Appraised before, will you give a discount?

[rpayne]

I never do unless it is one that I appraised very very recently. In my neck of the woods even a couple of months there can be substantial changes the market. And like others said, you basically have to do everything except measure again and I don't consider that to be much of a savings of my time.

 

[rijman]

I am almost always willing to reduce the appraisal fee for a redo or update. Afterall, our fees are based on an estimate of hours of work involved. If we do not have to remeasure and sketch the home and the form has been filled in for subject info we should be able to save an hour or two on the report.

There are cases where the first report was tougher than expected so we charge the same fee the second time around. Our office has re appraised some properties 4 or 5 times. I doesn't make sense to me to always charge the same fee if the work is significantly less. As a consumer I would expect a discounted fee. We do offer the fee without the client asking.

 

[Charlotte Dixon]

Tim...No discount here. Think about Surveyors. They do properties over and over again and don't have to find current sales data. Do they give discounts? NO!
Charlotte in Delaware

 

[Tim Hicks (Texas)]

Thanks for all the responses. As usual, responses went from one extreme to to other. I think I wiil continue to address the issue case by case. After all, why offer a discount if they don't expect it.

 

[jtrotta]

Appears you've already made your decision so I'll thro this at you anyway; just got one in the other day for an equity line; my original is only a month old; it's going to a different Lender; my responsibility & liability does not become "less" in any way shape or form; therefore, my Fee does not become reduced in any way; shape or form....

Just remember this, when they come after YOU - do you think anyone is going to give YOU a discount?????

Here come da judge, lets ask him if he's gonna give out any discounts??

Realistically, what are you thinking; someone here tell me the last time you really got a discount (not think you got a discount) :wink:

 

[Oregon Doug]

Depends. I offer discounts to a few of my better/repeat business clients - but remember, I don't do cut rate work in the first place. My normal every day fees are at the top of my local market and I don't do those "abreviated format" reports - at all, ever. So, sure, I offer some sort of discount for my regular clients for short term re-dos.

Typically I charge what is a higher than normal fee for the in town cookie cutter jobs but my fees for those wierd, out in the woods houses are the same so I 'spose it all comes out even in the end.

Oregon Doug

 

[Dave Smith]

Many of my assignments are repeats. I have appraised some properties as many as six or seven times in the last fifteen years. I grant very, very few discounts.

Why don't I?

Does your overhead go down just because you have appraised the property before?

The best explaination I can come up with is that my fees are based on my overall cost of doing business and the need to realize a reasonable profit. Do you get a break on your E&O and business liability insurance when you renew it? Do you get a break on your real state taxes just because you paid them last year too?

Also:

Does your friendly dentist give you a discount just because you have your teeth cleaned in his office every six months?

Does your friendly barber or hair stylist give you a discount because you get your hair cut on a regular basis?

Does your friendly auto mechanic give you a discount because your have your oil changed every 6,000 miles?

And on and on and on...

 

[Ross (CO)]

This is my first post-reply in the new format.....and in support of the respondent from Door County, WI.....just think in the course of your day today, as you see people in various trade and retail professions, ask your self how many of them "discount" their services or their hard-good pricing , simply because YOU have hired them before or bought your gas, your filet mignon, or your case of Budweiser there before. The answer is they do not give YOU the price break and then charge the next person full. Discounting is all part of the social stigma of being "nice" to people, so that they will be nice to you. Funny thing is we appraisers get few praises from anybody, ...ever. I really like the comment in thread before me, the one stating "the only thing I can discount is my turn-around time". That is now the line I will use in all of these situations. You just know that the question they asked you before the "discounted fee?" question was "how quickly could you......do another appraisal on..." By getting the faster turn-time (ultimately, only hours are saved, not days) they really get what so many demand of us. If they do not use you for the new appraisal, then they go out to someone who has no familiarity with the house, who has not measured and inspected the house, who has not searched for comps (already) knowing how to recognize more quickly the truly appropriate one.......and they will pay full fee to that person and wait very likely a day or 2, or 3 longer for the report. By being so cheap, and expressing their interpretive disrespect to us for what we do, as has become a learned and collective perspective by so many who "dislike having to use an appraiser, at all" these clients have not necessarily served their customers any better or any faster.

 

[Mike Garrett RAA]

If they ask, I might give a 10% discount if the property was appraised within the past year, but beyond that time, no discount.