Inflation and the appraisal industry

[Doug in NC]

Despite the tight market we're in, I just raised my fee about 10% on one of my biggest clients. We're seeing gas prices go up ten cents a week and there is no end in sight. I'm also taking into consideration the seeming increasing complexity of assignments that are coming my way. I've only raised my fees on this client 3 times now in the past 12 years, so I know I'm not being unreasonable. To me this was inevitable, but I wonder how many appraisers will keep their fees at the same level they were 5-10 years ago, and for how much longer.

 

[Ray Miller]

Despite the tight market we're in, I just raised my fee about 10% on one of my biggest clients. We're seeing gas prices go up ten cents a week and there is no end in sight. I'm also taking into consideration the seeming increasing complexity of assignments that are coming my way. I've only raised my fees on this client 3 times now in the past 12 years, so I know I'm not being unreasonable. To me this was inevitable, but I wonder how many appraisers will keep their fees at the same level they were 5-10 years ago, and for how much longer.

I just had a client yesterday offer me double my fee for a rush to be done by next wed.

So today I had a client call and wanted an appraisal done by next week as well so I shot them 500 beaver pelts and 2 silver fox pelts they did bat an eye or take a breathI so by this time next week I will have 1500 clams on ice. Now if they are willing to pay those fees for 1004 fourms you know we have been priced way to low for to long. My new stadard fee as of Monday will 425 beaver pelts.

Just what is the real amount that the AMCs are charging????? Anyone really know????

 

[Jim Hill]

What a great business to be in!

I while back I asked how many appraisers would like to see their sons or daughters go the appraisal business.

Could any of us really even consider telling our kids what a great business this is right now?

A friend of mine who was an appraiser back in the 80's told me he was charging between $250.00 and $300.00 back then!!

This business has changed so much over the last ten years that it does not even look like the same business any more and when I hear other appraisers saying they have only had three price inceases in 12 years I can only shake my head and wonder what the hell we are all doing here?

Talk of AMC's only paying $183.00 dollars for a 1004 do any of us wonder how this whole business got so out of control and why are any appraises willing to lower their standards to work for these people.

I know that many of us are just trying to keep the lights turned on and pay some bills but the thought of working for any AMC that is just using you up drives me crazy.

I am not sure what this business will look like after 1-1-2009 and I really am hoping that the National Valuation Service works and that some major lenders agree to use it.

God help all of us if it doesnot work because AMC's might be offering $125.00 for a 1004 and we all know that you get what you pay for in life.

Jim Hill

 

[Doug in NC]

I while back I asked how many appraisers would like to see their sons or daughters go the appraisal business.

Could any of us really even consider telling our kids what a great business this is right now?

A friend of mine who was an appraiser back in the 80's told me he was charging between $250.00 and $300.00 back then!!

This business has changed so much over the last ten years that it does not even look like the same business any more and when I hear other appraisers saying they have only had three price inceases in 12 years I can only shake my head and wonder what the hell we are all doing here?

Talk of AMC's only paying $183.00 dollars for a 1004 do any of us wonder how this whole business got so out of control and why are any appraises willing to lower their standards to work for these people.

I know that many of us are just trying to keep the lights turned on and pay some bills but the thought of working for any AMC that is just using you up drives me crazy.

I am not sure what this business will look like after 1-1-2009 and I really am hoping that the National Valuation Service works and that some major lenders agree to use it.

God help all of us if it doesnot work because AMC's might be offering $125.00 for a 1004 and we all know that you get what you pay for in life.

Jim Hill

Actually, urars were 300-350 back in 1992. Most in the area are still charging these very same rates. Oh yeah, but don't forget how much time digital pics and internet delivery are saving us.

 

[robert higgins]

I get been charging 20-30% above the nor and 50%-60% above the bottom feeders and still get work.

 

[Cob]

Actually, urars were 300-350 back in 1992. Most in the area are still charging these very same rates. Oh yeah, but don't forget how much time digital pics and internet delivery are saving us.

While digital cameras and internet do save money what else cost the same?? I can start a list of things that don't cost the same. Gas, tires, oil changes, tire rotations, maps, paper, copiers, MLS fees, C.E. classes, cost to re new your license, phone bill, fax bill and that's just to do appraisal work. How about the cost of living like, food, clothes, home insurance, light and gas bills, food for pets, getting your car fixed, they have ALL gone up.m2: Sorry, it's the internet, I took me a while to figure out you were joking........

 

[c w d]

We raised our fees back in 2005 with gas prices approaching $2.50 - $3.00 during a spike. We lost most of our customers because of it. I doubt we're going to raise our fees any time soon because of that experience.

In my area, as of right now, the going fee is $300 - $350. These days it seems that clients expect $300.

And as for AMC's, well, we've been lucky enough to have them accidentally send their client's invoice on occasion. They do typically adjust "their" fees depending on assignment complexity. However, that doesn't filter down to the appraisers from our experiences. In fact, when requesting higher fees for something like ocean front properties we've been told "We can just find someone else to do it". By all means, please do. It's not all the AMC's, granted. Just the big ones that everyone hates working for.

 

[Mike Boyd]

It depends on what services they offer clients. Some arrange for title insurance, ALL inspections, as well as appraisal review.

I raised my fees a couple weeks ago to my main client. No objection at first but then started to nickel and dime me and are now shopping fees with other appraisers. Lots of competition out here right now. Many part timers. The objection to fees comes mostly from refi orders where the borrower is asked to pay COD. In today's economy, there are LOTS of families that don't have an extra $400 to shell out in advance.

 

[Doug in NC]

It depends on what services they offer clients. Some arrange for title insurance, ALL inspections, as well as appraisal review.

I raised my fees a couple weeks ago to my main client. No objection at first but then started to nickel and dime me and are now shopping fees with other appraisers. Lots of competition out here right now. Many part timers. The objection to fees comes mostly from refi orders where the borrower is asked to pay COD. In today's economy, there are LOTS of families that don't have an extra $400 to shell out in advance.

Then again, a lot of the time, borrowers decide to wrap closing costs (including a measley $350-400 for an appraisal) into their loan. The appraisal fee is one of the smallest items on the closing statement. Tacked on top of a $250,000 loan, it's really miniscule. I think lenders make a big deal out of the appraisal fee so they don't have to cut their own big commissions.

 

[Riick]

Then again, a lot of the time, borrowers decide to wrap closing costs (including a measle $350-400 for an appraisal) into their loan. The appraisal fee is one of the smallest items on the closing statement. Tacked on top of a $250,000 loan, it's really minuscule. I think lenders make a big deal out of the appraisal fee so they don't have to cut their own big commissions.

Forget about the $250k loan
Back in the day when I was doing houses selling for $50k
the $250-$275 fee was about - ½ of 1 percent of the Sale price!

For a $200,000 loan, a $400 fee is 2/10 of 1 percent.
As a percentage, our fees at $400 are down - versus cost of the average home.

Did the percentage the Brokers (Real Estate & Mortgage - both) go down?
You bet your sweet a55 they didn't.

But then THEY have a lobby :icon_idea:,
and keep telling consumers about:
how valuable their services are, and
how necessary their services are.

Gee.. I wish WE had a Lobby