AMC asking for UAD 3.6 fees, what's everyone thinking?

[Fernando]

Not just quitting but a backlog in appraisals. Takes too long to complete a report. Clients and lenders won't like that. Interesting to see how they will respond. Higher fees as an incentive?

 

[Dublin ohio]

Not just quitting but a backlog in appraisals. Takes too long to complete a report. Clients and lenders won't like that. Interesting to see how they will respond. Higher fees as an incentive?

I'm sure you and the other peanut butter appraisers will just use all of the fancy widgets to spit them out as fast as you can

 

[gorillakimchi]

Increasing fees to the same percentage of the time involved does not repay you for your newly expanded talent at writing up a 3.6 UAD. If the new UAD takes 50% longer and you only charge 50% more, you are working for the same hourly wage, but are just doing fewer reports per week. We collectively have all increased the fee another $X/hour we were working every time a change is made to the forms. That is not an increase in fees, it is just spreading out more money for reports that take longer to complete. At the end of the week, you are making the same wage, but producing less.

If you find that the new form takes more nuanced work and piecing together more moving parts resulting in more time, then I would suggest that each of has a new set of skills which should be priced at a premium more than just the increased amount of hours to complete said report. I agree with some of you that it is a great time to increase fees. The problem with our profession is that we collectively work for roughly the same hourly wage we did 10 to 15 years ago and we simply just add that same rate we are making to the report's longer estimated time to complete.

We seem to forget to increase our fees based on cost-of-living increases, increased costs of MLS fees, other data sources etc.. We have a skill set that is not easily replaced, as well as our vast working knowledge of the local markets. Maybe this new form is just what we need. The more complex and stressful, the fewer skippies will want to enter our profession to water down the quality and prices. I am going to embrace this thing and let my clients know what it all entails. I have a short client list anyway and have so far avoided AMC's.

I know the profession is shrinking. I believe another post indicated we are losing appraisers at 5% per year. I think the November 2026 mandatory roll-out will see an avalanche of appraisers quitting the profession.

Well said. I completely agree that simply matching the fee increase to the extra time just locks us into the same hourly rate while producing fewer reports. UAD 3.6 isn’t just slower, it’s more complex and requires a higher level of analysis and reporting skill, and that should be priced at a premium, not just billed as extra hours.

To put some real numbers on it, if someone is charging around $500 for a typical 1004, desktop, or drive by, a 30 to 50 percent increase would put UAD 3.6 closer to about $650 to $750+. If a 1025 is around $750 today, that same 30 to 50 percent range would land roughly around $975 to $1,125+. That’s not about getting rich, it’s about not devaluing the added complexity, liability, and expertise while doing fewer reports for the same effective hourly pay.

Do these ranges sound realistic in your markets, or am I way off?

 

[glenn walker]

You don't get paid to learn something new. My guess is after 10 or 20 most will know the time added but younger guys with fast computers and new systems may see very little difference. But if ones still using old computers and a wheel it may add 25% more time.

Some may just be shutting down emotionally and need to quit or retire.

Personally I would initially raise the fee 25% to 35% to get started it can be adjusted later. My computers would be fastest with newest software recommened by your software techs advise.

New Field Tablet and Lidar measurement and learn to use that but bring tape in case it fails. After 20 of them you either can learn it or your done anyway.

 

[gorillakimchi]

You don't get paid to learn something new. My guess is after 10 or 20 most will know the time added but younger guys with fast computers and new systems may see very little difference. But if ones still using old computers and a wheel it may add 25% more time.

Some may just be shutting down emotionally and need to quit or retire.

Personally I would initially raise the fee 25% to 35% to get started it can be adjusted later. My computers would be fastest with newest software recommened by your software techs advise.

New Field Tablet and Lidar measurement and learn to use that but bring tape in case it fails. After 20 of them you either can learn it or your done anyway.

I think that’s a fair take. Starting with a 25% to 35% bump makes sense to me (Wish 50% lol) and then adjusting once we see how it actually plays out in production seems reasonable.

 

[Flakey]

it can be adjusted later.

Nope, better get it right the first time.

 

[glenn walker]

I think that’s a fair take. Starting with a 25% to 35% bump makes sense to me (Wish 50% lol) and then adjusting once we see how it actually plays out in production seems reasonable.

Yeah remember many will not raise fees rightfully so fearing losing the existing business they currently have. Others will grab the business lost by ones who price themselves out of the panel.

It's a cat and mouse game and many old timers will simply price themselves out of the market.

If younger you want to be a grave digger grabbing the failure of us old geezers who should've raised fees 20 years ago at 5% a year but now want 20 years in one big hit.

 

[glenn walker]

Nope, better get it right the first time.

If folks had got it right the first time they wouldn't be trying to get back 20 years of low fees in a one time fee increase. Lol )

 

[Alsie35]

Yeah remember many will not raise fees rightfully so fearing losing the existing business they currently have. Others will grab the business lost by ones who price themselves out of the panel.

It's a cat and mouse game and many old timers will simply price themselves out of the market.

If younger you want to be a grave digger grabbing the failure of us old geezers who should've raised fees 20 years ago at 5% a year but now want 20 years in one big hit.

Those who had built a SYSTEM to exploit the 'Old 1004 Regime' already did 30 years in the past 10 - unfortunately, the 'Nuubs' will NEVER be given that kind of opportunity again by "The 3.6 Abomination". A wonderful independent business model is about to be put on life support by 'Big Tech' Bureaucrats.

Which is what, for the 'Nuubs', REALLY SUCKS. But I'm outta here ...

 

[jay trotta]

Being out has its advantages; how would you know what Fee to Charge, IF you have no idea about the property????
From the old book of adjustments.........sounds so similar

That's why your Fee will be dictated to you, and you won't have any say in the matter - just like now.... it's a take it or leave it offer