Is Scope Creep Eating Your Profits?

Excerpted from: Appraisal Buzz
Author: Steve Papin

"Second only to fee erosion, “scope creep” is the current scourge of the appraisal industry. Over recent years report content has expanded. Appraisers are ready, willing, and able to write longer and stronger reports, but compensation has not kept up with increased report writing time.

Scope creep is additional assignment conditions requested by a client not considered, or believed necessary by the appraiser when determining the scope of work sufficient to produce a credible appraisal report. Thus, these assignment conditions are not considered by the appraiser when he or she is engaged and negotiates the appraisal fee.

The expanded appraisal report can be broken down into the good, the bad, and the ugly."

The rest is here.

Steve Papin has been a residential appraiser in Cincinnati, Ohio since 1976. Steve is the 2011 Vice President of the Ohio Coalition of Appraisal Professionals and is a founding member and manager of the Appraisal Group of Cincinnati (a casual trade group.) Contact Steve@PapinAppraisal.com.