$250 Appraisals?

[timd354]

Big difference between a commodity and a service. We don't increase the demand for appraisals when we lower fees. The appraisal will be performed irrespective of the fee. The undercutter is simply pulling food from their competitor's mouths by scabbing their fees.

I have no respect for these people, and, I have news for you. The clients do not either. Some newbie loan officers may order appraisals from them for awhile....until the undercutter goes out of business because he cannot afford E&O, MLS fees, updated software, ink cartridges, make his house and car payments, car insurance, pay for CE classes, pay for nenewal of his license and gas for his car, AND feed his family because of scabby fees.

If you perform a better service than another guy who charges less than you and you are able to charge more, then that is exactly how the marketplace should work. It works for me and I have yet to cut my fees. However, to assume that someone who charges less than me is putting out an inferior product just because he charges a lower fee than me, is a dangerous asumption. Maybe, he is just hungrier than I am, maybe I have gotten spoiled, fat and lazy, or maybe he has less overhead or is more efficient than I am. In any case, he just another person in business competition with me, so why would I label him a scab? Let's be for real here....you would take all of my clients if you could and I would take all of your clients if I could.....its called competition.

It just amazes me that so many appraisers on this board have the attitude that they are somehow owed a living and should not have to compete in the market for their services. Well, that is just not the real world and maybe we all got a little spoiled the past few years when business was easy to obtain and fees were increasing.

Now, if someone is competing against me by using unethical practices such as inflating appraisals, not reporting negative property conditions, using trainees for inspections without disclosure, etc., then he is vermin who needs to be eliminated.

 

[timd354]

They are. Or, just plain stupid.

Like most people you have not deducted your cost of doing business. I won't go over it again but if you really want to know, check Ray Miller's post a couple months ago where he very accurately laid out all the costs of doing business. Truth be known, even at full fee, our "take home" pay is not a living wage in most areas.

I know damned well what the costs of doing business are and I charge far more than $250 per appraisal. However, someone who works out of their house, refills their own cartidges, appraises in an urban area or densely developed susburban area (so as not to require much driving) can probably make somwhere on the order of $20 per hour after expenses by doing non-complex appraisals at $250 each. Personally, that is not enough money for me survive on, but for someone else it may be. If I was single and did not have a child, I likely could get by on that.

 

[panappr]

They are. Or, just plain stupid.

Like most people you have not deducted your cost of doing business. I won't go over it again but if you really want to know, check Ray Miller's post a couple months ago where he very accurately laid out all the costs of doing business. Truth be known, even at full fee, our "take home" pay is not a living wage in most areas.

Somebody else also posted a breakdown of the actual costs associated with the final product a couple of weeks ago, it was great, but I can't find it. Nonetheless most appraisers haven't raised their fees in 10 years and are now expected to survive on half of what there normal fees were prior to the AMC revolution. It is "just plain stupid". I don't have a huge overhead, but as careers go this one is fading fast.

 

[Josh Shapiro]

Sad when to do it correctly would mean you make less than minimum wage.

Pam,
I had an extremely complex property the other day. Research took me about 4 hours sitting on my but in my office. Drive time including inspection and comp photos was about 2-2.5 hours. Report took me about 3 hours because I did alot of it while doing the research. All and all about 9-10 hours. The fee was $250.00. Take out gas and other misc expenses, I still made about $20 an hour. How much are you making right now?

 

[timd354]

They are. Or, just plain stupid.

Like most people you have not deducted your cost of doing business. I won't go over it again but if you really want to know, check Ray Miller's post a couple months ago where he very accurately laid out all the costs of doing business. Truth be known, even at full fee, our "take home" pay is not a living wage in most areas.

Apparently your take home pay and my take home pay, along with the take home pay of most everyone who posts on this board must be a "living wage" since we are all evidently alive and able to post our whining rants.

 

[JonGalt]

Apparently your take home pay and my take home pay, along with the take home pay of most everyone who posts on this board must be a "living wage" since we are all evidently alive and able to post our whining rants.

