Can I charge more for high price homes?

[Lee Lansford]

Make a price list like this (for example) - 1004 report, non-complex $350. 1004 complex - Quote.

Yep, that's the way to go.

 

[normando]

With my AMC, I can quote a fee so when I saw this order which I know is in high end in market, I was going to quote a bit higher fee just because I think I can get it. If I get it, they take the premium charge and call it a complex fee which is fine with me. But I didn't charge higher. When I saw the house, it was a parent of one of my kid's ballet class and a friend of my cousin. Kind of glad I didn't charge the premium for that appraisal.

 

[ctapraser]

If you are charging based on the ASSESSED VALUE then it is no problem. You didn't develop that. If you charge by the SQUARE FOOT...it isn't based upon the value. IF you charge a higher fee just because you think the borrower "can afford it" then you are a jerk...but probably perfectly legal to do so.

I try to estimate the amount of time that it will take me. I tend to over-estimate on purpose. I charge ultimately by the hour. And if it takes me half the time i estimated then I charge that. Of course, you can always blow it.

I estimated an estate appraisal at $4000 once. I ended up doing it for $1700. They stiffed me....they never intended to pay to begin with I suspect. Sweet little widow woman. I think over half my deadbeats have been women. One claimed she had cancer. One claimed she was being sued by the other sibling and couldn't pay. blah blah blah.

My bold,

My evening coffee just went flying out my nose!!

 

[normando]

This jerk is every lenders/AMC's nightmare. I'm not hungry and when I quote you a fee, you can take it or go to another appraiser.

 

[Terrel L. Shields]

I am not suggesting that Normando is a jerk. I'm just saying that when we price our services based upon our precieved notion of someone's wealth, it is the wrong reason to price a service. Obviously we know that lawyers often charge that way. I see no reason for an honest person to do so.

I recall going to appraise a large house. Very nice. I'd been there before. The owner was a banker. He had large barns. 40 acres of expensive land. The owners said, the backdoor would be unlocked as they would have to be out. While I don't normally like that, I went to the inspection. Hanging on the back door knob was a notice from the gas company that if they didn't pay a bill of some $800 or so real soon, they would have to cut off services....You never know who can really afford it.

 

[Tim The Enchanter]

I'll charge more if I can, and ask a higher fee if it's warranted, take it or leave it. But I don't want to be a jerk and charge high just because I think they can afford it. Even if they might deserve it.

 

[Proactive]

From each according to his ability, to each according to his need.

Hmmmm... *strokes chin thoughtfully*

 

[smackodu]

Your fee can NOT be based on the value of a house (higher priced homes), thats a no no.

This is what AMC phone monkeys tell appraisers all the while knowing their client will pay a higher fee based solely on the estimated value provided by the borrower.

The higher the value, the higher the liability. Therefor the higher the value the higher the fee. Take it or leave it.

Where is it written in USPAP I am required to explain my fees to an AMC phone monkey?

 

[CANative]

USPAP just says your fee can't be contingent on anything.

Just figure it out. Sheesh.

 

[Michigan CG]

Why are residential appraisers "bidding"? The fee for a certain property type is $XX, the fee for a house on 10 acres is $YY. The fee for new construction is $ZZ. I do not negotiate fees, the fees are what they are. Take them or leave them.

The client, lender or AMC can charge what they want as do I.