AMC asking for UAD 3.6 fees, what's everyone thinking?

[gorillakimchi]

Anyone else starting to get emails from AMCs about UAD 3.6? I just got one saying they’re adding 3.6 products and asking us to set fees soon. From what I’m seeing, this looks more complicated and more time consuming than our current 1004/1073/1025 workflow.

In my area (Los Angeles), as I know, typical fees are roughly
1004 / 1073: $350–$600
1025: $550–$800

I’m trying to figure out a fair way to price this without being a lowball bidder or racing to the bottom, especially since it looks like more work and more time. I’m curious how everyone is thinking about pricing for UAD 3.6. Are you planning to bump fees across the board? Treat it like a new product tier? Or just keep it close to current fees at first and adjust later?

I know not everyone will share exact numbers, but I’d love to hear how you’re thinking about it and what strategy you’re leaning toward. This rollout feels like it’s going to change our workload pretty noticeably.

 

[Tom D]

The 3.1 hole has already been dug. The AMC are just waiting for you to put your foot in it, then start shoveling dirt over your useless appraising business.

Well, maybe they will give the low bid appraisers $50 more while they keep $150 for their extra non effort.

 

[KHS445]

$0.00 to $2,500. Final fee to be determined upon receipt of property-specific information so that I may accurately estimate the time required to complete the new inspection and reporting requirements. Additionally, should you decide to have any part of the property inspection and/or reporting completed by a third party, please provide a copy of their current E&O insurance and your indemnification covering all information provided by your organization or any third-party vendor you have used to provide services regarding this assignment.

While I have completed just one 1004 in the last nearly 20 years, I did prepare more than 1,500 during the 1990's and reviewed that many or more during my banking career. I participated in a one-hour 3.6 software overview provided by SFREP last week, and there is a significant amount of information that needs to be gathered and reported accurately. I estimate that for a typical property, the first 10 - 15 inspections will require at least two hours onsite gathering and verifying all the information, and double-checking that everything you have gathered electronically has transferred into the report correctly. Completing the new report format is probably going to be an 8-10-hour exercise in frustration. After 20 or so cookie-cutter reports, it should become easier, and after 50 or so, one should be able to cut several hours off the entire process. I do think the non-typical property will continue to require more time, primarily due to the detailed information required.

 

[J Grant]

IDK, if you estimate the 3.6 adds 20% more time, add 20% more to a fee?
to stay competitive raise fees-10-15% at minimum?
I believe this is a rare opportunity for appraisers to raise fees. If we keep fees the same it might be difficult to raise them later.

 

[NC Appraising]

I'm not falling for their trap. I'm lowering my fees by 10% while everyone else is increasing their fees by 10%.

I'm giving additional discounts to clear crapital and class.

 

[OSU Beavers]

Just like during the lock down, Double to Triple everything.

 

[norapp]

How are we supposed to guess what our fees will be until we start really working on the new forms. I have a bunch of emails asking if I am ready. I am but someone posted alamode has a bunch of kinks in their supposedly ready 3.6.

 

[Surf Cat]

I estimate that for a typical property, the first 10 - 15 inspections will require at least two hours onsite gathering and verifying all the information, and double-checking that

I've been told by several home owners "you sure are thorough, the last appraiser was in and out of here in 10 minutes". I've always double checked myself, taken my time at the subject.

That said, aside from large, private estates, what is going to take 2 hours of on-site gathering?

Admittedly, I haven't taken a 3.6 course as of yet.

 

[Alsie35]

I am sooooo glad I don't have to deal with this sh*! Good luck to y'all.

My advice: Don't tell them ANYTHING yet. Make 'em wait - like the braniacs foisting "The UAD 3.6 Abomination" upon you are making you do. You have NO reasonable way of determining what is a reasonable fee UNTIL you have done a couple of these .... THINGS. You are selling your TIME, and are being asked to price it without having a CLUE as to the time the job will require .... You think the "lowballers" are gonna get all the work?

Just how many of these ... THINGS ... do you think the lowballers will be able to do? They're up against the same sh*! you are. You can offer $250 per "Abomination" all you want - and if you get 10 a day, can you satisfy your client? Think about it. Morons lowballing are just shooting themselves in the foot - they absolutely CANNOT "make it up on volume" with "The Abomination".

So - wait til you know the time required, then - bid relative to how much extra work it is, leveraging your 1004 fees UP as required ...

Put some steel in your spines and ... hold fire ... hold fire ... til you "see the whites of their eyes" ...

Edit: Also remember that 40-50% of us will RETIRE before "The Abomination" is fully implemented, so you'll have way fewer competitors. Don't "Go Wobbly" and good luck again!

 

[Tony Rings]

I'm newer to the professional, so I really appreciate the discussion here.

Having run through a 3.6, it appears to take a minimum of 50% longer to complete a report. And this is just on the front end, of an easy report. I have not yet experienced the technical snags that will take place, or the new types of revisions that may pop up.

Certainly, things will speed up as we all get more familiar, but like what was said earlier, this seems like both an opportunity to set a favorable rate, and ensure it is not an uphill battle. Got to prevent lowballing from becoming the norm.

My peers in our 30's expect a few of the vets to taper off or retire, so we plan on being aggressive with our requested rates in Northeast Ohio.

If it takes 50% longer, a 50% increase is required. Perhaps as things become more streamlined, rates will reflect that, but we've got to set the bar on where things start.

I am not interested or able to take a 25%+ pay cut while 3.6 gets figured out for months, or even longer.