Appraiser Fee - What Should Be the Real Fee?

[Fernando]

I have a minimum also ranging in $600 depending on the circumstances of the day. Depending on AMC, location, size, and sufficient comps available, my fee varies for each order. I have to keep track on the fee I quote for each bid. And if I 'm too busy, I increase my fees over $700. I have one rush order and I'm waiting to see if my fee of $750 will be accepted.

 

[cmitchell]

I'm in a developing market with a low number of appraisers and $400-$450 in normal. Rural properties and odd ball assignments are typically $500-$850

 

[Carnivore]

1. The mortgage business is cyclic.
2. Lenders are cost sensitive to produce loans, they are sensitive to that because of their competition is also cost sensitive.
3. Borrowers are fickle and not loyal to any lender because they shop by Interest rate and Cost. (real easy because of Internet).
4. Borrowers want instant approval or instant rejection. They will run elsewhere over a 0.01 difference in Rate
5. Borrowers are also Closing cost sensitive, but not as much as Interest Rate
6. Hiring and firing(layoffs) are very expensive. So lenders outsource/off-shore this cyclic staff of workers.

So because of that above, you have to think of AMC's as Temp Employment Agencies. They have a Profit margin that must be met to stay in business. They don't want to be hiring and firing people either. This is why I think many(not all) Checker Dudes and Dudettes are 1099 people. Probably Appraiser or a Trainee or just someone working from home. The AMC with some Guidance from the lender Cherry picks certain items in the Appraisal report that require something to be said. Even if it is a negative, in other words that section of a 1004 they want to see comments even though its not germane. Best Example is Neighborhood High; Low and Median. We all know that section is taken out of context of the entire report and in most cases does not add to the Credibility of the Entire Report..

So its here to stay, not because of Appraiser Independence its cloaked in but rather one of efficiency and lower cost to the Lender which was inevitable.

 

[Zoe]

There is no "real fee". The "real fee" is a commingled fee that is not "real".

 

[TMG]

Below are my most recent fees from AMC's (guys - stick to your fees!! )

Those are my typical fees I quote depending on hassle, drivetime, etc... The reports listed below were not that challenging. Probably the only reason they actually agrees to me fees after quoting literally hundreds of reports is that they were busy. When it slows down I do not reduce my fees. My fees are my fees regardless of volume because the liability is the same. So that is why overall I do not make that much money appraising. Because I stick to my fees. Anything less its not worth the aggravation for me.

Computershare: $550 - (first order ever from this place)
First American: $450 (generally pretty good on fees)
EStreet: $450 (first order ever from this place)
EStreet: $400 (second order ever from this place)
USRES: $525 (have quoted hundreds before I got a bite)
Springhouse $600 (never in a million years did I think they would bite on this)

I've been getting high dollar and complex properties from Class Valuation, all for $300 (and minus a $10 tech fee). I ask for reasonable and supported fee increases, and they don't even batt an eye, in 10 mins the order is gone. Sometimes I wonder who does it then? One was a beach close $1.2m SFR with a 2nd unit with its own address. No way I'm doing that for $300.

 

[Salty]

Yeah I have no idea why Class gave me those fees after quoting many over the years. I guess they were desperate.

 

[Tru Red]

I look at it as an hourly rate based on my experience, licenses, education, etc. Personally I calculate my time in the $75 - $100 per hour range.

I have a 4 year college degree. I am a certified appraiser. I am a licensed RE Broker. I was an SBA lender/bank VP for many years.

My time is worth what I believe it to be worth and what the market will pay.

Now.....if I could go back in time I would have helped guide appraisers to getting a 1% cut from the sales price.

 

[Michigan CG]

..........Class Valuation, all for $300.........

I did one or two for Class in 2016 during the refi boom and said never again. They were horrible and the people were idiots. That was the year I basically got rid of all AMC work. They send over "please bid" e-mails all the time and I just delete.

One caught my eye about ten days ago. They needed a 1004 in a "town" with two stop signs in BFE. I was going to be in that town in the next week. I told them $150 plus the upload fee. They sent the order over that I had to respond to within 3 or 4 hours on a Friday night. In the order they wanted the report back by Wednesday and since I was charging them a "rush fee" if the report was turned in after that date I would be paid the normal fee which they did not disclose.

I replied that the $150 was not a rush fee and was a standard fee and I did not guarantee the report back by Wednesday although it was probable as Wednesday was the day I was going to the tiny town. It took them 2.5 days to accept my terms (remember I had to respond in three hours to their "offer" on a Friday night). I thought about just cancelling it.

The listing agent called me about the inspection because they had a lot of problems with this file (pretty easy SFR). The appraisal report was HORRIBLE with an adjusted spread of $87,000 on a property valued at around $350,000. There is no excuse for this and there is no way the original appraisal should have passed any kind of quality control. Complete garbage. The Realtor said they would never use that lender again and would never accept any offers from buyers using that lender.

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A couple months ago they spent a couple weeks trying to get residential appraisers to bid on an 8,000 SF church property that they wanted on a 1004 form because it was being used as a "house". There is no way that a residential appraiser should touch this property and there should have been someone at Class who identified that this was not a reasonable assignment. It appears Class appraisal is still classless.