A few personal thoughts about home appraisal fees for my appraiser friends….
Times are weird right now…
Mortgage companies are closing their doors with no warning.
AMC’s (Appraisal Management Companies) are offering payment for appraisal services that are equal to fees we received 20 years ago.
And many appraisers are doing their best to make some changes in order to survive what they fear may be coming…. the drought.
Many of us who have been in this industry prior to 2008 have experienced a downturn and a need to reinvent our business.
Basically sink or swim.
It’s never a good idea to make decisions out of fear
If you’re going to change up your entire way of business because you’re afraid you’ll never receive any more lender work then you may not be happy with what you end up doing instead.
If you love doing lender work… there are lots of choices out there that will keep you in consistent work and will also pay you well.
If you’re sick of doing lender work then, it just might be the client that you’re working for….
Also, if you don’t want to get involved with private work because you don’t want to land in court, there is a way to take on jobs that have a better chance of that not happening…
Remember, just because you are doing a divorce appraisal doesn’t mean you will land in court.
But, when it comes to appraisal fees here are my thoughts…
When I’m learning how to do something new in my business because I think that it will bring about a better, different type of business than what I’ve done in the past, then my fees are not super high because I’m learning and I’m growing.
The return that I get on doing that new type of job is part fee and part knowledge.
As I learn more then I can charge more.
Our office has received fees that would make many jaws hit the floor.
Our office has also received fees for jobs that were under bid because we weren’t completely aware of what we were getting into …..
Do I get upset about that? No way!
Because what we will learn on that job will enable us to be better appraisers for the next one….
Which in turn, brings in higher fees.
So, it’s not always about the appraisal fees.
Especially if you’re building a new niche, taking on a new client, expanding your horizons.
It’s about the knowledge that you will gain which will enable you to build a business that gives you the ability to quote whatever fee that you please… High or low…. Based on what it is you plan to either learn or earn from that job.
Also, about an hour of research and/or Continuing Ed every single day goes a long way in giving you the confidence to take on something new and provide a report that is defensible in court.
Last, but not least, get in touch with appraiser friends who support you.
Just my two cents…. Wishing you success!
“Unless you try to do something beyond what you have already mastered, you will never grow.”
Ronald E. Osborn
