$250 Appraisals?

[Truett Neathery]

All they ever check for is price and delivery time. No one cares if the work was done by a competent appraiser. One sales broker here sold a repo belonging to a bank, noted "no inspections or repairs will be paid for", appraiser(s) came back with a laundry list of inspections and repairs REQUIRED by HUD, to be paid for by the bank. I don't think any of them had ever done an FHA appraisal before, but are now cashing in on the "new sub-prime"!! Oops, $6K commissions out the door.

 

[Tamara Vargas]

it is sad and ridiculous, considering the increased work, to be reducing fees. "Reducing fees to stay competive" I've been hearing. Ugghh...

 

[444nutman]

That is 75 bucks more than the average AMC fee around here. I know appraisers that would love to make that much. Too many appraisers and to few assignments. Low fees are the end result.

 

[chad hampton]

I'd do an appraisal for $250. This country is pretty close to being in a depression - I'd take whatever work you can get right now.

 

[Pamela Crowley (Florida)]

Sad when to do it correctly would mean you make less than minimum wage.

 

[panappr]

And here in-lays the problem. We have no one but ourselves to blame. Trust me the AMCs are laughing there *ss off m2:

 

[Blue1]

All they ever check for is price and delivery time. No one cares if the work was done by a competent appraiser.

I have found that delivery time has always been the #1 concern for most clients. Of course they always want us to 'hit the value' but with the recent changes, proposed changes I have been finding no more 'estimate of value' on the orders.

As for quality, that is expected no matter what the fee. Like others have mentioned in this thread, our profession is in the position of having an over-supply of appraisers which is driving fees downward while at the same time, we are experiencing more and more oversight which driving clients to seek quality in order to cover their collective a$$e$.

Like any other Market, the highest quality for the lowest price will always win.

 

[Mike Boyd]

Big difference between a commodity and a service. We don't increase the demand for appraisals when we lower fees. The appraisal will be performed irrespective of the fee. The undercutter is simply pulling food from their competitor's mouths by scabbing their fees.

I have no respect for these people, and, I have news for you. The clients do not either. Some newbie loan officers may order appraisals from them for awhile....until the undercutter goes out of business because he cannot afford E&O, MLS fees, updated software, ink cartridges, make his house and car payments, car insurance, pay for CE classes, pay for nenewal of his license and gas for his car, AND feed his family because of scabby fees.

 

[timd354]

Sad when to do it correctly would mean you make less than minimum wage.

I do not work for less than my full fee (which is far above $250), but to say that one would make less than minimum wage in order to do an appraisal correctly for $250 is a crock in most cases. If the assignment is a typical non, complex 1 unit property located nearby, a good job can certainly be done in 10 hours or less in most cases which eqaute to $25.00 per hour (before expenses). Last time I checked minimum wage is far less than that.

I think that decreasing appraisal fees are a huge problem for our industry, but, appraisers are not exempt from the laws of supply and demand. Sadly, as long as there is an oversupply of appraisers, fees will be reduced until enough appraisers leave the business and the supply and demand of appraisers gets back into balance. The fact is that are too many appraisers in the business and things will not change until a certain number of the appraisers are eliminated. I wish this was not the case, but it is. In the meantime, I am sure that I will either end up doing less volume or reducing fees, or both, in an effort to stay afloat like everyone else. So far I have not had to reduce fees, and, for me personally, do not see anything to be gained by reducing my fees, but I am not going to be overly critical of those working for $250. I am sure that most of these people would like to work for more if they thought that they could.

Some appraisers on this board seem to have the attitude that the world owes them a living and that anyone who works at a lower fee then they would is a skippy or incompetent.

 

[Mike Boyd]

.

Some appraisers on this board seem to have the attitude that the world owes them a living and that anyone who works at a lower fee then they would is a skippy or incompetent.

They are. Or, just plain stupid.

Like most people you have not deducted your cost of doing business. I won't go over it again but if you really want to know, check Ray Miller's post a couple months ago where he very accurately laid out all the costs of doing business. Truth be known, even at full fee, our "take home" pay is not a living wage in most areas.