Commercial Fees Taking a Hit, Revision Requests & C&R Fees
Fee for commercial appraisals cut in half
Metro West is an AMC entering the Virginia Commercial world. They are coming on strong as they have viable operations in other states. I heard that in the states they are presently in, the fee for a commercial appraisal has been cut in half. Like I said before, it’s only a matter of time. Will Virginia establish a C&R fee for a commercial report?
Customary & Reasonable Fee
Since Virginia enacted the C&R fee rule, I have gotten a lot of emails from appraisers asking when can they charge more. “When can I get my raise”? I go back to “Know what you are worth”. If you want to make $5.00 per hour, charge $5.00 per hour. You will probably be very busy. If you want to make $200 per hour, charge $200 per hour. The market will tell you what you are worth. But if you want to stop doing appraisals for $225, STOP taking the order. The state has nothing to do with it. Know your client, your market, your abilities. If you are unhappy, change the three factors. Improve your ability. That is the easiest one.
Updates and Upgrades
Updates and upgrades, we all get them. Then when we accept them, there is a learning curve. It always seems more steps are involved. Years ago, an order would come on the fax. The secretary would assign it. The appraiser would do it. And then is was shipped to the lender. Now, you must bid it, win the bid, go inspect it (because you are the assigned appraiser and you can not give it to your employee, so why have an employee), write it up, send it, revise it, revise it, revise it, and then just before closing, an addendum arrives changing the closing costs…. By far an upgrade.
Corelogic is taking over the data world. MLS’s are changing – It’s a better system – It will do more. Great, but what used to take 3 clicks of the mouse now takes 8. Don’t even get me started on passwords. I have used all my pets, kids, cars, and relatives names. I have run out.
By Alex Uminski, VaCAP Treasurer
- AMC Engagement Letter: Appraisers Do Not Include Your Invoice - July 28, 2023
- We the People… - April 9, 2023
- Federal Valuation Agency Impact on Appraisers & the Public - July 22, 2022