Fee Surveys

[mopickled]

This is the best post in all the myriad threads about "customary and reasonable fees". Wake up, people. We are charged with forming a supportable opinon of value on the most expensive asset people own - and many are willing to settle for "surveys", "meetings" and whatever other nonsense is being put forth regarding our fees. What is being proposed is price fixing and for the life of me, I can't understand why so many are willing to go along with this.

I set my fees - clients either accept them or not. My dentist sets his fees, my doctor, my plumber, my mason, my mechanic, my vet, my attorney. I accept them or go elsewhere and get lesser service. Mike's last 3 paragraphs say it all.

I agree- however;

Difference here is dentists, doctors etc don't have to compete with skippy mills and indifferent regulators. We are not playing on an equal playing field when I have to compete with appraisers who willfully omit and manipulate data to "make deals work" and "fool" underwriters and my state board doesn't seem to care...........

There are too many appraisers at this point and the barrier for entry was set WAY to low for years. Our character has been defamed to the rest of the planet due to lack of regulation and impotent ASC and state Boards.

WE can hold ourselves to a higher standard - but as long as skippy has a free reign and everyone else knows it - WE aren't worth any more than our lowest denominator.

My local banks know the difference - and are willing to pay for it and with a fair fee and respect for the appraiser. BoA, WF, RELS etc etc - they still think we are a profit center......
I still don't get why they would risk tens of thousands to make a couple hundred bucks on a real estate deal. If they are making soooo much of the numbers of appraisals they create - think about the $0000000's they are risking by using the cheapest and quickest. It's flabbergasting :Eyecrazy:

The word does seem to be getting out however, I am being asked more and more by borrowers where I am from and my experience. Many people have lost loans and expenses due to incompetent appraisers from 3 counties over. Keep spreading the word peeps.

 

[rescom]

Once again the members of this forum have proven that they are beyond help. Over the past year, the biggest issue appraisers have had is the low fees that the AMCs have been paying, and we begged for someone to help us. AND THEY DID! And now this isn't good enough. Its price fixing, blah,blah,blah.

What the hell are you expecting? We aren't as important as you all think we are. If we were, then we would be treated as such. This new law is simply trying to set a minimum fee so that we won't continue to get ripped off by the AMCs and skippy. You want to set your own fees? Go ahead. As long as it is above the minimum for your area you are more than welcome to charge whatever you want.

I really don't blame the regulators for not caring much about us. We cry about everything and nothing is ever good enough. I would have given up on us a long time ago.

If you want to be independent, then quit asking for help.

 

[Scott Lanz]

The biggest problem is actually the reverse, appraisers were accepting the low fees and not all appraisers were begging for help.

Importance is relevant to each individual, and their services, and a personal choice on the treatment one receives.

My gut is telling me the next year there will be host of threads on problems with minimum fees and an increased supply of appraisers in their market. This may be mitigated somewhat if a trend of finding local competent appraisers develops.

Most users of appraisals generally select on timing and fee. Unfortunately, quality doesn't/didn't seem to matter. So now, appraisers have one component to separate themselves from the competition, timing. Hopefully the need for quality will come into play.

 

[mopickled]

Once again the members of this forum have proven that they are beyond help. Over the past year, the biggest issue appraisers have had is the low fees that the AMCs have been paying, and we begged for someone to help us. AND THEY DID! And now this isn't good enough. Its price fixing, blah,blah,blah.

What the hell are you expecting? We aren't as important as you all think we are. If we were, then we would be treated as such. This new law is simply trying to set a minimum fee so that we won't continue to get ripped off by the AMCs and skippy. You want to set your own fees? Go ahead. As long as it is above the minimum for your area you are more than welcome to charge whatever you want.

I really don't blame the regulators for not caring much about us. We cry about everything and nothing is ever good enough. I would have given up on us a long time ago.

If you want to be independent, then quit asking for help.

What are they being paid to do????????

 

[Laurie Collins]

The only way to stop low fees is to stop accepting low fees

got a request for one just today. $ 225 for an appraisal with a 3 day turn time. Came from a company named Flapco. I sent it back. Thank you but no thank you. Again, as long as somebody is out there willing to accept this type of pay, they will continue to solicit these fees. End of story.

 

[rescom]

What are they being paid to do????????

They're doing what they are paid to do. Did they not just pass a law that is supposed to help us?

What are independent appraisers paid to do? Whine and cry?

 

[rescom]

got a request for one just today. $ 225 for an appraisal with a 3 day turn time. Came from a company named Flapco. I sent it back. Thank you but no thank you. Again, as long as somebody is out there willing to accept this type of pay, they will continue to solicit these fees. End of story.

And as long as you don't do something with that order other than send it back, they will continue to send them. They don't think that we have the nads to turn them in. Maybe they're right.

 

[NC Appraising]

I just now had a borrower call me up and to ask how much I charged for an appraisal. We discussed the property, and I said $300.

He said that he has called several lenders, and all use AMC's, and the charge would be 375-440.

I told him about how the appraiser will probably get 175-225, and that the whole system is a scam.


I sent him to my local bank and my other big bank that uses a in-house system. I told him what he pays, the appraisers gets all of it. The chance of me getting the appraisal is slim, but at least I know the POS, fee stealing, consumer ripping off AMC's will not get a lick!!




I'm tired of this crap!!

 

[mopickled]

They're doing what they are paid to do. Did they not just pass a law that is supposed to help us?

What are independent appraisers paid to do? Whine and cry?

I don't think ASC or my State Appraisal Board had a thing to do with the new "laws". And I will be shocked if they do a damn thing to help enforce them - as they are PAID to do.

 

[KenAZ]

I don't think ASC or my State Appraisal Board had a thing to do with the new "laws". And I will be shocked if they do a damn thing to help enforce them - as they are PAID to do.

We already have proof that the fee laws will be adhered to. Banks have been forbidden from skimming fees for a very long time, and none of them do it. AMC's were not forbidden, and still are not, but a similar law is in effect with the same enforcement. Remember, this new law is actually not new, it is an ammendment to laws already in place.

If you want to have accurate appraisals, and appraiser independence . . .

1) There should be NO pressure on appraisers regarding values
2) There should be NO pressure on appraisers regarding fees
3) There should be NO pressure on appraisers regarding volume discounts
4) Skippies should not have any leverage over honest appraisers
(ie. Fees, Values)

The problem is not us, it is the fact that financial institutions have always found a way to get to the bottom feeders. They always find the skippies and reward them, while honest appraisers starve, or compete for the leftovers.

Appraisers need to be independent from the above influences. Even before the AMC and HVCC mess, I always wondered why such an important proffesion had the above forces in effect. The wheeler dealer appraisers always had plenty of work. MB's could set their own values. There was always pressure, and there were always skippies available to provide a way.

Finally at least there is a law that should prevent this. This is much better than what we have had over the past 30 to 50 years. These are regulations that should have been placed in effect many decades ago.

Sure, the reasonable and customary fees, will attract more to the prefession, and may keep some appraisers that may have soon quit, but in the end, this will be good for everyone.

To those that are all in a sudden deciding to become appraisers?

Go for it.

4 year degree
2 years of no pay training, if you can find a trainer
200 hours of expensive classes
Almost impossible to pass test

I think it is almost easier to get a Masters or Doctorate, and at least with advanced degrees you have way more flexability as to employment.