Appraisal fee for Mansion

[STEVE COOPER]

Ok, got another order from a different client wanting an appraisal done in Rancho Santa Fe....They are thinking the value of the property is in the 5 million range and the GLA is around 7,000 sq feet. Just wondering how much you guys would charge for that one?

 

[38Scarcello]

I would take a look and see what the comps look like and how far you will need to drive. If you have one comp 5 miles one way, another comp 5 miles the other way, etc.
I just recently did a 8 million home, 4,000 square feet on waterfront and charged $1,500 (it was a little low, but I didn't want to lose the deal). All the comps were on the same road.

 

[Lone Star]

How much work is the job going to take? How far and wide will you have to cast the net for sales? What supplemental standards will have to be addressed? Any hypothetical conditions/extraordinary assumptions? How much other work will you loose or have to turn down because of working on this one? What is your liability - look at your E&O limits and the potential for future issues. How badly do you need the work? How fast do they need it? The answers to these questions will tell you how much to bid. There are jobs that I've wanted to take and would have done for free (but didn't), and others that no matter how much money was on the table, I'd never be able to take and sleep well at night.

Had a very wise (IMHO) instructor once tell me - "on odd jobs I bid as much as I think I can get and never loose sleep over it. I'm a fee appraiser, not a free appraiser. And besides, if they can afford a house that expensive, they surely can afford my fee." Not his exact words, but you get the idea.

 

[Ted Martin]

About $4,000 if it was located in my market.

 

[Frederick R. Ruffell]

PM me or send me an E-mail and I will let you know what I charge for that type of assignment. Just did a 9500 SF Ocean view $12M property in La Jolla.

 

[Oregon Doug]

Ok, got another order from a different client wanting an appraisal done in Rancho Santa Fe....They are thinking the value of the property is in the 5 million range and the GLA is around 7,000 sq feet. Just wondering how much you guys would charge for that one?

Have you completed your "comp check" yet to determine if their $5M predetermined value falls within a range you can support (if so, may I please see your workfile? Oh shucks, you're in CA!)

Hey, I'm pretty sure that you're not thinking that way but it sounds as though you are relateing your fee to the value (range). Your fee needs to reflect the effort required to complete a compliant appraisal based on the SOW agreed upon by you and the client before taking on the assignment - not someone's value guess.

If your "typical" fee for a near-to-home appraisal assignment is $X and you & the client agree that this assignment is roughly twice as difficult, then your fee ought to be $2X.

Could this "client" be just trolling for an appraiser or fee fishing?

Oregon Doug

 

[Rick Neighbors]

Fee

You've got the order, right?

Wait until you see how much work is involved. It may shed some light as to what you have to charge. More work, more money.

Rick

 

[STEVE COOPER]

Thanks for some of the responses. The appraisal is the purchase, and yes I just received the order. It does not appear to be a crazy assignment or anything like, just your typical Rancho Santa Fe home.....if you can call anything there typical...

 

[robert higgins]

Most around here charge 5-8 times normal fee for that size, all based on how much work is involved.

 

[Don Clark]

I base my fees on time and effort and considering that I believe I am worth $100-$150.00 per hour depending on the complexity of the assignment.

Also, do you have to measure or is there a set of plans?

I have done an 11,000 sq ft house but was provided with a detailed set of plans. I priced my fee accordingly.

What would you charge to do this one?