Study on Customary & Reasonable Fees – Utah
Utah Study on Customary & Reasonable Fees for Residential Appraisals
An online survey of both Utah mortgage lenders and Utah licensed and certified residential real estate appraisers was conducted to discover customary and reasonable fees for residential appraisals throughout Utah for 2013. Federal regulation pertaining to customary and reasonable fee studies specifically “excludes compensation paid to fee appraisers for appraisals ordered by appraisal management companies.” Therefore, this study does not include appraisal fees paid by appraisal management companies to Utah appraisers.
Two surveys, one for lenders and one for appraisers, were prepared to capture the unique demographic and background information of each group; however, the questions pertaining to appraisal fees were identical in both surveys. Specifically, both groups were asked to provide their estimate of typical appraisal fees for 2013 for five different appraisal types for properties located in urban, suburban, and rural areas of the 29 counties in Utah.
The five appraisal types included:
- Form 1004 (full appraisal)
- Form 1004 FHA (full appraisal for FHA)
- Form 1025 (small [1 – 4 units] residential income property appraisal)
- Form 1073 (individual condominium unit appraisal)
- Form 2055 (exterior-only inspection appraisal)
To support this study, as commissioned by the Utah Association of Appraisers (UAA), the Utah Division of Real Estate sent email invitations, including links to the surveys, to all licensed and certified real estate appraisers, as well as to all licensed mortgage lenders, four times over an eight-week period. The first email was sent on April 16, 2014, with each succeeding email sent every two weeks. The surveys were closed on June 11, 2014. The online surveys were hosted by Qualtrics.com. According to the Utah Division of Real Estate, emails were sent to 4,332 mortgage lenders and to 1,434 real estate appraisers.
Utah Residential Appraisal Fee Study