Fellow appraisers, please visit http://mfford.com/html/c___r_fees.htm

Apologies for using my personal site but logistical and time constraints made it necessary.

It is to read a draft proposal for minimum national appraiser fees. I appreciate some believe no one other than themselves should set fees, and I concur. Except, in the real world of today where someone (lenders and AMCs) are ALREADY SETTING your fees. If not directly, then through ruinous less than customary OR reasonable fee competition.

Im interested in your meaningful, constructive feedback as well as comment & discussion here.

For those that insist ONLY regional fees are practical, this same system works for the lowest to highest regions of America. Subtract 13% for low cost areas; add up to 9%+- for higher cost areas.

Operating premises were:

1. AMCs are here to stay. Liked or hated, they are part of the chain now.

2. LENDERS want AMCs to offer one size fits all pricing. This MAY come close to doing so baring complex assignments. Even there, an inferred hourly equivalent is suggested.

3. If WE don’t set “reasonable” minimums for ourselves, then others will do it for us (or to us).

4. Framework allows for and includes inducements for trainees or less than certified appraisers-who have been largely excluded or ignored by AMCs in recent years.

In addition to posting here, PLEASE also email comments to JanBellas@appraisersguild.org

We are going to start reaching out to state coalitions and other appraiser peers groups. We hope to incorporate helpful comments or views in that effort. In the meantime our parent union is already being contacted to see how we can best proceed.

Thank you for taking the time to read and respond. Mike Ford, AGA; OPEIU/AFL-CIO

No problem Wayne, YOUR point was and still is valid. I think we all need to stop referring to sub par appraisal fees as ever being adequate; even in our illustrative written examples. I have also ceased using the phrase ‘customary’ since it merely opens the door to selective parsing. I don’t give a damn what is customary anymore. I’m only concerned with what is reasonable.

Sorry Mike! I was not trying to respond to your post. I know you are not one of those trying to UP our fees to $375. I am with you on the $600-$650 base fee plan. If someone is going to waste time coaching appraisers in determining fees why do they not get real?

Quote: “It is in step 3 that the real magic happens.” “What would it do for you and your business to raise that fee to $375?”

Really?…. $375? Does anyone here go to the grocery store? Have you bought a new set of tires lately? We have not charged $375. in years! Other than VA which is $400. (about 4 a year) the base fee is $450. and it is time to increase that! There is no magic at $375.

You may remember the Eddie Murphy movie…Coming to America. “one day you will move up to fries and that is when the real money begins!”

Today, oil dropped nearly 20% to about $43 a barrel. My gas pump price is still over $4.00 a gallon/ How odd. Supply and demand economics for oil products have simply evaporated in my state due to political and special interest manipulation..

The SAME applies to appraisal in America. Fees ARE being manipulated. The largest AMCs are also members of REVAA which is an AMC Industry Political Action Group. They reportedly charge annual membership fees of $75,000 for their largest voting board members; and monthly dues of $1,000 a month for other AMCs that want to be members too. The high fees keep the riffraff (small AMCs) out of the club.

Yesterday, I received an article from WorkingRE, a publication of my E&O insurance provider reporting on the activities of Coester ( a large East Coast AMC) and Virginia’s AMC regulatory Board. Every appraiser in the country should find & read that article. (Search WorkingRE and Coester)

Recently Coester, an REVAA association member filed suit against the Virginia State Appraisers Board for refusing to approve their AMC license. They allege restraint of trade and a host of other far fetched claims. One is that the VA AMC / Appraiser approval ten member board has 6 appraiser-interest members and only one AMC member (who is also an appraiser) plus the other 3 members. My question would be why there are ANY AMC members on a State board regulating appraisers and companies that control them? Coester and its owner have allegedly had numerous violations of multiple states appraisal rules, regulations, laws and Dodd Frank up and down the southeaster US. These have included operating without valid licenses in states; non disclosure of disciplinary actions by principals of the company and a host of other CONSENT acknowledged violations that should prevent ANYONE from doing business in our industry at all.

Instead of restricting themselves to states where they hold a valid AMC license, they sued and the Virginia State Attorney General is urging the Virginia Board to agree to an extension that would permit this unlicensed company to continue doing AMC work in the state until at least December, 2015. Why is unknown. Clearly the Board took the right steps to begin with.  The State AG should be backing them up in their decision-not acting as a de facto agent for Coester.

I think the Virginia Coalition of Appraisers has done an outstanding job of getting minimally fair treatment of appraisers legislation passed in their state. Several other state’s appraiser groups have done the same thing.

But how many of these state coalitions can afford to take on the REVAA and its war chest? REVAA has made it abundantly clear that they intend to sue individual states AND state coalitions wherever they have to. They will not willingly give up THEIR Large AMC Only monopolies.

More than ever, we all need to come together in a single national appraisal group to oppose this specific trade group, as well as other national scope issues that arise. We should not expect Professional’s State Coalitions to be replaced, but rather to be augmented by their members and others also being members in the only large, unrestricted appraiser protection membership organization in the country today.

I am talking about the American Guild of Appraisers. The AGA is a Guild within the Office and Professional Employees International Union (OPEIU) of the AFL-CIO. Americas oldest union.

Contact Jan Bellas at http://www.appraisersguild.org .Or call 1 (800) 660-1835. We don’t charge anything close to $1,000 a month! Right now, first year membership is only $225 and can be paid in quarterly installments. Normal annual membership is only $375; a LOT less than the oppositions $12,000 a year dues.

If, after reading WorkingRE’s article about this issue you still don’t think you need to join with anyone outside your own peer association, just ask yourself this: “Why didn’t THEY warn me that this is going on?”.

Because they have other more isolated self-interest issues on their radar. They are not focused on ALL of OUR rights as licensed & certified professional appraisers.

The AGA of OPEIU AFL-CIO IS focused.

2009 Fees $400 x 3 = $1,200

Add $300 for HUD Home Inspection

IN REALITY

Leroy hit the nail on the head.  You will be paid the fee that the AMC agrees to pay you (assuming they don’t declare bankruptcy like so many others).