$250 Appraisals?

[phoebe33764]

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.

I wouldn't say you are slow, I'd say you were or are attempting to be thorough and cover your rear. When confirming sales with realtors, I am sure you don't give up after the first attempt. I try 3 times to contact them and this can take good amount of time.

 

[starmansf]

3 sales and a listing is typical for mortgage finance appraisals. Yes, people complain. There is no problem with payment. Everything is COD. I don't bill for my services. If somebody wants something now they need to pay for it.

 

[phoebe33764]

3 sales and a listing is typical for mortgage finance appraisals. Yes, people complain. There is no problem with payment. Everything is COD. I don't bill for my services. If somebody wants something now they need to pay for it.

I do COD as well, but if you get your fee up front and then after you send your report to the lender they ask for more comps, do you hold back the additional requested sales until you get the extra payment?

 

[starmansf]

Also, USPAP

 

[starmansf]

USPAP doesn't specify how many comps you need to use. You use however many is necessary to produce a credible report. If I need 5 comps, I use that many and don't charge for that. Its this 6 comp nonsense on every report that gets me. The weren't this particular back in '04-'05.

 

[starmansf]

Yes, I hold the report. These people will give you nothing but grief if you try to come back to them later for the additional fee.

 

[EVAUSA]

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.

A SFR refi, for example, requires the same amount of work whether the client pays $250 or $375. I dont think it's right to agree to a fee and skimp in the report. When the client pays $250, they do get slower TAT, 7 days start to finish. So far, this works, and I've been able to bump the due date if needed, as long as the client is updated with status regularly. In my market, there are usually plenty of comps. I try to include 3 Sales in three months, 1 mile, a Pending, and two Actives. I hate conditions, so I try to avoid them from the jump. Now, if they ask for more comps after I've already used the best three sales, you betcha $$$. To answer your question, yes, they complain. If I have to write an addenda as to why the comps chosen in the original report were the best, including a CMA of available sales, that usually works better than adding a couple crappy comps.

 

[EVAUSA]

USPAP doesn't specify how many comps you need to use. You use however many is necessary to produce a credible report. If I need 5 comps, I use that many and don't charge for that. Its this 6 comp nonsense on every report that gets me. The weren't this particular back in '04-'05.

Thats because in '04-'05 was an UP market where Active listings can't help support your value. In a down market, Actives and Pendings can "hurt" value, indicating decline. They are fundamental in estimating negative time adjustments. If you have six comps available, I'd suggest using them. If I'm the bank reviewing a report and I see three sales, and no Actives or Pendings, and no explanation why, I'd condition for more comps.

My Best Case Scenario:
3 Sales entering escrow in 60 days
1 Pending Sale
2 Active Listings

If I cant meet that criteria, expand time & distance and put on the best 6 I can find with a good explanation why these 6 are the best. Granted, sometimes there aren't 6 comps, you can only work with what you have.

 

[Josh Shapiro]

If these guys are advertising $250 the AMCs must be paying under $100. Ouch.

No that just means that the AMC's are paying LESS than $250.00. If I can charge $250.00 to complete an appraisal on MY TIME and MY TERMS, it keeps me from having to complete an appraisal for the AMC's who in my market area pay $170.00, 24 hour turn from inspection, daily updates and 3 to 4 calls a day for status reports....... I think I will go with the $250.00........

 

[starmansf]

If you need six comps to substantiate value, use them. I can usually arrive at a value with less. If the lender want more I will charge for that.

I'm not sure what is meant by "skimping" on a report. Everything we do is to state guidelines.