Fees Clear Capital

[Dublin ohio]

You don't know until you try someone.
We had bad report's from so called highly trained and experienced appraisers who charged full plus fees. Price never seemed to equate to better quality.

But in today's market, odds are it was the cheapest and/or fastest

 

[glenn walker]

But in today's market, odds are it was the cheapest and/or fastest

That could be true but the truth is their are no standards of what good or quality is so it's very subjective.

Sad but we did a study on fee's and quality and in over 100 randomly picked 1004s and the so called full fees were similar low quality percentage wise and no better than the lower paid fees. Sad but there was simply no real correlation to fees and quality.

My guess is the bad high fee appraisers just make more money producing fast and crappy reports than the lower fee fast and crappy guy.

We have a AF member who produced hundreds of $800.00 to $900.00 report's during Covid-19 and he bragged he did the minimal and liked the AMCs reviewers finding his mistakes so he could quickly fix them without having to review his own work. My point is fees don't seem to change the behavior of the fast and speedy bulls eye appraisers.

 

[Terrel L. Shields]

I think everyone should act in what they consider to be in their own best interests.

But is it the best interests of the profession to dumb it down? And dumb it isn't to accept a fee that is less than the cost to do business with a surplus of income to actually call a 'profit'? Taking a low fee hurts a lot of people. That's not competition, it is desperation. Further, by kowtowing to it, we actually put appraisers in a position of being compromised by clients who reward the higher numbers. Finally, in an effort to make a profit per hour expended, the temptation and actuality almost certainly, is to cut corners in inspection, in research. It is obviously a lot of appraisers do not want to take pictures of comps, and you can bet a high percentage claim they "drove by" a comp they've not been by for months and/or ever.

 

[J8012]

Why was that appraiser chosen when more experienced and competent ones are available? ( and being starved out )

Local lender, the contact was personal I believe.

 

[Bobby Bucks]

Anyone else remember the posts by the Fannie hybrid recruiter claiming the appraiser’s fee in the hybrid product was high and you shouldn’t be misled by false claims. He was begging for appraisers to sign up to perform this cutting edge product, but yet also claimed one could make $600,000 a year never leaving one’s office. If his numbers are accurate why would he be begging appraisers to perform hybrids?

 

[djd09]

...appraisers should take notes

 

[djd09]

Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels. Generally, the antitrust laws require that each company establish prices and other competitive terms on its own, without agreeing with a competitor. When purchasers make choices about what products and services to buy, they expect that the price has been determined on the basis of supply and demand, not by an agreement among competitors. When competitors agree to restrict competition, the result is often higher prices. Price fixing also includes agreements among competing purchasers or competing employers about the prices or wages they will pay

Price Fixing

Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels.

www.ftc.gov

note that the all knowing gse's do not uad appraisal fees...

 

[Surf Cat]

As a Lender you assume that anyone Cerified by their State Board has the competence to do basic appraisals.

We didn't have mind readers ordering appraisals and most had 10 or more years experience and decent resume and no complaints to State Boards.

Therefore asking someone why they didn't order appraisals from better qualified people is not your question.

Back in the mortgage broker days....if you came across a lender you never worked with before, you had to send in 3 sample reports to demonstrate you knew what you were doing before you could work for them. Of course.... Banks had there own appraisal staff back then.

Same thing for the fee shops I applied to. You were called to task in the interview chair of what your reasoning was.

Like the OP, I've come across reports that were so devoid of reasoning, analytical thought, boilerplate nonsense, with adjustments from the sky that it was a wonder their reports were even considered for a loan.

The AMC's just want a warm body with a license and E&O insurance to stip to minimum standards.....for the highest profit. Experience, highly skilled need not apply....those types want good fees....Lol

 

[George Hatch]

But is it the best interests of the profession to dumb it down? And dumb it isn't to accept a fee that is less than the cost to do business with a surplus of income to actually call a 'profit'? Taking a low fee hurts a lot of people. That's not competition, it is desperation. Further, by kowtowing to it, we actually put appraisers in a position of being compromised by clients who reward the higher numbers. Finally, in an effort to make a profit per hour expended, the temptation and actuality almost certainly, is to cut corners in inspection, in research. It is obviously a lot of appraisers do not want to take pictures of comps, and you can bet a high percentage claim they "drove by" a comp they've not been by for months and/or ever.

No argument there, except that my observation was oriented to the individual. Not the group.

I think everyone should act in what they consider to be in their own best interests.

If an appraiser is struggling to come up with the funds to keep their 350,000 mile appraisalmobile on the road I'm not going to criticize them if they decide to accept a $250 fee in order to get by. Nor am I going to criticize that appraiser if they decide as a matter of principle that they're not going to walk out their door for less than the Fernando fee.

 

[Terrel L. Shields]

If an appraiser is struggling to come up with the funds to keep their 350,000 mile appraisalmobile on the road I'm not going to criticize them if they decide to accept a $250 fee in order to get by.

Me neither. But if suffering, then they need to make the cognizant decision to change careers ASAP as they don't have the management strengths to be an appraiser.