$250 Appraisals?

[Chelley Bahner]

Simple supply and demand curve....too many appraisers and too few assignments. Until appraisers decrease or volume increases we will continue to see this downward spiral....Its sad but its the same in many other professions as our economy sucks.

And to think... I was blasted for saying this several days ago. It sounds like a few are really beginning to think about it...

 

[Chelley Bahner]

The fact that all of you have the TIME to sit here and go back and forth with each other nit picking everyone elses business practices tells me that you would be VERY HAPPY with a $250 fee that came across your fax........ just my 2 pennies..... The amount of time that some of you spend on here would add up to quite a few of them there $250 appraisals.....Now, the question is would you rather be here pulling each others chain for FREE or would you rather be making $250????

Well said.

 

[Chelley Bahner]

Let me take a stab at an explanation. It's really easy to spend 8+ hours on a report that is non complex.

First let me start off by assuming that most folks work out of their home. I, myself, get interrupted in the research process. It can go somthing like this:

Print out order
Go online with PR to print property card.
Rearch subject for prior sales or active listings.
Get interrupted by random event; dogs, husband, telephone or door bell-usually Jehova (sp) Witness.

Back to work.
Research comparables, print comparables property cards.
Review contract (if a purchase)
Call MB because the contract is illegible.
Research comparables on MLS.
Contact realtors about their sales.
Wait for realtors to respond. (this could take awhile)
Analyze DOM on MLS as some realtors list, pull listing, then relist when approaching 180 days.
Interrupted again with random events.

Back to work.
Still waiting on contract.
Lose wireless internet connection.
Reboot computer.
Wait.

Back to work.
Research decline in subjects neighborhood
Research active listings
More research.
Re-contact realtors who have not responded to phone calls or emails.
Start typing report.
Interrupted again with random event.

Back to work.
Finish typing report.
Add photos, pull maps.
Review report for errors.


Not to mention the time involved in the initial inspection of the subject and the comparable sales which can take more than an hour (if done properly) and actually measuring the property (I have had owners lately tell me how impressed they are with me that I actually measure the property - SCARY!!!) and to do all of the above with interruptions, eating, etc. can take me well over 8 hours. I'm a pretty organized person and IMHO you need to verify, verify, verify. I can't understand how someone could do all of the above in less than 8 hours. Please enlighten me.

OMG! You pegged it! You just described my day today, and yesterday, and the day before that...

 

[Blueprint]

OMG! You pegged it! You just described my day today, and yesterday, and the day before that...

At the same time, you are the one that supports $250 an appriasal!!!!

 

[Ray Miller]

It sounds to me like you're just DIGGING for extra stuff to add to the overall expenses.

No not digging for extra stuff as you call it. 101 Business School

I use to think farriers had a poor business sense. I now believe the number of appraisers have surpassed that of the farriers.

Maybe you should take some courses for CG it might enlighten you on business expenses, return on investment and return of investment, cost of doing business, sinking funds for the business and etc.



As far as the time to post here. I post here or read posting while my other computer(s) are uploading or down loading information from several forums (NAA, WAA, MAA WisHorse, AF). You see I am a rural appraiser and we have no, nor can we get high speed internet. So while I have some time that would be just waiting on the computer I post to forums or research other data on a second or third computer on my desk. I have a phone modem and independent line for each computer.

As well as my day starts around 2 a.m./3 a.m. and ends around 8 p.m. sometimes later. I have no use for 99.99% of what is on TV so it’s not watched. I use that time as well to surf the internet for data, business, keep my web sites up dated www.raymiller.ws www.saddlefitting.net Attempt to enlightened myself with information from the web and to enlightened others with what little knowledge I have to share.

 

[Blueprint]

and to enlightened others with what little knowledge I have to share.

You are so modest. :new_smile-l:

 

[rescom]

You are simply making a fool of yourself by making statements like that. Cutting prices is one thing, cutting corners is another. Cutting corners is what you seem to perceive as normal. What you perceive as normal is not beneficial long term. You are living and acting short minded, survival style. It will kill you down the road. The culling of the herd is in process.

Did I say I cut corners? No. I was simply explaining that appraisers do this to cut costs. Try your best to interpret what I said in my post before commenting because you are making a fool of yourself by not understanding what you are reading.:icon_mrgreen:

 

[rescom]

Please clue us in on how to cut corners for faster cheaper appraisals while still meeting USPAP and appropriate appraisal guidelines. That way I can actually increase my profits instead of helping an AMC's bottom line.

If appraisers would just stand firm on their fees, the AMC's would have no choice but to pay full fee. I do some AMC work, and it is all at full fee or I don't do it.

Also, when estimating costs, a home office should have some consideration given to expense, based on housing costs for the amount of SF you are devoting to the office and file storage (including mortage, taxes, energy, water use, etc.). If you are working from home, you are using space that you otherwise would not need to pay for. If you really want to get a true picture of the associated cost, figure in things that you take from your home supply like light bulbs, trash bags, cleaning supplies, paper towels, wear and tear on the home vacuum cleaner, etc. Even if you aren't paying it directly out of your business account, it is definitely added expense. And if you were working elsewhere, you would be using water, toilet paper, etc. there so those are also expenses that are associated with having a home office versus working for a corporation.

Please explain to me where I stated that I cut corners or knew how to. I can certainly see why you demand full fee. Your comprehension skills are phenominal!

 

[Dan/Fla]

Did I say I cut corners? No. I was simply explaining that appraisers do this to cut costs. Try your best to interpret what I said in my post before commenting because you are making a fool of yourself by not understanding what you are reading.:icon_mrgreen:

I read it the same way.

I can promise you that no appraiser is losing money by reducing there fees. They simply cut corners that allow them to do it faster and cheaper. I have an auto dealer here that is offering a "buy an SUV and get an econo-car FREE." How do they do this? By cutting their profit significantly. Why are they doing this? To increase demand. Move to an urban or suburban area Ray and I guarantee you'll be singing a different tune. When you are the only appraiser in town in your area, you are in demand and can pretty much name your price. Try competing for business against 100's of other appraisers that can offer the same thing you can for much cheaper.

They simply cut corners that allow them to do it faster and cheaper, Humm Please help all us to understand what exactly you mean? We that charge the full fees aretrying to learn here.. What can I cut ? What can I cut out that I do when I do a full report that will make me faster? I know learn to spell better. Ok other than that How much time will your ideas save me? What corners can I cut.

 

[rescom]

I read it the same way.



They simply cut corners that allow them to do it faster and cheaper, Humm Please help all us to understand what exactly you mean? We that charge the full fees aretrying to learn here.. What can I cut ? What can I cut out that I do when I do a full report that will make me faster? I know learn to spell better. Ok other than that How much time will your ideas save me? What corners can I cut.

What is wrong with you people? I state that SOME APPRAISERS cut corners in order to complete appraisals faster and cheaper. Did I say I do this? NO. Did I say I knew how OTHER APPRAISERS do this? No. Just because I state what other appraisers are doing does not mean that I do it. What ideas are you talking about?

You all need serious help with simple reading and understanding.