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  #1  
Old 02-28-2006, 10:19 PM
New Orleans Guy's Avatar
New Orleans Guy New Orleans Guy is offline
 
Join Date: Feb 2006
State: Louisiana
Professional Status: Certified Residential Appraiser
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Default Fee for 1.1 mil property??

I just received an assignment for an appraisal of new construstion that will come out around 1.1 mil or so. I normally charge $350-$400 for a 1004 but this one is obviously going to be more work, and I want to charge the right amount without gouging this client. What would be an acceptable increase from the norm for something more complex like this? I was thinking in the range of $550-600 but do you guys get more, or less? Like I said I don't want to start a bad precendent, but I also don't want to cringe every time they send me a big assignment because I gave them a low ball fee for complex properties. Give me a cookie cutter in the burbs any day, but I gotta get this one done so what would you charge?

J
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Old 02-28-2006, 10:22 PM
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Smokey Bear Smokey Bear is offline
 
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Location: The "OC" in Republican Land (Oh no!)
State: California
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Depends on your location. A $1.1 mil property in my area isn't that special.

Of course, there will be someone who posts stating that discussing fees can lead to price fixing charges, but ignore them.
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  #3  
Old 02-28-2006, 10:23 PM
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Ms. Janet Ms. Janet is offline
 
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Location: La La Land
State: Florida
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Default

Quote:
Originally Posted by Cynthia Hamilton
Depends on your location. A $1.1 mil property in my area isn't that special.

Of course, there will be someone who posts stating that discussing fees can lead to price fixing charges, but ignore them.
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  #4  
Old 02-28-2006, 10:26 PM
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New Orleans Guy New Orleans Guy is offline
 
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Quote:
Originally Posted by janet rabin
Seen your sig, I used to live in St. Pete right near Straub Park. I miss the free concerts they used to have.
  #5  
Old 02-28-2006, 10:38 PM
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David Wimpelberg David Wimpelberg is offline
 
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Location: Hamptons, NY
State: New York
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I base my fees on number of factors, mainly complexity and time. A $1,100,000 in one area may be extremely complex, but a starter home in another area. Both these scenarios would have entirely different fee structures.
  #6  
Old 02-28-2006, 10:43 PM
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Chris Colston Chris Colston is offline
 
Join Date: Jul 2003
Location: East Central Florida, Space Coast
State: Florida
Professional Status: Certified Residential Appraiser
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Default What is your time worth?

What is your time worth? How much more time will it take to measure? Are there readily available comps or do you have to go miles away for comparable sales? Are there any Riparian rights that need to be considered that are out of the ordinary for you? What about the view, is it significantly better? Can a view adjustment be easily determined or will it take a great deal of research? How much longer will it take you to determine the contribution of any of the "specialty" items or upgrades that are being included in the new construction? Since it's new construction, I am left to assume you will completing the COST APPROACH . Do you have supporting data for the land value, ie land sales?? These factors all go into the determination of whether the assignment is complex and warrants an increase in fee.

Since we don't know the location of the property it is difficult for any one to answer what they might charge. Sometimes on high dollar properties I only add a small additional fee for $100 because the house is going to be a nightmare to measure (I have a price increase above 3,000 SF). Sometimes I add as much as $1,000 because everything about the assignment will be complex and it will take longer to complete.
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  #7  
Old 02-28-2006, 11:22 PM
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Jerry Still Jerry Still is offline
 
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Cool

In the cape Coral area, I would charge $1,100 due to size & complexity and most likely salt water canal location and the extra labor of finding comparable sales, also...an additional $250 for the aggravation of New Construction (meeting builder on site, picking up/reading blue prints. etc.).

If there is a Realturd involved I would charge another $100 just for GP, ($1,450 total). The Final inspection would be an additional $150.

I would hope that they would not take me up on my bid. I can do three 1,200 to 1,500 Sqft homes @ $450 each in less time with less aggravation.

A LO/mortgage company will most likely be making 15 to 20K on this mortgage, but will try to Quibble with an appraiser about a couple hundred bucks, and we hold the key to the money gate?.

The prospective home owner in my experience is most likely a cheap S.O.B. That's how they got to this level of living in the first place! On the backs of others.

Just in IMHO
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Last edited by Jerry Still : 02-28-2006 at 11:25 PM.
  #8  
Old 03-01-2006, 12:33 AM
jonathan asbury jonathan asbury is offline
 
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Location: SF bay
State: California
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Default

--------------------------------------------------------------------------------

Depends on your location. A $1.1 mil property in my area isn't that special.

Of course, there will be someone who posts stating that discussing fees can lead to price fixing charges, but ignore them.

Cynthia is right-
1.1 million is 95% of the SFR in my town guys
4bd, 2.5ba, 2 car gar

$350-400 depending on the GLA but thats here not there

jonathan
  #9  
Old 03-01-2006, 06:03 AM
Ted Martin Ted Martin is offline
 
Join Date: Jan 2002
Location: Topeka, KS, USA
State: Kansas
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Posts: 1,826
Default

Sounds like you already did the appraisal.

"I just received an assignment for an appraisal of new construction that will come out around 1.1 mil or so."

Assuming this was a typo on your part;

how long does it take you to do a typical property?

how long will it take you to do the subject?

Divide fee for typical property by time multiply equals hourly rate, multiply hourly rate times anticipated time to complete subject assignment.

Be aware that your estimate of the time required to complete the more complex assignment will probably be off by a factor of 4 or more. This multiplier takes into account the wider net you are going to need to cast to find a comp any comp to use in the report (forget about one mile or one year) plus the extra ten pages or writing you will need to do to justify your actions.

In my market for a home like that there would be a big difference between the cost to build and the market value, say a discount of 10% to 30% off the cost to build. And the greater the difference between the high end subject and the typical home the greater the discount, I've seem some where a discount of up to 70% was supported.
  #10  
Old 03-01-2006, 08:22 AM
Wendy Wendy is offline
 
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Location: Volusia/Flagler
State: Florida
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Posts: 4,133
Default

Charge based on your time. If million plus houses are a breeze in your market, go for the typical fee. If they are a pain, double it.

I just finished a lot that came in at $16,000. Took days and, because I failed to take into account the time, ended up making about $8/hr on it. I hate it when I do that!
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