Appraisal Fee Study – Louisiana
Louisiana Appraisal Fee Study
The Business Research Center at Southeastern Louisiana University conducted an online survey of mortgage lenders with offices in Louisiana and licensed Louisiana real estate appraisers to collect information on typical residential real estate appraisal fees paid in Louisiana in 2012. Appraisal fee data were restricted to appraisal fees paid directly to licensed appraisers (i.e., not routed through appraisal management companies (AMCs)), per guidance of relevant federal regulations for determining “customary and reasonable” fees.
Useable responses were received from 113 mortgage lenders located in 25 parishes (plus out-of-state) and 383 appraisers with primary offices in 38 parishes (plus out-of-state). Appraisal fee data were provided for properties located in all 64 parishes.
Typical appraisal fees were collected for five appraisal types for properties in urban, suburban, and rural locations. Median fees were analyzed by region of the state based on geographic designations by the Governor’s Office of Homeland Security and Emergency Preparedness (GOHSEP).
The five appraisal types for which typical fees were collected 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)
Median fees across all regions ranged from a low of $300 – $350 for Form 2055 appraisals to a high of $500 – $650 for Form 1025 appraisals.
There was little difference in median fees for urban and suburban properties, while fees for rural properties tended to be somewhat higher.
There was significant variation in typical fees between regions, precluding the use of statewide averages for any appraisal type.
Although there was much variation depending on property details, the median typical large/complex property fee adjustment was $125, while the additional distance fee ranged from $25 for travel distances of 16-25 miles to $100 for distances of 51 miles and over.
Louisiana Residential Real Estate Appraisal Fee Study – May 2013
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Check it out; I performed my own study. / The number of lenders or amc’s who will ever get a 10k/20k fine for purveying orders below customary and reasonable fee levels; 0 / These fee studies are worthwhile and interesting, hopefully providing insight and guidance to appraisers who are being taken advantage of by amc’s and discount fee requests. But I’d bet that there are amc’s purveying orders below these known customary and reasonable fee rates, that got sent out today, yesterday, and will be sent tomorrow. In every state, regardless of existing fee surveys.
I just got “fired” by Clear Capital, because I asked for a fee increase of the $250 fee they offered. The median fee for an appraisal is $350. They say other appraisers would do it for less.
Is this system REALLY helps to the homeowner?
Cali, being ‘fired’ by someone that pays FAR LESS than is reasonable OR customary is a badge of honor. File a complaint with CFPB just so they have it on file. Eventually, if enough of us do the same, they will start looking at that AMC more closely. Theer ARE a few decent AMCs out there. Go focus on getting work from them.
reasonable and customary fees are a farse. here locally, i get orders to do 1004’s for anywhere from $300 to $425. i am sorry, where is this “reasonable and customary” data coming from?
i asked for an fee increase from an AMC the other day who wants to pay me $275 for a 1004. their response was “if you want more work, you need to lower your fee”.
yeah, that sounds real reasonable and customary to me . . . . .
I don’t doubt the intent of the study was to produce an honest estimate of what is “reasonable”, but all it actually provided was a study of what appraisers are willing to work for in an environment that is already artificially kept low by those very AMCs they kept out of the study.
I charged $450 in 2008 for non complex SFRs; BEFORE 1004MC and UAD, and all the steps necessary to properly analyze the market impact of solar panels. BEFORE we had to pay $15 per report for meaningless regression summaries and graphs to make it look like our adjustments were “supported” (by something-whether THAT support is “market” perception or not). Before we had to pay per use fees for flood maps. Before we had to learn a new reporting language (UAD) which is so misleading that it requires its own two pages of definitions in every single appraisal report!
Mortgage brokers acting as their own AMC are only a little different in that they can be talked with, though bottom line is that they still want a specific value within a specific time frame and for a specific amount. I bet the survey didn’t account for that at all.
I’ve said it before. Customary does NOT equate to reasonable! Follow the federal General Service pay scale if you want ‘reasonable’. That would put the low end of a non complex SFR somewhere around $600 to $650.
Another note: ANY study based on the type of form the appraisal is reported on rather than the complexity of the work involved is flawed from the beginning.