• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Just got quote for car repair $150-200 per hour

Status
Not open for further replies.
I doubt that your interpretation accurately describes the post.

Could you imagine what would happen if the auto mechanic business owner was called to testify about an automotive shop value and charged more than the CG appraiser?

Do you think that could happen; If the technician with the diploma and tech school is at $200 an hour and CG appraisers are at $85-115?

In 2004 when I left Firestone's management program to go into appraisal, we were billing $79 an hour, with independent shops at $55-65 an hour. Residential appraisals were $375 and you could do 2 per day. Commercial appraisals were $3200-3600 for single tenant detached fee simple properties that could be done in 2 days.

How do you feel about this?
I feel underpaid. Standard reports take longer to complete than they did 15 years ago, and market rate appraisal fees have not kept up ($450-$550 standard 1004 fee here).
 
Have had front brakes and an alternator replaced in the last 3 weeks. My alternator required taking 4 other things off my car first just to reach it, and a couple special tools in the process (of course). Used to be it made more sense for me to do an extra appraisal in the time it would take me to fix myself. Not so much anymore. I pay more per hour to HS graduates than I can make doing appraisals. Yes, it is still very busy where I am, but fees lenders/AMC's are willing to pay have not increased. I do push the envelope freely to see if I can bill more, but almost never with any success, except for one offs that are desperate.

Now all that said, I do know there is a lot of overhead in running a repair shop, but I do think those business owners must be doing quite well. Don't forget too they get quite the profit margin on parts as well.
 
Heck, stay within our own area of expertise real estate. Not sure about other states, but in Michigan to become a real estate agent requires a 40 hour class that can now be taken online, in probably a faction of that time, followed by a State test that you are given something like three hours to finish and my wife and I were out of the testing center in about 45 minutes. Now the newly licensed agent can stumble into a low end deal of around $100,000 with a 6% commission. Having just one side of the deal and doing a 50/50 split with the broker, the new agent will make $1,500 for maybe 10 hours of direct work spread over several weeks. Additionally, because they are working for a broker they would have office space, some sort of clerical help, copy machine, office printer, land line for telephone calls, supplies, internet, etc. provided.

On the other hand the appraiser (Certified Residential) has more than 250 hours of class time along including continuing education while training, 2,500 hours or more of documented experience, and a 4 to 6 hour test that takes the majority of the time allocated. All the while making $450+/-, with at least 6-8 hours in producing a credible report within a 48 hour period. To say nothing of revision request, appraisal reviews, comp questions, title questions, status updates, comp pictures, etc. The appraiser is either paying for their office space or working from home, buying computers, printers, software, supplies, phones charges, internet, portal fees, E & O insurance, record retention, much more expensive licensing (at least in Michigan), etc.

The one with the least amount of training and experience, lower expenses, lower liability, most likely the least amount of actual productive time involved, etc. makes $150 per hour, while the appraiser is lucky to make $45 per hour gross. I fully understand that appraisers are involved in far more deals than any one particular real estate agent, but still. I always love it when I prepare a fairly simple and straight forward commercial appraisal charging between $1,250 and $1,750 and the client and sometimes the real estate agent will comment about the size of the fee. My response is my fee is 1% or less of the entire deal, while the real estate commission was 6% +/-, the lender charges points, commitment fee, processing fee, etc., the title company gets all of their fees, the governmental unit gets their recording and transfer fees, the surveyor gets paid, well and septic inspections, god forbid an environmental inspection or a BEA is required, on and on and on. With the exception of the title company and possibly the environmental folks, guess who carries the greatest liability.

For the last couple of years I have been trying to gross around $75 an hour on most reports, but I am slowly moving that upwards and if I loose some business so be it. I work roughly three to five County area and am the only person actively doing commercial work in my County, just one other person doing any type of commercial work in the County south of me, no one in the County to the north or southeast and one active in the County to the east. So anyone accepting an assignment in my core service area is coming from several Counties and probably 50+ miles away and needs to cover travel, MLS access, market research, etc. Before anyone questions it my mentor is a licensed CG and reviews and signs all of my reports. Several years ago he decided to retire from active appraising and refers any request he receives to me.
 
