Customary and reasonable fees - 90 days

[Adios]

www.feesurvey.com

The purpose of collecting your personal information is nothing more than for me to be able to do random audits. Obviouly there needs to be assurance that those taking the survey are indeed licensed appraisers. It is also to ensure that appraisers respond ony once.No personal info will be published in survey results.

I need a significant response to be meaningful. It is possible that implementation could get delayed if they don't have surveys to rely upon. So please pass the link on to every appraiser you know, www.feesurvey.com.

I have engaged a university professor to compile the results and analyze them. I am seeking data from multiple lenders as well although this isn't as easy as it might seem. Some bundle the appraisal fee with credit and other fees into an application fee.

 

[Mike Kennedy]

The purpose of collecting your personal information is nothing more than for me to be able to do random audits. Obviouly there needs to be assurance that those taking the survey are indeed licensed appraisers. It is also to ensure that appraisers respond ony once.No personal info will be published in survey results.

I need a significant response to be meaningful. It is possible that implementation could get delayed if they don't have surveys to rely upon. So please pass the link on to every appraiser you know, www.feesurvey.com.

I have engaged a university professor to compile the results and analyze them. I am seeking data from multiple lenders as well although this isn't as easy as it might seem. Some bundle the appraisal fee with credit and other fees into an application fee.

http://appraisersforum.com/showthread.php?t=171333

 

[Hondo]

Joan,

I have completed your survey for my market, but a more complete survey of what is C&R would be to do a survey of the HUD-1 forms and see what the borrowers have been paying for appraisals during the past twelve months. The settlement agencies could print a report very quickly of the appraisal fees shown on the HUD-1 and it would be excellent data for all to see.

 

[Adios]

reasonable and customary

First, there would be privacy issues and secondly there are over 3000 counties in the US. The cost of manually collecting that data would be in the hundreds of thousands.

I am seeking data from lenders but it isn't so simple. Many bundle their fees.

So I really need for appraisers to understand the gravity of the situation and respond to www.feesurvey.com. Most appraisers don't understand what FINREG is. Please help get the entire appraisal community to respond.

Joan Trice

 

[NC Appraising]

The purpose of collecting your personal information is nothing more than for me to be able to do random audits. Obviously there needs to be assurance that those taking the survey are indeed licensed appraisers. It is also to ensure that appraisers respond ony once.No personal info will be published in survey results.

I need a significant response to be meaningful. It is possible that implementation could get delayed if they don't have surveys to rely upon. So please pass the link on to every appraiser you know, www.feesurvey.com.

I have engaged a university professor to compile the results and analyze them. I am seeking data from multiple lenders as well although this isn't as easy as it might seem. Some bundle the appraisal fee with credit and other fees into an application fee.

I have taken your survey and I will try to get the word out. Thanks.




Appraisers, be as truthful as you can. Be fair and honest. Putting in higher fees will help no one. We and the public and the rest of the world already know what we charge. http://appraisersforum.com/showthread.php?t=171170 Also, many can just check some websites to confirm the data.


Here is what some AMCs charge:

http://www.spbroker.com/forms/HVCC/L...me_Package.pdf

http://www.msiloans.biz/Seller%20Gui...e_Schedule.pdf

http://www.msiloans.biz/Seller%20Gui...0-%20Apr09.pdf


MDA
http://www.msiloans.biz/Seller%20Gui...cing071709.pdf

 

[Verne Hebert]

I have just filled out your survey. The form does not allow adequate input. Here there is a base fee for effectively SFR on city lots built after 1990, then adds for acreage, amount of acreage, travel, gravel roads, outbuildings, massive dwellings, waterfrontage, distances to comparables, etc. It is quite a bit more complex than your form.

I want to forward this to the 50 or so appraisers the NW, but they will struggle with the same thing when all types of property are appraised by them or their office.

There is not much done here for the "base" fee.........maybe 12 to 15 %.

You also have to remember customary fees existed prior to the MC sheet coming to life. When the MC sheet became required the AMC's had already degraded fees.

Sidenote...............VA knows that in this State their fee is substandard. I was on the VA panel for some time, because I am a Vet, but it was a community service at their fees (even with mileage allowed). So to suggest that VA fees are customary, its just plain not the case...they are low....ask the guys who have been around for 10 years or so.

