Appraisal Articles

Can you believe it?

In this day and age with gas prices going up, up, up and fewer appraisers entering the field due to stricter requirements, it is hard to believe we still have to deal with pressure from lenders on our fees, using “other appraisers” fees against us…

Can you believe it?

What some appraisers don't realize is that they should be working smarter not harder, and certainly not harder for less. If they raised their fees a little they would find that they can control the flow of appraisals better.

For instance if they charged $400, a hypothetical amount for the purpose of this illustration, rather than $250, for example, they could be making 37.5% more per appraisal.

$400 x 30 = $12,000/$250 x 30 is $7,500.

Annualized the difference is:

$400 x 30 x 12 = $144,000

versus $250 x 30 x12 = $90,000

So basically they are leaving $54,000 on the table. I would be the first person to agree that 90k a year is nothing to sneeze at. However what is the hidden cost of doing business at these rates?

1) Undercutting fellow appraisers out to push the appraisal industry in to the next century rather than return to the dark ages

2) Denigrating the profession by accepting lesser fees; implies our services are not worthwhile

3) Enabling AMCs! AMCs profit when individual appraisers pay our own E and O, our self-paid benefits, our computer software, and MLS dues. It allows them to have "0" overhead, "0" liability, 100% profit. They can turn around and charge "normal" rates for those discounting their fees because they have enabled them to do so. The appraiser takes 100% of the responsibility for the costs of producing the appraisal and 100% of the liability, and the AMCS get 100% return on their investment because it cost them NOTHING>>>>

IF the same appraiser would simply charge more, they could do 12 less appraisals a MONTH. 12! Versus 30, at a lesser fee! That is nearly half! In other words they could work less and make more, not undercut their fellow appraisers, not enable AMCs, and promote the appraisal profession rather than denigrating it.

MY OPINION, of course....

Comments? send me an email.

Amanda Rivera