$250 Appraisals?

[Mike Boyd]

I did not say it was unethical......just stupid. You cut fees and someone else will undercut you. My problem with fee cutters is that they ruin things for those of us who have some self esteem and KNOW that our work is worth full fee. If they want to go to work flipping burgers, that's ok with me. But when they participate is destroying our business, I consider them to be scabs and any other nasty name I can think of. Those who do not have the guts to stand up for yourself and charge a standard fee should get out of the business....NOW!

 

[Mike Boyd]

Wow! So Ray Millers cost of doing business is correct for everyone? Nobody is more efficient than Ray Miller, huh? Ray Millers costs are way exaggerated. I can promise you this. Nobody is losing money working for lower fees. Its idiotic to even suggest that.

I guess you work for wages rather than operate a business. If that's the case, why would you accept all the liability of doing appraisals?

Ray's COSTS may be overstated a little.....but he has outlined all of them. Reduce it by half and see what it is.

If you live near a beach, I bet you could net more per day with a metal detector looking for coins. Frankly, that's not a bad idea!

 

[timd354]

I did not say it was unethical......just stupid. You cut fees and someone else will undercut you. My problem with fee cutters is that they ruin things for those of us who have some self esteem and KNOW that our work is worth full fee. If they want to go to work flipping burgers, that's ok with me. But when they participate is destroying our business, I consider them to be scabs and any other nasty name I can think of. Those who do not have the guts to stand up for yourself and charge a standard fee should get out of the business....NOW!

Mike,
What in your opinion is the lowest acceptable minimum fee for a typical, non-complex single family residential appraisal to be reported on FNMA form 1004 without being an idiot or a scab?

 

[Karl]

Jr./timid: You have any idea what "Price Fixing" Means?? People have given you various cost factors to figure into the Appraisal let it go at that. IF you feel as though you can make money at whatever fee you feel is good, well congradulations. There are many on here that have tried to assit you in figuring cost. I hope there is NOBODY on here that is going to tell you what to charge, You been watching the news at all the past week or two?? Buy a book on business economics, attend some courses at your local college. They are DEDUCTIBLE!! Learn from those older than yourself. do NOT ask on a public Forum what you should charge.

 

[panappr]

I assure you, that many appraisers are slowly going out of business and don't even know it. It sometimes takes a year or two to hit bottom.

 

[rescom]

I did not say it was unethical......just stupid. You cut fees and someone else will undercut you. My problem with fee cutters is that they ruin things for those of us who have some self esteem and KNOW that our work is worth full fee. If they want to go to work flipping burgers, that's ok with me. But when they participate is destroying our business, I consider them to be scabs and any other nasty name I can think of. Those who do not have the guts to stand up for yourself and charge a standard fee should get out of the business....NOW!

Your full fee is whatever someone is willing to pay for it. If my full fee was $700 for a 1004, then I wouldn't get many takers if they can get a comparable appraisal for $250. You can claim to produce all the super high quality appraisals you want, but if they aren't in demand then whats the point?

The only ones that will be getting out of the business are the ones that are trying to sell a product priced well over their competitors.:icon_mrgreen: "Guts to stand up for yourself"? How about "finances to stand up for yourself"?

Something tells me that most of the appraisers who refuse to lower their fees to compete are either 1) near retirement 2) married with the help of a spouse income 3) no kids 4) in denial that change is inevitable. Or a combination of any of the above.

 

[rescom]

I guess you work for wages rather than operate a business. If that's the case, why would you accept all the liability of doing appraisals?

Ray's COSTS may be overstated a little.....but he has outlined all of them. Reduce it by half and see what it is.

If you live near a beach, I bet you could net more per day with a metal detector looking for coins. Frankly, that's not a bad idea!

I do whatever I need to do to take care of my family. Period.

Ray's costs are none of my concern. I'm concerned with my cost to do business, which I'm sure differs from everyone elses.

Then please go look for coins on a beach if you think that is better.

 

[Pa'akai]

5. Or don't work for AMC's. I've been appraising 20 years and never performed an appraisal for an AMC.

The last time I had an appraisal charge of under $300 was in the early nineties.

I'm slow right now, but that is my fault because I took a year off and concentrated on sales. I will build my client base back up and although I know it will take some time I will not accept an assignment for less that what I was making more than fifteen years ago. When I started in 1987 I was getting $250. per appraisal.

I already have clients ready and lined up if, and when my HUD application is approved.

However, this is a business decision I have made that I can live with.

 

[phoebe33764]

Your full fee is whatever someone is willing to pay for it. If my full fee was $700 for a 1004, then I wouldn't get many takers if they can get a comparable appraisal for $250. You can claim to produce all the super high quality appraisals you want, but if they aren't in demand then whats the point?

The only ones that will be getting out of the business are the ones that are trying to sell a product priced well over their competitors.:icon_mrgreen: "Guts to stand up for yourself"? How about "finances to stand up for yourself"?

Something tells me that most of the appraisers who refuse to lower their fees to compete are either 1) near retirement 2) married with the help of a spouse income 3) no kids 4) in denial that change is inevitable. Or a combination of any of the above.

I'd have to totally disagree. I'm not near retirement...I have no children with the excepton of two awesome doggies, am not in denial and have a spouse that had a company go bankrupt. I refuse to lower my fees because of the obvious. It takes me twice as long to produce an appraisal. I have to obtain 15 comps from the get go just in case the lender wants "two more comps " selling in the past 60 days loated .5 mi from subject.

I'll be darned if I am going to lower my fees with all the work I do. IMHO, anyone "lowering the bar" fee wise is the worst thing we can do to ourselves and our peers.

One of my brokers clients the other day said that she could find someone else to do her income property appraisal for $250. I said, "have at it". You get what you pay for. I stand behind my work and chuckle to anyone who is willing to do it for a "sick" amount of money. I ended up getting the appraisal...at full fee.

 

[rescom]

5. Or don't work for AMC's. I've been appraising 20 years and never performed an appraisal for an AMC.

The last time I had an appraisal charge of under $300 was in the early nineties.

I'm slow right now, but that is my fault because I took a year off and concentrated on sales. I will build my client base back up and although I know it will take some time I will not accept an assignment for less that what I was making more than fifteen years ago. When I started in 1987 I was getting $250. per appraisal.

I already have clients ready and lined up if, and when my HUD application is approved.

However, this is a business decision I have made that I can live with.

Good luck with all that in 2009!