Strategies for raising fees

[J Grant]

You do know who you’re in business with, right?

We tried taking the high road and working in good faith for the greater good of the public and profession. We weren’t the ones who turned out to be lowlifes.

I realize they are lowlifes, but acting the same will not rectify things. In addition, it is a ridiculous idea that will not work.

 

[glenn walker]

Honestly if your young and aggressive this is the time to wipe your competition out for good and
If I was trying to grow a old or new appraisal business I would be first learning 3.6 and become the lenders and the AMCs expert by announcing that we are now 100% ready and trained to facilitate all of their new 3.6 orders and assist their team with bottlenecks.

Finally rather than raise fees offer a discount on order volume and finally offer assistance in reviewing the 3.6 reports. In times of transition it's often the greatest time to eliminate your older worn out competitors by under cutting them and once their finally gone then you start bumping up your fees.

 

[Fernando]

I'm still hoping that The Abomination won't be in effect this year and will be delayed.
Until I'm forced to use it, I won't waste my time on it now.

 

[J Grant]

Honestly if your young and aggressive this is the time to wipe your competition out for good and
If I was trying to grow a old or new appraisal business I would be first learning 3.6 and become the lenders and the AMCs expert by announcing that we are now 100% ready and trained to facilitate all of their new 3.6 orders and assist their team with bottlenecks.

Finally rather than raise fees offer a discount on order volume and finally offer assistance in reviewing the 3.6 reports. In times of transition it's often the greatest time to eliminate your older worn out competitors by under cutting them and once their finally gone then you start bumping up your fees.

BAD advice.

The young/aggressive should learn 3.6 and be the first out there to get an edge, AND raise their fees as soon as they can. Otherwise, they are just bad businesspeople doing more work for lower pay, and that will continue throughout their career. The oldsters will not go so fast, and the young ones will prove themselves idiots working for low pay. The client may use them, but will not respect them. Those who are not respected get abused.

 

[Fernando]

BAD advice.

The young/aggressive should learn 3.6 and be the first out there to get an edge, AND raise their fees as soon as they can. Otherwise, they are just bad businesspeople doing more work for lower pay, and that will continue throughout their career. The oldsters will not go so fast, and the young ones will prove themselves idiots working for low pay. The client may use them, but will not respect them. Those who are not respected get abused.

Glenn and I when young, to compete with old geezards, we would lower our fees to get assignments. Profits were less and hard work but youngings had more energy and willing to get established for long term. The future of appraising is not promising and youngings may want to consider instead of spending the efforts, time, and opportunity costs in the new appraisal career.
Us old dinosaurs knew the good old days when there were more profit appraising and hate to be taken advantage by clients and not being compensated.

 

[RCA]

A future sample letter to clients

Over the past several years there has been a rise of costs of doing business, as well as an increasing amount of time needed to complete an appraisal due to the expanded UAD.36 data fields as well as an increase in ROV considerations. These factors have led to a change in fees for a non complex single family or condominium appraisal to $ X amount beginning on X date/year.

I ppreciate your business and look forward to continuing to working with your company. Please feel free reach out if there is anything you would like to discuss about the new fee schedule.

Thank you,
name

1. Have a minimum fee and reject ALL inquiries that offer a fee below that amount. Absolutely all.
2. Never bid a fee lower than your minimum. Never.
3. If you feel you have special expertise or can handle properties that other appraisers would more likely shy away from, make sure you charge an extra 20%+ for them.
4. Be aware of demand in the market: Slow demand, you can lower somewhat, but never below your minimum; High demand: Of course, charge more.
5. Lose business in the short term for a more sustainable future.
6. Always be looking for other sources of revenue, other types of appraisals.

 

[RCA]

BAD advice.

The young/aggressive should learn 3.6 and be the first out there to get an edge, AND raise their fees as soon as they can. Otherwise, they are just bad businesspeople doing more work for lower pay, and that will continue throughout their career. The oldsters will not go so fast, and the young ones will prove themselves idiots working for low pay. The client may use them, but will not respect them. Those who are not respected get abused.

These (GW) are THE guys that kill the profession.

 

[glenn walker]

Let's see how your Dear John letters work in the real business world.

My guess is your last clients will find a newer cheaper sourse to go to. But you wont know it until one day the lights go out because their not going to tell you anything about why they left you.

 

[Tim Hicks (Texas)]

When I raise my fees for complex assignments, my long term clients don't bat an eye. When some run of the mill company calls and I say it will be extra for this reason or that, they move on to the next one on their list. Sometimes, they come back for my fee and I want to say the fee is $XXXX now.

 

[Tom D]

So lower your fees and taking longer to make even less money. I think many younger appraisers have already left due to low income for how many years now.

My abvice to the young hangers, get out of this **..ed up business now, while you can. There is no future and no more profit to be made. Leave while you still can find something better. At least have a back up plan when you realize it is ending.

And it's the same group of posters posting all the time. Tells you something already.