I am licensed (2.2) and have had more than enough money left on the table. If there is no guarantee of payment then there is no appraisal. Period. It is either COD or a guarantee by the owner. I am not playing anymore. I lost too much money after March 1 and the subprime collapse. I will not work 16 hours a day and only get paid for 12 hours.
P.S. I have also raised my fees and have only had a couple complain. They would have complained anyway-they didn't have the money.
If you simply agre to pay at closing, you are in violation of USPAP guys, as that is a contingency, and we cannot work for those.
You'd need to word it that you would be paid at closing or on X date, whichever is sooner. Otherwise, you are letting them phrase it in such a way where, if they don't close, you don't get paid.
Also, make certain that you get a signature of a real person, who is agreeing to be liable for the fee.
Appraisal Foundation Website
http://www.appraisalfoundation.org/s_appraisal/bin.asp?CID=12&DID=940&DOC=FILE.PDF
"USPAP does not address the time frame for payment of fees. In the situation described
there must be a clear agreement that the fee cannot depend on the closing of the financing
transaction. Accepting an assignment where the appraisal fee is paid ONLY upon successful
closing of the transaction is a violation of the Management section of the ETHICS
RULE:
It is unethical for an appraiser to accept an assignment, or to have a compensation
arrangement for an assignment, that is contingent on any of the following:
1. the reporting of a predetermined result (e.g., opinion of value);
2. a direction in assignment results that favors the cause of the client;
3. the amount of a value opinion;
4. the attainment of a stipulated result; or
5. the occurrence of a subsequent event directly related to the appraiser’s
opinions and specific to the assignment’s purpose. (Bold added for emphasis)
One way appraisers can avoid any ambiguity is by having a written agreement with the
client detailing the manner in which the appraisal fee will be paid if the transaction does not close."
I think the key here is if you agree to be paid ONLY if the transaction closes. If you make other fee arrangements in case the transaction does not close, then you are fine.
DA,
That is the point I was making. It was phrased in such a way that they were paid at closing. That falls under a contingency. My comment was to ensure that it was quie clear that, regardless of what happens, they get paid, and have a good idea of what day they are to get paid.
I know of one broker who only pays their appraisers if the loan closes and they pay a higher fee for the ones that do close... I know of at least 2 appraisal companies that agree to this setup with them.
Then both those appraisal companies are in violation. Doing work on a contingency is unehtical and a violation of USPAP. If they want to work for free, there is no problem with that. If they want to charge $XXX.oo per appraisal, that is their choice.
But doing it based on a contingency, which is exactly what they are doing, is unethical, and one would have to wonder what else they are skirting/breaking the rules on.
