Paying Too Much For Appraisals?
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Why am I paying more than TWICE the amount paid to the appraiser?
I was recently charged/paid $750.00 to have the appraisal completed on the home I was purchasing. With the fees and costs associated with obtaining a mortgage, the appraisal fee was one of little to no concern to me BUT then I received a copy of my appraisal. In accordance with local regulations, the appraiser disclosed the amount he was paid to do the appraisal…$275.00 minus a $15.00 technology fee. I thought to myself why am I paying more than TWICE the amount paid to the person who drove to my presumed residence, took photos, measured my home, and put together an electronic report that was delivered to me by my lender.
My concern is where has this excess amount gone? I called a local appraisal firm and asked the fee to have an appraisal completed on my residence. They responded with a fee of $450.00. I told him that I was charged $750.00 by my lender but the appraiser was paid $275.00. The appraiser explained to me that his fee was reasonable and customary for the area based on the information I provided. I pressed a little harder and he asked me to note the NAME in the LENDER/CLIENT section of the signature section of the appraisal. It read “***”. I never heard of them; however, my lender was noted below. The appraiser uncomfortably chuckled in his response “That’s where the rest of your hard earned money went”.
I inquired with my lender representative who stated “they would look into why the fee was so high”. This in itself was almost an admission of guilt. I wish I had more time to pursue the issue but a ton of personal family matters left my hands tied.
Beware buyers and note your appraisal fees for there is a large amount of what YOU are paying for an APPRAISAL being sent to someone else other than the actual APPRAISER.
By Concerned Consumer – author requested to remain anonymous