Appraisal Cost

[JERMCLEMOXX]

Is it unethical to offer appraisals for an amount a bit less than the standard to gain more business? If so, why?

 

[Mztk1]

No. It is unethical for appraisers to get together to determine what is the "standard fee". That's called price fixing.

 

[JRS at OBX]

It is not unethical to lower your prices. You do need to realize that you are a professional and charge professional fees. If you start charging really low fees, then you are degrading the profession in general.

You should also realize the cost to do business. If you are only making $10/hour after expenses then you are better off getting another job with less liability. Don't cut corners.

 

[JERMCLEMOXX]

So, to lower my cost "for example" 25-50 bucks, below the norm to gain some initial business isnt unreasonable or damaging to our proffesion?

 

[Lawrence R.]

You can cut all the costs you want. Hell, do em for free.


Scroll down....

































































(long monologue on why cutting fees is a bad idea left out in the spirit of just answering the question)

 

[Mr Rex]

I'm sure the folks that trained you won't mind you undercutting fees in the area. I bet they will appreciate it.:new_smile-l:

 

[JERMCLEMOXX]

No its not even that.
Honestly, you guys say if it only makes me ten dollars an hour after cutting fees its not worth it. But for "me" and the key word here is "me", Im going to do whatever I have to do to get experience...

So if eating 25-50 bucks will get me 8 hours of experience which no one seems willing to dish out now adays...then I'll take that lost for the sake of the future of my career to gain experience.

But I understad what everyone is saying and I appreciate your input. So my question was answered, it's not unethical.

 

[Scott Kibler]

Forget about these union guys, find that sweet spot were you can be realistically profiltable while doing a complete, competent, thorough job on each and every appraisal assignment you take remaining in compliance with all applicable laws, regulations, standards and good appraisal practice.

You might find you have to raise your fees.

 

[JERMCLEMOXX]

Thanks Keebler! I'll take heed!

 

[Lawrence R.]

No its not even that.
Honestly, you guys say if it only makes me ten dollars an hour after cutting fees its not worth it. But for "me" and the key word here is "me", Im going to do whatever I have to do to get experience...

So if eating 25-50 bucks will get me 8 hours of experience which no one seems willing to dish out now adays...then I'll take that (LOSS) for the sake of the future of my career to gain experience.

But I understand what everyone is saying and I appreciate your input. So my question was answered, it's not unethical.

Now, answer a question for me.

So, your current experience isn't worth as much as that of a licensed appraiser? Will you then raise your fee when you have gained the proper amount of experience? What client will go for that?

What will happen is your experience will go up, and your fee will remain the same.

What other industry does that happen in?