With the rapidly depreciating USD, have you been raising appraisal fees?

[James Mpls]

With the rapidly depreciating dollar, has anyone been contemplating raising appraisal fees on that basis alone? For example, the USD DXY was at 103 in March, but now it is at 90 and, with all indications going further downward in 2021. Prices for everything are rapidly going up (for example, just try to “buy again” on Amazon, compared to something you bought 3-4 months ago). If comparing to March, a $500 appraisal fee should now be $550 based on DXY alone. Thoughts?

 

[Alsie35]

Thoughts? Ummm ... that you appear to have a bit too much time on your hands in this record-low rate environment?

Seriously, way too busy to contemplate anything right now. Our average fees have gone up by around 20% within the past year, so I am not too worried.

 

[jay trotta]

A look back at inflation over the years, I believe M Kennedy posted that at one point; Fee's should have been around $550 at that point, which would indicate higher in todays climate. Probably will only attain those fee's in private work, doing work for lender/AMC does not allow for a Free Market, it's controlled.

 

[Terrel L. Shields]

The low dollar will increase your costs. Since we became energy independent under this administration, you can figure that we may lose that status soon. In that event, we can expect to start paying more and more for oil overseas....especially the premium medium weight oil that the Middle East has lots of and we have much less. (What we export is much lighter crude that we have too much to use here.) It also means that cobalt and lithium for E car batteries we need from overseas is going to cost more. But we probably will be favored in terms of exporting grain and meats. BTW, anyone bought a head of cauliflower lately? It's through the roof here.

 

[andrew81]

this year i raised my fees for all valuation services. final inspection, trip, and cancellation fees remained the same.

 

[Elliott]

A few on here can tell you about inflation in the 70's and when Volker ended it by raising interest rates to 16% (for both borrowers and savers).

FYI: "The all items CPI rose 1.4 percent in 2020. This was smaller than the 2019 increase of 2.3 percent and the smallest December-to-December increase since the 0.7-percent rise in 2015. The index rose at a 1.7- percent average annual rate over the last 10 years.Dec 2, 2020."

Dollars are still useful to buy stuff. I'm not going to stockpile peanut butter.

I raised my standard price a few years ago to about 2/3rds of a K and had more work than I wanted.

 

[Terrel L. Shields]

I'm not going to stockpile peanut butter.

Not without jelly at least

 

[Alsie35]

*SNIP* BTW, anyone bought a head of cauliflower lately? It's through the roof here.

... which is why I say ..."Thank you Uncle Sam for the military commissary" (being a Vet does have its privileges )

[FYI for those with no military background - Commissary prices are probably 30% less across the board than groceries bought "on the economy". The trick is to live near a military base.]

 

[James Mpls]

A few on here can tell you about inflation in the 70's and when Volker ended it by raising interest rates to 16% (for both borrowers and savers).

FYI: "The all items CPI rose 1.4 percent in 2020. This was smaller than the 2019 increase of 2.3 percent and the smallest December-to-December increase since the 0.7-percent rise in 2015. The index rose at a 1.7- percent average annual rate over the last 10 years.Dec 2, 2020."

Dollars are still useful to buy stuff. I'm not going to stockpile peanut butter.

I raised my standard price a few years ago to about 2/3rds of a K and had more work than I wanted.

In OR residential appraisal fees are a little higher in general than here. In MN, fees for a conventional 1004/1073 residential assignment in the TC metro generally run $400-$475. While some of my clients pay $475-$525, it is not the norm.

 

[Ricky LaFleur]

As commercial fees vary a lot, I don't really have standard fees to adjust. But @James Mpls makes a good point, if your wages remain fixed your effective income is gradually decreasing. When work is slow or busy I also have to adjust to keep myself fed, so there's a range I suppose.