Fee charges for commercial appraisal review?

[KLJennings]

I have been offered a contract job by a local bank to order and review all of their commercial appraisals. I am considering it, but I have NO idea what to charge per appraisal. Does anyone have any idea what the going rate is for a commercial appraisal review? Thanks!

 

[Paul Isolda]

I would think that would depend on the complexity of the assignments and what exactly they are looking for in a review. About how much do you get per hour for your regular work? About how long do you think it would take to do a typical review for them? A x B = fee.

 

[KLJennings]

I agree with what you are saying; but I don't think a bank would understand that. They want a 'per report' fee.

 

[Lawrence R.]

I would ask them for the "typical" SOW expected..what would it include? Determine what your costs would be in doing a "typical" property.

then, either subtract about 5-15% for the volume, but let them know that any report that goes beyond "typical" will need a reneg on the fee...or add 10-15% to that number and agree to not change that rate...even for the stinkers.

It will be a wash either way for you if you have your base price set appropriately.

PS, could you share with the group in general how the bank came to contact you for this work?

Reputation?, referral, long time client?

 

[KLJennings]

In my area, there are only 5 general appraisers that the bank uses; I am one of them, and I have been serving them for 7 years. The other issue I deal with is that they are about 50% of my work. If I start reviewing for them, I don't think there is any way to make as much money as I do now from them. And I guess that is what it comes down to; isn't it? Besides, it would be SO boring!
They offered me a salaried job paying 5K more than what I made last year but with full benefits, to head their appraisal department; but I turned them down. As attrition lowers the numbers of general appraisers, my job becomes more valuable. I also just had the most profitable February ever. As we come out of the recession, general appraisers will be able to make as much as we can put out.

 

[edward sekerak]

"Besides, it would be SO boring!"

Yes, unlike the fun and exciting times of a fee appraiser!


"They offered me a salaried job paying 5K more than what I made last year but with full benefits, to head their appraisal department; but I turned them down. As attrition lowers the numbers of general appraisers, my job becomes more valuable."

You could work for them for a time, and later ask for a raise. If they turn you down then return to being a fee appraiser.

 

[KLJennings]

Well ... neither one is EXCITING; but appraising is less so.

I'm on the approved lists for 6 banks. If I leave for a year, that would probably go away. Not good.

 

[Ken B]

In my area, there are only 5 general appraisers that the bank uses; I am one of them, and I have been serving them for 7 years. The other issue I deal with is that they are about 50% of my work. If I start reviewing for them, I don't think there is any way to make as much money as I do now from them. And I guess that is what it comes down to; isn't it? Besides, it would be SO boring!
They offered me a salaried job paying 5K more than what I made last year but with full benefits, to head their appraisal department; but I turned them down. As attrition lowers the numbers of general appraisers, my job becomes more valuable. I also just had the most profitable February ever. As we come out of the recession, general appraisers will be able to make as much as we can put out.

So...what's the name of this bank?

 

[Joker]

Paul's idea is the best.

But also carefully consider this free piece of advice....

This bank wants and needs you. They offered you more than you made last year to head up their appraisal department. What would that job cost them (including benefits and overhead) and what would they get for it? What percentage of the volume of work that you would have done in that capacity is being offered in this opportunity? In other words, if 1/3 of your time in that "job" would have been spent reviewing commercial appraisals and there are 100 commercial appraisals reviwed per year, then take the offered annual salary, and add 20%, divide by 3. Divide that amount by the 100. That's a good place to START.

I would have taken the job offer last year. See if it's still available. You're still marketable, especially if the number of CGs goes down in the future.

 

[Lawrence R.]

I misunderstood the OP. I thought this was a contract job for appraisals already performed.

Would you be a full time employee, or would you be able to work for your other clients?