Disaster Area Inspections

[manyblessings]

How much is a typical fee for Disaster Area Inspections? I have clients ordering them on the DAIR form and 2075 forms.

Also, how do you handle it when there is damage? Especially when the client is requesting verbage regarding the affect on value and marketability on properties. We have lots of damage here in NJ from Hurricane Sandy.

Thank you!

 

[Scott R Marshall]

The 2075 form is about as easy as it gets. No opinion of market value given, just exterior observations and data input of the subject and neighorhood. Figure an hour or so on the form and attaching pics (and that's if you're slow) plus drive time to and from the subject. You should already know what you'd be willing to charge for such a demand on your time.

As for damage, pretty obvious answer to your question. Is there or isn't there readily observable damage. As for marketability, not sure about your neck of the woods but damaged homes are usually a bit harder to sell than undamaged homes.

 

[CANative]

Mortgage agents are complaining about this over on the broker forum. But they're getting dinged double due to the AMCs.

They agree $150 to $200 is appropriate (but they're getting charged over $300.) I'd say $150 to $200 is right for a 2075 (unless you're going into a really hard hit area and it's time consuming due to conditions.)

I absolutely would not comment about value and would make this clear before accepting the assignment.

 

[manyblessings]

Thank you Scott R Marshall.

Thank you CANative. I appreciate the insight and specifics! I am just concerned with this request:
"If damage did occur, please describe in detail the damage observed (include specific photos) and explain any impact on value or marketability".
I may be reading too much into this, but not all damage is always readily observable and some minor cosmetic things do not always have an impact. Do you have any recommendation on how general or specific commentary should be. I haven't even done any of these inspections yet, but I received 12 of them before the hurricane was even over and am sure I'm going to be seeing all kinds of things since almost everyone here experienced some kind of affect from this "frankenstorm".

 

[AngelEyes359]

I have AMC clients ordering these on the 1004D/442 form in the $125 to $150 range. I don't agree this is the most appropriate form but ordering on this form seems to be the most common practice. (The official form BTW is horrendous to work with IMO. I would charge considerably more for using that. My preference would be the 2075 form.)

A $125 fee does not sound like a lot but you can make more per hour doing these than an 8hr appraisal. Some clients want an exterior only inspection from the street and some want interior pictures. Keep in mind if an interior inspection and thus an appointment is ordered this is going to add extra work and aggravation.

If you are doing an exterior only inspection don't forget to disclaim the heck out of the fact you haven't seen the interior at the client's request. How do you really know a property hasn't received flood or storm damage inside without looking at the basement or interior ceilngs?

 

[manyblessings]

PS: I've done lots of Disaster Area Inspections and Desktop Property Inspections (form 2075) over the years when all was ok. My concern now is that all is "Not" ok and how to handle that.

 

[manyblessings]

@AngelEyes359...that's exactly what I'm thinking!

 

[CANative]

How could an appraiser possibly determine the market reaction after only a few days or even weeks? There is going to be a huge hole in the data for a long time.

 

[GCJim]

I have received numerous $65.00 orders for 'disaster' inspections. I have told several directly what to do with these orders for $65.00
Value Trust America is one such scumbag operation. The last wind from Sandy barely died down, and the phone started ringing from these pigs.

(BTW, those that are accepting $65 disaster inspection fees, you are the epitome of SIMPLISTIC MORON and TOTAL FOOL, in my opinion).

(Excuse me, I have a very, very bad taste in my mouth right now.)

 

[CANative]

I have been deluged with $65.00 orders for 'disaster' inspections. I have told several directly what to do with these orders for $65.00
Value Trust America is one such scumbag operation. The last wind from Hurricane Sandy barely died down, and the phone started ringing from these predatory pigs.

BTW, you that are accepting $65 disaster inspection fees, you are the epitome of IDIOTIC MORON and TOTAL FOOL.

(Excuse me, I have a very, very bad taste in my mouth right now.)

You can bet your sweet bippy that they're charging the end client two or three hundred dollars a pop.