Stop Accepting Unreasonable Fees

[glenn walker]

When 2.6 came out our appraisers were initially taking about 2 hours longer but after 10 to 15 done the time went back down to a regular URAR. Most issue's were how to avoid error codes and the initial software glitches.

I'm thinking many are adding for training time acting like it's static but Unfortunately most professions can't increase their fees by 25% for training on how to do their job when they know after 10 or 15 some will be increasing their outputs over the clunky 2.6.

The ones who get ahead of the learning curve will be capturing the markets and lenders and AMCs quickly know which appraisers to contact that can do the jobs.

 

[RCA]

Appraisers will need to raise fees to stay in business. The fees for the 2.6 were, imo, about 20% below the increased cost of living and inflation for the last several years from lenders, and if an AMC took a chunk of the appraisal fee, the remainder being paid to an appraiser in actual purchasing power is less than back in 1990.

Fees for the 3.6 should reflect the more difficult, detailed data and inspection, but also need to , whenever possible, reflect the fact that our volume is reduced by roughly 30% from WAIVERS and we are getting mainly the more time-consuming, difficult properties. If lenders need us around just to do the hard ones, we pay increased costs for insurance, MLS dues, portal fees, software, gas, everything. As for increased "efficiency," the schills are spinning it like AI or software will cut time in half. It might cut entry or other time in the report but will not cure the real world loss of effiency from the screw ups that happen nearyly daily - from a lender taking days to get needed information back to us about an assignment, chasing a RE agent or owner for days to make an appoitntment, the hands on resarch needed to find the right comps, the follow up work from an ROV or other post report delivery issues.

I don't think UAD 3.6 actually improves the quality of appraisal results; the techniques are basically the same as 30 or 40 years ago. UAD 3.6 is for the GSEs to do a better job of monitoring all the crap that is going on. So, the reality is, if it really takes more time to do an appraisal with UAD 3.6 than it did with UAD 2.6, appraisers will have to be paid more, or they will have less incentive to accept orders. Simple as that. How it plays out, with time, I don't know.

I tell Claude that my basic assumption in everything we do is that we are NOT limited by average appraiser intelligence. Appraisers will adapt to advanced methods given time; after all, they now have AI to help them learn the new methods. So, I don't listen to complaints about wanting just a button to push or "it's too time-consuming" - or this or that.

 

[J Grant]

When 2.6 came out our appraisers were initially taking about 2 hours longer but after 10 to 15 done the time went back down to a regular URAR. Most issue's were how to avoid error codes and the initial software glitches.

I'm thinking many are adding for training time acting like it's static but Unfortunately most professions can't increase their fees by 25% for training on how to do their job when they know after 10 or 15 some will be increasing their outputs over the clunky 2.6.

The ones who get ahead of the learning curve will be capturing the markets and lenders and AMCs quickly know which appraisers to contact that can do the jobs.

But this is not 2.6 with some UAD codes replacing words.

The software offerings are free to try. Fill out a 3.6, appraise your own house on it , and get back to us on it.

The fees for 2.6 were far too low and if the change to 3.6 gives appraisers an opening to charge more, they/we should do so. Costs of doing business have risen 20-30% over the past few years but fees have remained the same.

 

[glenn walker]

But this is not 2.6 with some UAD codes replacing words.

The software offerings are free to try. Fill out a 3.6, appraise your own house on it , and get back to us on it.

The fees for 2.6 were far too low and if the change to 3.6 gives appraisers an opening to charge more, they/we should do so. Costs of doing business have risen 20-30% over the past few years but fees have remained the same.

Fee's were already 25% to 35% to low for 2.6 but few were able to increase their fee's because lenders and their AMCs had enough active appraisers to accept the orders.

 

[glenn walker]

But this is not 2.6 with some UAD codes replacing words.

The software offerings are free to try. Fill out a 3.6, appraise your own house on it , and get back to us on it.

The fees for 2.6 were far too low and if the change to 3.6 gives appraisers an opening to charge more, they/we should do so. Costs of doing business have risen 20-30% over the past few years but fees have remained the same.

Fee's were already 25% to 35% to low for 2.6 but few were able to increase their fee's because lenders and their AMCs had enough active appraisers to accept their orders.

 

[Jayjay25]

When 2.6 came out our appraisers were initially taking about 2 hours longer but after 10 to 15 done the time went back down to a regular URAR. Most issue's were how to avoid error codes and the initial software glitches.

I'm thinking many are adding for training time acting like it's static but Unfortunately most professions can't increase their fees by 25% for training on how to do their job when they know after 10 or 15 some will be increasing their outputs over the clunky 2.6.

The ones who get ahead of the learning curve will be capturing the markets and lenders and AMCs quickly know which appraisers to contact that can do the jobs.

Let’s not forget this change was forced on the profession. It will take more time, increase costs, increase liability and increase unnecessary revision requests therefore the fee should increase proportionally.

If this job takes 2 hours longer (most are reporting much more) we should bill for that extra time. The better we get at our jobs and the quicker we can professionally do the work the more we should be compensated. I would never take a loss for the first 10-15 jobs that someone forced me to do differently and don’t know of any other profession that would either. My mechanic charges the hourly book rate for a brake job. I don’t see a discount when he does it faster.

 

[J Grant]

Fee's were already 25% to 35% to low for 2.6 but few were able to increase their fee's because lenders and their AMCs had enough active appraisers to accept the orders.

Lenders without an AMC fee are typically double what an AMC pays when an AMC keeps half the fee. Lenders do not make their panel bid and undercut on fees for normal work. People need to stop putting lenders and AMCs in the same basket when it comes to the fee paid to appraisers...though lenders who use an AMC are guilty of looking the other way instead of insisting the AMC pay a fixed, reasonable appraiser fee on a cost-plus basis, which a few lenders arrange with an AMC.

But even at full fee, the rates are 20% below the cost of living and below what other professionals charge, like accountants or IT professionals. Incredible that, of all the RE fees, the dinky appraisal fee is the one an AMC splits using a govt perk. The no-big-govt-mouths here go silent when the govt perk goes to big business. They demonize appraisers, for they claim, expecting the govt to protect them - yet appraisers lack govt protection. The protection extends to the AMC, keeping egregious splits from the appraisal fee under the HUD bundled fee.

 

[George Hatch]

"HUD bundled fee"