Lower Fees, What is wrong with some Appraisaers!

[yr2525]

All I can say is I'm amazed at the difference in fees across the board. I'm in Louisville, Ky and most lenders here are stuck at $250-$275 and have been since the 1990s. Too many appraiser's competing for the limited pie and everyone afraid to raise fees and loose the client's they have. It's hard for me to imagine some folks in other parts of the country outside the big urban markets average $350-$425 per job. In July, I referred a project to a friend that has been an appraiser here for 10 years plus. Job from an out-of-state broker. Had to talk my friend into asking for $300 instead of $250 and it was an FHA project to boot. That was after I had gotten the fee approved and had a schedule problem that prevented me from meeting the deadline. He still wouldn't believe he could get $300. That's how terrified people are of asking for more money here. I know of one large office that used to do 300 appraisals a month and they are down to less than 30 now. Laid off almost the entire staff. So as someone else said, most appraiser's will appraise for food in this town! Which means fees are in a tailspin with and without AMCs in the mix.

 

[Kristina Ledesma]

Simple economics; supply and demand....too few appraisals needed+too many appraisers=low fees

It doesn't help that not every appraiser out there is relying 100% on appraisal work for income...the ones with other jobs or dual incomes can get away with lowballing their fee and not feel the pinch as much.

Does this automatically mean that the quality is low or that they are just hitting numbers? While it is easier to assume yes, the answer is no, maybe some but not all. It just seems more to be a matter of who can outlast who.

 

[CURT VAN HOOSER]

If you have lowered your fee to an average of $225, YOU are part of the problem.

Exactly....m2:

 

[Donna Quixote]

OK, in self defense, I have not gone down lower than $225 for a 1004 and that was for an AMC that I have been doing work for during the last five years, I had them up to $270 until they had an across the board cut and I was totally peeved and eventually gave into it because I am pretty much guaranteed 4 to 6 a week. The $200 reference I made in the original comment is because I have heard of appraisers working for $150 and $175.

 

[Kevin Mc]

The $200 reference I made in the original comment is because I have heard of appraisers working for $150 and $175.

I've heard of them too. They are part of the problem. Let me ask you, did the AMC who demanded you take a cut, cut their fees to the lender?

 

[Dee Dee]

Unfortunately, for every JackieWI there are at least a half dozen freshly minted rubberstamping ("did inspect") Certified Residential appraisers, each with a couple of bright-eyed trainees who are willing to work for almost nothing just to gain the CE hours required so that they too can be proud appraisers.

 

[Mr Rex]

Awright then

 

[starmansf]

This topic has been beaten to death. If you can't compete with lower fees, you're toast. Market forces are pushing you aside. The other appraisers are burying you. What part of pushed, toast, and burying don't you get?

You can try another field; but if you're going to appraise you need to buck-up, work harder, and come up with some reason for banks, brokers, borrowers (or whoever), to hire you. Welcome to the 21st century.

 

[Cob]

I would like to know how many people that do work for these low fees from AMC's get paid COD, because there is no way in hell I would bill them for $175.00 to $225.00 an appraisal. The lowest I will go is 300 beaver pellets for my good clients, 375 beaver pellets for everything else and if you are a one hit wonder out of town client and 400 to 450 beaver pellets for FHA.

I have a job cleaning a wine distributer warehouse that I used to work at with my wife twice a week, I have a part time job as a door man at a local pub, I measure properties sometimes for a realtor friend at 75 beaver pellets and work sometimes with my friend doing as built work, this is mainly measuring commercial buildings with a disto and he pays me 20 beaver pellets per hour.

So I am not only dependent on appraisal work, since I left the appraisal shop I worked at for 6 years in January I have done exactly ZERO AMC jobs and I love it. My goal is to have appraising be my part time job and do whatever else I can on the side, I'm a lot happier that's for sure. And I just tell people I will not work for those fees, I'd be happy to work for less the second that gas, food, insurance, mortgage payment, etc. all have lower fees, then I will work for lower fees.

 

[Dee Dee]

Dare I ask....just exactly how do you collect those beaver pellets, and does the beaver mind?