I guess it's all about what you feel you're worth. I'm worth more than $20.00 per hour. I won't do an appraisal at AMC fees because my work is worth more than peanuts. When I break out my expenses, insurance, health insurance for my family, software, TAX, etc..., a $250.00 fee just won't cut it even if the subject is across the street from me. Unfortunately the residential appraiser field is overpopulated by too many crooks, scammers, and losers who don't understand the value of a properly completed analysis. Many probably don't report their income to the IRS, don't hold health insurance, steal MLS by pooling with others, maybe even live at home-I don't know.

There are good ethical appraisers out there, very few seem to be making much these days and most will be gone in the next few months. I'll stop complaining soon too as I've read the writing on the wall for some time and will go back to an industry which values quality, ethics, accuracy, and knowledge. Not surprisingly they also pay much more and include benefits, 401K, and room to move up. I really enjoy appraisal work and plan on continuing with 1-2 a week, only non-lender work.

For those of you who want to work for $150-$250 per report, have at it. I think you're worth more but if you want to sell yourselves short go for it.

Sad when to do it correctly would mean you make less than minimum wage.

This statement is not far from the truth. I calculated I could make between $12-$14 per hour doing $200.00 appraisals. I could work in a factory and get benifits and overtime for that rate with no experience, no liability, no stress.

 

[timd354]

I guess it's all about what you feel you're worth. I'm worth more than $20.00 per hour. I won't do an appraisal at AMC fees because my work is worth more than peanuts. When I break out my expenses, insurance, health insurance for my family, software, TAX, etc..., a $250.00 fee just won't cut it even if the subject is across the street from me. Unfortunately the residential appraiser field is overpopulated by too many crooks, scammers, and losers who don't understand the value of a properly completed analysis. Many probably don't report their income to the IRS, don't hold health insurance, steal MLS by pooling with others, maybe even live at home-I don't know.

There are good ethical appraisers out there, very few seem to be making much these days and most will be gone in the next few months. I'll stop complaining soon too as I've read the writing on the wall for some time and will go back to an industry which values quality, ethics, accuracy, and knowledge. Not surprisingly they also pay much more and include benefits, 401K, and room to move up. I really enjoy appraisal work and plan on continuing with 1-2 a week, only non-lender work.

For those of you who want to work for $150-$250 per report, have at it. I think you're worth more but if you want to sell yourselves short go for it.



This statement is not far from the truth. I calculated I could make between $12-$14 per hour doing $200.00 appraisals. I could work in a factory and get benifits and overtime for that rate with no experience, no liability, no stress.

I am worth more than $20 per hour and I do not do work for less than my full fee, which is $400 for a typical assignment. However, I do not belittle and label those who are willing to work for less than I am. They may or may not do a perfectly competent job just as some people who charge more may or may not do a fine job. I don't have the attitude that the world or any client owe me a living like some people on this board seem to think. The only people who should be trashed on this board are the incompetent and unethical appraisers who steal business away from me and harm the profession through their unethical and incompetent conduct. I don't like it when someone competent and ethical undecuts my price and wish that all appraisers charged $1,000 per assignment, but the fact that others may work for less than me is hardly unethical.

 

[So Cal RealEstate]

Sad when to do it correctly would mean you make less than minimum wage.

It takes 31.25 Hrs to do an appraisal correctly?

 

[Blue1]

They are. Or, just plain stupid.

Like most people you have not deducted your cost of doing business. I won't go over it again but if you really want to know, check Ray Miller's post a couple months ago where he very accurately laid out all the costs of doing business. Truth be known, even at full fee, our "take home" pay is not a living wage in most areas.

I agree that doing a CDB is essential. That being said, I can imagine that ratios vary significantly depending on type of work (i.e. subdivision vs. rural) as well as cost and availability of good data.

 

[Karl]

There are some folks that post on here that to even consider giving them any recognition or response is just plain waste of time.

Any Appraisers that on this Forum that are mentioned in forth coming articles. All I can say is; Some will be caught up in a group that will have to work hard to prove they did NOT know what was happening.