Anyone Considering a Fee Increase?

[tjcou812]

the skippies will still get most of the work anyway. Like most of you I will raise my rates to 375 but skippy will raise his rates from 275 to 300 for a 1004 it still a deal for the MB.

FYI Gas hit 4.30 a gallon for 97 unleaded in Connecticut today

 

[Lawrence R.]

Excerpted from an email TODAY from the only broker I use... Just so you know it won't be immediate termination...

Larry,
Thanks for getting this to me. It looks like good work. Incidentally, when did we go up to $450? I need to have an answer when I prepare a GFE and doc folks out. Just curious. Thanks,
David

 

[Couch Potato]

Nobody goes to jail over antitrust violations. Also the attorney general's office is the wrong place to inquire. One should inquire at the Federal Trade Commission's Bureau of Competition.

 

[Rick Neighbors]

Fees

I never do anything cheaper than $350.00. And, I have added a $50 fuel charge. I drive a Duramax Chevy Truck that gets 20 mpg on the road. I have a ranch also, so a Datsun won't work for me. I also do a lot of rural appraisals, and it's not uncommon for me to log over 100 miles per appraisal.

I charge for everything I do, so does my attorney, my cpa, and my banker.

Rick

 

[Mike Boyd]

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.

YOUR increased cost of fuel is only a part of the issue. What is this increase fuel cost us in groceries, heating and air conditioning, beer, on and on. So, let's say everything cost 10-15% more. Raise your fees in that same amount. Send out letters to your clients and let them know WHY there must be an increase in fees.

Unfortunately, in most market areas there are appraisers trying to build their practice the easy way........undercutting your prices to your regular customers.

Most long term clients will not object. It is the BORROWER who screams the loudest and threatens to cancel his loan application when it's a COD order. If it is to be paid at closing, no one seems to care.

 

[Michigan CG]

I have edited multiple posts here starting with Post 21 that had named an instructor and something he said concerning fees and collusion. This instructor is paraphrased and not here to defend himself.

I happen to have taken two classes from this MAI instructor in Louisville, Kentucky and he is a very good instructor. I think it unfair to name him without him having the opportunity to verify his supposed statements.

 

[Vermonter]

Went up 20% last fall.
Gas is up, MLS fees are up, liability is up, workload per report is up (heck of a lot more than 20%), etc.
Know I've lost a few here and there, but have probably broke even dollar per hour wise and some clients are coming back around.

What prompted it was having a homeowner complain about why fees had gone up.
Last time he refinanced it was $20 cheaper.........in 1994!! m2:

Fees went up the next day.

 

[Tom Eichholz]

I've been laying the ground work for a $25-50 pop to my regular clients for quite awhile. One client still wants 3 hard copies snail mailed to them which I pay the postage, printing, etc, and so recently I asked them if I could raise my rates, but not lose their business? They said OK, but very reluctantly, and for whatever reason, I felt I really had to justify it...

BUT...WHY?

Did the Post Office ASK me if they could raise postal rates? NO.
Did my E&O & Health Insurance carrier ASK me if they could raise my insurance rates. NO.
Did my ink cartridge supplier ASK me if they could raise their prices? NO.
Did the Oil Companies ASK me if they could charge more for their gas? NO.
Did the Phone Company ASK me if they could raise my phone service rates? NO.
Did the Paper Manufacturer ASK me if could they raise paper prices? NO.

And the list goes on...and on.

And we're talking about having to justify a mere $25-50 extra bucks after about five years of no increases, when virtually everything else has gone up without question.

Considering that the vast majority of the people in the real estate profession are paid on commissions and with comparatively much less liability exposure, We Appraisers collectively, have all undersold our services for years.

 

[xmtpedprl]

Tom,

That was AWESOME, and didn't even yet take into consideration things more specifically related to our business, which, of course, ain't going down.

Excellent commentary.

Dave...

 

[Blueprint]

F yea depending on location and market. It is all market dependent. Fees increased for us with the new forms in 05. We already charge the highest prices in our market so upping our fees is really not an option as of now. What makes it tougher is local lenders starting to use AVM's. Raising fees is 100% locational.