Just What Are Those Appraisal Charges?

by Isaac Benmergui, Esq on February 15, 2012

If you ask for an appraisal on your house, the fee can cost a few hundred dollars. The appraiser (the person who actually shows up and does the walk through) receives only about half of that amount. So who gets the rest and why?

The new Consumer Financial Protection Bureau wants to know as well, as it’s currently working on changing a few rules and regulations about the appraisal process. Primarily, it wants better disclosure of all the fees the homebuyers, seller and refinancers have to pay. The Bureau has found that half an appraisal fee often goes to an appraisal management company that acts as a referral service for the appraiser. Your lending company might have a “business arrangement” with that company and be taking a fee.

Although typically there’s a flat fee for an appraisal on a real estate transaction, 70 percent of consumer reported that the fee was higher at closing then they were previously told. Appraisers are reporting they are receiving 40 to 50 percent less than they were previously paid.

Getting Legal Help

The law offices of Isaac Benmergui can help ensure you aren’t paying more for your appraisal than is fair and will assist you with all your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

 

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