Do you charge cancellation fee?

[Zoe]

If you do, how do you do it?

 

[Tom4value]

My terms are: If the order is cancelled before I leave the house, no charge. If I do the inspection, I charge a “trip fee”, usually $150. If it is cancelled after I return to office, I charge trip fee plus “data collection” (I.e, taking comp pics), usually an extra $100. There are times when I have typed most of the report when I “get the call”. Most times, I get the whole fee. I rarely get pushback because they have already collected the whole fee before they ordered the appraisal.

 

[Scott.A]

Just had one last week on a 6 unit. I charged them $300 on what is typically a $1,500 job.

 

[sputnam]

My terms are: If the order is cancelled before I leave the house, no charge. If I do the inspection, I charge a “trip fee”, usually $150. If it is cancelled after I return to office, I charge trip fee plus “data collection” (I.e, taking comp pics), usually an extra $100. There are times when I have typed most of the report when I “get the call”. Most times, I get the whole fee. I rarely get pushback because they have already collected the whole fee before they ordered the appraisal.

My policies are similar.

 

[Zoe]

Yeah, you can spend a bunch of time on an assignment that is canceled quickly on an assignment. I call it preliminary analysis and administrative fee for cancellation. If I have booked the appointment, the fee goes up. If I have completed inspection, the cancelation fee goes up.

Of course you know regular VA fees vary according to location. Original appraisal fee can be negotiated, but is a bunch of trouble to try it with lender and veteran. Both veteran and lender have to agree. I have had them agree before on very complex assignments and VA was fine with it.

Lenders and veterans are not stupid. They know when it is very complex assignment. Anybody associated with the appraisal knows it is complex (name them) and they know. Agent or whoever.

 

[Overimprovement]

If I had done any work, yes I did. Up to 100% if the report was about to be turned in. My good clients paid it no issues. I had one client that went to Class from direct ordering. Figured I would try them firsthand. When 3 of the first 6 orders got cancelled before the inspection, I cancelled Class.

 

[Zoe]

VA locally says $50 if appointment not set. If appointment set but inspection not completed $175. If Inspection completed but assignment not completed, it is $375. I would not swear if somebody was about to hit send button, the report would be submitted for full fee.

I missed that notification of cancellation.

I just had one cancel after appointment set. Seller was not willing to make repairs that buyer wanted. I got notification from lender and VA. I can't finish it. I haven't inspected it yet.

VA may have a caveat like if the fee is whatever like $1,000 already set, then no more than 50% of fee if inspection completed and report not completed.

Maybe it was real complex assignment and fee was negotiated upwards with lender/veteran.

I am glad this one canceled due to weather and if buyer and seller are already not happy with the deal. No problem. I probably didn't want it to begin with.

 

[Fernando]

If I see the property and then it's cancelled by AMC, AMC has set fee given to me for the cancellation.
If AMC cancels before I see the property, no cancellation fee.
Thus, I would gather my information and comps sooner as I get to observation date.