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

[Alsie35]

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.

Flexibility is the word. Make sure you save enough during the booms to pay the bills if the slowdown turns into a bust is the system that works long-range.

 

[Ricky LaFleur]

Flexibility is the word. Make sure you save enough during the booms to pay the bills if the slowdown turns into a bust is the system that works long-range.

I've never worked feast or famine before, so it's an adjustment for sure. February and March I was running ragged, then it came to a sudden halt by April. It's hard to enjoy vacation when it isn't planned LOL

 

[Alsie35]

I've never worked feast or famine before, so it's an adjustment for sure. February and March I was running ragged, then it came to a sudden halt by April. It's hard to enjoy vacation when it isn't planned LOL

Its been - more or less - running ragged time around here in NorCal since Feb 2015. No joke. That is what being in a growing market can do. But this past year .... its been insanity cubed, to coin a new term.

 

[Deleted member 134708]

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?

Wow. I did not expect these responses but maybe I did in a sad way.

Looks like, you, me and 7 billion other folks sans this website know how to measure inflation.

A house was $500k 01/01/2020. It is now $600k. This website of professionals says prices/value increased.

7b ppl plus you and I say no. Your dollar lost 20% of its purchasing power is all that happened. Housing isn’t going up, your DXY is going lower. Not sure why this isn’t a known to this site but it is to 7 b ppl.

 

[RCA]

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?

Well, much of that problem is due to the fact that production has slowed due to the pandemic. It's a question of supply/demand.

Most of the countries are going to be printing more money. So, I don't believe that currency exchange rates will necessarily change that much. Of course, in the past year the dollar as gone down in value, but that probably has more to do with psychology - investors think that the US is head towards negative interest rates and a big reason is that the US seriiously needs to rebuild its infrastructure - and that is going to cost. Europe, most of it, already has a very good infrastructure. ...

Inflation however, will go up everywhere pretty much. All governments have to print more money to compensate for the big spending.

So what happens if all countries print a lot more money in equal measure?

1. Not much change in exchange rates.
2 Each currency will buy less per unit of currency.
3. If you owe money to the bank, that is have a mortgage, then the real value of that loan decreases. That should be great news to homeownes with fixed interest rate loans. But, bad news for banks and other lenders.
4. The old money, the wealthy with conservative investments, will see their real wealth decrease. They hate inflation of course.
5. If you are retired, you should get yearly cost of living increases to compensate for inflation.
6. If you are young, you are probably going to struggle. You are not going to get a good loan for a home.

But everything is in the hand of the politicians.

Trump could have saved the situation. Whoever follows in his footsteps would be well-advised to follow the same policies:

1. Protect US jobs with tariffs if necessary.
2. Invest in the Military, but put a brake on them expending (wasting) resources in useless wars. The military should only be a deterrent. It shouldn't be used, that is a big waste of money.
3. Make regulations efficient.
4. Protect the country from invaders from the south.
5. Stimulate and energize the economy with common-sense policies.
....

 

[Fernando]

Recently I found my fee schedule that I use as a guideline for my appraisals back 30 years ago.
For standard homes, the appraisal fee was $300; Rent Survey form $75; and Duplex $500.
My SFR appraisals have more than double and Duplex hasn't reach $1,000. That's why I don't do too many multifamily appraisals.
It was only this year in which I could easily get more than $600 for 1004.
Doesn't feel like our fees have kept up with inflation.

 

[Basically Rectangular]

A lender told me the other day that their appraisal fees were the only fees which have not increased over the past few years.

 

[Fernando]

Today, my low paying lender which I having worked with in over 3 years blasted me with 12 emails to check their site for orders.
What was that about? Are they desperate for appraiser?
Later I decided to check if orders are sitting in their site.
No orders. There are still appraisers accepting their low fee appraisals. I can't compete with them.

 

[RCA]

I get a lot of AMC requests for bids from the same old companies and some new ones, since forever, - although I never respond. They have picked up dramatically in the past several months.

I still just do Estate appraisals. But who knows. My min fee is $700 though. Take it or leave it.

 

[Alsie35]

I get a lot of AMC requests for bids from the same old companies and some new ones, since forever, - although I never respond. They have picked up dramatically in the past several months.

I still just do Estate appraisals. But who knows. My min fee is $700 though. Take it or leave it.

Nice gig, if you can get it - and if it pays the bills. Fewer people to complain, too.