Poll: Will you trade fee for volume in a slow market?

[George Hatch]

I also think that slow seasons and dry seasons are perfect environments for AMC's to test appraiser resolve in rolling back fees. There is always someone that needs the work and will bend to drop the fees. Once accomplished, the AMC's make it difficult for that appraiser to return to the higher fee.

100% true. Easy to lose, hard to regain.

 

[Ariba]

Obviously only the idiot who said that isn't 60. Few people have the option to retire at 60. Further, since I don't do secondary market, my retirement will help no one. In fact, the bank I do a lot of work for is already anticipating they will have problems getting a CG to appraise farmland and large commercial properties. And the available CGs are going to be driving from either Tulsa, OK or Fayetteville/Rogers, AR and obviously will have to charge a huge premium for mileage and time alone.

Idiot? Joe Biden comes to mind. A couple of words come to mind: Arrogant, Self-important, Pompous. All imply an overestimation of one’s worth or abilities compared to others

 

[Red Flint]

I have been losing a larger percentage of the bids I have submitted. Can you guess how I have responded?

Guess 1 (hunger pains): Lower fee slightly on future bids, or reduce delivery time.
Guess 2 (fat, dumb and happy): Use opportunity to talk to contacts at clients. Seek other clients. Dust shelves and peek in mirror.

 

[RCA]

Work is slow, there's not enough to go around and you're already a couple months behind in your bills. AMC#1 says the prevailing fee for a 1004 is $400 right now, but you can get more work if you bid $375. Which choice will you make:

The choice for me right now is whether to renew my license next year and renew the SRA designation. The costs are:

Appraisal License: $1030
Courses (McKissock Package): $699
Alamode. 0 Forget that, stick with narrative
Subtotal: $1729 (for 2 years )
Per year. $ 864
SRA. $ 675
Appraisal per year costs: $1539

I will keep my CA Real Estate Brokers License which by comparison is very inexpensive. And with that my subscription to MLS data.

But, I will probably renew the appraisal license for another 2 years.

 

[J Grant]

Full disclosure, I have been losing a larger percentage of the bids I have submitted. Can you guess how I have responded? I'm not immune from competition-by-fee in the market, either; and 100% of my clients are direct engagement.

Idk why you are losing a larger percentage of bids - what is the range of the fees, and what kind of direct engagement work is it?

Whether an appraiser should adjust their fee for volume can only be judged by what the fee was in the first place. And what the volume is , of course. Appraisal is a labor intensive field and one can only do X number a week.

 

[Terrel L. Shields]

I've never bid a direct engagement fee against others since leaving RIMS. All my clients either accept or reject my bid. I can think of only one mineral party who elected to go elsewhere and not a single bank has not accepted the bid I made this year.

 

[Prairiehousewife]

Since I've had to make this choice, I choose not to pimp myself out for lower fees because the next time they make an offer, it will be $375, and they'll just keep going down. This is an AMC we're talking about - they DO NOT care about you and your business. They care about their bottom line. You may get that bid, but if someone else bids it at $350 the next day, they'll cancel with you and take the lower bid. I made the lower bid a couple times and regretted it because they expect more for less.

I believe my work is worth my base fee and I should not under-cut myself and the quality of my work. I agree with others who say it hurts other appraisers, too. Get another job or look into private work. There's a good AI class out there now discussing other types of non-lender work you can pick up.

Remember, they'll also feed you mis-information like "My client has only approved a fee up to $zzz. Will you do it for that?" I say No, and tell them why, and typically get the order at my initial bid amount. You're worth your fee!