1. Welcome to AppraisersForum.com, the premiere online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Fee Structure Ii

Discussion in 'General Appraisal Discussion' started by Pa'akai, Sep 19, 2004.

Thread Status:
Not open for further replies.
  1. Pa'akai

    Pa'akai Junior Member

    0
    Jan 7, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Tennessee
    Has anyone lately tried to raise their fees.
    A year ago I was only charging $300-$325 per appraisal. During this time I was reviewing appraisals for a major lender and they were sending the whole appraisal including invoices. The appraisers in most of the reports were charging $400-$450 per appraisal.
    After that I then told all my lenders I was now going to charge $350-$400 per report and not one balked at the new fee.
    Since then my normal fee is typically $400. and still no decrease in orders from the lenders I value most. I've had good relationships with these lenders and they trust my work and have had no problems with any of my appraisals.
    Looking at a lot of posts in the forum I believe we are short changing ourselves when it comes to market pay. Granted theres a lot of skippys who will except lower fees and prostitue themselves but those of you who have had long term relationships with lenders and gone out of your way to give them good service shouldnt balk at a slightly higher fee.
    This is true with major lenders (they pay $400+ all the time in major market areas) as well as local mortgage brokers who just add the money into closing costs. Sometimes I will except lower than $350. but that is really rare.
    I'm now thinking of charging an additional $25 to $50. if they want a quick turnaround and I think most of my current clients will pay it (dont know about the major lenders but the MB's will.)
    Its sad to think I was making $300. an appraisal in 1987 and making the same amount in 2002.
     
  2. xm39hnu

    xm39hnu Senior Member

    0
    Jul 10, 2003
    Professional Status:
    General Public
    State:
    Florida
    I've had two recent cases where the MB's asked for fee quote, and followed up by sending me a "B" paper appraisal. That signifies that I need to raise my fees; I must be the lowest guy in the area! Had those guys scared off for a while. I guess the local skippies went out of business.
     
  3. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    446
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    My fee structure has changed since coughing up for legal fees, E & O raises, higher gas prices. I have doubled my fees for most farm appraisals over the past 2 years, and find that I am still $400 behind one of my competitors.
    Residential - I now have a three tier system. One client with particularly onerous conditions attached, gets the "special" [high] price, while my easiest clients get something lower. In a small area of 4 small towns, I will do a summary [non-FRT, in-house only and using a Summary form, not a 2055] report for my lowest fee, SFR only, no big shop buildings, no excess land. Otherwise, the standard fee is going to rise significantly if I have to use the new Fannie mae form in anything like its current configuration.
     
  4. Otis Key

    Otis Key Elite Member

    0
    May 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    About mid-year I raised mine about $25 with little to no cut in volume and I'm gradually sneaking in a few increases here and there.

    Pssst.
    ACCEPT

    :usa: :peace:
     
  5. Mike Garrett RAA

    Mike Garrett RAA Elite Member

    25
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    What are you complaining about? As a VA appraiser, our fees have been set by the VA and haven't gone up in 11 years! :cry: If you watched the newest VA training video, you probably caught the suggestion on the part of the VA that we are over paid and when the new Fannie Mae 1004 comes out we should consider reducing our fees. Shorter turn times, more appraisers on the VA panel, and lesser fees. Ever wonder who the VA favors? Like many of the VA appraisers in this area, I am looking for work from other sources.

    I am charging about $25 more now for conventional work due to the increased cost of gasoline. Been getting more B paper calls lately also. Good solid month so far, in fact, more than I can handle. Still lots of "comp check" calls...sure wish there was a way to get paid for them but even the suggestion of $25 for research work falls of deaf ears. Personally, I like the idea of "staged fee" appraisals, which is perfectly acceptable under USPAP provided you do it correctly.

    Our Board of REALTORSĀ® is rolling out a new MLS system beginning September 27th. There are lots of nice features but what really stands out is a new CMA function which will allow the REALTORĀ® to do what amounts to an appraisal right on the system including making adjustments. Can be made part of an email with .pdf attachment. One of the agents I was sitting next to ask if I would be willing to provide her with a "list of adjustments". Sure, Uh huh, of course, why not? :rofl:
     
  6. Bill Rose

    Bill Rose Senior Member

    0
    Aug 25, 2003
    Check other threads. A graduated fee basis is the way to go. I have been charging a minimum of $375 for the easiest ones.
     
  7. jay trotta

    jay trotta Elite Member

    15
    Feb 8, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    I need to move to another state, the dipsticks round here are still settlein fer only $250 :angry: -tryin ta buck this system is a pain; we've done it, but it's fighting Both Ends, because most of these idiots can figure out a bottom line PROFIT :huh:


    :ph34r:
     
  8. Carnivore

    Carnivore Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Bill,

    It makes sense from our perspective to do a graduated fee. It also makes sense from a lender perspective to do the same, assuming a certain success rate.

    That success rate is where the rub is between vendor and lender. What happens to you if the upgrades are the predominance of a particular time period. How willing do you think a lender will be in keeping your pipeline filled if the success rate means delays and unpredictable higher cost. This point type value on minimal scope of work is a real problem. Its quite unfair to the vendor.

    My suggestion to a lender is a matter of trust. Send the order as a pre-approved staged assignment. Simply send me the assignment with the Full appraisal fee outlining the scope of work as staged. The appraiser(me) decides where to stop once a credible and reliable final opinion is reached. Cut out all the back and forth time delaying communication for approvals for moving to the next stage. Cut out the AMC's middle man cost and employ or engage in systems like AI or Mercury.

    A lender who quotes a customer via promise of 24 hours and cheap is running a high risk of loosing the customer to a more honest and candid competitor. In the last 12 months I have sensed and encountered quite a bit of dissatisfaction with the consumer over pie in the sky offers. I understand the competition between lenders is fierce. I also understand that they have only tree real areas to compete with. 1. Rate 2. Upfront cost. 3. time to closing As appraisers we can not get any faster on a day in day out basis of less than 24 hours. The issue is with AMC's not Appraisers. AMC's are the largest cause for delay in report delivery.
     
  9. Nancy Wyatt

    Nancy Wyatt Senior Member

    0
    Nov 21, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    In Colorado :rainfro: :rainfro: No.

    We are Skippied out to the max.
     
  10. Anthem

    Anthem Senior Member

    0
    Mar 10, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    I don't understand Why the fees in California seem to be so much lower than everywhere else. Typically Ca. is higher on everything. But here in So. CAL $350 is considered to be a high fee ( SFR 1004 ). Right next door in AZ. it would be considered a low fee.
     
Thread Status:
Not open for further replies.

Share This Page