Cancellations and trip fees

[timindp]

Lately I am getting a lot of cancellations after inspection completed. Some are cookie cutters, condos, some are high $ properties. In terms of cancellations and trip fees, Do you guys charge more for million $ + properties? Seems like a $75-$100 trip fee doesn't seem to be fair for a 7 million $ home. How do you determine or justify a higher cancellation fee for high value properties?

 

[alebrewer]

Fully agreed. Minimum trip fee for me is $150, but if the trip 'time' is outside typical - whether due to distance to subject, time to drive comps, or time to inspect - my trip fee is commensurate with the additional time expenditure. That said, I don't think I've ever charged more than $250 - even on very challenging assignments.

 

[Vermonter]

My inspections usually entail a trip to a town office, paying for copies of records and driving rural comps. Trip fee starts at $200 and goes up depending on the amount of work completed.

 

[BRCJR]

Do it like an attorney would do.

BILLABLE HOURS.

 

[CCAAMO]

Lately I am getting a lot of cancellations after inspection completed. Some are cookie cutters, condos, some are high $ properties. In terms of cancellations and trip fees, Do you guys charge more for million $ + properties? Seems like a $75-$100 trip fee doesn't seem to be fair for a 7 million $ home. How do you determine or justify a higher cancellation fee for high value properties?

Trip fee should only reflect if you could not access the property. If they canceled after the inspection the fee should reflect the trip, the inspection and any prep fees, driving comps etc. My policy has always been if they cancel after inspection, but before the report is written, I deduct the fee (based on time) from the full full fee.

 

[J Grant]

Lately I am getting a lot of cancellations after inspection completed. Some are cookie cutters, condos, some are high $ properties. In terms of cancellations and trip fees, Do you guys charge more for million $ + properties? Seems like a $75-$100 trip fee doesn't seem to be fair for a 7 million $ home. How do you determine or justify a higher cancellation fee for high value properties?

tell them it took more time during the inspection

I rarely get an order cancelled after an inspection - $75-100 is low even for a regular house - at least $200 for high end imo

 

[Tom4value]

My clients know that “cancel after inspection” means “cancel after inspection and field work”. Therefore, I charge the full fee minus the time to type the report.

Clients never argue my fee. I suspect because they, for whatever reason, blame the borrower for backing out. Since they already collected the whole fee from the borrower, the amount they have to return to them is none of their concern.

 

[OSU Beavers]

A Trip Fee is for nobody home or you got there and they changed their mind. Cancellation after a full inspection is a Half Fee charge!

 

[sputnam]

I quote fees and bill based on how much work I've done... usually measured in terms of time. If I've inspected the property, my minimum cancellation is 50% of the quoted fee. If they cancel while I'm on the way to the property, it could be less. If they cancel before I've done anything other than print the Letter of Engagement, then I usually don't bill them. As always.. you can value your time and set your fees anyway you want to.

 

[Zoe]

This is VA's process:

Cancelled Assignments​

Lenders must notify the assigned VA appraiser and the VA office of jurisdiction when an order has been cancelled. Notify VA by submitting through the ServiceNow Portal. – Notes in WebLGY are not sufficient notification to VA that an assignment has been cancelled.

VA allows appraisers to charge for time and work completed according to the following schedule:

• Work completed after assignment acceptance in WebLGY, but prior to setting an appointment will not exceed $50.
• If an appointment is made and notes placed in WebLGY confirming the date and time of appointment, and with whom the appointment was placed prior to the cancelation, the fee will not exceed $175.
• After the review of the interior of the property has been completed, the fee will not exceed 50 percent of the posted fee.
• If the report is fully completed, signed, and uploaded in WebLGY prior to cancellation, the full fee for the appraisal shall be paid to the appraiser.