Nationwide Appraisal Network Exceeds Average AMC Fees in Texas

Texas recently conducted a study on Appraisal Management Companies and Real Estate Appraisers. 1584 appraisers and 55 AMCs were surveyed on various aspects of valuation services. The questions were designed to determine the following:

• Clearly  distinguish between the fees paid to appraisers by Appraisal Management      Companies and fees paid by non-AMC clients for residential appraisals.
• Capture  any difference in fees paid by property type: single family, condominium,      size or square footage, or other factors.
• Capture the impact on fees by market area or locale: urban vs. rural, (MSAs,      county, zip code, etc.).
• Determine  whether appraiser qualifications (experience, education, specialization)      impact fees paid to appraisers.
• Determine  how far the appraisers travel for an assignment; and if from
  another state or distant region, how much time they spend gathering the  data for the appraisal.
• Determine  what fee structure the AMCs offer appraisers for residential appraisals.
• Determine  whether those fees vary by property type.
• Determine  if there is a difference in the fees they pay based upon urban, rural or      other location factors.
• Determine whether AMCs pay differing fees to appraisers based upon their experience.

While there have been disagreements nationwide regarding appraisal fees since the HVCC and Dodd-Frank Act, I think we can all agree these are questions everyone in the appraisal industry has wanted to know. We now have answers for the state of Texas, thanks to the Texas A&M University Real Estate Center. The results of their study showed that a majority of appraisers reported Appraisal Management Company fees ranged from $300-$450 for a full report, while non-AMC fees ranged from $350-$450 per report. These are very close numbers, with the AMC fees reporting only a slightly lower range. This is a big step in showing appraisal fees in Texas are customary and reasonable. I’m thrilled to report our average fee for a full conventional appraisal is in the range of the non-AMC fees reported in this survey. Nationwide Appraisal Network exceeds average AMC fees in Texas!

AMCs and appraisers cited the following as reasons for fee increases:

• Complex  assignment
• Rural location
• Large property
• Greater distance  traveled to complete appraisal

Have you ever wondered how Appraisal Management Companies select a residential appraiser for an assignment? The 55 Texas AMCs surveyed reported the following as their top three determining factors when assigning an appraisal order, from most important to least:

1. Appraiser’s  experience
2. Previous  experience for the AMC
3. Reputation for  quality work

With 3 out of 5 appraisers reporting at least half of their assignments come from Appraisal Management Companies, it looks like Texas is a good state to be appraising in, especially if you’re on our panel!