This proprietary stuff is just to make dealerships more money
Right to repair has become a big issue. Asus wouldn't tell a repair man how thick the thermal pad was in his laptop claiming it was proprietary. The guy pulled it out and used a micrometer to measure it an ordered a generic one via Amazon. John Deere tractors cannot be serviced, worse things like Combines. When one guy's combine conked out, it was a $1,000 charge to load the combine, get wide load escorts to and from the dealer. At the dealer, it was a software glitch they fixed in 10 minutes by rebooting. Of course, Apple is the worst about this secrecy.

Watching a farm video last night and the guy couldn't get the 30' wide planter to fold up- hydraulics. It was midnight and he was 2 miles from the house. You couldn't drive it home. So he killed everything, rebooted the computer, and finally about 1:30am he got it to fold up. All computer controlled.... and glitchy. Of the several farm videos I follow (Millennial Farmer, How Farms Work, and Brian's Farm) all have had issues with the sensors and computers on their equipment. When they work they work well, plant at exactly the right depth, etc. When they don't work, you are dead in the water until a service man arrives or you can somehow get the equipment to the dealer.
 
Update, Got a quote back, the local Upholstery shop is $80 an hour to sew upholstery. Their overhead is an open garage and a commercial sewing machine, and that amount does not include materials, which are extra. The shop is located near Middletown Ohio, not exactly a hot area, it was in the movie Hillbilly Elegy I think

In my area in one City it only has a small area allowed for auto truck or RV repair shops. A seasoned mechanic makes between $25 to $27 per hour so that $150 to $200 per hour is covering leases, equipment and overhead.
Just like an appraisal company would be if it was professionally run, benefits, and overhead. Job security.

When one guy's combine conked out, it was a $1,000 charge to load the combine, get wide load escorts to and from the dealer. At the dealer, it was a software glitch they fixed in 10 minutes by rebooting. Of course, Apple is the worst about this secrecy.
I love when the lenders ask for farm and ag appraisals billing rate of $80-100 an hour, when the tech for the combine that has an associate degree dealership charges $200 an hour from the minute they leave the dealership, until after the repair order is written up.

The lenders pretend the borrowers don't have funds, when they are refinancing to cover at substantial interest savings or buy another few hundred thousand $ of acres or a $600k tractor and accessories.
 
Last edited:
That amount does not go to the mechanics. Do you know how much it costs to lease rapier buddings and equipment etc ? In my area in one City it only has a small area allowed for auto truck or RV repair shops. A seasoned mechanic makes between $25 to $27 per hour so that $150 to $200 per hour is covering leases
This popped up on my Facebook ad. $50 an hour plus 401k for RV techs. $104k per year, plus bonus, relocation, overtime.

Capture5.GIF
 
Do you think that could happen; If the technician with the diploma and tech school is at $200 an hour and CG appraisers are at $85-115?
It's all about demand and supply... credential matters not in an open economy. :) If the supply of auto technicians is low relative to demand, and the supply of appraisers (CG in your example - I'm guessing CR is inferior to CG?) is high relative to demand, my suspicion is that the auto technician will make more money... just because your credential cost a lot of $ and time does not necessarily translate into it being a profitable line of work...
 
I have a Nissan Titan, clock spring inside the steering wheel went out. Got it changed out, but then it was $100 just have the dealer hook up their computer to reset the system. This proprietary stuff is just to make dealerships more money
My wife's rider, a 2016 Audi Q3, had a battery go out. Lucky for us it was under warranty...would have been $700. EVERYTHING had to be re-booted. Took the better part of the afternoon. Tech showed me a print out they had to do, was easily 20+ pages.
Cars ain't like they used to be...
I'm old enough to remember setting the points in my VW with a match book cover.
 
  • Like
Reactions: DTB
I don't belong to a Mechanics Forum, just a Plumbing Forum and Electrical Forum because I have questions about stuff, but I imagine from time to time they have someone who posts about a repair customer who complains about their bid or bid process, and they just might have a post about how much they had to pay to have their house refinanced, that the guy only spent 20-minutes looking at the house, and what a POS appraisal they got.
 
Tech showed me a print out they had to do, was easily 20+ pages.
Cars ain't like they used to be...
Which is why I will be driving my 2000 Chevy PU with a 350 engine until it blows up or I return to room temperature. It is fixable. Very few sensors. Today Jay Leno chugs around in cars that are up to 120 years old. One hundred twenty years from now how many cars of today will still work? And those Jay drives around will still chug down the road.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Back
Top