I would have to agree with Ed on both questions. In terms of what is most familiar to you, Ray, is that "The Herd Must be Thinned" in order to get higher prices for our work.
1.) Yep, exactly right, this market will indeed substantially "thin the herd", that will weed out Skippy Appraisers, Mom Realtor's, Shaky MB's, Shoddy Builders, Get Rich Quick Flippers, Saturation of "Blue Sky" Appraisal Course Providers, etc, etc.. So, "Only the Strong Survive"; those that didn't over extend when times were good.
Unless you have long time well established ties with strong lenders or banks (assuming your primary source of business is mortgage appraisals), it will likely be a rocky road for appraisers in the near future. But, after this storm blows thru in a few years, then I believe real estate markets will stabilize, demand will rekindle, and if (BIG IF) interest rates stay low, the "Survivors" should prosper. (Assuming of course, the Government doesn't somehow radically change all the lending rules!).
2.) RAISE YOUR FEES NOW! It's the perfect climate. Can you continue to eat everyone else's price increases? Will the extra bump cause you to lose business from those good clients? I doubt it, they should by now be getting used to higher costs---We Appraiser's sure are! I didn't lose a single client (or order that I know of) with just a simple explanation as to why I had to raise fees (due to increased travel costs, etc.).
Before, I always operated on the theory that my client's appraisal fees were based on: "Volume Speaks Volumes" and charged accordingly. But now, since good volume is a thing of the past for most everyone, that philosophy is now N/A! (Besides, an appraisal fee is not likely going to cost a LO to lose the deal!).
Any Discounts? OK, Sure maybe $25-$50.
If requested-
1.) Subject Previous Appraisal in Files (within 5 Years). Won't have to remeasure if no additions and usually can import most of old file. -$25.00 discount.
2.) COD (or CAD-Cash or Check At Door). Cash Flow, plus no screwing around waiting or collecting. -$25 discount (or if really pressed, maybe -$50).
3.) -$50 discount for Seasoned Citizens (over 62), or for all Veterans (if informed in advance or requested at inspection).
