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  #1  
Old 06-27-2011, 01:49 PM
Gregory Beck's Avatar
Gregory Beck Gregory Beck is offline
 
Join Date: Aug 2003
Location: Fort Lauderdale
State: Florida
Professional Status: Certified Residential Appraiser
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Default What is a good quote for a property value over $1M

Get a call the other day from a well recognized amc. Seems they have what the girls said was a million dollar condominium appraisal. What is my fee?
and how fast can I get it back? This is without an address of the property. I asked what fee usually gets the job. She said $350 is a good quote.

I started laughing I couldn't help it. I said wait a minute your company pays $250 to go on an appraisal where the subject is worth $100,000 The liability is lot less and the appraisal is so much easier. So tell you what. I'll take the small stuff
and you can give the million dollar to someone else thank you.

PS Don't call me unless the fee is $750 or higher
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  #2  
Old 06-27-2011, 01:59 PM
Scott R Marshall's Avatar
Scott R Marshall Scott R Marshall is offline
 
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Location: Rio Rancho, NM
State: New Mexico
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Default

Quote:
Originally Posted by Gregory Beck View Post
Get a call the other day from a well recognized amc. Seems they have what the girls said was a million dollar condominium appraisal. What is my fee?
and how fast can I get it back? This is without an address of the property. I asked what fee usually gets the job. She said $350 is a good quote.

I started laughing I couldn't help it. I said wait a minute your company pays $250 to go on an appraisal where the subject is worth $100,000 The liability is lot less and the appraisal is so much easier. So tell you what. I'll take the small stuff
and you can give the million dollar to someone else thank you.

PS Don't call me unless the fee is $750 or higher
$1 Million is a general number. There a some neighborhoods where a million dollar property is not necessarily difficult just as there a certain neighborhoods where a $250K property is just a nightmare. For me complex properties go anywhere from $100 to in excess of $1000 above what I would normally charge.

If I were willing to charge $250 for an assignment, which I am not, I would start by at least doubling my fee and even then, as you said $500 for no info and no way to know what I'm stepping into. NEXT!!!
  #3  
Old 06-27-2011, 02:11 PM
Summer Summer is offline
 
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State: Connecticut
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Default

We start at $650. When you start appraising over 1 million your liability goes up. I will argue this case with anyone. We have no issue getting those fees and I am not doing over million for less. That is a large percentage of the business but I am not putting liability on the line for low fees.
  #4  
Old 06-28-2011, 12:55 AM
normando normando is offline
 
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State: California
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Default

It depends on the loan. Small loans smaller liability.
In general, condos have dropped in price the most compared to SFR so I be wary.
  #5  
Old 06-28-2011, 07:58 AM
Mountain Man Mountain Man is offline
 
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I quote on complexity, not the sales price or estimated value. In my market it can be easier to appraise a million dollar lake home than a $80,000 condo. It's also easier for me to appraise a million dollar warehouse than a $100,000 mom & pop bait store. Sometimes the client doesn't like the fee quote, but it is what it is and there are other hacks in town who will do anything for a buck fifty.
  #6  
Old 06-28-2011, 08:05 AM
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Gregory Beck Gregory Beck is offline
 
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I say this, we must charge higher fees on high value properties because the liability is tremendous. I see other appraisers come back with remarks like it could be an easy appraisal so why charge so much. To me it's not the scope of work, it's the liability. I would fall down if all of a sudden I received a claim on a million dollar property I appraised, I think my e&o insurance company would drop me like a hot potato. So once again What is a customary and reasonable fee for a million dollar property based on liability only.
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  #7  
Old 06-28-2011, 09:55 AM
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Terrel L. Shields Terrel L. Shields is offline
 
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Quote:
it's not the scope of work, it's the liability
At least somebody gets it...half our fee ought to be geared to assessing that risk. Each property has its own risk level. I aver that the "riskiest" appraisals are the ones where the property is more likely to go into foreclosure. Duplexes, condos, "investment" properties, FHA, Fannie Mae... those are the riskiest appraisals you will do and the higher the price, the more risk with each of those.
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  #8  
Old 06-28-2011, 11:08 AM
normando normando is offline
 
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State: California
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I did an appraisal recently which I thought would be value about $1,200,000. After I saw it, I found it was new construction! I'm working on another one and the house has been expanded, different from public records. It changes all my comps!
  #9  
Old 06-28-2011, 02:03 PM
David Mescon David Mescon is offline
 
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Quote:
Originally Posted by Terrel L. Shields View Post
At least somebody gets it...half our fee ought to be geared to assessing that risk. Each property has its own risk level. I aver that the "riskiest" appraisals are the ones where the property is more likely to go into foreclosure. Duplexes, condos, "investment" properties, FHA, Fannie Mae... those are the riskiest appraisals you will do and the higher the price, the more risk with each of those.
I like that word Terrel. I rarely see it used outside of crossword puzzles though.
  #10  
Old 06-28-2011, 02:09 PM
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Mile High Trout Mile High Trout is offline
 
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State: Colorado
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Some expect McFees on McMansions.

Liability is one thing to consider but you don't double and triple based on a perceived liability standard relationship to lessor meat and pudding orders.

Assess the complexity. Is there uniform housing? Are there land issues? How complex is the high end marketplace? It's the complexity of the high end marketplaces that make them soo much more work.
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Last edited by Mile High Trout : 06-28-2011 at 05:23 PM.
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