that arises. Lenders and AMCs can work together to solve problems and move the process forward with a positive outlook.
- Provide Helpful Feedback. Lenders and AMCs need to feel comfortable providing helpful feedback to each other about ways to improve their procedures, ways to better serve borrowers, and ways to proactively keep the appraisal process running smoothly.
Understand the AMC’s Process
Finally, having a full understanding of how the AMC operates will also improve the relationship between the lender and the AMC. This step goes hand-in-hand with having necessary discussions and good communication. The AMC must be able to provide details of their processes and confirm they are committed to following those processes every time.
Oxford AMC’s appraisal process is outlined on our website here to make sure potential and existing partners know what they can expect with every appraisal. We are intentional about following the established Oxford AMC methods in order to make sure lenders’ expectations are met so they can better serve their borrowers. We want to do our part to keep lenders satisfied and happy to do business with us.
Oxford AMC also works hard to have the necessary discussions at the beginning of every new lender partnership that will help all parties experience success. And we are committed to open and clear communication at all times.