 

[prasercat]

This is how I envision a working system that would promote our profession in a very positive way and protect the public trust as well.

In order to allow market forces between appraisers to dictate fees, the implementation of R&S Fees should set the MINIUMUM FEE for each fee district. This would prevent the SKIPPY Sweat Shops and those that put speed ahead of professionalism and a proper scope of work implementation from monopolizing the market. This mimimum R&S fee would go a long way to promote professionalism and limit the power and dominance of bad appraisal practices in our profession and clients from seeking these individuals so preferentially (choosing cheap shody work over competent work to increase profits - a natural market behavior).

It is the Reasonable and Customary Base Fee for producing a competent appraisal product in a particular area, considering the typical complexity and in the absence of additional specific data regarding the property. This would be a judgement issued by the State Board and not strictly market based, but perhaps involve an assessement of opinions of local appraisers as to how long it takes to do an appraisal in a particular area together with a judgement.

What is REASONABLE? The State Appraisal Board in each State should divide their State into fee districts. Fee implementation would be uniform throughout the US with a Fee District Number Coding. Fee District #1 (URAR: $350; Driveby: $290; etc); Fee District #2 (Add $25 to Fee District #1 to each appraisal type); Fee District #3 (Add $50 to Fee District #1 to each appraisal type, etc..

Districts would likely be implemented for counties and even cities (cities override county fee districts): So Colorado, Summit County; Fee District #2; The city of Breckenridge (Ski Resort), which is in Summit County: Fee District #3.

The Fee District #2 in Colorado is the same fee as the Fee District #2 in Washington State or California, etc. The states would be responsible for their State fees and for reviewing the appropriateness of these fees by monitoring the market in specific areas and to revise fees on an annual basis or every 5 years, etc. Beyond these minimum fee standards set (the R&S FEE), then it is purely a negotiation between appraiser and client.

No client will be allowed to pay less than the R&S fee assigned to a district - this is necessay to preserve the integrity of the profession.

Please make it so!

 

[Elliott]

Prasercat said, "What is REASONABLE? The State Appraisal Board in each State should divide their State into fee districts. Fee implementation would be uniform throughout the US with a Fee District Number Coding. Fee District #1 (URAR: $350; Driveby: $290; etc); Fee District #2 (Add $25 to Fee District #1 to each appraisal type); Fee District #3 (Add $50 to Fee District #1 to each appraisal type, etc..

Districts would likely be implemented for counties and even cities (cities override county fee districts): So Colorado, Summit County; Fee District #2; The city of Breckenridge (Ski Resort), which is in Summit County: Fee District #3."

When you have a command economy (Soviet Union, China, etc) one of the big problems
is how you price things. You get it wrong and you get bread, meat, and vodka lines (the
Soviets always did a decent job pricing Vodka cheap). So there are people called
'economists' who graduated from the Moscow U and their job was to prices the 30,000 or
so things that need to be priced so you have a proper, functioning economy. It didn't work.

The market is far superior at pricing things correct. Arifical studies or survey's will not help.
Now if you have a oligopoly or an oligopsony (AMCs!), then you will not have
rational pricing. Its time to the find lawyers from DOJ who specialize in anti-trust
law (but, oh, that's right, the banks are too big to fail, so that won't happen right
now).

 

[prasercat]

Setting a minimum fee and letting the market dictate higher fees is not "setting a price".

Perhaps, I should have said that this is only in regard to institutional clients, rather than individuals. The fact is, companies now get way too large and command too much power to allow a free market to function properly. Monopolies don't promote the proper functioning of a free market, yet, much of the work that appraisers get comes from these monopolies/oligopolies. We need to limit their ability to use the "free market" concept to exploit our profession. It's about preventing exploitation. You can't have a free market discussion when you are dealing with oligopolies. Then they are the one's dictating the price. What is better? The state board dictating a miniumum price or the Oligopoly dictating the maximum price?

Why do so many people have to see things in one extreme to another? There is a middle area between free markets and controlling those markets in a limited way to help make them less abusive, exploitative. Promoting the best aspects of a free markets with a minimum of the abuses.

 

[Elliott]

That guy at the state board who gets to set the fee will always end up getting
a really good job at the AMC right after he quits the state and joins the AMC.