Why are appraisals are so darn expensive? (fees, comparables, price)

[Mounty]

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?

[MrRational]

Originally Posted by Mounty

From what I know, it's about 2-3hrs worth of work (on site).
How on Earth did we end up eating $700-800 fees...?

Where are you?

[dothetwist]

Originally Posted by Mounty

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?

You know very little about being an appraiser. Certifications from the state are normally required and must be maintained.

The number of research hours varies depending on the available comparables for the house in question.

Field time can also add hours to the appraisal, not just at the subject house, but at the comparables as well.

I was a certified appraiser in Virginia prior to my retirement. I was not a private appraiser but a local tax assessor and was required to hold an appraiser certificate as part of my job requirements.

[Charlotteborn]

Originally Posted by Mounty

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?

That's like saying "'I had heart surgery and it only took two hours. Why did it cost so much for two hours of work?".

You need to do some research into what is involved in real estate appraising.

[BoBromhal]

apparently, the OP doesn't understand much about appraisals

[thebigW]

Originally Posted by Mounty

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?

You should have stopped at "From what I know".

An average appraisal takes 6 - 8 hours, plus gas.

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.

[petsandgardens]

Originally Posted by Mounty

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 asked a friend in Washington State if that is where you are and this is what he sent me. If you're in a different state, extrapolate/online search. After a trainee, 2000 to 3000 hours of work, 150 to 300 hours of classes, a bachelor's degree, tests. And you say you're getting a minimal skill zero intellectual person? How did that happen?



Washington Real Estate Appraiser Trainee
Basic Requirements: Must be 18 years or older and submit a completed application
Training Requirements: None
Education Requirements: 79 hours of qualifying education courses
Fee: $200.00
State Required Test: No

Washington Licensed Real Estate Appraiser
Basic Requirements: Must be 18 years or older and submit a completed application
Training Requirements: 2,000 hours of experience in no fewer than 24 months under the supervision of a certified appraiser
Education Requirements: Must have an Associate’s degree OR 30 semester hours of specified courses; 150 hours of qualifying education courses
Fee: $190.00
State Required Test: Yes

Washington Certified Residential Real Estate Appraiser
Basic Requirements: Must be 18 years or older and submit a completed application
Training Requirements: 2,500 hours of appraisal work in no fewer than 24 months under the supervision of a certified appraiser
Education Requirements: Must have an Bachelor’s Degree; 200 hours of qualifying education courses
Fee: $370.00
State Required Test: Yes

Washington General Real Estate Appraiser
Basic Requirements: Must be 18 years or older and submit a completed application
Training Requirements: 3,000 hours of experience in no fewer than 30 months under the supervision of a certified appraiser; 1,500 hours must be non-residential
Education Requirements: Must have a Bachelor’s degree; 300 hours of qualifying education courses
Fee: $370.00
State Required Test: Yes

[FalconheadWest]

What market are you in that the appraisal cost $700-800? It must have been an acreage property because they only get that high when there is acreage involved in my market. Otherwise, they are $450-500.

[Silverfall]

Originally Posted by FalconheadWest

What market are you in that the appraisal cost $700-800? It must have been an acreage property because they only get that high when there is acreage involved in my market. Otherwise, they are $450-500.

They are $750-$950 in my market for normal residential homes. We have an appraiser shortage out here.

[FalconheadWest]

Originally Posted by Silverfall

They are $750-$950 in my market for normal residential homes. We have an appraiser shortage out here.

Dang! Most buyers in the lower price range in my area would never be able to afford that. They beg for sellers to pay their closing costs, but appraisal is outside of closing.