After The Shake-Out --- Raising Fees

[RustyLingerfelt]

Mel, you should also post this on the other forum you populate form time to time. I agree and yes I did get rid of my chill pills about the 2nd year in the business. Part timers have killed the business, under educated appraiser have pushed fees into the toilet and skippy's continue to prosper. I did a drive by on a 2000sqft home on 13 acres no real biggie rural area various comps within the county comes right at 389k +/- an appraiser working for one of the biggest sweat shops in North East Georgia brings that puppy in at $850k. We have real fundamental problems in the industry dealing with the three E's- education, ethics and earnings.

nuff said
Rusty

 

[glenn walker]

I have been hearing the Fees are going up since 1980, thats when we still taped and glued the photos, then the computer came out and a bunch of old timers dropped out of the industry, then came digital cameras and another bunch quit , now the only two isues seem to be Fees and USPAP, I dont believe fees are going up, in fact for the average appraiser they are going down, the big lenders want low fees. As far as the old grumpy appraisers like myself, we have always been dreamers, as for me I am happy getting $350.00 for a 1,200 Sf tract home. If I didnt have a license i would have to get a real job, you know one of those 8 to 5 things. As far as the $600.00 to $2,000 SFR Fee, those assignments are out there , just do very complex assignments and brag how you made $1,200.00 spending 80 hours to complete the monster.

 

[Tim The Enchanter]

I will get by, I will survive.

http://www.youtube.com/watch?v=5NEE8oURdM0&feature=related

Touch of Gray. My theme song lately.

 

[Phil Westfall]

Fees in the short run are not going to increase, as with the slowdown there is more appraisers competing for the same piece of pie. Not to mention the standard "cookie cutter" appraisals being gobbled up by AVM's and other models provided by the AMC's for a fractional fee $15-50, as long as a reasonable confidence level exists. I like the idea that every loan should be accompanied by a personal inspection of the property at the very least, as some of these large lenders are learning where assumptions can get them. I want to be in the industry for the long haul, but it sure seems like there are a ton of obstacles in front of a residential appraiser to discourage that. Its tough to admit that I was making as much as a trainee at the end of the refinance boom as I am as a certified residential right now...

 

[Stephen A. Santini]

Well Im no longer appraising so I hope what ever business that may have come my way goes out to you all. After what I've seen in this business I wouldn't want to get back in even if things turn around (and they won't for a loooooooong time) In the line of work public trust is everything, and with the mess we're in I don't see a lot of trust. There are indeed some great, ethical appraisers out there that offer a glimmer of hope to this industry, and I wanted to be one of those appraisers. But because I insisted on being honest and ethical, the work stopped comming in. But what I find disturbing is the price of EVERYTHING has gone up three fold.....but yet some appraisers are excepting less fees? This only makes sence in the bizzaro world. It's all good. I have moved on and once again sleep at night.

 

[eric mccay]

I'm upping my fees within the next month. I'm sure its going to be a fun conversation with my clients.

 

[Phil Westfall]

Good luck with that, hopefully you get the response you are looking for... As you will quickly find out how loyal and dependent your clients are of your services. I don't think there's ever an easy time to raise fees, but right now in the new market area I am in I'd be shooting myself in the foot. All the best

 

[Mztk1]

If I don't renew my license because my is too low and then fees jump an appraisers are making $Thousands a week again, guess what? Me and about 1,000 other appraisers in your area who let their licenses lap will jump in and renew within the month.

I personally anticipate in decline in appraiser numbers, but nothing significant. The ones leaving without renewing probably weren't doing much of the work; and many of them will renew because, hey, keeping the license current is a good thing to do even if you are not using it.

 

[liberated]

I'm upping my fees within the next month. I'm sure its going to be a fun conversation with my clients.

I tried to up my fees by $50 last year and I lost a third of my business....I am still trying to recover from that one. I would think twice about this in today's market.

 

[Phil Westfall]

"All paid jobs absorb and degrade the mind." - Aristotle

Yep, I bet if you did appraisal work for free you'd have plenty of business.... and you'd be considered an appraisal artist... a potential new niche...