Thank you , Homebuyer:
The appraisal fee is paid for by the buyer. The fee varies widely. One of the important factors in the amount of the fee is the complexity of the appraisal assignment itself. An appraisal assignment for a single family tract built house in San Jose is generally considered to be a relatively simple appraisal assignment. In contrast, an appraisal assignment for a Mansion in Hillsborough on a 5 Acre Estate is generally considered to be a relatively Complex Appraisal Assignment. the appraisal fees for the Mansion in Hillsborough will be far more.
I will limit my discussion to relatively simple appraisal assignments for tract built single family homes in San Jose.
Appraisals are now ordered through Appraisal Management Companies. Essentially the Appraisal Management Company adds to the cost of the Appraisal because the Appraisal Management Companies expect to make money too, and keep part of the Appraiser's fee for themselves.
For a relatively simple appraisal for a single family tract house, I have seen fees as low as $300 to as high as $600 to the Appraisal Management Company.
I have talked with appraisers who say that they were paid as low as $150 by an Appraisal Management Company that charged $600 for the appraisal, paid the appraiser $150, and kept the other $450 for themselves . I have talked with other appraisers who say they are paid $350 to $450 for a relatively simple appraisal for a single family tract house.
It appears to me that the Appraisal Management Companies who were supposed to be a solution to the problem of poor quality appraisals, have instead become part of the problem, by selecting, in some cases the lowest quality, and lowest level of competence appraisers who are willing to work for very low fees, which permits the Appraisal Management Company to keep more of the appraisal fee for themselves.
Unfortunately, it appears to me that we have a long way to go to make effective resolution to the problems of the current lending crisis.
Essentially, the buyer is expected to pay the appraisal fee, and appraisal fees vary widely depending upon which Appraisal Management Company the lender is using.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: email@example.com