Alaska Real Estate Appraisers Required To Be Bonded As Of 2019

[Elliott]

Google: "You will generally pay 1-15% of the total bond amount. Your rate is often based off your personal credit score. For example, if you need a $10,000 surety bond and you get quoted at a 1% rate, you will pay $100 for your surety bond. Higher risk bonds, like construction bonds, may cost 10% or more of the bond's value."

Dan,
As a judge once told me when I asked for the cost of filing a counter claim ($75) from a HO who wanted his appraisal fee back, "Denied, that's a cost of doing business." But he denied all of the HOs claim, so it was still a good day. Okay, then all my costs associated with being a independent fee appraiser are "fixed costs" which I figure out each year and conclude that $50+ dollars per appraisal per year (licensee, E/O, membership, etc.) are sunk costs that are part of the appraisal fee. How do AMCs figure it?

 

[TRESinc]

How do AMCs figure it?

whatever the state mandates.

 

[DWiley]

How do AMCs figure it?

As for accounting for costs, the methodology is very similar. We know our cost per unit for operations, and it is broken down so we know personnel cost per unit, operational costs per unit, etc etc.

As for the cost of bonds, that is set by the bonding companies. And, yes, that is just a cost of doing business for an AMC.

 

[Raven59]

I wonder if that information is discoverable?

I think about anything government related can be discovered with a FOIA request.

In my state, no insurance no lawsuit. The claim has no merit without insurance

 

[Raven59]

I think state boards are going to have to figure out a way to vary the bond amount and make it AMC specific. A blanket 25k bond doesn't mean much if you are doing $1M worth of business in that state every month.

Our state has a sliding scale ability but currently work under one size fits all. That will likely change to the size of the AMC. Right now everyone is at $50k but the law provides up to 100k.

 

[TRESinc]

Right now everyone is at $50k but the law provides up to 100k.

who covers the other $50k?

 

[Raven59]

who covers the other $50k?

The appraiser. Up to 100k but the state only mandates 50k.

 

[TRESinc]

The appraiser. Up to 100k but the state only mandates 50k.

huh? i'm confused. how can an appraiser take out a surety bond for an AMC, or take the responsibility for it?

 

[Raven59]

huh? i'm confused. how can an appraiser take out a surety bond for an AMC, or take the responsibility for it?

I was joking. The appraiser is in trouble if the 50k is depleted. We would eat anything past what was not covered by the bond or what a small claims court would award you.

 

[TRESinc]

had me going for a minute there