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Jumbo Appraisal
- Thread starter Debra
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:lol: :? 
Larry Lyke
Senior Member
- Joined
- Feb 2, 2002
A higher dollar property getting a bigger loan than the normal.
BUT you don't want your fee schedule attached to a percentage of the appraisal dollar amount.
Say something, like, over 3000 sqft, I charge $400; over 4500 sqft, I charge $600; over 6000 sqft, I charge $30,000. You get the idea.
IN OTHER WORDS, you don't charge more for the value of the property. You charge more because of a house's size because it's MORE work.
BUT you don't want your fee schedule attached to a percentage of the appraisal dollar amount.
Say something, like, over 3000 sqft, I charge $400; over 4500 sqft, I charge $600; over 6000 sqft, I charge $30,000. You get the idea.
IN OTHER WORDS, you don't charge more for the value of the property. You charge more because of a house's size because it's MORE work.
Oregon Doug
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Debra - I'll guess that your client is a lender. They often use the term "jumbo" to identify a loan of more than $250,000 so they likely carry that term over, thinking that it fits the appraisal terminology too.
Some states impose certain limitations related to "transaction" value on appraisals that a licensed residential appraiser may perform. Typically a licensed appraiser is limited to appraising residential (1 - 4 unit) properties in which the "transaction" value is under $250K - above that requires a certified residential appraiser. It falls under the heading of scope of practice but since no one can agree on the definition of a "complex" property, it's pretty uninforcable.
Like Larry said, quote 'em a fee based on the amount of time you think it will take you to do a credible appraisal - not on the appraised value (contingent fee). Usually I tell 'em my fee is $50 per door nob.
Oregon Doug
Some states impose certain limitations related to "transaction" value on appraisals that a licensed residential appraiser may perform. Typically a licensed appraiser is limited to appraising residential (1 - 4 unit) properties in which the "transaction" value is under $250K - above that requires a certified residential appraiser. It falls under the heading of scope of practice but since no one can agree on the definition of a "complex" property, it's pretty uninforcable.
Like Larry said, quote 'em a fee based on the amount of time you think it will take you to do a credible appraisal - not on the appraised value (contingent fee). Usually I tell 'em my fee is $50 per door nob.
Oregon Doug
Frederick R. Ruffell
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- Jan 21, 2002
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- Certified General Appraiser
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Debra,
One very important thing to consider in your fee that Larry or Doug did not include is your liability exposure. Because the loan amount and the value are going to be higher than usual so is your liability. If you get it wrong and are sued your potential loss is greater. I am sure your insurance company would advise you to do a very thorough job and subsequently you would need to charge more.
good luck
One very important thing to consider in your fee that Larry or Doug did not include is your liability exposure. Because the loan amount and the value are going to be higher than usual so is your liability. If you get it wrong and are sued your potential loss is greater. I am sure your insurance company would advise you to do a very thorough job and subsequently you would need to charge more.
good luck
A
Anonymous
Guest
Debra,
The lender is no doubt making a jumbo loan. If the property is in a neighborhood of similar properties and data is avaliable perhaps it should cause you no problem however if data will be hard to find or the property will be difficult to inspect you should charge more for the job.
The lender is no doubt making a jumbo loan. If the property is in a neighborhood of similar properties and data is avaliable perhaps it should cause you no problem however if data will be hard to find or the property will be difficult to inspect you should charge more for the job.
Larry Lyke
Senior Member
- Joined
- Feb 2, 2002
Debra --
Your liability is no greater on a jumbo appraisal job than any other appraisal, in reality:
The explosure to you and your E&O is based on any suit for negligence, so I always assume that you are going to do your best job on every job.
Your greatest loss is your license to practice. E&O will pick up your mistake even though you may end of being out of business.
Your liability is no greater on a jumbo appraisal job than any other appraisal, in reality:
The explosure to you and your E&O is based on any suit for negligence, so I always assume that you are going to do your best job on every job.
Your greatest loss is your license to practice. E&O will pick up your mistake even though you may end of being out of business.
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