Appraisal Cost Archives

Buyer’s Market: The tides are changing and we are seeing what has the earmarks of a seller’s market rather than a buyers market. What does the mean to buyer’s and seller’s and what effect does it have on value?

Sellers Market:

A seller’s market is what you have when demand is greater than the supply. Consumers are willing and able to spend more on real estate, so sellers will often see several consumer buyers competing to buy their property, which drives up the price. This means that buyers will have to spend more to get what they want. This is the ideal situation for sellers because they get a more favorable price for their homes.

Buyers Market:

A buyer’s market is the opposite and is what you get when there is greater supply than demand. There are more people offering to sell houses than there are people wanting to buy houses. In a buyer’s market, sellers may have to accept a lower price than they want to sell their home and may have to resort to offering monetary incentives. This is the ideal situation for buyers because they can get a great deal.

The change in tides makes this a favorable time for sellers to offer their homes for sale. They are more likely to obtain a higher selling price if buyers are competing to purchase a limited number of offerings. On a regular basis I am receiving reports that homeowners are receiving multiple offers. Many times the multiple offers are received within a few days of one another. The listing time is becoming shorter and shorter and overall the values have increased.

Priority Appraisal and Mortgage Services Inc. is a residential appraisal firm experience in all areas of residential appraising in the Tampa Bay area. Focused in the Pasco, Pinellas and Hillsborough counties for the past 14 years. At Priority Appraisal and Mortgage Services, Inc. our customers are out priority. We provide fast accurate appraisals in a timely manner. We go above and beyond to fulfill your needs with any and all additional market information to serve your requirements. For more appraisal info visit: http://PriorityAppraisalandMortgageServicesInc.appraiserxsites.com or call Shari Peterman directly at 727-505-6706. I look forward to hearing from you.

Appraisal Cost

The appraisal cost how much? Consumers purchasing real estate have noticed that the fee for the appraisal on the HUD-1 statement has increased significantly in recent years? Appraisal fees in our market at the time of the boom (mid to late 2000’s) were around $350 for the typical appraisal. That same appraisal costs the consumer $500 to $600 in the current market. Wow the appraisal business must be great, right? Wrong!

The HUD-1, the transparency document that keeps everything out in the open? Typically, this is misleading at best in the area of appraisals. Appraisers are paid $200 to $375 for that appraisal. The balance of $500 to $600 is goes right in the pocket of the entity that sent the order. The delivery portal of the AMC often requires a payment from the appraiser to send the report for review and submission to the lender.

AMC’s

You may wonder why this system is the way it is. When the market “crashed” provisions were set in place to ensure that persons involved with the loan could not entice appraisers to inflate the value. These revised provisions include a “middleman” to order appraisals. Therefore, this brought about the birth of the Appraisal Management Companies (AMC’s).

These AMC’s are the ones keeping a large percentage of the consumer’s appraisal fee payment. The curious fact about this legislation that since its inception, the legislation has expired, and these practices are no longer required…but for some unknown reason…the practice still continues.

What is a consumer to do? Ask questions! There are lenders out there that are not in the business of overcharging their patrons. Therefore, many have departments set up to order appraisals and manage the situation to ensure no coercion takes place and guess what, the fee they charge actually goes to the appraiser. This means the consumer pays the reasonable and customary fee that the appraiser receives not some inflated fee that goes to some entity that is of no benefit to the consumer.

For more appraisal info visit: http://PriorityAppraisalandMortgageServicesInc.appraiserxsites.com or call Shari Peterman directly at 727-505-6706. I look forward to hearing from you.