FHA Fees?

[Wayne Tomlinson]

I agree with Pam. The prices need to be fixed.

Wayne Tomlinson

 

[xm39hnu]

We charge an extra $50 for the additional inspection items and the potential for more writing. MH's start at $650, 'cause I really don't want to do them. I'm in a rural area, though, and any appraisal takes longer and requires more work.

I guess every time I quote a fee to another appraiser I'm engaging in price fixing.

 

[Couch Potato]

Greg, I have not seen any discussion here regarding fees that hasn't turned into an argument with appraisers disagreeing about fees all over the board. I've never seen it turn into anything that could resemble 'price fixing' and am of the opinion that would be as impoosible to do with appraisers as the old 'herding cats' analogy.

Reaching a consensus is not required. Any attempt at setting prices by consulting directly with others in one's field is a crime. Whether an agreement is reached or anyone is actually harmed by such conversations is not the issue. The issue is disregard of federal laws.

Jim, you can quote your fees all day long in the context of giving the information, but it is illegal to do so in the context of "What should one charge?"

 

[xm39hnu]

Greg, I really don't think what we do here could be successfully described as "price fixing" or conspiracy to do so. Our exchanges are mostly informational. Vegan, for example, takes a ration of static for doing 1004's for $185. I won't leave the office for less than $350. Some of Ray Miller's get billed at over $1K--and he earns it.

By asking what to charge here, the poster will get a good cross-sectional range of what the market will bear. I price my MH appraisals above the market, and collect the fee up front, because I don't like to do them. Finding good comps for them is a wooly bear around here.

He asks, "What should I charge." We respond, "This is what I charge." I suppose some ambitious prosecutor could try to make a case for price fixing, but I doubt he'd be successful. I know he'd learn a lot.

 

[Couch Potato]

It really is a question of using the proper phrasing. One should never refer to a "going rate" or use words like "what should I charge?" Responding to such a question in any fashion is a bad idea. One does not have to be successful at fixing a price to be guilty of price fixing. The proper way to phrase such question would be "what do your charge for xxxxxxxxxxxx?" The responses given in this thread would not be problematic, if the question was properly phrased.

Just as it is in an appraisal report, it's the details that are important. It is never appropriate to discuss what should be done in regard to fees. Neither is it ever appropriate to comment on the adequacy of another appraisers fees. One can say "I refused to do a 1004 for $165," but never can one say "Your crazy for doing a 1004 for $165."

The exchanges here are informal, but they are also very public. I is so easy to stay within the legal boundaries, there is no excuse for stepping outside of them. Do you think a company like eAppraiseIT would hesitate to look for a group like forum members to sue if it starts to struggle to find appraisers willing to accept their offered fees? There is no shortage of posts here that would allow them to build a case.

 

[xm39hnu]

Okay, Greg, I see your point. I think we're basically saying the same thing, but you did it in better detail. My thinking was that if I respond, "You should charge at least $zzz for that," it might be price-fixing. But if I respond, "I charge $X,zzz for that," I'm merely passing along information that I advertise anyway. I think the second response would keep us out of trouble no matter how the question was phrased; you appear concerned that the phrasing of the question would endanger anyone who responds to it with a number.

 

[Midwest Guy]

Greg is correct! We need not discuss specific fees on this forum!

We are probably OK with X type of appraisal more demanding and an appraiser might decide this is 20% more work, than a FNMA report.

 

[Sunshine in VA]

I believe the FHA fee should be 20% higher than a 1004 for a conventional loan.

 

[ZZGAMAZZ]

"Somewhere" the HUD guidelines indicate that the appraiser cannot charge more for a FHA appraisal than for an appraisal conducted in response to a conventional financing purposes, although I don't remember where in the guidelines that it is stated...

 

[Greg Bell]

Title insurance is "Fixed" , why not us.Look it up..