Low fees

[Dave Brigle]

There seems to be alot of appraisers out there have a hard time finding clients and/or lack basic salesmanship skills, so I guess the AMCs are filling their needs, they can have the work.

Sorta reminds me of uncle Henry when asked if his discounting was the reason for his business demise, "Well, I may have lost a little on each transaction..... but I made up for it in volumn".

 

[Charlotte Dixon]

Terr says:Why is everyone always trying to get valuation fees down to the cheapest price possible, far below any working wage. Next the fee will be 1 cent. We will soon have incomes of the third world countries if we let this continue.
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Terr, in my area, the V.A. fee that the appraisers charge sets the benchmark. In this state, the V.A. Regional office "RECOMMENDS" that the fee be $275. Try charging more, and questions will be asked. Therefore, that is the fee most of us get for a conventional appraisal because that is what the lenders are accustomed to. Now, for ERC's I blow them right out of the water and charge through the wazoo, never have a problem with that. Also, with REO's, I charge plenty, as well as private jobs, if I have time to do them. No AMC's in this office! You're right, fees stink! In 1993 when I went on the V.A. panel, the fee for a URAR appraisal was $225. 6 months after I started, the fee was increased to $275. No other increases have been made. I laugh when people take shots at V.A. appraisers saying we are on the "gravy train" ......We can't even charge more that $275 for a 2-4 family!

 

[Anonymous]

Fees in this area are generally 325 minimum, 375-450 FHA and out of staters 450+ COD always. We turn down 3-5 new clietns a week here, its just crushing right now. As far as fees not changing our jobs have become infinately more streamlined lately. Digital photos, sigs, maps etc. PDF, no shipping/courier fees. I teach productivity/efficieny guidelines Ive come up with and 1 (licensed trainee) makes $7,000-$8,200 every two weeks. He just past his first year and should make $195,000+ this year. Another 7 month trainee will gross $115,000 this year. Not bad for 90 hours of (internet) class time. THIS IS THE BEST JOB AVAILABLE FOR THE AMOUNT OF EDUCATION NEEDED TO START. Two years ago I worked 7 days a week. Now I have 4 trainees, NEVER work weekends and make almost double what I used to!

 

[Charlotte Dixon]

Michael...You've got a great setup! Good Going!

 

[Karl]

U know even in this Forum there are somethings I read That I just have a HARD time believen.

 

[Blue1]

Keith,

I have mortgage brokers for clients in my area as well as AMCs. My mortgage broker clients are in-town and I have good business relationships with them. The key is to educate them......NEVER accept payment after you hand in a report. ALWAYS get paid UP FRONT. Every assignment I have has a check attached to it. I cash the check BEFORE writing up the report. Most times I get paid at the door but a few clients actually collect a check for me from the borrower when they meet to work up the loan! They either mail it to me or have it ready for me to pick up at their office.

The secret is to be ethical.......THAT'S IT! Good clients will recognize your good ethics and start to develop trust in you. This will automatically weed out the bad clients. The kicker is that the good clients are the ones who will usually have the most work! Works for me.........

 

[Willie]

I'm with Karl. I don't believe you Michael. Common Michael, you are not just efficient if you have a trainee making $195,000, you are very creative. After fee splits he must be doing $400,000. THat's rediculous. You apparently aren't just efficient but are also cutting corners. Most stand alone folks don't make near $195,000, maybe half. Plus even if it was true, you wouldn't be telling everyone in america. Maybe I read your post wrong. If so I apologize.

 

[Pamela Crowley (Florida)]

Due diligence.

Some do it correctly, some don't. It takes time.

 

[Willie]

Pardon my bad English in above post. EOM

 

[Randy Beigh]

Michael

Sounds like you are working "on" your business instead of working "in" your business. Congratulations.

For years, I have been saying that appraisers tend to back into business. That is to say, they get their training then go out on their own by working out of their house without any business training at all. They become starving artists and as shown many times in this forum, somewhat bitter.

Unlike others, I have no reason to disbelieve you and will accept what you have written as the truth, because I know it's possible. You can run an homest, ethical business and make money.