Fee Structure

Discussion in 'General Appraisal Discussion' started by Bill Rose, Sep 17, 2004.

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  1. Bill Rose

    Bill Rose Senior Member

    0
    Aug 25, 2003
    I'm going to pilot-test using 1% of BPO vs. the old system. I think that's what it's going to take to capture the benefit/liability of rising markets.

    The one thing I'm struggling with is the contingent fee thing. Thoughts?
     
  2. leelansford

    leelansford Elite Member

    14
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Would you expand a bit on what you have posted and, also, your question?
    I'm not at all certain as to what you are asking.

    --Lee Lansford, IFA
     
  3. Oregon Doug

    Oregon Doug Senior Member

    0
    Jan 15, 2002
    Professional Status:
    General Public
    State:
    Oregon
    Bill; Huh? I'm with Lee on this - what's your question? I'll say this much though: Appraiser & contingent fee = don't even think about it.

    Oregon Doug
     
  4. Bill Rose

    Bill Rose Senior Member

    0
    Aug 25, 2003
    The issue that is unclear is whether a fee based on the value of the property appraised would be considered a contingent fee arrangement (which of course, is a heinous crime).
     
  5. Otis Key

    Otis Key Elite Member

    0
    May 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    Lee - Doug - I'm not sure he even knows what he's asking. I believe he's an appraiser, not an agent, so he does appraisals and not BPO's. Why do you think the post sat there so long with no responses. It's not a question and it's an incomplete statement that hasn't got a thing to do with appraising, except to violate USPAP if he's going to charge a percentage of the estimated value as his fee.
     
  6. CANative

    CANative Elite Member

    30
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Are you trying to goad us, Bill? How could this be any clearer?
     
  7. Jungle Boy

    Jungle Boy Senior Member

    0
    Oct 30, 2002
    Professional Status:
    Real Estate Agent or Broker
    State:
    Florida
    Sunce of homer, anyone ? :rofl: :rofl: :fiddle: :fiddle: :fiddle: :fiddle:
     
  8. Jungle Boy

    Jungle Boy Senior Member

    0
    Oct 30, 2002
    Professional Status:
    Real Estate Agent or Broker
    State:
    Florida
    'nother one please !

    er, make it two, hick ! hick ! :idea: :idea:
     
  9. Bill Rose

    Bill Rose Senior Member

    0
    Aug 25, 2003
    The key word is "Contingent". The fee based on BPO is not contingent, as it is not dependent upon the outcome of the appraisal.

    Many, if not most, structure their fees this way now. They just don't use a percentage.
     
  10. Randy Brewer

    Randy Brewer New Member

    0
    Sep 18, 2004
    Professional Status:
    Licensed Appraiser
    State:
    Oregon
    I'm confused too. If you suggested that it be based upon square footage or type of residence that would make sense but if the price is higher and your fee is derived from the price how would you do that?
     
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