EXECUTIVE SUMMARY
In August 2012, the Texas Appraisers and Appraisal Management Survey surveyed a total of 1,584 appraisers and 55 appraisal management companies doing business in the state of Texas. The questions were specifically designed to achieve the following:
– Clearly distinguish between the fees paid to appraisers by Appraisal Management Companies (AMCs) 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.
A brief highlight of the survey results follows:
– Three out of ten or 30 percent respondent appraisers do not complete assignments for Appraisal Management Companies compared to 6 percent who exclusively do. Fortyone percent of respondents complete at least half of their assignments for Appraisal Management Companies; 57 percent complete half or less. Nearly one-fifth (18%) of respondent appraisers complete appraisals exclusively for lenders, individuals, or other non-Appraisal Management Companies. A similar number (15%) do not complete any appraisals for lenders, individuals, or other non-Appraisal Management Companies, with 45 percent completing between 50 and 100 percent, and 52 percent completing between 0 and 50 percent. The majority of respondent appraisers received between $300 to $450 for a residential appraisal from Appraisal Management Companies, compared to receiving $350 to $450 from lenders, individuals, or other non-Appraisal Management
Companies.
– Ninety-eight percent of Appraisal Management Companies noted that the complexity of the property would cause an increase in the fee followed by 85 percent citing the location being in a rural area and the large size of the property as affecting the fee. An
increase in fee is also associated with a greater distance traveled to complete the appraisal. According to 82 percent of the respondents, one factor that would not affect the fee is the property being located in a low cost-of-living area.
EXECUTIVE SUMMARY
In August 2012, the Texas Appraisers and Appraisal Management Survey surveyed a total of 1,584 appraisers and 55 appraisal management companies doing business in the state of Texas. The questions were specifically designed to achieve the following:
– Clearly distinguish between the fees paid to appraisers by Appraisal Management Companies (AMCs) 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.
A brief highlight of the survey results follows:
– Three out of ten or 30 percent respondent appraisers do not complete assignments for Appraisal Management Companies compared to 6 percent who exclusively do. Fortyone percent of respondents complete at least half of their assignments for Appraisal Management Companies; 57 percent complete half or less. Nearly one-fifth (18%) of respondent appraisers complete appraisals exclusively for lenders, individuals, or other non-Appraisal Management Companies. A similar number (15%) do not complete any appraisals for lenders, individuals, or other non-Appraisal Management Companies, with 45 percent completing between 50 and 100 percent, and 52 percent completing between 0 and 50 percent. The majority of respondent appraisers received between $300 to $450 for a residential appraisal from Appraisal Management Companies, compared to receiving $350 to $450 from lenders, individuals, or other non-Appraisal Management Companies.
– Ninety-eight percent of Appraisal Management Companies noted that the complexity of the property would cause an increase in the fee followed by 85 percent citing the location being in a rural area and the large size of the property as affecting the fee. An increase in fee is also associated with a greater distance traveled to complete the appraisal. According to 82 percent of the respondents, one factor that would not affect the fee is the property being located in a low cost-of-living area.
– Appraisers reported that factors that would likely result in an increased fee included a property in a rural location (63%), a large property (75%), a complex property (85%), and a property that would require greater travel to complete the appraisal (80%). The factors
that would not affect the fee included a property in an urban location (81%), a property in a high cost-of-living area (60%), a property in a low cost-of-living area (79%), a property with many appraisers in the area available to do the appraisal (72%), and an appraiser with greater experience (53%). Few factors would have the impact of decreasing fees, but 11 percent of respondents stated that having many appraisers in the area to do the work would decrease their fee.
– According to the respondent AMCs, the most important factors when selecting a residential appraiser were the appraiser’s experience (84%), followed by the previous experience for the company (76%) and the reputation for quality work (73%). Seventytwo percent of appraisers responded that their higher fees are due to refusing to work for less. Two-thirds (66%) stated that more experience was the reason for higher fees. Forty percent responded that having a specialization allows them to charge higher fees.
– The vast plurality (42%) of respondent appraisers completed assignments within 50 miles of their city. Sixteen percent complete assignments within 100 miles, while 10 percent complete assignments regardless of their location.
– Nearly all respondent appraisers (96%) hold a current license to conduct appraisals in Texas. More than three-fourths (76%) of respondents are male and 21 percent are female (3 percent refused to answer). Eighty-five percent of the respondents are white (including those of Hispanic origin). Five percent of the respondents are of Hispanic origin and 2 percent are African American. Fifty-three percent of the respondent appraisers have completed a bachelor’s degree, with 13 percent achieving a master’s degree and 2 percent completing a professional or doctorate degree.
To read the entire report – PLEASE CLICK HERE
