The forbidden subject - Fees

[Doug in NC]

I have a recent pleasant fee story. I received an ERC assignment from a management company that sends me very little work. Anyway their previous order was associated with the typical AMC pressures. So this time, figuring I had little to lose but an infrequent customer, I informed them that my fee had increased by $25 for these assignments.

Amazingly, the guy who ordered it sounded almost happy to make the fee change. Very unusual, I thought, for an AMC to act in such a way. If I had known they were going to be so easy to get an increase out of, I would have made it $50. Ha ha!!!

So there are good AMC stories after all.

Doug

 

[Anonymous]

Since it only takes a minute or two to convert reports to .pdf files and email them, it seems to me that EDI is actually cheaper than paper copies. In fact, .pdf files are excellent ways to keep "true copies" of a report for file. Then again, if you have to both email and snail mail a copy, maybe not???

 

[David S. Roberson]

Surely you guys are all kidding about your fees, cause an AMC told me last week that NO ONE EVER pays my fee of $350 for a URAR, and you know AMC's never lie.

 

[Anonymous]

Heard that story. Lender told me he had never been charged $1800 for an appraisal. I said, you just ain't been loaning enough money then. It was commercial property.

I finally put my foot down on very large houses (over 3,000 SF) Unless they are in a subdivision of similar houses (and usually they are out in the boondocks), I am doubling my regular fee. I have done 2 over 4000 SF that will not sell without a discount even if on the market 3 years. In both cases, the borrowers screamed because I made an adjustment for external obsolescence (inadequate market in that school district.)

If they have more than 10 acres with a SFR I am adding $100 for a land analysis.

Turned down not one, but two church buildings this past week.

It gets too easy to quote a single price, but in reality, we should have a much more varied fee schedule. Aren't mobile homes often more difficult, and some of those made even worse by condition, lack of foundation, etc.? Cookie cutter vs custom home? Dome Homes? Log Homes? Homes you know the UW is going to whine and moan about? Fourth comps? Why are those supposed to be free???? They aren't anymore with this fat boy.

 

[Pamela Crowley (Florida)]

For me, additional fees are added for: over 2,500 SF GLA, waterfront, larger lot or acreage, unique structure, rush orders, additional comps, etc. If the request for additional information is understandable, it's free; if it's a request that only needs something that's already explained in the original paraphrased, I charge for it. $25 extra for me to print out the copies and send them - on their mail or parcel account.

Example: 5,000+/- GLA, waterfront acreage with dock house = $600 minimum. Gated community where all are unique custom homes have added fees. I know of some appraisers that charge by the $ value but I don't think that's a very good idea.

 

[airphoto]

My $.02 ..

Figure $50.00/hour (gross) .. at a minimum ..
I always figured $25.00 hour road time, $100.00/hour "professional" time ..

 

[Steve Owen]

Not only is it not a good idea, but charging by the dollar value is a USPAP violation of the primary kind.

 

[P.Johnson]

I charge $325 for a conventional; $400 for FHA, $325 for 2055 interior, $300 for a 2055 exterior only; $500 for a 2-4 family; $300 for a field review; $125-175 for an update; $100 for a final or compliance inspection. I sometimes do private party appraisals (PMI, estate) for $275 cash. I charge way more for jumbos over $400,000 or so (by previous agreement). Given the other increasing closing costs, not many complain about the fees anymore. If they do, I ask them if they buy their clothes at wal mart or at a clothing store. Most good LO's get the idea that they are being a tight-a-- with someone else's money. I predict another refinancing boom this fall (if we're not in one already) where I'm going to start charging more for my non-regular clients. "Can you do a $600,000 hobby farm on 15 acres by Friday??? Sure for $850 and the borrower pays at the door."

 

[Kathy in FL]

OK....maybe I'm weird, but I don't charge extra for waterfront, mobile homes, or even more difficult properties like large acreage.

The way I charge is...I look at the order. For each page in the order over the cover page and one additional page, telling me all about what they "absolutely must have!", I mentally add $25.00 to the order. When they start telling me that my comps MUST be six months and one mile and bracket the subject, blah blah blah, I add another $25.00 for the addendum I'm going to have to write in this rural area with no MLS. When they tell me what I have to write in the addendum, sometimes I'll get cranky and add $50.

I guess I charge on the "pain in the butt" system. The lenders who leave me alone and let me do the work that they hired me to do get cheaper fees. Micromanagers pay BIG.

Just my method...
Kathy

 

[Joe Sloan]

Most of what I do is manufactured homes. Charge $600 for Conventional or FHA. I'm not the highest in our market, but I am a little higher than the non-licensed appraisers in our state.

Joe