Appraisal Law Change for Arizona

Appraisal Law Change for Arizona

Recently the state of Arizona passed a law requiring all appraisers to specifically note their compensation fee for real estate appraisals within the body of the appraisal report itself. This law only went into effect in Arizona; appraisals that are done for properties outside of the state will not be affected.   Due to this requirement, all appraisers working within the state of Arizona will be adding their cost to appraisals with an explanation that details 1) what their specific compensation is and 2) that the remainder of the fee has been retained by the appraisal management company.

Why you need know this is you will now see on the appraisal what the individual doing the appraisal gets paid and what the difference is that goes to the AMC - for hiring, insuring, managing, and verifying the appraisals.  So when the consumer see a lower fee for example paid to the appraiser of $300, that is not the cost of the appraisal the cost of the appraisal is say the total which may be $450*.  The AMC can't drop its fee to "help out a borrower".  The law was introduced to ensure full disclosure of who is doing what and for how much.

Hope this helps prevent any confusion upfront

Any other questions please call me at 602-361-0707 or to be kept ahead of all changes like this please go to www.facebook.com/markgtaylor and hit like.

*figures are for example only and may not represent actual compensation splits or cost for an appraisal.

Thanks so much for stopping by and reading my blog: Appraisal Law Change for Arizona