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Anyone Considering a Fee Increase?

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xmtpedprl

Senior Member
Joined
Dec 6, 2005
Professional Status
General Public
State
Florida
Hi,

Last year we (relatively speaking) had 'high' fees, which we lowered to 'reasonable' only to compete with the massive amount of fee cutting entities out there. Lately, and specifically due to gas increases, I was wondering if any of you have considered again raising your fees.

It would seem to me that most appraisers are feeling the pressure at the pump, and desirous of not taking that extra loss, yet there's that imminent fear of alienating clients with an increase during one of the worst times to ask for such a thing.

HOWEVER, I would like to think that if nothing else there would be a 'tacit' understanding amongst all of us that raising fees would be wise right now, even understandable to most clients, and was looking for your input as to whether or not you were considering the same. Heck, even the most hard hearted LO might have pity for us these days!

;^)

Your thoughts, please.

Dave
 

Suz-E

Senior Member
Joined
Apr 17, 2006
Professional Status
Certified Residential Appraiser
State
Illinois
Yep, considering now. We've been debating how much would be tolerable to the clientele. $25 or $50 perhaps.
 

Obsolescent

Senior Member
Joined
Jul 6, 2004
Professional Status
Certified Residential Appraiser
State
Minnesota
My fees for my established mortgage work clients has been basically the same for the past 5 years and it is unlikely that I'll raise those. I do, however, have a $25 surcharge for homes located beyond a certain point and that was accepted - although with some resistance. I have, however, raised fees for my non-mortgage clients and one-timers who are more tolerant about it.
 

GCJim

Senior Member
Joined
Dec 11, 2007
Professional Status
Certified General Appraiser
State
New Jersey
I have had some success in raising fees ($25 - $50 for residential), after politely explaining to my clients that driving is what we do the most during an assignment, and explaining the severe pressure we are under. Some may not care, but many do. The fact is, I would rather do something else than continue being underpaid, and I have no intentions of leaving appraising. I have never been the lowest bidder, and I don't intend to start now.
For what it's worth, I have noticed many places raising prices, directly due to rising fuel costs, without asking me or anyone else if it was OK. For example,

gas stations
grocery stores
diners
fast food joints
airlines

I have actually told clients that I have to include a temporary fuel surcharge'.

I would suggest, look at your client list, pick the two or three 'worst', and try it. You may be surprised.
 

The Dog

Senior Member
Joined
Apr 18, 2005
Professional Status
Certified General Appraiser
State
Oregon
25-50-75 Dollar surcharge depending on how far I have to drive. In effect as of May 1, 2008
 

Tudor

Member
Joined
Aug 15, 2006
Professional Status
Certified Residential Appraiser
State
Arizona
If your clients are only looking for fast and cheap, well you know the answer to that one.

If your clients care about the quality of the reports they get, then they should'nt mind a little increase.

In the past I can remember clients (after not hearing from them for a week or 2) saying they went with someone else, because they charged $25 less then me. Never understood clients that would ask me to cut my fees by 5 to 10% when that amount was a fraction of a percentage of what they were charging.
 

jonhig

Sophomore Member
Joined
Nov 1, 2007
Professional Status
Certified Residential Appraiser
State
Colorado
I drive an 88 Acura, gets about 25 miles to the gallon. The gas is not really a big deal to me, it's about an extra $10-15 dollars. That really isn't anything, so no I haven't upped my fees. Everyone else is seeing fees increase as well, you just gotta go with the flow.
 

Tom Barclay

Senior Member
Joined
Apr 7, 2002
Professional Status
Retired Appraiser
State
Oregon
I have not and don't intend to increase my fees at this point. Am not now, or have ever been the cheapest appraiser in town. I have though filed in the round file all the notices from client's that want(demand) me to commit to a one stop fee for all appraisals no matter how complex or distant. I refuse to lower my fees in order to allow some other company to be profitable and competitive.
 

Kevin Little

Sophomore Member
Joined
May 25, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
We're thinking of cutting our rates back down to what they were 2 years ago...I know it's not a good idea, but we have recieved 1 order in the past 2 weeks, and very few overall since the end of last year. I can only assume we're being undercut by other appraisers in the area.

Of course, I'm also looking for some other business to get into, and to get out of this one...
 

bart nathan

Member
Joined
Jun 9, 2005
Professional Status
Certified Residential Appraiser
State
California
way to much competition in my area. Appraisers are decreasing thier fees in hopes of work.
 
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