Dan/Fla
Member
- Joined
- Jan 15, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Florida
I emailed 2 clients to whom I have been doing a nice volume for the past few years, Though I have not raised my rates because they were good clients for all these years, and basically because they are not a pain in the butt. Now volume has dropped to almost nothing, except sometimes I get these calls ever so often when they stroke my ego and state they need their a better appraiser on this one. They confirm my fee and send me the order. But other wise my fax and email does not hear from them. OK for info I charge them $275. Yes I know that is low. But like I stated above I used to get 12-20 orders a month and they never bugged me for value, time or anything else, and yes the volume may up for it.
For a while the almost none existent business from them bothered me. So today I emailed them and asked a basic question “Did I make someone mad or was there a problem with quality of my work?”
Reply was no, work is superior, however it is a fee issue we have a number of appraisers in Florida working for much less the typical fee in Florida is $175, and with REO addendum $200 to $225. We only use our more season Appraisers (not sure I liked the Season word) when client request a certain or for us to use our best appraisers.
I am amazed I have had my own company 2001 and I have never done a 1004 for $175. I was doing drive by on the old 2055 for $175 back then. Yes I know we talk here and ***** hear about the appraisers undercutting but I have never understood why? What has happen in past couple of years for such a dramatic drop in fee. I understand a trainee getting out on his own think his boss used to pay him $120 when he charged $300. The new business owner now I get all of $175, great. So the newly certified is happy. How are these guys surviving at such a low price? Do these guys and gals, have any idea of what their cost are per Appraisal? Maybe I am weird but every year I have been in business I can tell you how many total (all types) assignments I have done. I know my total volume, Divide those numbers and know my average $ per assignment. I keep up with hours I work per week. So I can figure out my earning per hour before and after all cost. In March when I company taxes are due I know what my total cost was for the year which just ended.. Then I figure new numbers not including labor what my net cost and earnings per assignment is. Since I have these numbers already I lowered my earnings per assignment from $283.91 (2007 Actual) to the $175. Assuming they have no other lower paying assignments like Satisfactory of Completion etc. After expenses, I would have been making less than $10 hour. For that rate I would go out and get a job with Benefits and paid time off and Vacation time, and let someone else deal with the headaches.
Yes, my business down, from the last few years, yes. But am I thinking of lower my rates NO. My business went flat starting about June of last year and started to decline about September. Beginning in December, I knew I had to do something. I started developing new higher fee based clients. Though my business volume is down about 42% from last year my earnings per assignment has risen since the beginning of year is over $310. My bills are getting paid. I raised my average right at $40 per assignment thus lowered the impact each lost assignment actual cost me.
What I don understand is do these appraisers understand the cost of doing business at all? I am sure most of use who sure most of us know what our yearly cost to doing business with computer, internet, data, insurance, printing, my case alamode, disposables, phone, car and maintenance, and so on. Many of us divide that monthly/weekly. True with more assignments the less of the cost per assignment. I am not saying that the appraiser charging $175 is any less confident. But if for any reason he/she loses any volume at those low rates they will be in financial problems fast. I also believe since he is working on such a low margin that he could be easier pressured to the more unspeakable. Yes the appraiser accepting the $175 Take some of my business and that I can accept. Maybe one day I will learn that I took away if you had any full fee business, for this I can only hope. Because I know you truly do not want any assignments making over $200 please forward all your $325+ assignments my way and I will never miss my for $275 business. I do know that the 1 client I was doing the assignments for $275 were charging the bank $400. Which I thought was ****er that they were making $125 of me but knowing they are making $225 compared to the Appraisers $175 is funny. Want to bet on which one gets sued if and when there is a problem? Which one will the FREAB go after? Though it would be nice if Florida licensed all AMC, out of state brokers not just their companies.
Am I upset that some appraisers are charging fees so low it is hurting all of us? Yes. Am I upset that some of my clients care more about a bargain fees than what they say with their own words I do give the superior quality when they need it? Yes. Would I be more upset is my bills were not getting paid? Yes. But it is all to our marketing strategy, I would rather not get an assignment due someone is better qualified than me, than to just get the assignment because to hell with quality I am just going to under cut your price. I wonder if these appraisers truly believe with their low fee that benefiting the Borrower? Is the appraiser’s low fees going into the Borrower or client’s pocket? Have I ever lower prices to get business? Yes. I have 2 clients which I still have today that when I approached them. They wanted to know “How do we know we will get out money’s worth.” I did a deal which I put on the Invoice $100 off new client discount for 1st 3 orders, though even with the $100 off I still charged more than the $175..
As an independent business people we can set our own rates if you believe that your service and quality of your work is worth under $200 for a full URAR, great. Please never raise your rates to any clients. I believe I am a professional that is why I charge more than $300. Some will say $175 is all the market will pay for URAR. I say call 10 different offices in you city for a price quote if the average or most companies in your area say $175 then you right. But if like this market it is between $325 to $350 then that is what the market supports. Do not believe me call 10 offices to get the going rate.
