Home Buying in Wylie>Question Details

Kristina De…,  in Irving, TX

I previously posted the question, "In the DFW area, who generally pays for the home appraisal, the seller or the buyer?" I have added more

Asked by Kristina De La Rosa, Irving, TX Tue Sep 8, 2009

details. In my case, the seller agreed to pay all closing costs; this would include the appraisal. When I switched lenders, I gave lender #2 a copy of the appraisal & invoice that was given to me by lender #1 & asked my broker that she make sure teh appraiser on file got paid. We have now closed on our home & lender #2 did not include the appraisal in the closing costs & wants us to pay for it. They say they misunderstood & thought I had already pd. for it which is why they didn't include it in the closing fees. Before switching to this lender I asked them very directly if my contract terms would remain the same as with lender #1 & they assured me that it would other than the lower interest rate they were offering us. Thoughts/suggestions?

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It is highly unusual for the appraiser not to be paid at the time of appraisal. So, it is actually not surprising that lender 2 thought it was paid already. However, there is normally a re-write fee to transfer an appraisal from lender 1 to 2, unless it is FHA.

Your Realtor should have advised you to submit the invoice and should have taken care of this for you. What did she advise you?

The item needed to appear on the settlement statement and paid by someone. The invoice belonged with the escrow officer, not the loan officer. Your Realtor would know this. Normally, this would be a buyer expense, but per contract as you explained, it would have appeared as a seller expense.
2 votes Thank Flag Link Tue Sep 8, 2009
It sounds like an honest mistake by the lender. Appraisers get paid at the time they render their services because if you close on the house or not, they MUST get paid. Their job is done.

The same thing as a home inspector. Did you pay them at the time of the inspection?

It's only $350-$450. You need to pay it. If you don't, the appraiser can put a lien on your house and that would cost you a lot more to remove it in the future.


p.s. Where was your Realtor in all this?
Web Reference: http://www.SumnerRealty.com
1 vote Thank Flag Link Tue Sep 8, 2009
I am not certain that this question can be properly answered with the information available. First of all, what is written and agreed to in your contract that resulted from the acceptance of your offer? Is the phrase ""all closing costs" defined, and if so, what is the definition of said phrase. If it is as open ended as it might possibly be, would you expect the buyer to pay additional points to buy down your mortgage interest, just to save you some money? What about taxes and fees? Are they to be pro-rated, or simply a line item on a closing schedule. And these are simply the first of many, and more complex issues that could possibly result in the deal falling through at a critical juncture in the process, or protracted litigation, liens and attachments, judgments, etc. having been filed prior to closing which could cause the lender to simply refuse to fund the loan. A good starting point might be to find out who selected, & retained the specific appraiser, and what the agreement between the parties. If nothing else works, and you really do want to close on the house you really only have three (3) functional means of resolving this dispute, by agreement (with or without the assistance of a mediator, while I no longer practice in TX, or at all for that matter, at least for now as I enjoy being retired), Arbitration, or simply paying for the appraisal fee yourself, and consider it to be "Tuition" in the University of Life. Of course, depending upon the relationship between the appraiser and the lender, there may be an additional resolution to your issues, these two (2) parties may have a long-standing, and profitable business relationship that makes it more important for them to reach a resolution that is mutually satisfactory, and relieves you of any such liabilities. There are probably many others, however, since you have not retained my services, nor has any fiduciary responsibility, or client relationship implied, or to be inferred, so I shall just give you the generalities and broad descriptions of what might occur. Good luck.
0 votes Thank Flag Link Wed Aug 12, 2015
"Everything" is negotiable ;-) and it's up to your Realtor to negotiate the best terms for you.
To answer your question, the "norm" is for the buyer to pay for their own appraisal.

-Amy S. Arey, Realtor
Halo Group Realty, LLC
0 votes Thank Flag Link Mon Feb 9, 2015
Unfortunately, depending upon the contractual obligations between Ms. DeLa Rosa and any participating realtor, said realtor may have a legal, fiduciary responsibility to the seller, and not the buy her, and could become in even larger and more complex litigation with multiple parties. At some point before ethical and legal issues become even more complex, it may be time for the broker/licensee or the E&O carrier to begin to become involved. At times the presence of a third party without any personal issues to defend, and perhaps even an incentive to see this come to an end (after all, unless it closes, no one gets paid from non-existent commissions that do not accrue).
Flag Wed Aug 12, 2015
Till all paperwork is reviewed matter of he said she said. No one can render an opinion. Buyer always pays for appraisal usually up front prior work taking place. Unconfirmed if closing costs were if exceeded all expenses seller pay costs up to $5K

Have your buyers agent or mortgage broker resolve all these issues

National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Thu Sep 10, 2009
How is the contract worded? Typically there is a flat fee amount for closing costs. If buyer goes under that amount, there is no refund. If buyer goes over that amount the buyer would be responsible for the difference. This is on the standard 1-4 family TREC contract.

Typically I would say appraisal is a buyer expense, but you could of course work this into the agreed flat amount that the seller would pay.

In the end I hope you will pay the appraiser. You got the appraisal and this is a normal buyer expense, most often paid for directly by the buyer before the appraisal is even done. I'm actually surprised you got a copy of it without having first paid for it. You are the one who benefitted from the appraisal being done...without it you could not have gotten a loan or the house. I can see where the misunderstandings happenned on all sides of the issues, from your point of view, from the lender's and from the appraiser. The lender in most cases would not have paid for it, but would have charged it back to you or collected fees up front.

My guess is if the appraiser took the claim to small claims court they would probably win the case against you and potentially be able to put a lien on your home for the amount and court costs. It's probably not worth that fight or hassle and probably just easier to pay them.
0 votes Thank Flag Link Tue Sep 8, 2009
Bruce Lynn, Real Estate Pro in Coppell, TX

Two points for future use, one is always use a good real estate consultant, who will protect your interests throughout the process, and two is always get a written Good Faith Estimate.

Best Wishes!
Nicole Arenas, Real Estate Consultant
Realtor, WDR
0 votes Thank Flag Link Tue Sep 8, 2009
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