Can I charge more for high price homes?

[normando]

When I refinanced with one of the Big Banks, I wasn't happy that my appraisal fee was higher just because my home was valued over $1,000,000 via their quick computer estimate. I had no choice but to pay it. When their appraiser came, he was a happy fellow telling me I should joined panel of this Big Bank. I told him my appraisal fee and I can see he was a bit shocked or maybe he's calculating how low amount he's getting. I was hoping he tells me his fee but he didn't. I believe many appraisers are not aware that their fees are low compared to the fees the lenders are getting. Many appraisers are not aware that lenders get higher fees based on value. We've been controlled by USPAP in thinking we are not allowed to increase our fees based on value. As indicated, we can not base it as a contingency. This idea of fixed price for all properties is keeping appraisal fees low.

 

[CANative]

What does this...

we can not base it as a contingency.

have to do with this...?

This idea of fixed price for all properties

 

[ramrcdk]

What does this...

have to do with this...?

Go figure! ??????? No sense in trying. Well let's see, I quote services... jumbo or not, by the pound. Now If I 'git to stay for supper, they get another big discount. And if I 'git cocktails ...I normally just work for free. How come interpretation is soo unclear?

 

[normando]

Also I add a premium for difficult AMCs/lenders. Some AMCs drive me crazy but they pay for it by paying higher appraiser fee. They are difficult to work with and I'm amaze that other appraisers are willing to work with them at lower fees than mine.

 

[ramrcdk]

Also I add a premium for difficult AMCs/lenders. Some AMCs drive me crazy but they pay for it by paying higher appraiser fee. They are difficult to work with and I'm amaze that other appraisers are willing to work with them at lower fees than mine.

Because you are a PREMIUM

 

[William K]

Stop posting. You're really irritating me.

( I'm waiting for the, I charge more if they drive a fancy car.)

 

[ctapraser]

When I refinanced with one of the Big Banks, I wasn't happy that my appraisal fee was higher just because my home was valued over $1,000,000 via their quick computer estimate. I had no choice but to pay it. When their appraiser came, he was a happy fellow telling me I should joined panel of this Big Bank. I told him my appraisal fee and I can see he was a bit shocked or maybe he's calculating how low amount he's getting. I was hoping he tells me his fee but he didn't. I believe many appraisers are not aware that their fees are low compared to the fees the lenders are getting. Many appraisers are not aware that lenders get higher fees based on value. We've been controlled by USPAP in thinking we are not allowed to increase our fees based on value. As indicated, we can not base it as a contingency. This idea of fixed price for all properties is keeping appraisal fees low.

nevermind,

 

[CANative]

 

[MEL]

That is great! lol

 

[The Warrior Monk]

That's not 100% correct.

See USPAP FAQ #42.

The key is that the "value" or "price" upon which the fee is based has to be outside of the control of the appraiser.

Lee posted my answer.

There are also other issued to be considered. For example, a property with a transaction value of greater than $1,000,000 will require a certified real estate appraiser (state law nuances for non-FRTs aside), meaning less competition. Higher value also means higher risk, and the fee should reflect that. Then there are various nuances for higher value properties; style, quality, amenities, etc. can have substantial effect of value, whereas in lower priced market these items might not.