What is an appraisal “fee shop”?

Most appraisal firms today are “fee shops”. Fee shops are appraisal firms running under a pyramid system where the fee shop owner has less experienced subordinates running around doing the work for them for a fee split of 40% to 50%. In order to pay the fee shop subordinates a reasonable fee split the lead appraiser has to charge higher fees and manage at least four associates to be a financially feasible enterprise.

In order for the fee shop appraiser to review the work of the four associates an extra week or two is typically required for each report. In addition, so much review and deskwork is required to run a fee shop that in many instances the signing appraiser (the appraiser that takes responsibility for your appraisal) rarely inspects many of the properties he is signing off on. As difficult as this may be to believe, this is the typical system in place today.

By going with a non-fee shop, right off the bat, you move from having a less qualified person meeting with your client ... more.

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