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.