Strategies for raising fees

[sputnam]

Expect a lot of trickery from AMC scum when asking for more money. You need to be ready to deal with their bull****. I have one AMC I do work for who uses appraiser fees against one another. So when you would ask for an increase per assignment they would say "there are other appraisers in the area that charge $400 for the report, so we can't raise your fee." Meanwhile, I'm sure they are telling the other appraisers that my fee is also $400 and they can't raise their fee's. It's a dirty game dealing with these companies.

The response to that is "If you have an appraiser who can do a good job for less, you should call them."

 

[sputnam]

I'm still hoping that The Abomination won't be in effect this year and will be delayed.
Until I'm forced to use it, I won't waste my time on it now.

Naturally. The 'Nando always does the least he can get by with.

 

[Fernando]

So lower your fees and taking longer to make even less money. I think many younger appraisers have already left due to low income for how many years now.

My abvice to the young hangers, get out of this **..ed up business now, while you can. There is no future and no more profit to be made. Leave while you still can find something better. At least have a back up plan when you realize it is ending.

And it's the same group of posters posting all the time. Tells you something already.

My daughter's friends graduated from college last year and most of them are making at least $70,000.
If young appraisers can make more than that, maybe stay in the field but future prospects don't look good.
I made more than my wife when we got married decades ago.
Now she makes 4X more than what I make. She was in the right field and I was lucky to marry her.

 

[J Grant]

Expect a lot of trickery from AMC scum when asking for more money. You need to be ready to deal with their bull****. I have one AMC I do work for who uses appraiser fees against one another. So when you would ask for an increase per assignment they would say "there are other appraisers in the area that charge $400 for the report, so we can't raise your fee." Meanwhile, I'm sure they are telling the other appraisers that my fee is also $400 and they can't raise their fee's. It's a dirty game dealing with these companies.

So tell them, "Then perhaps we can work together on the next one." And let them give the assignment to the supposedly cheaper appraiser.

It is terrible that appraisers are put in this position by AMCs, but if they fall for the trap, it will never get better. My strategy works because one does not need to do it with all clients, just pick out as many as you can tolerate, possibly losing orders from, and start holding out for decent fees. Enough critical mass and it can turn the tide.

 

[Zoe]

So tell them, "Then perhaps we can work together on the next one." And let them give the assignment to the supposedly cheaper appraiser.

It is terrible that appraisers are put in this position by AMCs, but if they fall for the trap, it will never get better. My strategy works because one does not need to do it with all clients, just pick out as many as you can tolerate, possibly losing orders from, and start holding out for decent fees. Enough critical mass and it can turn the tide.

There is not doubt the current market structure has market control on price which is an anti-trust violation. There are fewer buyers than sellers and especially since commingling of fees occurred on truth in lending disclosures. Appraisal management companies have control on price due to commingling of fees and market structure.

 

[Tom4value]

A future sample letter to clients

Over the past several years there has been a rise of costs of doing business, as well as an increasing amount of time needed to complete an appraisal due to the expanded UAD.36 data fields as well as an increase in ROV considerations. These factors have led to a change in fees for a non complex single family or condominium appraisal to $ X amount beginning on X date/year.

I appreciate your business and look forward to continuing to working with your company. Please feel free reach out if there is anything you would like to discuss about the new fee schedule.

Thank you,
name

I like the letter very much. If it were me, I would take out the comment on the ROV. 1. They are happening now so you really can’t use it as an excuse for future rate hikes and 2. Just the cost of doing business IMHO.

Since you are going to write a letter, my guess is that you have a good rapport with your clients. Before you send the letter with an exact dollar amount, why don’t you feel them out and see what they have heard about new fees? This would be especially helpful if they let you know what other appraisers they use are going to charge. You know, no one wants to “catch a falling knife”. The last thing you want to do is tell them a fee that is like $10 more than what everyone else is charging!

 

[Tim Hicks (Texas)]

The last Mercury hike I raised my fees $25 across the board. Nobody noticed. Maybe I should do it again.

 

[J Grant]

I like the letter very much. If it were me, I would take out the comment on the ROV. 1. They are happening now so you really can’t use it as an excuse for future rate hikes and 2. Just the cost of doing business IMHO.

Since you are going to write a letter, my guess is that you have a good rapport with your clients. Before you send the letter with an exact dollar amount, why don’t you feel them out and see what they have heard about new fees? This would be especially helpful if they let you know what other appraisers they use are going to charge. You know, no one wants to “catch a falling knife”. The last thing you want to do is tell them a fee that is like $10 more than what everyone else is charging!

good advice !

 

[ZZGAMAZZ]

It's up to each appraiser. But if nobody raises fees, then appraisers need to stop complaining about it.

IDK what percent would work - imo a range of 20% is a reasonable start point, and well below the cost of living increase and rise in fees I see in other professions, which have risen 40% over the past four
It is not an oligopoly; it is more like aconcentrated mass of those who control vast volume, but even they can not fend off fee increases from virtually every appraiser.

I wish AMC staff appraisers would hold out for a better salary as well - they can not fire all of you all at once!

kinda like the old joke about two campers discussing how to escape a bear attack. Camper 1 talked about running faster than the bear. Camper 2 said that he didn't care how fast the bear could run because all he needed to do was to outrun Camper 1.