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Would you be ok if someone erected a toll booth on your commute charging $20 one way and saying "if you don't like it, just walk".
Just because some racketeering practice exists doesn't mean we should be ok with it.
Bad analogy. Tax payers as a whole paid for the road. You want to borrow (presumably) a large sum of money for which the value of the collateral needs to be established.
I've been appraising homes for 26 years and I wouldn't get out of my chair for $ 50/hour. Tomorrow's job is a 4,400 sq ft home for $ 950. The whole thing will take about 5 hours.
Last I had my house appraised was when the refinance company asked for it, and even paid for it, back in December of 2016. Granted since I bought in 2010 the value has over doubled. But I can't shake off this weird feeling that this is a bit of a add/subtract game. Refinance company appraised the home at a certain number. Then they sent out the appraiser who, somehow, came exactly at the that same number. Backtrack to my 1st appraisal when I bought, I offered 20k over asking, mostly due to investors snapping up places left and right, with cash. Somehow the appraiser came to the same valuation... asking+20k.
Appraisers are required to have a Bachelor's degree.
Appraisers must work as a trainee for a minimum of two years before being qualified to sign off on appraisals. After that, the majority of lenders require 5+ years experience before hiring them.
There is a significant amount of research and analysis needed for every appraisal.
The actual appraiser only gets a portion of the $700 - $800 fee you are paying.
Despite significant increases in licensing, education, reporting and liability, the average cost of an appraisal has only increased about $100 over the last 20+/- years, in my area.
You're getting a deal, as expert appraisal consulting fees are $200 to $250/hr.
Not necessarily. The rest is correct. And I agree with everyone else. It takes skill and outside research to perform an accurate appraisal. That's where the cost comes in.
From what I know, it's about 2-3hrs worth of work. At $25/hr for a non-diploma type education clerk work that requires minimal skill and zero intellectual work and 50% company fee this should not exceed $150.
How on Earth did we end up eating $700-800 fees and thinking it's ok?
Well, that's because people aren't going to go through the training and requirements for $25 an hour. Appraisers are independent contractors so $25 an hour isn't going to cut it. They have to pay taxes, continuing education, licensing, business expenses, etc. $25 an hour won't even cover the costs of running the business.
Most states disagree with you on what an appraiser is and the qualifications to be one. As such, people with a bachelor's degree who run all over the place expect more than $25 an hour. I can tell you that if you understood what it was really like to be an appraiser you wouldn't do that work for $25 an hour.
From what I know, it's about 2-3hrs worth of work. At $25/hr for a non-diploma type education clerk work that requires minimal skill and zero intellectual work and 50% company fee this should not exceed $150.
How on Earth did we end up eating $700-800 fees and thinking it's ok?
I'll try to answer the question both for you, and for the people who got offended by your question.
Amateurization (look it up) is a popular practice in many lines of work, and companies will try to go this route any time there's a chance they can get away with it.
There are four levels this individual could fall under:
- Trainee (must work directly supervised by a certified appraiser in good standing)
- Licensed residential (must possess 2000 hours experience across no fewer than 12 months)
- Certified residential (must possess 2500 hours experience across no fewer than 24 months)
- Certified general (must possess 3000 hours experience across no fewer than 30 months)
Never mind the price point as an absolute value, if you feel the individual brings less value than the price you're being charged, there's no harm in asking for the employee's specific title and manager's name to get a better idea of who is being assigned to handle your request. Do you think the individual who shows up pockets the entire sum? Whether independent or working for someone, Uncle Sam always gets a healthy cut.
That being said, you're not the first person I've seen attempt to minimize someone's job when you didn't like the asking price. It happens to all professions:
- "That guy at the Ford factory isn't worth $36 an hour, all he does is turn a wrench!" (Refusing to acknowledge he's part of a profitable, streamlined operation cranking out a $40,000 truck every minute)
- "That girl bringing us food isn't worth $20, that's $5 each time she walked up to our table!" (Refusing to acknowledge your party of 8 ordered $120 of food)
Maybe because you don't know them personally, maybe they don't seem real to you, or don't appear to have real needs, but they do. These jobs, including the one you're asking about, are performed by ADULTS, not kids living under someone else's roof. I'm sure if you would like a lower price, you can lobby your congressman to vote to repeal the standards and requirements for appraisers, and THEN you can get a high schooler working a summer job to give you his best estimate of what a home is worth for $50. Maybe you can convince him to do it for free, and he's gaining "valuable experience".
Because you are paying for their training, certification and expertise and a good one will be looking out for your best interests and examine a house for all sorts of issues and then give a buyer a thorough report.
I would not want to buy a house without a home inspection.
Hmmm. You do realize that you are the only one here discussing house inspections, right?
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