2055

[Pamela Crowley (Florida)]

If I give them a value, my base fee is $zzz, there will be additional fees for larger houses, waterfront, acreage, unique properties, etc; anything that's not a subdivision cookie cutter. I really don't care what form they want it on.

I figure a drive by only is doing a 'blind' appraisal with additional liability and disclaimers. I do all that include an interior as though it's going on the URAR. The research is all the same no matter what.

This attitude and fee structure hasn't hurt me.... I think it actually helps.

 

[Rick Neighbors]

Peggy,

I use WinTotal software, and it gives me a website with my Platinum membership. They can look on my website and get my "starting" fees, to which I make adjustments for the degree of difficulty.

I typically add $50.00 for interior inspection, as I have to make an appt and also because I measure the subject while on site. Interior photos is not a problem, it's the fact that an interior inspection requires the appt to be made, just as if I was doing a form 1004.

As for the lack of 2 approaches to value, not a big savings in time. I use Marshall and Swift's on line cost estimator for checking the cost approach, and my research shows if the income approach is applicable.

Of course I add for " rural" properties, large sites, large GLA, log cabins, etc. Anything that adds to the degree of difficulty.

I recently found out that all the Appraisers in my neck of the woods went up on fees at the beginning of this year. I wasn't aware of that, until one of my lenders stated " I wish that you would go up on your fees to match your competitors, we have to refund appraisal fee overpayments at a lot of our closings". Never had that asked of me before! Of course, I was more than willing to comply.

Rick

 

[Mike Garrett RAA]

Did I mis-read something or did you say..."do an interior inspection on a 2055 driveby"?

If I do an interior inspection on a property and report my appraisal on a 2055 the fee is basically the same as a 1004.

We refer to the drawing of the subject as a "sketch" and it is included if we do an interior inspection. It really isn't a plan because it doesnt have interior walls, doors, etc. Quite often I automatically switch over to the URAR because I feel I can do a better job of reporting my appraisal on this form.

With digital photography it really is quite easy to include a few interior pictures in your work file which might come in handy some day. When I formed my company a number of years ago I always included interior pictures in my appraisal reports. We felt it added to the report because a picture is worth a thousand words. Several underwriters ask us to remove them because they either showed the owner's poor housekeeping or showed something that gave away the ethnic nature of the owners. We finally gave up on including interiors unless there was a request for them, such as on an ERC report, or there was something we needed to show such as repairs needed.

Along those same lines, for a number of years when our market was turning around, I always used 6 comps for VA appraisals. Three closed sales and three listings or pendings were included so I could justify a time adjustment. One day I received a call from the chief appraiser in the regional office and he suggested I quit doing that because it made the other appraisers look bad.

The point I am trying to make is......do what is typical in your market and what your peers are doing if you want to make your life easier. Don't be that appraiser that "stands out" and always has to answer to someone because you want to be different.