Wachovia Fees Non Negotiable

[Colleague]

It's amazing how easy it is for lenders to throw appraisers under the bus.

I got this new appraisal service agreement contract from Wachovia the other week with an appraisal fee of $325 typed in. Seeing that this, in my opinion, was a low ball fee, I crossed through it and put $550 as negotiating starting point.

I got a call back saying that my fee was too high and therefore I could not be added to the list. So I said OK whatever, put me down for $325 and when I get an order I'll call you up to negotiate the fee on a case by case basis. They were not interested in doing this either.

Apparently they are doing business the Wold Savings Bank way which is scary. Prior to their acquisition of World Savings, appraisal fees weren't an issue at Wachovia.

However, seeing that Wold Savings has helped depreciate their stock price from approximately $46 to about $28 or so, I guess they figure they can try to recover some of their bad debts at the appraiser's expense.

 

[Pamela Crowley (Florida)]

Good for you Colleague! Stand your ground!

 

[Roy Courtney]

I totally understand that not all loans require an appraisal. For this example I want to discuss ONLY the loans where an appraisal is required. Can a lender make a loan without an appraisal? Answer: NO. Can a lender make a loan without an Appraisal Management Company? Answer: YES. If an AMC cannot provide appraisals because appraisers will not work for them, will the bank stop making loans? Is is the AMC or the appraiser that is the most needed in this situation?

 

[Pamela Crowley (Florida)]

I totally understand that not all loans require an appraisal. For this example I want to discuss ONLY the loans where an appraisal is required. Can a lender make a loan without an appraisal? Answer: NO. Can a lender make a loan without an Appraisal Management Company? Answer: YES. If an AMC cannot provide appraisals because appraisers will not work for them, will the bank stop making loans? Is is the AMC or the appraiser that is the most needed in this situation?

Keep it up, Roy! I got your back.

 

[CANative]

How does simply allowing higher appraisal fees guaranty better appraisals done by competent appraisers? Won't it just mean that it will be hit and miss with some being done by good appraisers and some being done by poor appraisers resulting ib the good appraisers being adequately compensated and the poor appraisers being over compensated?

 

[Terrel L. Shields]

Wacko will pay what they have to pay. It just depends upon the department. My last bill to them was over $1K

 

[Kevin Mc]

I understand.

I don't negotiate my fees either.

 

[MARK JOLLIFF]

I must take the opposite side. They are very fair when it comes to fees. during the boom when their appraisals were 2055's with interior they paid 350. No cost approach. If you turned it around in less than 10 days they paid $400. When they switched to the 1004 w/o the cost approach fees were $375. Now in a market where things are tight they pay $325 and they will NEVER pressure for value, ALWAYS want the truth and ALWAYS pay on time no matter what. They also offer free CE which counts towards license renewal. So even with the perfect relationship there will always be complaints but I guarantee if you work for them you won't trade them for any other client.

 

[PropertyEconomics]

I totally understand that not all loans require an appraisal. For this example I want to discuss ONLY the loans where an appraisal is required. Can a lender make a loan without an appraisal? Answer: NO. Can a lender make a loan without an Appraisal Management Company? Answer: YES. If an AMC cannot provide appraisals because appraisers will not work for them, will the bank stop making loans? Is is the AMC or the appraiser that is the most needed in this situation?

Any bank can make a loan of less than $250,000 without an appraisal. The lenders have choices too.

 

[Colleague]

Some business ain't worth the business and I guarantee that there business ain't worth it to me for $325. Skippy can have all they want at $325.