Paying Appraisers – Who Gets the Cash?

The new Consumer Financial Protection Bureau is currently reviewing appraisal charges.  While these fees seem fairly standard, the truth about who exactly gets the money is somewhat murky to homebuyers. In addition, I have seen appraisal fees range from $350 to $1000. That is a very wide gap. What is reasonable?

According to industry estimates, in most cases, the person who visits, inspects, measures and puts a market value on your property is receiving only a small portion of the fee you pay.  Some appraisers get less than half of the fee and the rest goes to an appraisal management company, who in turn, may be owned by or in a joint venture or affiliate relationship with your lender; which may be pocketing a significant portion of your appraisal dollars.

The CFPB is deciding whether or not to mandate two new disclosures – what the appraiser is paid and what the management company is taking. It would be very interesting to know and why the discrepancy in the fees as well!

About Suzanne O'Brien

The role of a real estate agent is to guide you through the buying and/or selling process and take the time to make sure you understand every step of the transaction. I am absolutely committed to fulfilling your needs with the highest level of professionalism, expertise and service. My commitment to listening and satisfying your needs are the foundation from which a solid business relationship is built. I realize that people do business with people they trust. I am interested in what is best for you, the client, and am committed to establishing a long-term relationship based on trust. In addition, real estate is often times very personal, about family and home and pride myself in developing relationships that now call clients my friends. I pride myself on being knowledgeable and staying current with the fast pace changes in the industry. I approach each clients’ needs individually and am constantly aware of current and upcoming inventory. My creative approach to the business has earned me wonderful associations with both clients and other real estate professionals. I am always working for you…I feel the responsibility to make your dreams a reality…one move at a time.
This entry was posted in Advice On Home Ownership, Baby Boomers, Finance, Home Buying/Selling, Uncategorized. Bookmark the permalink.

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