ERC Appraisals

[Fred Jones]

I live in Missouri and I've had a few non AMC's calling me about completing ERC appraisals. Can anyone tell me what the typical fees are for this type of assignment? Thanks

 

[Fred Jones]

Thanks for the feedback guys. Always good to consult with my peers

 

[Judy Whitehead (Florida)]

Fred - FYI, not everyone does ERC, or relocation appraisals, which may be why you haven't gotten many responses. Also, FYI, not everyone likes discussing exactly what fees they are paid. The fees can vary greatly in different parts of the country. I do as many ERC appraisals as they send, and usually the fee is stated up front on the order. It is typically about 50% more than the standard appraisal fee.

If you are going to do them, I would recommend taking an online course if you can find one. I joined ERC and pay an annual fee to be listed in two counties, and did take their online course which gives me a "designation" in their listing, as well as better knowledge to do them. They are a different breed of appraisal, but doing them has made me a better appraiser overall, I think.

I was in a CE class last summer and out of 30+ people in the room, I was the only one who did relocation appraisals. In fact, the only reason I took that particular class was the fact that one of the elective sections was on relocation appraisals. I really liked my instructor - he was good, but I could have taught the class better, I think. Since no one in the room really did that type of appraisal, he glossed right over forecasting, market adjustments, etc.

 

[1iView]

I live in Missouri and I've had a few non AMC's calling me about completing ERC appraisals. Can anyone tell me what the typical fees are for this type of assignment? Thanks

Hi there Fred,
I figure that you haven't received any replies, thus your second posting.

ERC reports here in so.cal are charged 2 to 3 times the average 1004 fee, cause it's 2 to 3 times more time cosuming and difficult.

ERC reporting, i would consider as one of the best method to learn the appraising business... it is truely appraising because you'll be forecasting the data..... i started my career mentoring under a CRP AG, performing only ERCs. be carefull and good luck.

 

[Fred Jones]

Thanks for the replies Judy and Dan. I really appreciate your time and feedback. Have a great day and good luck with your business.

 

[Mr Rex]

1.5 to 2X a 1004. If I were you I would not take an ERC assignment without taking a CE class on Relocation appraisals, particularly with the recently updated ERC form. McKissock has an online class that includes the updated form that I intend to take in the next few days, even though I have done numerous ERCs in the past.

FWIW, doing ERCs and Field Reviews are 2 of the best ways I know to improve your game as an appraiser. MHO.

 

[Ray Miller]

Just remember you and another appraiser will be doing the same subject property at the same time, those two appraisal will be compared to each other.

Also most of the time it is 3 strikes and your out. That is you miss the selling value and the selling time 3 or more times and the request for ERC appraisals stop coming in and you could find yourself removed from the list.

You also need to really understand forecasting of time and value.

Fee are well above the standard residential appraisal.

 

[TJSum]

1.5 to 2X a 1004. If I were you I would not take an ERC assignment without taking a CE class on Relocation appraisals, particularly with the recently updated ERC form. McKissock has an online class that includes the updated form that I intend to take in the next few days, even though I have done numerous ERCs in the past.

FWIW, doing ERCs and Field Reviews are 2 of the best ways I know to improve your game as an appraiser. MHO.

Rex, I just took the class last week, thinking the same thing, but it has not been updated as of yet to include the new form. The exhibits and discussion still was with the older 2003 form. I asked them prior to enrolling to make sure it included the new form and they said it did... but it wasn't. It was the first bad experience I have had with McKissock Education. The reason I took the class was to learn the changes of the new form, but it was not included.

 

[GCJim]

Just remember you and another appraiser will be doing the same subject property at the same time, those two appraisal will be compared to each other.

Also most of the time it is 3 strikes and your out. That is you miss the selling value and the selling time 3 or more times and the request for ERC appraisals stop coming in and you could find yourself removed from the list.

You also need to really understand forecasting of time and value.

Fee are well above the standard residential appraisal.

1.5 to 2 times a typical (good) 1004 fee is a good rule of thumb.
Ray, I did not realize that doing ERC work was like an at-bat in a baseball game tho---3 strikes and you're out. Now they want us to predict the future with 100% accuracy? Sheeeeeeesh. :new_all_coholicI'm not charging nearly enough then...what's predicting the future 100% of the time REALLY worth?)

 

[relochip]

Hi All:

Quote your fee based upon your time. Everyone should know their hourly rate for a 1004, and then figure that rate into the time it takes for an ERC Appraisal. My experience is it is about "double" the time, therefore about double the fee. Some companies ordering relocation appraisals are more sensitive to the fee than others.

On another note, some have discussed education in this thread. If you are in IL, MN, IN, MI, NC, NJ, NY, PA and DE, watch the local Appraisal Institute Chapters between now and June 2011 for the 7-hour CE course that I wrote on the new relocation appraisal form. These chapters are going through the state approval process right now, but the definite dates that I have are: Chicago Chapter has me in Peoria, IL on April 12, the North Star Chapter has me in St. Paul, MN on April 28, and the NJ Metro Chapter has signed with me for June 9. And I will be in Charloette before the May 31st license renewall, we just haven't finalized the date quite yet.

The course is very thorough and fast paced. If you haven't completed relocation appraisals, I cover everything from the history of the industry to completing the entire form with 3 case studies on Decor/Appeal, Market Change and Forecasting, as well as industry issues and how to increase your business. It is definitely geared towards those who have completed relo appraisals, but was written in a way that would also appeal to those who haven't.

I am one of the 5 appraisers who worked on the new form with Worldwide ERC, so I have a lot of insight on the changes, and I have been doing relocation appraisals in the Chicago area for over 20 years.

I'm new to the AppraisersForum, and I didn't come in here to promote the seminar, just thought after reading the other posts discussing education, that people might be interested in it. Worldwide ERC also has 3 one-hour webinars that can be purchased that goes over the changes, and I was one of the instructors on the webinars.

Please understand, I am not advertising this on my behalf - I am just the instructor and course developer - I get no benefit for "filling seats." I am giving others reading this, options for getting education on this topic if they so chose.

CHIP WAGNER, SRA, SCRP
www.RelocationAppraisalClass.com (website to be updated soon with new courses)