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Trip Fee

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undergroundPOP

Sophomore Member
Joined
May 29, 2013
Professional Status
Certified Residential Appraiser
State
California
So I was just working on an appraisal for a 5000sf residence that's due tomorrow, and I get a call from the AMC saying that the client has cancelled the order. I've put in about 2 hours of driving, 1hr inspection time, and 3 more hours of research, analysis & reporting.

The client is willing to pay a trip fee, so when I give them a $ should I be taking into consideration all of these factors or is it just based on the distance traveled?

Time = money no??

I guess I should also add that they're asking for the inspection photos as well.
 

Tom Woolford

Elite Member
Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Frequently when this happens I tell them its about done, so the just let me finish for full fee. They may only give a couple hours to submit, but that's OK if its as far along as you say.
 

Howard Klahr

Senior Member
Joined
Oct 4, 2004
Professional Status
Certified General Appraiser
State
Florida
when I give them a $ should I be taking into consideration all of these factors or is it just based on the distance traveled?
What does your engagement and/or service agreement state?
 

Riick

Elite Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
Had exactly the same problem, several years ago.
They need those photos to justify payment to their bean-counters.
They also offered me a fat $75 trip/cancellation fee, G.D bless their tiny little hearts.
Billed them based on an hourly rate, maybe twice what I earn on an appraisal.
Came to 70-80% of the original fee.
They paid-up, maybe because I pointed out that it would cost them more for an attorney than the $$ at issue.
Then.... I fired them, while they fired me. <smile>
.
 

chad hampton

Senior Member
Joined
Nov 10, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
I'm pretty sure they will still be paid full fee by the borrower, I'm sure that's in the fine print when they get the borrower's credit card # for payment (payment in full once appraiser has been to the property). So like every other decision in the AMC world, it's about saving that precious $50. If they can get you to charge $75, they get to keep even more.

If I'm halfway through the report, I usually say $200-$250. And send them the pics to verify I've been there. Even though we are the most honest people involved in any aspect of the real estate/banking profession, I guess they still want photos that we've been there. That's fine, no problem with that.
 

Vermonter

Senior Member
Joined
Mar 21, 2007
Professional Status
Certified Residential Appraiser
State
Vermont
it's not a trip fee - it's a cancellation fee - and yes, at least 75%

Agree.

I would charge 75% for as much as you've done. They will balk at it and try to get you lower, but typically if you hold firm they will pay.
.
 
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