Here’s Your Cash Flow Business Tip of the Week

In last week’s Tip, I began discussing the two major decision areas when pricing and charging for a note appraisal referred by a financial professional.

Let’s continue. The second major decision area is what to do about your fee when the note holder decides to sell. Last week, I addressed the fine line we walk regarding converting an appraisal to a brokerage transaction. If the note holder decides that they would like to sell immediately, I think it is fair and reasonable not to charge for the appraisal. Your brokerage fee will be more than fair compensation. If the request for your brokerage service comes a year after the appraisal, there probably shouldn’t even be a discussion regarding the fee you already earned. I believe the cutoff time should be somewhere in the 90-day area. Everybody has to make his or her own policy. You should be flexible. Remember one of the major reasons for doing appraisals is to build relationships.
P.S. If you are interested in becoming certified as a Note Appraiser, you can learn more here.

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