Comments on: How To Charge Cancellation Fees

By: Baggins

Baggins — Mon, 24 Sep 2018 21:33:14 +0000

Sure in a perfect world. I’ve heard this response multiple times by aggressive panel managers;

If the engagement terms do not work for you, we can move down the line to a different appraiser.

The new thing is that the waiver for appraisal services is sought after they order the appraisal.

The hits keep on coming from every direction and I simply do not believe that when dealing with mortgage lenders, appraisers have as a rule of thumb, the power to charge these fees or set reasonable terms.

By: RICHARD BRONSTEIN

RICHARD BRONSTEIN — Mon, 24 Sep 2018 20:14:05 +0000

Charging trip fees is standard operating procedure. Sometimes we are able to charge for preparation work on cancelled appraisals. One should be compensated for work completed preparing for appraisals. In addition it is my opinion that AMCs should be charged for requested bids. They take up you time checking and use your bid to achieve lower fees from others. If you do not check in advance, you will receive problem assignments that may be more work than they are worth.

It is suggested that a bid fee that is credited against the total appraisal fee become an industry standard. This would limit soliciting many appraisers on the same property and selecting the cheapest not necessarily the most competent.

It has also become a policy to charge for revisions that are due to the client’s errors, or unnecessary revision requests, particularly when there are secondary and tertiary reviews or revisions for items not addressed in the first revision request.

By: David

David — Wed, 19 Sep 2018 22:24:20 +0000

I always tell them that the appraisal is complete, too late. That does mean you have 24 hours to complete it – NO PROBLEM! Have not been stiffed yet!

By: Bill Johnson

Bill Johnson — Wed, 19 Sep 2018 20:20:23 +0000

I work from a 10 to 20% rule of thumb, meaning all of my clients get updates as each +/- 10 to 20% of the estimated time to complete the assignment gets done. In some cases, (local property, purchase (recent interior photos), agent interview, already drove by to look at exterior, past model match sketch in hand, etc.), I can bill for 75% of my total fee prior to the physical inspection. It’s much easier to collect ones value (work completed), while documenting as you go, then to receive a cancellation notice and after the fact try to prove your work completed. As most of my work comes from the VA, I also include their verbiage relating to cancellations.

“Cancellations – Lenders must notify the fee appraiser and VA if a case is to be cancelled. A reasonable fee for partial work already performed may be charged at the discretion of the appraiser. Appraisers who have completed the appraisal report may charge the full fee.”

Seek the truth.

By: Koma

Koma — Wed, 19 Sep 2018 17:35:10 +0000

No problems here. You work for reputable companies then there will be no problems. Happened to me once in ten years and learned what to look out for. Money well spent so to speak.

By: Al

Al — Wed, 19 Sep 2018 16:45:17 +0000

I have no had problems getting paid for my time when a assignment is cancelled. Based on the level or work. I provide documents of what this entailed; MLS or Sale/Listing sheets, subject property profile, and if any field work photos of the comps, and the subject, they called me just as I was getting out the car door. I add a little for creating this file. I have gotten 40-60% of my fee base on the level of work. What I have is this need to be done within the 24 hours of the notice and a call to the process immediately after I get the notice. This has worked for me even for the ones that state their low cancellation fee.

By: Lori Alexandra on Facebook

Lori Alexandra on Facebook — Wed, 19 Sep 2018 15:18:27 +0000

Lenders have no problem cancelling the day before a due date or the day of the due date. Mind boggling.

By: Philip Gray on Facebook

Philip Gray on Facebook — Wed, 19 Sep 2018 13:47:58 +0000

I was told by a lawyer to have a “Cancellation Policy” published on your website and stick to it. Here is mine as a sample -> https://www.porchlightappraisal.com/cancellation-policy