Appraiser Fees

[Ray Miller]

I am buying a couple of parcels of land that just came on the market this week next to my home. One is a 6.87 acre parcel and the other is 4 acre parcel.

Applied to my bank for a loan. They sent the paper work which I am filling out tonight. I am to forward them a check for the following: An appraisal fee of 125.00 for each parcel. Appraisals to be done by two indepdent fee appraisers selected by the bank. Credit report fee of $17.00. Flood determination fee for each parcel of $15.00 each to be done by an indepedent flood specialest.

How can appraiser work for such low fees?

 

[Anthem]

The bank is most likely not charging you the fee that will paid. I know that in most cases that bank that I work for ( BOA ) doesn't charge the actual fee. The larger banks are trying to charge less and less to stay competitive.

 

[Anthem]

P.S.

Are you purchasing the Parcels so that no one when buy and build next to you????

 

[Dave Fitch]

$125 fee is probably for an AVM (electronic appraisal), or a BPO (broker's opinion). Why order an actual appraisal when these are so much cheaper :lol:
Had a broker's opinion on a rental house I own a few years back. Had to have a walk-thru inspection, because it was non-owner occupied. Notified the tenant about this, and that I would be the one to walk the person thru, no problem. Met a guy who had the tax print-out for 504 EAST such and such street, I own 504 WEST such and such street. (He had the wrong house info). He also had three sales with him. I asked to see what he had. The subject is a frame 1,100 s.f.+/-, one story dwelling, in town on a 60' x 120' lot. His sales were a 2,400 s.f. +/- two story FNMA repo in terrible condition (I had looked at this one myself as a possible investment), selling for $65,000. Another sale was a 900 s.f. +/- brick ranch on an acre lot outside of town selling for $110,000. And a third sale that didn't compare at all either. He informed me that it was his wife that was actually the broker, and that he helped her out when she was busy. When I got back to my office I checked his name, and could not find were he was even a licensed real estate salesmen or real estate broker. I gave the bank my estimate of value to be approximately $80,000, and the broker opinion came in at $81,563 listing only the three above addresses and sale prices (no adjustments, no explanation, nothing). Whole thing is a scam, but no one (especially the bank) cares. Sad but true story. Fee was just $65!!! I got the loan, and really felt hoodwinked, but decided not to complain about it, like trying to sue city hall Nobody really cares, as long as the loan closes. :blink:

 

[Anthem]

AVM???????? More LIke $25.

But yes depending on credit banks usually start with an AVM then upgraded as needed due to value and the LTV. But I am pretty sure that with vacant land it is going to be a full appraisal.

 

[Ray Miller]

Are you purchasing the Parcels so that no one when buy and build next to you????

Yes and we are going to put 5 Amish Cabins 1 room cabins in and a horse corral at each cabin. Rent these out to horse owners that want to come up and spend a couple of days or so riding the DNR public land that is next to us and across the road from us with there own horses. The boss figures she can get 50 dollars a night plus fire wood cost for each one. They bring everything else they need, bedrolls to put on the rope bunkbeds. Rustic trail ride.

 

[Carnivore]

Originally posted by Preston Chase@Dec 28 2005, 11:46 PM
AVM???????? More LIke $25.

But yes depending on credit banks usually start with an AVM then upgraded as needed due to value and the LTV. But I am pretty sure that with vacant land it is going to be a full appraisal.

Preston,

How would you respond(knowing an AVM or BPO was used) if I as a consumer ask for my copy of the appraisal report you charged me for as required by Law .

See attached

 

[DTB]

Originally posted by Dave Fitch@Dec 28 2005, 10:37 PM
$125 fee is probably for an AVM (electronic appraisal), or a BPO (broker's opinion). Why order an actual appraisal when these are so much cheaper :lol:
Had a broker's opinion on a rental house I own a few years back. Had to have a walk-thru inspection, because it was non-owner occupied. Notified the tenant about this, and that I would be the one to walk the person thru, no problem. Met a guy who had the tax print-out for 504 EAST such and such street, I own 504 WEST such and such street. (He had the wrong house info). He also had three sales with him. I asked to see what he had. The subject is a frame 1,100 s.f.+/-, one story dwelling, in town on a 60' x 120' lot. His sales were a 2,400 s.f. +/- two story FNMA repo in terrible condition (I had looked at this one myself as a possible investment), selling for $65,000. Another sale was a 900 s.f. +/- brick ranch on an acre lot outside of town selling for $110,000. And a third sale that didn't compare at all either. He informed me that it was his wife that was actually the broker, and that he helped her out when she was busy. When I got back to my office I checked his name, and could not find were he was even a licensed real estate salesmen or real estate broker. I gave the bank my estimate of value to be approximately $80,000, and the broker opinion came in at $81,563 listing only the three above addresses and sale prices (no adjustments, no explanation, nothing). Whole thing is a scam, but no one (especially the bank) cares. Sad but true story. Fee was just $65!!! I got the loan, and really felt hoodwinked, but decided not to complain about it, like trying to sue city hall Nobody really cares, as long as the loan closes. :blink:

I see this a lot in rural areas where I have a lake house. Went to an auction a few years ago. SFR w/ 7 lots. Somehow this guy was refied for 75K, house was worth maybe 1/2 that.

He used the 75K to pay bils and the mortgage payment. He up and dies, leaving someone in Texas holding the bag. 2 of us show up for the auction, the other guy's a browser. I wound up " taking it off their hands" for 1,700.00, I kid you not.

It's all part of the game and sometimes the breaks go your way.

 

[Mountain Man]

Like Preston said, chances are the lender is covering it, typical in equi-lines, or included it in the cost and APR. I've closed many loans with no appraisal fee at all, and I don't worry about what the appraiser is being paid. In my experience, the ones underselling their business are usually starving newbies.