The volume I lost to whomever is doing them for $175 which I did plenty 9 months for $275. Enjoy because I have been constantly replacing those orders with higher fee client. The lost was less than 30% of my total business do though it hurt I was able to make it up. Something I learn from a friend many years ago never have 1 client over 30% of you business and preferable never to have 1 client over 25%, so a lost does not put you out of business.
For a while the almost none existent business from them bothered me. So today I emailed them and asked a basic question “Did I make someone mad or was there a problem with quality of my work?”
Reply was no, work is superior, however it is a fee issue we have a number of appraisers in Florida working for much less the typical fee in Florida is $175, and with REO addendum $200 to $225. We only use our more season Appraisers (not sure I liked the Season word) when client request a certain or for us to use our best appraisers.
I am amazed I have had my own company 2001 and I have never done a 1004 for $175. I was doing drive by on the old 2055 for $175 back then. Yes I know we talk here and ***** hear about the appraisers undercutting but I have never understood why? What has happen in past couple of years for such a dramatic drop in fee. I understand a trainee getting out on his own think his boss used to pay him $120 when he charged $300. The new business owner now I get all of $175, great. So the newly certified is happy. How are these guys surviving at such a low price? Do these guys and gals, have any idea of what their cost are per Appraisal? Maybe I am weird but every year I have been in business I can tell you how many total (all types) assignments I have done. I know my total volume, Divide those numbers and know my average $ per assignment. I keep up with hours I work per week. So I can figure out my earning per hour before and after all cost. In March when I company taxes are due I know what my total cost was for the year which just ended.. Then I figure new numbers not including labor what my net cost and earnings per assignment is. Since I have these numbers already I lowered my earnings per assignment from $283.91 (2007 Actual) to the $175. Assuming they have no other lower paying assignments like Satisfactory of Completion etc. After expenses, I would have been making less than $10 hour. For that rate I would go out and get a job with Benefits and paid time off and Vacation time, and let someone else deal with the headaches.
Yes, my business down, from the last few years, yes. But am I thinking of lower my rates NO. My business went flat starting about June of last year and started to decline about September. Beginning in December, I knew I had to do something. I started developing new higher fee based clients. Though my business volume is down about 42% from last year my earnings per assignment has risen since the beginning of year is over $310. My bills are getting paid. I raised my average right at $40 per assignment thus lowered the impact each lost assignment actual cost me.
What I don understand is do these appraisers understand the cost of doing business at all? I am sure most of use who sure most of us know what our yearly cost to doing business with computer, internet, data, insurance, printing, my case alamode, disposables, phone, car and maintenance, and so on. Many of us divide that monthly/weekly. True with more assignments the less of the cost per assignment. I am not saying that the appraiser charging $175 is any less confident. But if for any reason he/she loses any volume at those low rates they will be in financial problems fast. I also believe since he is working on such a low margin that he could be easier pressured to the more unspeakable. Yes the appraiser accepting the $175 Take some of my business and that I can accept. Maybe one day I will learn that I took away if you had any full fee business, for this I can only hope. Because I know you truly do not want any assignments making over $200 please forward all your $325+ assignments my way and I will never miss my for $275 business. I do know that the 1 client I was doing the assignments for $275 were charging the bank $400. Which I thought was ****er that they were making $125 of me but knowing they are making $225 compared to the Appraisers $175 is funny. Want to bet on which one gets sued if and when there is a problem? Which one will the FREAB go after? Though it would be nice if Florida licensed all AMC, out of state brokers not just their companies.
Am I upset that some appraisers are charging fees so low it is hurting all of us? Yes. Am I upset that some of my clients care more about a bargain fees than what they say with their own words I do give the superior quality when they need it? Yes. Would I be more upset is my bills were not getting paid? Yes. But it is all to our marketing strategy, I would rather not get an assignment due someone is better qualified than me, than to just get the assignment because to hell with quality I am just going to under cut your price. I wonder if these appraisers truly believe with their low fee that benefiting the Borrower? Is the appraiser’s low fees going into the Borrower or client’s pocket? Have I ever lower prices to get business? Yes. I have 2 clients which I still have today that when I approached them. They wanted to know “How do we know we will get out money’s worth.” I did a deal which I put on the Invoice $100 off new client discount for 1st 3 orders, though even with the $100 off I still charged more than the $175..
As an independent business people we can set our own rates if you believe that your service and quality of your work is worth under $200 for a full URAR, great. Please never raise your rates to any clients. I believe I am a professional that is why I charge more than $300. Some will say $175 is all the market will pay for URAR. I say call 10 different offices in you city for a price quote if the average or most companies in your area say $175 then you right. But if like this market it is between $325 to $350 then that is what the market supports. Do not believe me call 10 offices to get the going rate.
The volume I lost to whomever is doing them for $175 which I did plenty 9 months for $275. Enjoy because I have been constantly replacing those orders with higher fee client. The lost was less than 30% of my total business do though it hurt I was able to make it up. Something I learn from a friend many years ago never have 1 client over 30% of you business and preferable never to have 1 client over 25%, so a lost does not put you out of business.