Increasing Fees

[Vivian Bachner]

timd354,
Why would I let anyone tell me what I can an can't charge for my work. I am a self-employed business person. I don't need to ask someone's permission or get their approval to increase my fees. I have dealt with many clients over the years. Some good, some bad. I have only had a few clients call me and complain about my fees. I don't tell them what to charge their borrowers, why would they tell me what to charge. Most of my business is COD. I ask all my client not to quote appraisal prices as they typically do not know what I would change for a particular property. The clients who have called me to complain are usually the one who quoted a price to the borrower. I deal mostly with the borrower. Based on the information they give me, I quote a price directly to them. If that price does not match what the client told them, that is when I get a call. I have asked my clients to work with me. My client don't run by business, I do. That's the biggest problem with appraisers. They let their clients tell them what to do, right down to the fee.

Chris Valianti

I'm with you on this one. Keep building a solid reputation and it really doesn't matter what anyone else charges.

 

[Mike Garrett RAA]

As a VA appraiser...no fee increase in 15 years.

Gas was under a $1 back then now $3.89
A ream of legal paper $1.99 now $11.29 and rising
Toner carts have doubled to $60
Internet charges over $100 a month
Auto insurance up 30%

But the worst is....twice as many appraisers and they are willing to work for less.

Raised my conventional fees by $25.

 

[Mark K]

If you haven't diversified towards non-lender or AMC work then you might have trouble raising your fees with them in today's climate.

I began raising my fees years ago especially for non-lender work and most of those clients didn't blink an eye when I told them the fee. Generally it is 1.5 to 2X the lender fee for a GP type of form, much more for narratives.

I'll complete approx. 75 - 80 reports this year and my income will be more than 5-10 years ago when I was turning out 400-500 URARs.

Get away from the lenders if possible and you can charge what your time is really worth. There are plenty of appraisers content with form filling making for lots of competition (cutting prices) in that area.

 

[Mike Phillips]

I would only announce someting that adds value to your service that includes a fee increase. Otherwise I don't see it as much of a sucessful marketing plan. It makes you look desperate.

Desperate? I don't see that. If I had to pick a term I'd say confident, but I think the market would use the term arrogant. If the OP is in the position to raise fees, for any reason, more power to him. The market knows the cost of production is incerasing but I don't think they want to hear it - not now.

 

[Mike Phillips]

Wow, you guys are so fortunate to negotiate higher fees in today's market... I know the gas are going to rooftop but I'm afraid ask clients for an increase, they might go to other appraisers who are willing to work for little...

I saw a post in anotherr forum where the CA appraiser stated his peers are calling clients and asking how much they need to lower their fees to get the client's business. No doubt AMC work we are talking about. Sounds like a race to the bottom out there.

I don't think the OP is in the same boat - good for him.

 

[Mike Phillips]

As a VA appraiser...no fee increase in 15 years.

Gas was under a $1 back then now $3.89
A ream of legal paper $1.99 now $11.29 and rising
Toner carts have doubled to $60
Internet charges over $100 a month
Auto insurance up 30%

But the worst is....twice as many appraisers and they are willing to work for less.

Raised my conventional fees by $25.

Yeah but you love that VA gravy train don't you? I missed getting on the panel by a hair 20 years ago. I did get on the FHA panel though and milked that sucker for years. But my former partners got on both - FHA and VA.

RE: "But the worst is....twice as many appraisers and they are willing to work for less."

Oh come on now - you made good money teaching AB1/AB2, right? Milked that for all it was worth? What's a few extra appraisers here and there?

 

[starmansf]

This whole thread is a waste of air. The market will dictate whether your fee increase will fly or not.

 

[c w d]

This whole thread is a waste of air. The market will dictate whether your fee increase will fly or not.

Oh? I was under the impression that as a service provider we participate in the market technically making us part of the market? Regardless of supply and demand, inflationary factors are another part of the pricing equation.

 

[starmansf]

Your clients don't care what your costs are; they only care about their costs. Raise your fees and they will go elsewhere. In appraisal jargon its called the principle of substitution.

 

[PropertyEconomics]

Your clients don't care what your costs are; they only care about their costs. Raise your fees and they will go elsewhere. In appraisal jargon its called the principle of substitution.

Based on your posts today Id say you suffer from "happy appraiser-itis".