Appraiser and AMC Fee Survey Results Announced
TALCB is pleased to announce the results of the 2017 Appraiser and AMC Fee Survey. TALCB engaged the Hobby School of Public Affairs at the University of Houston and the Real Estate Center at Texas A&M University to conduct a survey to learn more about the practices of appraisers and appraisal management companies (AMCs) that operate in the state of Texas. A total of 1,038 appraisers and 59 appraisal management companies doing business in the state of Texas participated in the survey. Among other goals, the questions were specifically designed to distinguish between the fees paid to appraisers by AMCs and fees paid by non-AMC clients for residential appraisals and capture any difference in fees paid by property type or other factors. Additionally, the survey looks at the impact on fees by market area, appraiser qualifications, and distance traveled for assignments.
The full results of the survey show a wide range of valuable information for all appraisers, AMCs and consumers. Some key highlights include:
- That the majority of respondents received between $350 to $500 for residential appraisals from AMCs and between $400 and $500 from lenders, individuals, or other non-appraisal management companies.
- 28 percent of respondent appraisers did not complete assignments for appraisal management companies, which slightly increased from 25 percent in 2015. By contrast, 5 percent exclusively completed appraisals for appraisal management companies, which were the same as that in 2015.
- The percentages in 2017 were similar to the proportion of 2015 and showed that 47 percent of respondents accomplished at least half of their assignments for lenders, individuals, or other non-appraisal management companies and 51 percent accomplished half or less.
the factors that would likely lead to an increased fee included a complex property (91 percent), a property that would require greater travel to complete the appraisal (85 percent), a large property (80 percent), and a property in a rural location (68 percent). By contrast, the factors that would not affect the fee included a property in an urban location (79 percent), a property in a low cost-of-living area (78 percent), a property with many appraisers in the area available to do the appraisal (73 percent), a property in a high cost-of-living area (57 percent), and an appraiser with greater experience (51 percent).
Nearly all appraisal management companies (95 percent) reported 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 83 percent indicating the large size of the property as affecting the fee. 78 percent of appraisal management companies also indicated that an increase in fee was also related to a greater distance traveled to complete the appraisal.
63 percent of appraisal management companies mentioned that appraisers turned down appraisal assignments for them because the fee was too low, which was higher than that of 2015 by 11 percent but was similar to that of 2012 (64 percent).
In addition, we have published the previous survey results:
TALCB thanks the University of Houston and the Real Estate Center at Texas A&M for their assistance in conducting this important survey. The agency would also like to thank all those who participated in the survey. Information included in these findings will be essential for the agency's continued mission of consumer protection and enforcement.