Who do you charge for more comps?

[Tom Foster]

Who do you charge for more comps?

Here is a little story an appraiser buddy of mine told me at the BBQ Saturday night. He talked to these 3 people with no luck.


1. The Loan broker: We got seven appraisers right behind you that don’t charge for more for extra comps…..You want more work don’t you.

2. The Borrower: What more money, I already paid you $350 and that itself was outrageous! Sounds like part of your job… I knew I should have gone with that big lender that has the TV commercial…. They advertise No appraisal fee.


3. The direct lender that might fund the loan: That’s right we need 3 more closed sales, 2 more listings, and 1 pending. We are not paying you anything; it’s between you and the broker. Ever heard of our “Do Not Use” list?? That’s were the appraisers that ask for more money end up.

m2:

 

[liznindy]

I guess it is a business decision....I would and do provide an (count 1) additional comp when requested...if there is one. I rarely get these requests. I do not charge for one comp.

If I had a client who asked for the number of comps as noted in number 3 of your post, I would definitely charge and the fee would be at least $150 with no photos provided.

 

[Tom Foster]

So who would you collect the $150 from ?

 

[panappr]

Obviously this falls on the loan brokers shoulders...good luck with that.

 

[Lysander in Charlotte]

Tom, It would have been better not to have discussed additional fees with anyone but your client, the broker. You quote the additional fee for the additional work. Where he gets the fee is his concern, not yours. The broker may pass it along to the borrower or absorb it. It's not your concern. The wholesaler is not going to be involved.

 

[JTFAPP]

Thats a tough position, and it stinks that were threatened with the do not use, or do you want more business ( puppy dog treatment). I normally do 1 or 2 additional comps as part of supporting the service, but when there just unreasonable, or theres not any better data, then theres an issue. When there is lousy additional data, and they still demand it, I lay it out with a blurb saying these were at the lenders request and are not good comparables. Maybe if there requesting that much additional info, its not the appraisal at all, and there just fishing for reasons not to do the loan ????

 

[liznindy]

I would collect from the client, if they still want the additional data (probably, they won't want the additional data if there is a fee?!).

NOTE: it is not unusual for my reports to have more than 3 comps anyway.

 

[starmansf]

Whoever wants the extra comps? Whoever has the money? The lender won't pay. The broker might pay, just to keep their client happy. It's usually an argument between the borrower and the broker.

It's not my problem. I just refuse to do any additional work until somebody pays me. I accept cash, personal checks made out directly to me, or Visa/Mastercard. No payment, no report.

 

[starmansf]

ps. I have yet to lose this argument.

 

[Appraisal Santa Fe]

I've been running 4 comps and one listing in all my reports lately and have not had any requests for additional comps... If they did, I think Lizlindy has the right idea.

RC