Hear me out

[DTB]

, A fee of $800, which would be double your current fee, is appropriate considering the diminished volume of work

Yikes!

Less demand (volume) with steady supply (ample number of appraisers) does not cause prices to rise.

 

[J Grant]

Yikes!

Less demand (volume) with steady supply (ample number of appraisers) does not cause prices to rise.

The prices (fees ) of appraisers have been depressed below similar free-market fees of other professional services. That is the basis for my comment. I am not going to re-argue the entire manipulated market constraints due to the AMC model, which has served to keep the appraiser's fees far below those of commensurate professions, as well as below the rest of the appraisal profession, which is not AMC-involved.

 

[DTB]

The prices (fees ) of appraisers have been depressed below similar free-market fees of other professional services

Irrelevant.

That's akin to saying that because beef prices are sky high I should get more for my tilapia.

 

[J Grant]

$275 in 1990 is equivalent in purchasing power to about $700.69 today. [1]
This reflects a cumulative inflation rate of roughly 154.8% over the period, meaning the same amount of goods and services would cost about 2.5 times more today. [1]

When I starated appraising in 1990, $275 was the typical res appraisal fee.

folks working for AMC's can get paid as little as $300 now. Without an AMC the fee in my area is $500-$600. We are lagging way behind other professions and trades.

 

[Terrel L. Shields]

Do you remember when we got paid $275 for a 6 page report? How is it that 20 YEARS LATER we are getting 400 to 450 for a 30 page report?

We were paid $350 by then, 40 years ago $275 and 6 pages maybe. By 2006 our reports were 25 pages long. The last report I did with less than 15 pages was probably in the 1990s.

It's obvious that fees are not the most important factor for staying in the business....

Yes, stupidity and laziness are just as important

$275 in 1990 is equivalent in purchasing power to about $700.69 today. [1]
This reflects a cumulative inflation

The additional expenses and requirements as well as the inflation of costs being much greater than 160%% or so, suggests $700 is underwhelming.

 

[Dublin ohio]

It's obvious that fees are not the most important factor for staying in the business....

Income is pretty much the most important factor in any business. Except maybe the botique hobby businesses

 

[George Hatch]

The only way to figure out where the prevailing fees will settle is to test the quotes to see which get accepted vs rejected. Bear in mind that some appraisers have already said they won't participate in those assignments. My PFA guess is that the percentage will vary by locale so -10% in one market may end up being -20% in other markets. There's no way to know what will work in your area without testing for the sweet spot.

 

[glenn walker]

About 10 years ago a local MAI quoted $5,000 to do a Duplex in San Diego. I wss like thats crazy. He said i don't leave the house for less than $5,000. 5 years later he was broke literally living in a motor home but I will give him credit he held the line.

 

[J Grant]

The only way to figure out where the prevailing fees will settle is to test the quotes to see which get accepted vs rejected. Bear in mind that some appraisers have already said they won't participate in those assignments. My PFA guess is that the percentage will vary by locale so -10% in one market may end up being -20% in other markets. There's no way to know what will work in your area without testing for the sweet spot.

Res lender reports ordered trhough an AMC gets far less as a fee accepted, and by now you know the reasons. This is not a free market, where the customer gets to choose the appraisal, for one thing.

Other professions, including the rest of the appraisal profession, are free markets where a professional has access to thousands or hundreds of thousands of potential customers. Just for a start - the conversation can go on forever

As an example, my computer tech guy 6 years ago charged $75 an hour (going rate at the time ); now he charges $150 for the first hour and $125 each hour after that. Of course, his customers are allowed to select him . There are no prohibitions about who is allowed to engage him.

My hairdresser (colorist ) - four years ago the fee was $60. Now it is $90. She books 4 people an hour at 15-minute intervals. Even if she splits her fees with the salon, or has some dead time, she makes more per hour than I do. Again, she is free market and anyone can engage her .

I would tell any young person or even mid-career person to run, not walk, run away from res appraisals if their customer base is mortgate lending. They can make more as a hairstylist. As a dog groomer. As a TSA agent. As a corrections officer. As a health care provider. As a computer tech person. As a teacher. Or they make the same lousy money as a real estate license appraiser but with a low-stress or rewarding job or a job that fulfills a mission. The military is a great option if one is the right age.

 

[George Hatch]

You never know (and neither do I). Maybe Congress will cut AMCs out of the loop due to widespread violations of appraiser independence or appraiser competency requirements. I don't see any indications of that having occurred but it remains among the possibilities. Or, maybe the feds will revise their final interim rule and convert C&R requirements to their original intent. I don't think that likely after this many years but it's still possible.