$250 Appraisals?

[starmansf]

I cut my fee to $250 about 8 months ago. I got tired of losing business to other appraisers who will do anything for business. I don't cut corners, but I don't spend 5 hours doing a sketch. If somebody orders a summary report that's what they get. I provide enough comparables to substantiate my opinion and charge for any additional requests (comps.) I've never worked for an AMC, I get few orders directly from lenders, and the only work I get I get on my own. I advertise a lower fee; I advertise a lot. When I have more business, I will raise my fees.

I don't try to get regular clients. I've never found a regular client who didn't want favors. I don't do favors. Sometimes I think a good gauge of an appraiser is how many complaints they get; I get a lot. I don't consider it my job to keep people happy. I don't do a lot of $250 appraisals. If I have to drive far, I charge more. If a lender has additional requests, somebody needs to pay for my time. Sometimes a low fee is a good way to get people talking to you. A low fee isn't the end of things, it's a beginning.

Does any of this make sense?

 

[EVAUSA]

I cut my fee to $250 about 8 months ago. I got tired of losing business to other appraisers who will do anything for business. I don't cut corners, but I don't spend 5 hours doing a sketch. If somebody orders a summary report that's what they get. I provide enough comparables to substantiate my opinion and charge for any additional requests (comps.) I've never worked for an AMC, I get few orders directly from lenders, and the only work I get I get on my own. I advertise a lower fee; I advertise a lot. When I have more business, I will raise my fees.

I don't try to get regular clients. I've never found a regular client who didn't want favors. I don't do favors. Sometimes I think a good gauge of an appraiser is how many complaints they get; I get a lot. I don't consider it my job to keep people happy. I don't do a lot of $250 appraisals. If I have to drive far, I charge more. If a lender has additional requests, somebody needs to pay for my time. Sometimes a low fee is a good way to get people talking to you. A low fee isn't the end of things, it's a beginning.

Does any of this make sense?

I'm in the same boat. When a new client calls, I always quote $375 for a typical SFR, but am willing to negotiate
down
down
down
if I have too.
Last week I got a call for a $1.2 purchase (mostly land value). I quoted $650, when I got resistance I asked, what do you think is reasonable? He said $500, DONE! It was less than a mile from my house, I would have done it for $350. But like Kenny says, you gotta know when to hold em', ya gotta know when to fold em'....you know the rest.

 

[laurielutton]

I cut my fee to $250 about 8 months ago. I got tired of losing business to other appraisers who will do anything for business. I don't cut corners, but I don't spend 5 hours doing a sketch. If somebody orders a summary report that's what they get. I provide enough comparables to substantiate my opinion and charge for any additional requests (comps.) I've never worked for an AMC, I get few orders directly from lenders, and the only work I get I get on my own. I advertise a lower fee; I advertise a lot. When I have more business, I will raise my fees.

I don't try to get regular clients. I've never found a regular client who didn't want favors. I don't do favors. Sometimes I think a good gauge of an appraiser is how many complaints they get; I get a lot. I don't consider it my job to keep people happy. I don't do a lot of $250 appraisals. If I have to drive far, I charge more. If a lender has additional requests, somebody needs to pay for my time. Sometimes a low fee is a good way to get people talking to you. A low fee isn't the end of things, it's a beginning.

Does any of this make sense?

Yes, makes perfect sense. I DO try to gain regular clients. I try to remember in the midst of all this that I am providing a service and I want to do that to the best of my ability all while keeping respect for myself as an appraiser.
How do you advertise?

 

[starmansf]

Email. I used to pay for mailings but it's too expensive and you can reach a lot more people by email. Hayoo and cbsglobal have limits, but you can get additional mailboxes to use. G-mail is better because you can do 100 mailings at a time (with a daily limit.)

 

[starmansf]

Short and simple is best.
2-3 lines.
w/ contact info.

 

[Hiker]

Probably because their is a high demand for their products and not an oversupply.

Bad example Ray. Try again.

I didn't mean for this to turn into a "Please tell a McDonalds story" thread.

Very bad example... because instead of paying $3 for a Big Mac at McDonalds, I can walk across the street to Jack in the Crack and get a Jumbo Jack for $2.19 or drive down the street to Bk and get a Whopper for $1.99.

 

[Hiker]

This forums reminds me of a show I watched last night.

Put 10 chefs in one room and watch what happens.

Basically everyone is producing the same product, just everyone has there own ways of doing it and everyone thinks there way is the best.

One chef might used 12 different ingredient's and overkill the final product were the other chef uses 5. Come to find out the one that used 5 had a better product and didn't overkill with cost and time.

I've seen reports out there were appraisers had 10 pages of text addenda overkill explaining things like upside down wall receptacle's, squeeky bedroom doors, dirty tile grout, doorbell doesn't work, closet light bulb burnt out, and sketches that include windows, bath fixtures, furniture, autos...etc........ no wonder it takes people 8+ hours to do a report a 1200sqft crackerbox home.

 

[Michigan CG]

I've seen reports out there were appraisers had 10 pages of text addenda overkill explaining things like upside down wall receptacle's, squeeky bedroom doors, dirty tile grout, doorbell doesn't work, closet light bulb burnt out, and sketches that include windows, bath fixtures, furniture, autos...etc........ no wonder it takes people 8+ hours to do a report a 1200sqft crackerbox home.

That is very excessive, and unnecessary detail for most reports. However, I still take 8 hours to do a residential report, and many times more than that. Inspection, driving comps and verification of sales takes at least 4 hours. Add market analysis and report writing and I am at 7 hours for an easy report.

I dunno...call me slow.

 

[panappr]

That is very excessive, and unnecessary detail for most reports. However, I still take 8 hours to do a residential report, and many times more than that. Inspection, driving comps and verification of sales takes at least 4 hours. Add market analysis and report writing and I am at 7 hours for an easy report.

I dunno...call me slow.

No Tim your not slow, it just sounds like you actually put some thought into your reports.

 

[phoebe33764]

I'm in the same boat. When a new client calls, I always quote $375 for a typical SFR, but am willing to negotiate
down
down
down
if I have too.
Last week I got a call for a $1.2 purchase (mostly land value). I quoted $650, when I got resistance I asked, what do you think is reasonable? He said $500, DONE! It was less than a mile from my house, I would have done it for $350. But like Kenny says, you gotta know when to hold em', ya gotta know when to fold em'....you know the rest.

Evausa,

I couldn't agree with you more. While I try to be firm about the $350 I charge for normal SFR's, if a homeowner states to the LO that they are heck bent on only paying $300 because they are on social security, I sure won't risk losing an established client or losing a new client for $50. I can sneeze and spend $50 on any given day.

Tell me something, when you charge the $250 and I am assuming you put 3 comps in and send the report, if a lender asks for additional comps and you tell them that will cost them more monies, do they complain? It's hard to argue that they paid a minimal price for an appraisal and additional work costs more, but do you get a lot of complaints or most importantly non payment for the additional services? Just curious.