Question It! "Who Got The Appraisal Fee And Why?"
This is an outstanding blog post by Gabrielle Kamahele Rhind, a real estate agent out of Tuscon, AZ.
Mortgage loans are certainly not free and as a consumer you have the right to question just what it is you are paying for. The banks and lenders that are using these practices are directly violating federal lending and RESPA(real estate settlement procedures act)laws. Not to mention giving the entire industry a black eye.
There are exceptions, but a residential property appraisal should be between $300-$400. Great job Gabrielle in not just questioning but posting this blog for everyone else to see.
Recently reviewing a loan estimate with a client, we noticed a pretty significant fee for the appraisal - $525.00. Seemed very high especially knowing that fees for appraisers generally are around $250 - $350. The Buyer was struggling with this amount because it had to be paid upfront of course.
A call to the lender, and we discovered what was printed in today's newspaper: it's an additional fee on top of the appraisal. What did the actual appraiser get of this $525.00 fee? $195.00. Who got most of the fee? The lender.
Can a Buyer challenge the fee? You bet! If there is no service for that additional fee - why pay for it? I would encourage Buyers to insist that their lender clearly define who gets the fees and why. It's a matter of principle because none of us want to over-pay for anything - and appraisals should be no different!
Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!
This blog is written with my opinions and my opinions are presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions. Gabrielle Kamahele Rhind - 2011. If you want to reprint parts of this - just email me for my permission: TucsonsRealEstate@gmail.com.
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