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What To Charge For Sfr's Over 1 Million.

Discussion in 'General Appraisal Discussion' started by Annelle, Dec 20, 2004.

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  1. Annelle

    Annelle Junior Member

    0
    Jan 26, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Arizona
    HI,

    I somewhat recently got my Certified Residental License in CALI. I have a request for a 1.9 million estimated valued property. Yes, I realize fees are based on complexity, so this just gives me a rough idea of complexity. Since most fee schedules state "call for quote", is there any kind of general guideline for what appraisers generally charge? My mentor retired.

    Bear with me, I'm new on this forum.
     
  2. Randy Beigh

    Randy Beigh Senior Member

    0
    Jan 16, 2002
    Welcome to the forum, Catherine,

    Nobody is going to be able to answer your question with a dollars and cents answer.

    I gather 1.9 million dollar homes are rare in your area. I say that, because from what I know of California, there are many areas where that price would be typical.

    You mentioned complexity and, indeed, that is one thing to look at, but a more important issue is time. How much time is this appraisal going to take you to do? Then how many dollars per hour do you charge? Times these and that should be the fee.

    Also, you might want to consider your other work as this appraisal will consume much of your time and you don't want to let the other work slip.

    Another possiblity is to call your retired mentor and ask him. :lol:

    Some will suggest that you not do this while I suggest you dive in the water. Your license is strong enough and you need the experience.

    One of the things I see from novice appraisers that is very annoying is the adjustments. Remember, the value is much higher, so the adustments can't be the same as a 100K home. I have seen a 2K adjustment for a garage or a 1K adjustment for a deck. That is just dumb.

    Hope this helps





















    y
     
  3. Walter Kirk

    Walter Kirk Senior Member

    17
    Jun 24, 2003
    Professional Status:
    Licensed Appraiser
    State:
    New Jersey
    Don't consider the price, consider the complexity of the assignment. If there are lots of similar properties in the market area this appraisal could be almost as easy as a cookie cutter townhouse.
     
  4. Jerry Bone Jr

    Jerry Bone Jr Senior Member

    0
    Feb 23, 2004
    Professional Status:
    Licensed Appraiser
    State:
    Oregon
    1.9 million, Up here in Salem, Oregon the fee would be... Well how much to charge to appraise the whole city? :rotate:
     
  5. DB

    DB Elite Member

    0
    Apr 29, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Tennessee
    What has the "requested value" got to do with ... anything??
     
  6. Annelle

    Annelle Junior Member

    0
    Jan 26, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Arizona
    Just so you don't get confused...the value was *not* requested. They were looking for an appraiser for someone doing a loan over 1 Million. In any event, they found someone that would do it for $550. (Apparently had a budjet of $500, and that was the best they could get.)

    I was going to move this out of Urgent, but haven't figured out how.
     
  7. DB

    DB Elite Member

    0
    Apr 29, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Tennessee
    Glad you clarified and thanks! Welcome to the forum btw ... don't worry about moving it ... I took care of it!

    Happy holidays!!
     
  8. CANative

    CANative Elite Member

    367
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Charge whatever you want to charge and as much as the market will bare. If it takes a very large, very complicated house on a big parcel to command a value that high and it will take as much time and effort and brain strain as doing 2 or 3 cookie cutters, charge 2 or 3 times as much. If it is in an area where that type of value is typical, consider add a surcharge type fee on top of your regular fee. You're certainly going to have to use a bit more narrative comments and think about things a bit more.

    Bottom line is it's a business decision. And it's your business.
     
  9. Ryan Nyberg

    Ryan Nyberg Senior Member

    0
    Jan 15, 2002
    Professional Status:
    Gvmt Agency, FNMA, HUD, VA etc.
    State:
    Washington
    Ok just don't get it. Lets see the people own a $1.9M (there opinion) house. They are willing to pay a LO/MB a point or two on the loan. And are on a "budjet" for the appraisal fee. Go figure.

    Charge what you want to charge. Look at the complexity and the time it would take. Depends on the area as well. Around these parts a $2M dollar sale I would deffintely charge 4-6 times normal fee cause they are few and far between in these parts. Some areas of the country that may be typical and possibly the "average" house.
     
  10. Lysander in Charlotte

    Lysander in Charlotte Member

    0
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    My fee for such an assignment is generally about double the fee for a typical SFR.
     
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