Dave Towne On Customary and Reasonable Fees, August 24, 2010 Update

http://www.realestateappraisertips.info/ – Dave Towne On Customary and Reasonable Fees, August 24, 2010 Update

Appraisers………..

I’m beginning to see all forms of verbiage related to ‘what we call’ our fees. I have been guilty of incorrect use in the past.

I’d like to suggest that all appraisers adopt the ‘legal’ language as contained in the Dodd-Frank Financial Reform law – on page 2215. It says “Lenders and their agents shall compensate fee appraisers at a rate that is Customary and Reasonable for appraisal services…” This, by the way, applies NOW, not at some point in the future.

It’s easy to remember……..C&R Fees. Customary and Reasonable. Not … ‘usual and customary,’ ‘typical and customary,’ ‘typical,’ ‘my usual fee,’ ‘ordinary and acceptable’……..or any other derivation on the theme.

Use Customary and Reasonable. That’s what the law says. If everyone begins using that language it will become ingrained in the psyche of AMC’s and all clients………and appraisers who charge Customary and Reasonable fees for their area.

Customary and Reasonable does not mean the fee some other entity is offering you. It means the fee you need to be in business, to earn a fair profit for your services and pay your overhead….the fee you charge, not necessarily the fee you accept from another outfit that wants to hire you cheaply. Please don’t undersell your service.

Dave Towne
Towne Appraisals
dtowne@fidalgo.net
Mount Vernon, WA
360-708-1196
&
Appraiser Education Service

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