http://www.housingwire.com/articles/37275-coestervms-seeks-patent-for-automated-customary-and-reasonable-appraisal-fee-calculator

Appraisers DID come together and oppose an increase in deminimus lending levels; in fact some of us proposed DECREASING it. Once the public hearings are completed, we will know if it had any  effect.

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

Excellent AMC Coester and AMC analysis. Two issues: One is Sherman Anti Trust Act; other is your perception that somehow $499 is max consumes will pay for non complex conforming FNMA loan limit appraisals (unless I misunderstood?).

While Sherman Anti Trust IS serious, it should NEVER preclude you and I from having discussions about what we believe to be reasonable fees based on certain types of assignments, or educational and overhead burdens. We still have (as you also mentioned) First Amendment rights to discuss the issues of the day, even with specificity as to fees. I advocate for a variety of new, but very specific ways to determine specific reasonable fees through the American Guild of Appraisers (OPEIU/AFL-CIO). If you or others choose to accept the touted merits of my pricing arguments, then where is the anti trust violation?

I know from personal experience in the pre widespread days of AMCs that routine non complex can be anywhere from $500 to $650 [California] with generally only mild flinching nearer the upper end, though quoting those fees over $550 are enough to get me shopped. I routinely charged up to about $3,500 for higher end luxury properties until AMCs killed that market with their $750 for desperate appraisers doing $2 million to $4 million appraisals.

Your bigger message though to AMCs is spot on! They COULD and should have been the knights in shining armor on the big old white chargers…instead of being the evil black knights of olde.

Both they and banks have broken business models. Coester will self implode. Banks would do well to have appraisal fee reimbursement policies up to realistic market rates…even if that is up to $5,000. So they build it into the rate.