What To Charge For Estate Work?

[Charles West]

Was recently approached by the wife of a r.e. broker I used to work for over twenty years ago in the capacity as a agent. The broker recently passed away and the wife has asked if I can prepare reports on a half dozen or so residential tract homes for the estate. Beyond the obvious disclosure issues I don't have a clue what to charge for a short narrative report if that is what is required. Our office has worked in the mortgage portion of the industry for the last ten years almost exclusively and rarely get a call for this type of work. In the past when we have prepared estate reports we have used the 1004 form with appropriate language inserted. I understand that the form report is designed primarily for use in a mortgage transaction but it can get the job done in a adequate manner without the additional expense of a narrative. Will call the attorney for the estate either today or next week to get the particulars. Am located in the Sacramento, CA area. Anybody have any advise on the subject of fees? :dance:

 

[Mike Garrett RAA]

First step is to determine if a form report or narrative is the norm for your jurisdiction (probate court). Then ask yourself how much work will be involved, what is the time frame, and is a discount for doing multiple properties warranted?

I usually charge a little more than my typical fee for mortgage work because I will have to do hard copies of the reports rather than sending edi and have extra time for delivery. Also, these rarely become repeat customers unlike my mortgage lenders.

Remember this appraisal will have a retrospective date and value. Hopefully the court will accept a form report, if so, remember to eliminate all references to mortgage lending. I wish you well.

 

[Pat Butler]

I always ask if they anticipate any litigation with the estate. My fee depends on a large factor on whether or not I'll have to defend my appraisal in the future. Our agreement is obviously in an engagement letter and the whole scope of works revolves around whether or not litigation is involved.

 

[Jeff Horton]

Ditto the other comments. I do a few a year and I charge about the same prices but as Mike said I bump them up just a bit because there is a bit more work to them but not much.

I also require an engagement letter! I spell out what I will do. What I charge and when the fees are due. I also include any late fees and that they will pay collection cost if there are any etc. I also state in my letter my rates for court testimony. Basically get everything out in the open so we know where we stand.

Thirdly I prefer the narrative report. I have a template my dad created 15+ years ago. He refined it and I have continued to refine it over the years. I am to the point that I can do a narrative in about the same time as URAR. Maybe slightly longer? But I use it for all none lender work. Prevents if form ending up in the hands of a Lender.