Why is everything else increasing in cost and appraisal fees are not?

[Ray Miller]

Why is everything else increasing in cost and appraisal fees are not?????

Bobbie (the boss) has been doing some comparison shopping this past week. What is finding in the Animal Health and Western English Tack and the Western, English Life Style is cost of items has gone up as much as 35% in the past quarter. It is running between 5% to 35% with the average being 20%.

Now this week, because I was on the road and one of my favorite lunches is “Double Cheese Burger” for a Buck at all your quick food giants and Dairy Queen in the area I cover. Well no more. They have all gone to a $1.19 or $1.20. I also notice an increase at other “quick trip” stores. It seems like everything has taken about a 20% increase in cost. One or two ways, a reduction in weight of product or an increase in cost.

Then I look at the appraisal industry/profession for Residential and find that it is still downward spiral for fees, with cost of business going up.

When will the bottom feeders learn the real cost of doing business??????

 

[Lee Lansford]

To answer your question:

#1: There's an over-supply of appraisers.

#2: Too many appraisers compete for work based solely upon their fee (low).

#3: Too many users of our services believe that one licensed appraiser is pretty much the same as the other...so, why pay more?

#4: Too many users of our services have little respect for what we (that is, the competent and ethical appraiser) do.

 

[NC Appraising]

Technology

I agree with Lee, and I'll add technology.

 

[GCJim]

I agree with Lee, and I'll add technology.

I haven't done a formal analysis, but I would argue that technology has INCREASED costs for appraisers (computers, software, printers, ink, paper, high speed internet subscription, numerous MLS service subscriptions, cell-phone subscription, Express Mail account, and on and on.) Add to that the cost of automobiles, auto service, gasoline, tolls, ad nauseum.........appraisal fees have not kept up with costs.

Technology has certainly enabled appraisers to do MORE appraisals in less time, but the expenses have risen dramatically from the old days of typing reports in a typewriter and pasting in actual photo prints.

 

[OSU Beavers]

I have reduced the weight of my appraisals over the past few years

 

[Vermonter]

I can tell you I've gotten a big increase in requests in the last 2 weeks along with a disturbing increase of those offering absolutely insulting fees.

 

[The Warrior Monk]

Our fees have gone up over the years. But we've also made a decision to focus on areas of the business where expertise matters, and where the competetition is less. We will still take work in the residential lending arena, but clients have to pay our fees. The one exception is AMCs; we're simply not interested in dealing with them.

 

[Stone]

Our fees have gone up over the years. But we've also made a decision to focus on areas of the business where expertise matters, and where the competetition is less. We will still take work in the residential lending arena, but clients have to pay our fees. The one exception is AMCs; we're simply not interested in dealing with them.

I agree with David. Our fees have gone up, though not as much as they probably should.

 

[Couch Potato]

My fees are up. I have no clue why others have not done likewise, but they are free to do what they want.

 

[wickedness1]

My fees are up. I have no clue why others have not done likewise, but they are free to do what they want.

We raised our fees by $50 the first of the year as well.

We're to the point that if LO's find someone "cheaper" instead of realizing how important a "clean" report is then that's their problem. Ohio has new laws that hold the LO's just as accountable as the appraisers for inflated values on loans. I think when some LO's get charged with over valuing in Ohio, they'll start to understand the concept of "clean" appraisals better, lol. This will take a while though, I'm sure.

We can't work for peanuts. $60-75 bucks in a tank a few times a week to make $100-150 an appraisal is nuts!