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Cancellation Fee?

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Ascended

Freshman Member
Joined
Mar 2, 2011
Professional Status
Certified Residential Appraiser
State
Arizona
Hey guys, I just wanted to know how many of your (if any) charge a cancellation fee for cancelled orders. I'm thinking about starting to since some pre-paperwork & attempts to contact the homeowner do cost time. Thoughts?
 

graindart

Junior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Montana
Good luck collecting. I really wish it was an option, but I don't think it's doable in my neck of the woods. You might be able to collect once or twice, but I'm guessing that most clients would just decide to take there business elsewhere so that they don't have to deal with what they consider "petty" fees. I'm not saying the fees are petty, but I'm guessing they would see them as at least an irritation.

It's the beginning of a new year, just bump all of your regular fees up by $10-$25 to cover the additional headaches. You don't need to give a specific reason, just let them know it's a yearly fee increase to keep up with your rising costs.
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
i agree with the above. i charge a fee if i inspect and the order is cancelled after but prior to completion but that's about it. not sure any of my clients, and have had almost all of them for a very, very long time, would pay me a fee for doing some preliminary setup work at my office. it's the cost of doing business.
 

Confident Rabbit

Senior Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Washington
Hey guys, I just wanted to know how many of your (if any) charge a cancellation fee for cancelled orders. I'm thinking about starting to since some pre-paperwork & attempts to contact the homeowner do cost time. Thoughts?

Gratefully, I am AMC-free. Work begins as soon as the appraisal request is received; if cancelled prior to inspection, the cancellation fee is usually $100 to $150 (I itemize partial work performed). I've never had any pushback.

Good luck!
 

Vermonter

Senior Member
Joined
Mar 21, 2007
Professional Status
Certified Residential Appraiser
State
Vermont
Gratefully, I am AMC-free. Work begins as soon as the appraisal request is received; if cancelled prior to inspection, the cancellation fee is usually $100 to $150 (I itemize partial work performed). I've never had any pushback.

Good luck!

Same here. Typically, it will depend on any work completed. If I've just quickly researched the property, accepted the order and attempted contact, then probably no charge. If cancelled after more research or work is done then there will be a fee. My clients have no problem paying.
 

chad hampton

Senior Member
Joined
Nov 10, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
It's pretty much industry standard if you are appraising for mortgage purposes, there is no fee until you inspect the property. Cancellations aren't typicall a problem for me. Maybe 1 every 3rd month or so. Not worth pissing off a client over a few bucks.
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I ad one that cancelled recently when I was 98% done. They agree to 80% of the fee and I was fine with that. It was kind of a tough deal and if not completed it can't come back, right? :shrug:
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
If I have set up the file and completed market research then I typically charge $100. If I have inspected the property then it's 1/2 the appraisal fee. And, I have been very successful in collecting. Of course I do VAs and the VA gives us some leverage.
 

Ascended

Freshman Member
Joined
Mar 2, 2011
Professional Status
Certified Residential Appraiser
State
Arizona
If I have set up the file and completed market research then I typically charge $100. If I have inspected the property then it's 1/2 the appraisal fee. And, I have been very successful in collecting. Of course I do VAs and the VA gives us some leverage.
Question for you. I applied for VA 2 years ago and they didn't take me. I have just applied again and they asked for a 3rd reference and sample appraisal. Is that a good sign or typical for the application process?
 

Mark K

Elite Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
I do very little mtg work, mostly r/w and private work. Preliminary work for a r/w project can be extensive and I've charged (and was paid) as much as $1,500 for preliminary work on a cancelled project.

When I did mtg. work I never charged for a cancellation unless I made a trip. I only had a handful of good clients and I knew they would be sending more work in its place.


From Lee...
"I ad one that cancelled recently when I was 98% done. They agree to 80% of the fee and I was fine with that. It was kind of a tough deal and if not completed it can't come back, right? :shrug:"



I completed 30 reports for a sewer line project. When I turned in the last batch, the client said they'd changed the design and were taking another route. 30 reports in the trash.

My wife thought I'd be mad seeing all that work in the trash. I was thrilled! I was paid quite a bit of $$ and Zero liability. Doesn't get much better than that, IMO.
 
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