You need to be more competitive in pricing!

[William Tsai]

I will do it for $1, but my turnaround time will be 99 years after inspection of the subject property. You must pay me at the time of inspection.

Did you get the order?

 

[Riick]

I will do it for $1, but my turnaround time will be 99 years after inspection of the subject property. You must pay me at the time of inspection.

AH the classic !!

"You can have it Fast, Cheap, or Right -- Pick any two."

At $1 @ - 80-100 years sounds about right

 

[luna]

i answered them with something like the following:

yes, we are making sacrifices and i have made mine by reducing my fee to accomodate you. now, i have changed my mind. my fee is now $zzz which will acoomodate MY expenses associated with doing an appraisal

needless to say, i have not rec'd any more work from them

 

[Mike Boyd]

99.9% of lenders pass the cost of the appraisal along to the borrower at closing. I think I would ask them for a copy of the HUD 1 on their last closing to prove their statement that they have reduced fees. A $50 reduction in your fee($375) would be an approximate 15% reduction. If they make an honest (look at garbage fees and Yield Spread Premium and origination fees, discount points, etc) a 15% reduction in THEIR costs to the borrower, I might comply.

This was asked of me early last summer by the loan processor. I asked her if she was receiving less per hour now. She said NO. I told her that was my answer also.

Unfortunately, I have not received anymore new orders from them. Occasionally, I will get a re-order from them for which I charge my regular fee.

 

[Ray Miller]

I am now billing just as my lawyer and doctor bills, as well as other, time and material, plus a fair profit on my investment.

Any thing less and I am just screwing myself out of a fair living.

 

[Mike Kennedy]

Latest from previous client:

"We hope that you have enjoyed our respect for you and the Profession."

"rest assured that we will also be lowering our Levis to the lender"

Cordially,

Senior Vice President."

Dear SVP, it is clear that your letter was evidently intended to be sent to your Best "Vendors in the Other "Professon".

 

[The Argus]

Latest from previous client:

"RE: Appraisal Pricing

Our company has enjoyed working with local real estate appraisers for many years. We hope that you have enjoyed our respect for you and the profession. As banking industry is facing one of the most difficult periods in many years there is increased pressure on pricing, performance, and quality of wotk in general. We know gas prices and the current real estate market is putting pressure on all of you, however, we are facing the realty that we must have more competitive pricing from you. Please email ****** with the lowest fee you are able to complete the following work for. Quality of work cannot be compromised and rest assured that we will also be lowering our fees to the lender

Cordially,

Senior Vice President."

and the beat goes on.

Did you get your bonus check when the bank was making a billion a quarter in profits? I never got a bonus when things were going well, sad that a pay cut is expected when things hit the fan.

 

[TJSum]

Tell them the best way to make it cost effective for everyone involved in the process, the borrower, lender and appraiser is to cut out the useless middleman (AMC). Middle management is the first thing that goes in any cut back, later AMC dudes...

 

[Riick]

-FYI- Mr. AMC Skippy

Just came across an old 1994 price list from one of my Lenders:
SFD - $250
Condo/PUD - $250
2-4 Family - $425
Re-Inspection - $75
Re-Cert Value - $100

This was probably just about the time I went to a digital camera, but still no electronic
.PDF delivery, so net fees were $5-$7 @ lower ((Discount rates - FedEx Drop off))

Plugging in a 3% inflation rate, equal fees today would be:
SFD - $250 à $390
Condo/PUD - $250 à $390
2-4 Family - $425 à $660
Re-Inspection - $75 à $117
Re-Cert Value - $100 à $156

 

[panappr]

Those figures are pretty accurate, I wish I had kept all my old pricing sheets from the 80s though. In 83' I was on a fee split (training) making $75.00 typical URAR. In 1989 I was charging full fee $175.00. This is what many AMCs are expecting us to accept write now.
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